Wall Street advanced Monday but gave back some of its gains after crude-oil prices pulled off their lows and the Federal Reserve said more...
NEW YORK — Wall Street advanced Monday but gave back some of its gains after crude-oil prices pulled off their lows and the Federal Reserve said more banks are tightening lending standards.
The Dow Jones industrials, up more than 130 points in afternoon trading, ended the day up 48.03 at 11,782.35 after rising more than 300 on Friday.
Boeing, one of the 30 Dow stocks, dropped $1.24 to $66.62 after reports that it might not bid on the Pentagon’s airborne-refueling tanker contract. Microsoft, another Dow stock, was down 23 cents to $27.90
The Standard & Poor’s 500 index rose 9.00 to 1,305.32. The Nasdaq composite index rose 25.85 to 2,439.95, after names like Amazon.com jumped $7.58 to $88.09 after release of upbeat comments from analysts.
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Oil’s big drop over the past month has eased investors’ concerns about the drag of rising prices on the economy. Light, sweet crude still fell 75 cents to settle at $114.45 per barrel on the New York Mercantile Exchange.
The Fed’s report reminded investors that the nation’s credit situation is still deeply troubled.
The central bank said about 75 percent of the banks it surveyed in July had increased requirements for prime mortgages, up from about 60 percent in April. The tighter standards can make it more expensive and difficult for borrowing that could stimulate the economy.
Jim Hardesty, president of Hardesty Capital Management in Baltimore, said the overall decline in oil takes some pressure off the economy.
“We have a speculative bubble in prices that’s giving way to what now I think are more moderate levels,” he said, referring to oil’s surge higher this year. “I think we can look forward to a resumption of an improvement in equity prices based on still-good earnings coming out of many companies.”
Other consumer-discretionary stocks rose as investors saw the drop in oil as likely to leave more cash in consumers’ wallets. That’s a welcome prospect; consumer spending accounts for more than two-thirds of U.S. economic activity.
The dollar, whose recent strength has helped drive oil lower, was mostly higher Monday against other major currencies. Gold prices fell.