Stocks move up for first time in 3 days
NEW YORK — Stocks rose Thursday for the first time in three days as a rebound in oil from a 16-month low bolstered speculation that the global economic slump won’t worsen.
Exxon Mobil Corp. and Chevron Corp. rallied more than 8 percent on expectations OPEC will trim output to stem a slide in crude prices. The Dow Jones industrial average recovered from a 276-point drop that sent it below its lowest close since April 2003 as Boeing Co. and AT&T Inc. climbed more than 6 percent. Amgen Inc., the world’s largest biotechnology company, jumped 12 percent on profit that rose fivefold and its forecast.
The Standard & Poor’s 500 index rebounded from a 5 1/2 -year low, gaining 11.33 points, or 1.3 percent, to 908.11. The Dow rose 172.04, or 2 percent, to 8,691.25. The Nasdaq composite index slipped 11.84 to 1,603.91.
The earlier retreat in stocks was led by financial and consumer shares after house foreclosures surged to a record and the credit crisis hammered earnings at asset-management and real estate companies.
An index of emerging-market stocks slid 3.7 percent Thursday, and developing nations’ borrowing costs neared a six-year high.
Exxon Mobil added $5.82 to $70.39. Chevron advanced $5.03 to $66.77.
Crude oil for December delivery rose 1.6 percent to settle at $67.84 a barrel on the New York Mercantile Exchange, then climbed to $69.20 in after-hours electronic trading.
National Oilwell Varco Inc., the biggest U.S. maker of oilfield equipment, climbed 9.4 percent to $26.78 after its profit increased 50 percent.
Dow Chemical Co., the largest U.S. chemical company, added 10 percent to $24.43 as earnings beat projections free credit report without a credit card.
Amgen gained $5.85 to $55.55 for the biggest advance in the S&P 500.
Citrix Systems Inc. climbed 11 percent to $22.12.
The S&P 500 has moved more than 1 percent on 14 of the 17 trading days this month, making it the most volatile by that measure since September 1932.
MGIC Investment Corp. slumped 35 percent to $2.71 for the biggest drop in the S&P 500. The company eliminated its dividend Thursday after five quarters of losses.
Goldman Sachs Group Inc. was the biggest drag on financials, falling 5.3 percent to $108.58.
Pulte Homes Inc. retreated 18 percent to $8.11 and led a gauge of 15 house builders to a seven-year low.
Banks and builders also retreated as a report showed house foreclosures climbed 71 percent in the third quarter.
An S&P index of money managers slid with 14 of 16 of its companies declining after two investment management firms reported lower earnings.
Franklin Resources Inc., manager of the Franklin and Templeton mutual funds, tumbled 10 percent to $55.74 after fiscal fourth-quarter earnings fell 30 percent. Janus Capital Group Inc. lost 17 percent to $8.61 after a 49 percent decline in third-quarter earnings.
Coca-Cola Enterprises Inc. fell 18 percent to $9. The world’s largest soft-drink distributor lowered its profit forecast for the year after third-quarter sales in North America fell. Coca-Cola Co., which owns 35 percent of Coca-Cola Enterprises, was the biggest drag on the Dow, falling 5.1 percent to $43.06.
Filed under: money by Specialist