To: DebtBomb who wrote (123791 ) 5/18/2008 2:41:50 PM From: Jim McMannis Respond to of 306849 Investors gird for higher oil, glummer housing datamiamiherald.com NEW YORK -- The rising price of oil isn't just swelling Americans' energy bills - it's also holding back their stock portfolios. Wall Street got some seemingly auspicious signs last week about home construction and consumer level inflation. But with oil climbing to new records, and more reports expected this week on rising prices and the housing market, investors are holding on to a conservative stance. Oil's stubborn trek to record highs is a major reason why investors have yet to push the major indexes into positive territory for the year. Just this month, crude has so far tacked on about $13 to breach $127 a barrel, while the price of a gallon of gasoline for the average U.S. driver has soared 17 cents to nearly $3.79. Those price surges cast an air of skepticism over last week's report from the Labor Department showing a modest 0.2 percent uptick in consumer prices in April. Meanwhile, the Commerce Department's upbeat report on housing starts also met with some doubt among investors, particularly because the huge rise was due mostly to apartment construction, which can vary widely from month to month. "So are we at an inflection point in housing right now? Very possibly. But let's be clear here. Nothing in the data suggests we're about to see a sharp rebound," wrote Bernard Baumohl of the Economic Outlook Group LLC in a research note. Still the market, betting that better times are not that far off, finished the week with a solid advance. The Dow Jones industrial average rose 1.89 percent, while the Standard & Poor's 500 index gained 2.67 percent and the Nasdaq composite index picked up 3.41 percent.