Stocks Manage Small Gains

By PETER A. MCKAY And GEOFFREY ROGOW Stocks and commodities ended with slight gains Tuesday as several corporate and economic announcements kept intact investors' faith that borrowing costs will remain low in the U.S. Home Depot issued a disappointing outlook for its fourth quarter. New big-picture data on industrial production, wholesale-level inflation, retail sales, and sentiment among home builders were all weaker than expected. Traders lately have tended to see a silver lining in such news, interpreting reports that seem glum at first glance as further incentives for the Federal Reserve to keep its key rate target near zero well into 2010. "These numbers haven't been that good, but they're not really going backwards," said strategist Howard Simons, of Bianco Research in Chicago. "For the market, that's all that matters. Unless I see some real backsliding in the economy, I can't say I see an end to the bulls' story yet." Major stock indexes seesawed between gains and losses throughout the session before ending with modest gains at the bell. The Dow Jones Industrial Average was up 30.46 points, or 0.3%, at 10437.42, a fresh 13-month high. The Nasdaq Composite Index was up 0.3%. The S&P 500 was up 0.1%, helped by gains in its basic-materials and technology sectors. It was held in check by a 0.7% decline in its consumer-discretionary sector, which in turn was hurt by a 2.4% slide in Home Depot after the retailer issued a cautious outlook for the coming holiday season. Although the home-improvement chain posted a smaller-than-expected decline in fiscal third-quarter profit, its outlook for the fourth quarter came in below analysts' forecast. Oil prices rebounded from a morning selloff to post a second stra...
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Oil up again, settles above $79

Oil prices pushed higher for a second straight day on Tuesday even though the dollar strengthened and fresh economic data gave mixed signals on whether demand for oil will increase. Benchmark crude for December delivery rose 24 cents to settle at $79.14 a barrel in afternoon trading on the New York Mercantile Exchange.The euro dropped back below $1.49 on Tuesday after banking officials in Europe and the U.S. voiced support for the dollar.A falling dollar has helped drive oil prices after crude bottomed at $32 a barrel nearly a year ago. Because crude is traded in dollars, an investor can trade euros for dollars and then buy oil for a relative bargain.At the same time, industrial production for October rose less than expected, suggesting that the economic recovery -- and oil demand -- will continue to be bumpy.Even with Monday's strong gain, oil has traded in a range of $75 to $82 for the past several weeks.Demand for oil continues to be weak and supplies are more than ample, and that is keeping oil prices restrained as prices for other commodities, such as gold, continue to climb because of the weaker dollar, PFGBest analyst Phil Flynn said.Gasoline demand for the week ended Friday rose 2.1 percent from the depressed levels of a year ago when the financial crisis battered demand, according to the weekly MasterCard SpendingPulse report. Still, demand is 1 percent below 2007 levels.MasterCard's report is based on aggregate sales activity in the MasterCard payments network, coupled with estimates for all other payment forms, including cash and check.Traders also are waiting for the government's weekly oil inventory report on Wednesday. Analysts expect an increase in crude and gasoline stocks and a decline in distillates used to make heating oil and diesel fuel, according to a survey by Platts, the en...
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Stock market end mixed even as commodities gain

NEW YORK (AP) -- Stocks finished an erratic session mixed Tuesday as higher commodity prices lifted energy and materials shares. The meager advances were enough to push stocks to new 13-month highs, though more shares fell than rose at the New York Stock Exchange. The market had zigzagged for much of the day on mixed news from retailers and on industrial production.A rebound in the dollar after three down days kept investors' appetite for stocks in check. A long-term weakening trend in the dollar since March has been lifting commodities prices and shares of U.S. exporters, which benefit from stronger foreign demand for their goods when the dollar falls. Record-low U.S. interest rates have also driven investors to seek higher returns in stocks and commodities, pushing share prices higher.Higher oil prices lifted energy stocks, and trading volume remained light.Traders focused on retailers' earnings reports for insight into one of the market's biggest worries: how much consumers are spending. Home Depot Inc., Saks Inc. and Target Corp. all reported better-than-expected third-quarter results but also said they remain cautious ahead of the holiday shopping season."Despite the dramatic rally in the stock market, we still see the consumer operating at recessionary levels," said Uri Landesman, chief equity strategist and senior portfolio manager at ING Investment Management in New York.Better retail news pushed stocks higher Monday as a government report showed a rebound in overall sales in October. Investors are looking for signs that consumer spending, one of the biggest drivers of the U.S. economy, will recover during the holiday season.A report on industrial production weighed on the market. The Fed said output at the nation's factories, mines and utilities rose 0.1 percent in October, less than the 0.4 percent pr...
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