Stocks Advance as Oil Drops: what did demolibs talk about hoover depression in 2004 ???
By REUTERS
Published: August 15, 2005
Filed at 6:00 p.m. ET
NEW YORK (Reuters) - U.S. stocks rose on Monday, with investors finding reasons to buy equities as oil prices receded from a record high above $67 and data showed the U.S. economy appears to be on solid footing.
Skip to next paragraph Shares of Apple Computer Inc. (AAPL.O) and Time Warner Inc. (TWX.N) helped drive the broad Standard & Poor's 500 index (.SPX) higher.
Light, sweet crude for September delivery fell 59 cents to settle at $66.27 a barrel on NYMEX.
The Dow Jones industrial average (.DJI) gained 34.07 points, or 0.32 percent, to end at 10,634.38. The S&P 500 gained 3.48 points, or 0.28 percent, to finish at 1,233.87. The technology-laced Nasdaq Composite Index (.IXIC) rose 10.14 points, or 0.47 percent, to close at 2,167.04.
``It's a relief reaction,'' said Jim Awad, chairman of Awad Asset Management, in New York. ``You had a modest reflex reaction to the fact that oil was down.''
The easing in oil prices came after a week in which NYMEX crude futures hit new highs each day, culminating with a record high at $67.10 on Friday. High oil prices are typically a negative for stocks since they drive up many corporate costs and eat into consumers' discretionary spending.
Analysts said they expect stock investors to keep a close eye on oil prices for the rest of the week.
``We're going to be very sensitive to oil, without a doubt,'' said Scott Wren, senior equity strategist at A.G. Edwards & Sons, of St. Louis.
Oil has been the biggest negative variable investors have been facing, he noted.
``There's been a lot of good economic news, inflation is low,'' Wren said. ``The market wants to go up.''
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