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U.S. stocks mixed on surging oil

U.S. stocks mixed on surging oil

U.S. stocks closed mixed Thursday as soaring oil prices stoked inflation concerns but lifted oil majors and investors worried about the financial sector.
The Dow Jones Ind. Average rose 12.78 points (0.11 percent) to finish the session at 11,430.21, while the tech-heavy Nasdaq composite fell 8.70 points (0.36 percent) to 2,380.38. The broad-market Standard & Poor's 500 index advanced 3.18 points (0.25 percent) to close at 1,277.72. Crude oil prices, which had lost more than US$35 a barrel in the past month, closed over US$5 higher.
ExxonMobil, the largest Dow component, powered 1.95 percent higher to US$80.35. Rival Chevron rose 2.38 percent to 88.52. Shares in the ailing mortgage finance giants Fannie Mae and Freddie Mac, which had plunged Wednesday to nearly a 20-year low, found favor. Fannie shot up 10.23 percent to US$4.85 and Freddie pared losses to a decline of 2.15 percent, to US$3.16. The beleaguered government-sponsored Enter., which underpin roughly 40 percent of U.S. home loans, are rumored to be in line for a government bailout.
"It appears that more time or resolution to the two company's problems may be needed before stocks can resume their uptrend," said Al Goldman, analyst at Wachovia Securities. "Fannie and Freddie worries and rumors about Lehman and a pulled credit line seem to be sending money back out of the financials and back into commodities," said Phil Flynn at Alaron Trading. "Now we all have to wonder once again just how bad this credit crisis will get and which bank is going to be the next one that comes tumbling down."
Mark Pado at Cantor Fitzgerald noted the market's "very positive" resiliency. "We were able to take on all these concerns over Freddie and Fannie and Lehman Brothers, and we have the market which rallied back from its lows," he said. He said the market was concluding "that as bad as things are in the financials, in the economy things are not as bad as the financials make it seem."


Updated : 2021-05-16 08:50 GMT+08:00