New York – Stocks closed an erratic session mixed Wednesday as General Motors Corp. hit an 18-year low, dragging down the Dow Jones industrial average. Rising oil prices also dulled investor enthusiasm.
The price of crude overshadowed a government report of moderating inflation that initially gave stocks a modest lift. Oil futures settled at $57.88 a barrel, up 90 cents on the New York Mercantile Exchange, a sharp change from the four-month low they reached Tuesday. Wednesday’s government petroleum inventory numbers were weaker than expected.
GM fell as concerns mounted about problems at its top supplier, Delphi Corp., and about the company’s ability to turn around its performance. Leaders of the United Auto Workers said the union and Delphi remain far apart on a new labor agreement, and fears of a strike have spooked investors.
Broader economic news was more upbeat. The Labor Department reported that consumer prices edged up just 0.2 percent in October, the best showing in four months. In September, consumer prices soared by 1.2 percent on record energy prices. That inflation increase was the largest one-month jump in 25 years.
Expiring options also spurred selling.
“We did get surprising oil-inventory data, but it’s still below that $60 range,” said Peter Cardillo, chief strategist, senior vice president and market analyst at S.W. Bach & Co. “The market is running against options expirations, which are causing technical difficulty.”
The Dow fell 11.68, or 0.11 percent, to 10,674.76. Broader stock indicators were barely higher. The Standard & Poor’s 500 index rose 2.20, or 0.18 percent, to 1,231.21, and the Nasdaq composite index rose 1.19, or 0.05 percent, to 2,187.93.
The Bloomberg Colorado Index, a price- weighted list of companies based in the state, rose 1.33 to 308.73.
Bonds rose sharply as stocks declined, with the yield on the 10-year Treasury note falling to 4.47 percent from 4.56 percent late Tuesday. The U.S. dollar was mixed against other major currencies in European trading. Gold prices were higher.
