Stocks finish higher on falling oil
A continued slide in oil prices gave Wall Street a moderate advance Friday, with earnings from Dell Inc. and a labor deal at General Motors Corp. feeding the gains. The major indexes ended the week more than 1 percent higher, their third straight winning week.
Volume was light with the Treasury market closed for Veterans’ Day and many traders taking the day off. Friday’s advance was fueled by momentum from three weeks of strong gains, said Jay Suskind, head trader at Ryan, Beck & Co.
“I think it’s going to be tough to draw conclusions because of the lack of participation,” Suskind said. “Next week, you’ll start to hear about technical levels of the indices. People will be wondering, ‘Can we break through and really continue this year-end rally?”’
Suskind added that lower oil is improving the consumer picture ahead of the critical holiday shopping season. A recent slide in crude futures has eased worries that record gas prices will eat into household income and weigh on year-end retail spending.
Meanwhile, technology stocks moved higher as Dell’s lackluster results were not as bad as feared, and media conglomerate News Corp. rose after its operating profit — before a hefty accounting charge — beat analysts’ estimates.
The Dow Jones industrial average gained 45.94, or 0.43 percent, to 10,686.04, its highest close since Aug. 3. The Dow added more than 93 points in the previous session.
Broader stock indicators were also higher. The Standard & Poor’s 500 index was up 3.76, or 0.31 percent, at 1,234.72, and the Nasdaq composite index climbed 5.79, or 0.26 percent, to 2,202.47.
The U.S. government bond market was closed for the holiday. On Thursday, a record Treasury auction carried bonds sharply higher after falling to eight-month lows last week. The dollar was mixed against other major currencies, and gold prices inched upward.
Crude oil has dropped to its lowest levels since summer following recent reports of expanding supplies and weaker demand. A barrel of light crude was down 27 cents to settle at $57.53 on the New York Mercantile Exchange.
Wall Street posted a third straight week of sturdy gains despite a shortage of economic or earnings data to guide investors. But next week brings key monthly reports on inflation, retail sales and industrial activity, as well as earnings from Wal-Mart Stores Inc., Hewlett-Packard Co. and Tyco International Ltd. Traders will be watching closely for any signs of where the market might be headed.
For the week, the Dow advanced 1.47 percent, the S&P 500 added 1.19 percent and the Nasdaq was higher by 1.52 percent.
Declining issues led advancers for most of the session, but advancers overtook decliners by 9 to 7 on the New York Stock Exchange. NYSE volume of 1.29 billion shares lagged the 1.75 billion shares traded on Thursday.
The Russell 2000 index of smaller companies rose 1.73, or 0.26 percent, to 666.66.
Overseas, Japan’s Nikkei stock average advanced 0.53 percent. Britain’s FTSE 100 rose 0.77 percent, Germany’s DAX index added 1.50 percent, and France’s CAC-40 was higher by 1.27 percent.