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US stocks mixed as crude prices back off last week's surge, pending home sales rise

US stocks mixed as crude prices back off last week's surge, pending home sales rise

Wall Street traded mixed Monday as a pullback in oil prices encouraged investors to search for bargain stocks after last week's hefty losses. Blue chips were the big winners, while risky stocks extended their declines.
Though crude prices dipped below $137 a barrel on the New York Mercantile Exchange, investors' economic worries are far from alleviated. With crude still hovering near record levels, the big concern for the stock market is that consumers' energy bills will keep rising, and lead them to further pare back their spending on other items.
"Oil's in the stratosphere here," said Anthony Conroy, managing director and head trader for BNY ConvergEx Group. Soaring energy prices and a huge jump in the unemployment rate on Friday sent the Dow Jones industrial average plunging nearly 400 points.
Also giving Wall Street pause Monday was Lehman Brothers Holdings Inc., which said Monday it plans to raise $6 billion in new capital after posting an unexpectedly large quarterly loss of $2.8 billion.
"The financials are a key factor in today's market. It almost seems we're stuck in this range, trying to figure out when the end of this whole financial crisis is over," Conroy said. With the economic outlook unclear, investors leaned toward buying the stocks of large companies, he said. Blue-chip stocks tend to be more stable when the economy is weak.
The Dow also got a lift from robust data on pending home sales and McDonald's sales. The National Association of Realtors said pending sales of existing homes rose more than 6 percent in April to the highest level since October, while the world's largest hamburger chain said global sales at locations open at least a year rose 7.7 percent in May.
The Dow added 74.42, or 0.61 percent, to 12,284.23 after Friday's rout, which was the worst tumble on Wall Street in 15 months. The blue chip index at times rose more than 100 points Monday.
Broader stock indicators were mixed. The Standard & Poor's 500 index rose 3.84, or 0.28 percent, to 1,364.52, while the Nasdaq composite index fell 20.21, or 0.82 percent, to 2,454.35.
Bond prices fell on the better-than-expected housing data, as well as ongoing jitters about inflation. The yield on the benchmark 10-year Treasury note, which moves opposite its price, was rose to 4.02 percent from 3.91 percent late Friday.
Apple Inc. weighed on the technology-dominated Nasdaq, falling $3.60, or nearly 2 percent, to $182.04, ahead of an expected introduction of the new iPhone at a conference Monday.
Lehman shares fell $2.84, or 8.8 percent, to $29.45, after reporting its first quarterly loss since spinning off from American Express Co. in 1994.
McDonald's, one of the 30 components of the Dow, rose $2.14, or 3.8 percent, to $59.09.
The dollar rose against most other major currencies, while gold prices rose.
Declining issues outnumbered advancers by a slim margin on the New York Stock Exchange, where volume amounted to 460.7 million shares.
The Russell 2000 index of smaller companies fell 2.23, or 0.30 percent, to 738.14.
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On the Net:
http://www.nyse.com
http://www.nasdaq.com


Updated : 2021-05-06 13:02 GMT+08:00