New York – Stocks finished an uninspiring session mixed Tuesday as investors kept a wary eye on near-record oil prices and debated the prospect of a Social Security reform package without private investment accounts.
One day after reaching record highs, crude-oil futures fell below $59 a barrel, but the historically high prices were still weighing on investors’ enthusiasm for stocks. A barrel of light crude settled at $58.90, down 47 cents, on the New York Mercantile Exchange.
Some analysts were cheered that stocks have yet to sell off despite higher oil prices, though there are growing worries about whether the market will be able to sustain its gains from this month and May should oil prices remain at these levels.
“What we’ve seen yesterday and today is some hesitancy, some skepticism on the part of investors as to whether the current rally can continue” because of high oil prices, said Ken Tower, chief market strategist for Charles Schwab’s CyberTrader. “It’s tough to generate a lot of enthusiasm.”
Investors also were concerned about the state of Social Security reform after President Bush encouraged Republicans in Congress to introduce a proposal without the private accounts favored on Wall Street.
The Dow Jones industrial average fell 9.44, or 0.09 percent, to 10,599.67.
Broader stock indicators were narrowly mixed. The Standard & Poor’s 500 index was down 2.49, or 0.2 percent, at 1,213.61, and the Nasdaq composite index gained 2.94, or 0.14 percent, to 2,091.07.
The Bloomberg Colorado Index, a price-weighted list of companies based in the state, fell 1.76 to 289.71.
Bonds posted a strong rally after Monday’s sell-off, with the yield on the 10-year Treasury note falling to 4.05 percent from 4.11 percent late Monday. The dollar was mixed against major foreign currencies, while gold prices fell from Monday’s three-month highs.
“You’re seeing some bond movement, which kind of brings a little bit of movement to stocks, but really, there’s not much going on,” said Bryan Piskorowski, market analyst with Wachovia Securities.
