June 25, 2005 in Business

Dow tumbles over concerns about oil

Associated Press
 

NEW YORK — Rising oil prices plagued Wall Street on Friday, sending the Dow Jones industrial average to its second straight 100-point-plus loss amid concerns that rising energy costs will soon eat into corporate profits.

The Dow fell 123.60, or 1.19 percent, to 10,297.84, after plunging more than 166 points the previous session. The broader gauges were down as well: The Standard & Poor’s 500 index dropped 9.16, or 0.76 percent, to 1,191.57, and the Nasdaq lost 17.39, or 0.84 percent, to 2,053.27.

The drop came despite decent economic news: The Commerce Department reported a 5.5 percent rise in orders to U.S. factories for big-ticket manufactured goods last month, though much of that was due to a surge in demand for commercial aircraft.

Analysts said that data was more than offset by the market’s focus on oil. Crude oil futures were up 42 cents at $59.84 per barrel on the New York Mercantile Exchange, one day after oil prices surged past the $60-per-barrel level for a new intraday high.

“The crude situation is a big concern right now,” said Brian Williamson, an equity trader at The Boston Company Asset Management. “People aren’t really looking at the economic numbers.”

All three indexes finished the week substantially lower, ending the market’s recent rally. For the week, the Dow lost 3.06 percent, the S&P fell 2.09 percent, and the Nasdaq dropped 1.76 percent.

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