Rising oil prices and the return of a bond market anomaly cut into Wall Street's early gains Wednesday, leaving stocks with only a modest...
NEW YORK — Rising oil prices and the return of a bond market anomaly cut into Wall Street’s early gains Wednesday, leaving stocks with only a modest advance.
The Dow Jones industrial average rose 18.49 to 10,796.26.
Microsoft, one of the 30 Dow stocks, fell 7 cents to close at $26.39 a share. Boeing, also a Dow stock, gained 43 cents to $70.96.
Broader stock indicators were narrowly higher. The Standard & Poor’s 500 index rose 1.63 to 1,258.17 and the Nasdaq composite index rose 2.05 to 2,228.94.
Most Read Stories
- Give to panhandlers or don’t? Some towns try cracking down
- Ex-Seahawk Marshawn Lynch watches Raiders game from the stands, rides BART train after being ejected
- Seattle startup co-founder Matt Bencke was ‘a force of nature’ | Obituary
- A chilly La Niña winter likely in Pacific Northwest, but don’t fret about drenching of last year
- Check out this new drone footage of the Bertha-dug Highway 99 tunnel WATCH
Bonds fell, with the yield on the 10-year Treasury note rising to 4.37 percent from 4.34 percent late Tuesday.
Investors remain worried about the bond market. Stocks fell Tuesday after yields on long-term bonds dropped below those on short-term bonds, a condition called an inverted yield curve that often precedes economic slowdowns.
On Wednesday, some short-term bond yields beat longer term bond yields, but Wall Street seemed less concerned. Tuesday’s inverted yield curve sparked a sell-off in equities, with the Dow falling 105.50.
Still, “the yield curve has people on edge,” said Peter Cardillo, chief strategist at S.W. Bach. “It’s certainly keeping the market in a tight trading range.”
The market also pulled back in response to a jump in crude-oil prices. Oil gained after Iran’s oil minister was reported to have said the Organization of Petroleum Exporting Countries (OPEC) should consider lowering its output by 1 million barrels a day at its Jan. 31 meeting. A barrel of light crude settled at $59.82, up $1.66, in trading on the New York Mercantile Exchange.
Trading on Wall Street was slow.
“The market is defined more by a lack of action than anything else,” said Brian Bush, director of equity research at Stephens Inc.
Stocks received an early boost from the Conference Board’s report that consumer confidence surged in December. The reading, which improved because of declining gasoline prices and better job opportunities, is nearing its August levels, before Hurricane Katrina.
Other economic indicators were mixed. The Mortgage Bankers Association’s index of applications to buy a home or refinance an existing mortgage declined 6.8 percent, hitting its lowest level since June 2002 while a weekly index of retail sales showed strength in the week leading up to Christmas, according to UBS.
“The consumer numbers look fairly strong, although at least some of that strength is likely to fade in coming months if housing continues to weaken,” said Maury Harris, an economist for UBS.