New York – Surging oil prices left stocks little changed Monday as interest- rate worries diluted Wall Street’s enthusiasm over multibillion-dollar acquisitions in the banking and newspaper sectors.
With no new economic reports from the government, investors turned their focus to the day’s two major deals: Capital One Financial Corp.’s $14.6 billion offer for North Fork Bancorp Inc., and McClatchy Co.’s $4.5 billion bid for newspaper publisher Knight Ridder Inc.
But continued nervousness about higher interest rates, oil and inflation limited Wall Street’s momentum, said Jeff Kleintop, chief investment strategist for PNC Financial Services Group. This week’s reports on consumer price increases and retail sales will feed speculation over whether the Federal Reserve might lift rates as many as three more times, he said.
“We’re certainly looking to see how core (consumer) prices come in,” Kleintop said. “If they continue to show a bit of upward pressure, that could push up rates and affect the market.”
At the close of trading, the Dow Jones industrial average slipped 0.32 to 11,076.02. The Dow had advanced as much as 40 points early in the session.
Broader stock indicators tapered earlier gains. The Standard & Poor’s 500 index added 2.55, or 0.2 percent, to 1,284.13, and the Nasdaq composite index rose 4.99, or 0.22 percent, to 2,267.03, after losing 1.76 percent last week.
Bond prices extended last week’s decline, with the yield on the 10-year Treasury note edging up to 4.77 percent from 4.76 percent late Friday. The dollar lost ground against other major currencies, and gold prices also slipped.
Crude-oil futures jumped as anxiety about political tension in major oil-producing nations countered reports of growing U.S. reserves. A barrel of light crude added $1.81 to settle at $61.77 on the New York Mercantile Exchange.
