Wall Street closed a quiet session with a moderate advance Thursday, with energy and other commodities companies leading the market as oil prices extended their record-breaking run.
The price of crude oil swept past $124 a barrel in late New York Mercantile Exchange trading, while gasoline rose to another record of its own at the pump, climbing to a national average of nearly $3.65 a gallon.
Although the rising price of oil ignited concerns about inflation on Wednesday, knocking the Dow Jones industrial average down more than 200 points, stocks managed to hold on to their gains even as oil rose Thursday. Some of the big gainers were companies that would benefit most from high commodities prices — oil companies and metals producers like Alcoa Inc. — and they helped lift the major indexes.
Stocks also rose after retailers issued April sales results that, while not strong overall, were less gloomy than expected. The data suggested that high energy costs are leading consumers to alter their spending, and Wal-Mart Stores Inc. was one of the beneficiaries of that trend. But some apparel stores — whose merchandise falls into the category of discretionary items — again saw depressed sales as consumers budgeted more for gasoline and food.
Financial stocks were the worst performers of the day. Philip S. Dow, managing director of equity strategy at RBC Dain Rauscher in Minneapolis, said investors probably are still jittery about the sector, with continued concern about whether the companies have problems on their books beyond subprime mortgages.
“Our guess is that the worst is not over for the financials on a fundamentals basis,” he said.
The Dow rose 52.43, or 0.41 percent, to 12,866.78.
Broader stock indicators turned higher after fluctuating during the session. The Standard & Poor’s 500 index rose 5.11, or 0.37 percent, to 1,397.68, and the Nasdaq composite index rose 12.75, or 0.52 percent, to 2,451.24.
Mixed economic readings and lofty energy prices could keep the market in a holding pattern through the summer, said Janna Sampson, director of portfolio management at Oakbrook Investments.
“With oil high and continuing to go up, it’s going to be tough to get the market to have a sustainable rally,” she said.
Alfred E. Goldman, chief market strategist at Wachovia Securities, was a bit more optimistic, saying he estimates the economy is four months away from the end of an average-length recession, so the stock market should resume its climb again soon.
“Basically, the market is taking a timeout after the prior six weeks,” Goldman said.
Aluminum producer Alcoa rose $1.56, or 4.1 percent, to $39.65. Oil companies also gained: Exxon Mobil Corp. rose $1.11 to $89.93, while Chevron Corp. was up $2.16, or 2.3 percent, at $97.44.
Wal-Mart rose 33 cents to $57.16, but Target Corp. fell $1.10, or 2.1 percent, to $52.34 after saying its same-store sales rose in April by an amount that was smaller than analysts had forecast. Same-store sales reflect sales at stores open at least a year.
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