U.S. stocks rise as energy shares stage rebound Monday, September 18, 2006
NEW YORK, Sept 18- U.S. stocks gained on Monday as oil prices rebounded from last week's sell-off, lifting energy company shares, and investors were optimistic the Federal Reserve will keep interest rates steady.
Crude prices rose nearly 1 percent to $63.95 a barrel after suffering their steepest slump in more than a decade last week.
Exxon Mobil Corp was up 2 percent to $65.98 while oil field services provider Schlumberger Ltd. gained 2.7 percent to $57.81.
"Energy's bouncing after the short correction that we saw last week. There's still some downside risk to energy stocks in the weeks to come, but there's some energy stocks that are oversold," said Sam Rahman, portfolio manager at Baring Asset Management Inc. in Boston.
The Dow Jones industrial average <.DJI> was up 22.89 points, or 0.20 percent, at 11,583.66. The Standard & Poor's 500 Index <.SPX> was up 4.33 points, or 0.33 percent, at 1,324.20. The Nasdaq Composite Index <.IXIC> was up 10.80 points, or 0.48 percent, at 2,246.39.
Gains in the microchip industry helped to keep the Nasdaq on the positive side. Freescale Semiconductor Inc. rose 5.7 percent to $39.28. The chip maker said on Friday it agreed to be bought for $17.6 billion by a private equity consortium. [ID:nN15193123]
Applied Materials Inc. shares climbed 2.9 percent to $17.69, after the supplier of chip making tools said it bought $2.5 billion worth of its own stock in an accelerated stock repurchase program. [ID:nWNAS7183]
Semiconductor maker Intel Corp. rose despite a brokerage downgrade. Intel shares added 0.7 percent to $19.65.
Trading was light as many investors were reluctant to place big bets before the Federal Reserve's policy meeting on Wednesday, traders said. Stocks ended a strong week on Friday, closing near their 2006 highs. The Nasdaq closed higher for a sixth consecutive session.
Home Depot Inc., the biggest drag on the Dow, fell 1.8 percent to $36.55 after Credit Suisse lowered its rating on the largest home improvement retailer and cut its price target to $37 from $40. [ID:nBNG153909].
Shares of Ford Motor Co. fell more than 2 percent to $7.83 after the company was downgraded by Thomas Weisel Partners. Ford had risen in electronic trading before the market's open on a report in industry newspaper Automotive News that senior executives at Ford and General Motors Corp. discussed a merger or alliance. [ID:nN18229034]. General Motors slid 0.6 percent to $31.48.
Weakness in housing has increased concern about a slowdown in consumer spending, so investors will scrutinize the National Association of Home Builders Index for September, which will be released at 1 p.m. (1700 GMT). Economists on average expect a decline to 31 from 32.
Crude prices
Exxon Mobil Corp
"Energy's bouncing after the short correction that we saw last week. There's still some downside risk to energy stocks in the weeks to come, but there's some energy stocks that are oversold," said Sam Rahman, portfolio manager at Baring Asset Management Inc. in Boston.
The Dow Jones industrial average <.DJI> was up 22.89 points, or 0.20 percent, at 11,583.66. The Standard & Poor's 500 Index <.SPX> was up 4.33 points, or 0.33 percent, at 1,324.20. The Nasdaq Composite Index <.IXIC> was up 10.80 points, or 0.48 percent, at 2,246.39.
Gains in the microchip industry helped to keep the Nasdaq on the positive side. Freescale Semiconductor Inc.
Applied Materials Inc.
Semiconductor maker Intel Corp.
Trading was light as many investors were reluctant to place big bets before the Federal Reserve's policy meeting on Wednesday, traders said. Stocks ended a strong week on Friday, closing near their 2006 highs. The Nasdaq closed higher for a sixth consecutive session.
Home Depot Inc.
Shares of Ford Motor Co.
Weakness in housing has increased concern about a slowdown in consumer spending, so investors will scrutinize the National Association of Home Builders Index for September, which will be released at 1 p.m. (1700 GMT). Economists on average expect a decline to 31 from 32.
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