US Stocks Mixed as Oil Tumbles 11/28 09:32
U.S. stocks indexes were mixed in early trading, as tumbling oil prices
weighed on shares of Exxon Mobil, Chevron and other oil and gas giants.
Airlines, however, made gains.
NEW YORK (AP) -- U.S. stocks indexes were mixed in early trading, as
tumbling oil prices weighed on shares of Exxon Mobil, Chevron and other oil and
gas giants. Airlines, however, made gains.
KEEPING SCORE: The Standard & Poor's 500 index fell two points, a fraction
of a percent, to 2,072 as of 9:59 a.m. Eastern time on Friday.
The Dow Jones industrial average rose 50 points, or 0.3 percent, to 17,878.
The Nasdaq composite rose 14 points, or 0.3 percent, to 4,800.
It's a half-day of trading in the stock market, with the closing bell set to
ring at 1 p.m. The market was closed Thursday for the Thanksgiving holiday.
OIL PRICE SLUMP: The main catalyst in markets remains Thursday's decision by
the OPEC oil cartel to maintain production at 30 million barrels a day. The
move hit oil prices hard as traders expect the global supply of oil to stay
high. Crude oil slumped 6 percent to $69.39, trading near a four-year low.
FALLOUT: Around the world, energy stocks were the big losers following the
slide in crude prices. In Asia, China's state-owned oil giant CNOOC, the
country's biggest crude producer, plunged. In Europe, shares in Royal Dutch
Shell, Total and other energy giants fell. In the U.S., Nabors Industries fell
14 percent and Marathon Oil slid 11 percent.
SOME BENEFIT: Many companies stand to gain from falling oil prices. For
airlines, lower prices mean lower costs. Southwest Airlines jumped 7 percent,
while Delta Air Lines climbed 6 percent, making the pair the top gainers in the
S&P 500 index Friday.
EUROPE: France's CAC 40 was down 0.4 percent, while Germany's DAX slipped
ONE VIEW: "The template for equity markets today has been clear from the
beginning," said Alastair McCaig, market analyst at IG. "Oil and energy
manufacturers are down, while those companies that are oil consumers are up."
HOLDING FIRM: In Europe, a report said inflation across the 18-country
eurozone slipped to 0.3 percent over the past year. Fears that the eurozone
will start to see a widespread drop in prices, what's known as deflation, have
heaped pressure on the euro as traders price in a growing likelihood that the
European Central Bank will launch a larger bond-buying program to support the
region's flagging economy.
ASIA'S DAY: Japan's benchmark Nikkei 225 index rose 1.2 percent. In China,
Hong Kong's Hang Seng closed down 0.1 percent, while the Shanghai Composite
Index gained 2 percent. Australia's S&P/ASX 200 tumbled 1.6 percent.
JAPAN: A raft of data releases gave mixed signs about the state of Asia's
second biggest economy but the country's main stock index, the Nikkei, surged,
a sign investors are speculating that further stimulus efforts are likely after
the upcoming election. Inflation edged lower and unemployment eased slightly.
The yen weakened further, with the dollar trading 0.5 percent higher at 118.24