NEW YORK (CNNfn) - Investors will watch Thursday to see if an increased flow of oil will be enough to fuel a continued rebound in U.S. stocks. Oil prices dropped by almost $2 a barrel, or about 6 percent, Wednesday afternoon when officials in Iran and Saudi Arabia promised increased supplies of oil. Light crude traded on the New York Mercantile Exchange fell to $31.10 a barrel at the close of trading, although prices made a small rebound in overseas trading early Thursday. Concern about rising energy prices is one of the recent factors hurting many "old economy" stocks, such as manufacturers and transportation companies, due to the potential impact on earnings. Procter & Gamble Co. (PG: Research, Estimates), the consumer products manufacturer whose earnings warning Tuesday touched off nearly a 400-point drop in the Dow Jones industrial average, cited increased oil prices as one factor in its reduced profit forecast. Early indications suggest U.S. stocks will open lower. S&P futures on the Globex trading system were down 1.90 points at 1,364.30. That's 3.79 points below fair value for the futures -- a formula taking into account interest and dividend effects -- which was estimated by London traders at 1,368.09. Typically, one point of difference between the futures index and fair value equals about eight points on the Dow Jones industrial average as trading opens. On Wednesday, U.S. stocks finished broadly higher. The Dow climbed 60.50 points, or 0.6 percent, to 9,856.53, a day after posting its fourth-biggest point drop in history. The S&P 500 index, a broader measure of blue chip stocks, rose 11.08 points, or 0.82 percent to 1,366.70. The tech-heavy Nasdaq composite index, which has moved in opposite directions from the Dow for most of this year, followed the blue chips up Wednesday, gaining 49.42 points, or 1 percent, to 4,897.26. That put the Nasdaq within 17 points of its 15th record close so far this year, and within striking distance of another run at closing above the 5,000 mark. The index crossed 5,000 for the first time Tuesday. In Asia Thursday, major markets were mixed. Tokyo's benchmark Nikkei index of 225 leading shares fell 104.47 points, or 0.5 percent, to 19.662.23 as Internet shares lost ground. Hong Kong's Hang Seng index dropped 314.40 points, or 1.8 percent, to 17,637.03. Singapore's Straits Times index gained 9.71 points, or 0.5 percent, to 2,082.29. Among smaller markets the best performer was Taipei's weighted index, which climbed 197.78 points, or 2.1 percent, to 9,587.27. In morning trading in Europe Thursday, major markets were also mixed. London's benchmark FTSE 100 gained 116.40, or 1.8 percent, to 6,527.60. while the Paris CAC 40 rose 47.14 points, or 0.7 percent, to 6,392.11. In Frankfurt, where the merger of the Deutsche Bank and Dresdner Bank dominated news, the electronically traded Xetra Dax index lost 80.63 points, or 1 percent, to 7,906.37. Bank shares, including the two merger partners, were off. Zurich's SMI lost 30.00 points, or 0.4, to 6,915.50. In the Treasury market, the 30-year bond was up 8/32 of a point in early Thursday trading, lowering its yield to 6.14 percent from 6.16 percent late Wednesday. In the currency market, the dollar weakened versus the euro and the yen in early trading Thursday. The euro was worth 96.33 cents, compared with 96.11 cents in late trading Wednesday. Meanwhile, the dollar fell to 106.53 yen in early trading, compared with 107.04 yen in late trading Wednesday.

http://www.cnnfn.com/2000/03/09/markets/stockswatch/

-- Chris (!@#$@pond.com), March 09, 2000

Answers

(ouch! let me try again)

Oil may fuel Wall St. rise

Drop in crude prices could be boon to battered blue-chip stocks March 09, 2000: 6:48 a.m. ET

NEW YORK (CNNfn) - Investors will watch Thursday to see if an increased flow of oil will be enough to fuel a continued rebound in U.S. stocks.

Oil prices dropped by almost $2 a barrel, or about 6 percent, Wednesday afternoon when officials in Iran and Saudi Arabia promised increased supplies of oil. Light crude traded on the New York Mercantile Exchange fell to $31.10 a barrel at the close of trading, although prices made a small rebound in overseas trading early Thursday.

Concern about rising energy prices is one of the recent factors hurting many "old economy" stocks, such as manufacturers and transportation companies, due to the potential impact on earnings.

Procter & Gamble Co. (PG: Research, Estimates), the consumer products manufacturer whose earnings warning Tuesday touched off nearly a 400-point drop in the Dow Jones industrial average, cited increased oil prices as one factor in its reduced profit forecast.

Early indications suggest U.S. stocks will open lower.
S&P futures on the Globex trading system were down 1.90 points at 1,364.30. That's 3.79 points below fair value for the futures -- a formula taking into account interest and dividend effects -- which was estimated by London traders at 1,368.09. Typically, one point of difference between the futures index and fair value equals about eight points on the Dow Jones industrial average as trading opens.

On Wednesday, U.S. stocks finished broadly higher. The Dow climbed 60.50 points, or 0.6 percent, to 9,856.53, a day after posting its fourth-biggest point drop in history. The S&P 500 index, a broader measure of blue chip stocks, rose 11.08 points, or 0.82 percent to 1,366.70.

The tech-heavy Nasdaq composite index, which has moved in opposite directions from the Dow for most of this year, followed the blue chips up Wednesday, gaining 49.42 points, or 1 percent, to 4,897.26.

That put the Nasdaq within 17 points of its 15th record close so far this year, and within striking distance of another run at closing above the 5,000 mark. The index crossed 5,000 for the first time Tuesday.

In Asia Thursday, major markets were mixed. Tokyo's benchmark Nikkei index of 225 leading shares fell 104.47 points, or 0.5 percent, to 19.662.23 as Internet shares lost ground. Hong Kong's Hang Seng index dropped 314.40 points, or 1.8 percent, to 17,637.03. Singapore's Straits Times index gained 9.71 points, or 0.5 percent, to 2,082.29.

Among smaller markets the best performer was Taipei's weighted index, which climbed 197.78 points, or 2.1 percent, to 9,587.27.

In morning trading in Europe Thursday, major markets were also mixed. London's benchmark FTSE 100 gained 116.40, or 1.8 percent, to 6,527.60. while the Paris CAC 40 rose 47.14 points, or 0.7 percent, to 6,392.11.

In Frankfurt, where the merger of the Deutsche Bank and Dresdner Bank dominated news, the electronically traded Xetra Dax index lost 80.63 points, or 1 percent, to 7,906.37. Bank shares, including the two merger partners, were off. Zurich's SMI lost 30.00 points, or 0.4, to 6,915.50.

In the Treasury market, the 30-year bond was up 8/32 of a point in early Thursday trading, lowering its yield to 6.14 percent from 6.16 percent late Wednesday.

In the currency market, the dollar weakened versus the euro and the yen in early trading Thursday. The euro was worth 96.33 cents, compared with 96.11 cents in late trading Wednesday. Meanwhile, the dollar fell to 106.53 yen in early trading, compared with 107.04 yen in late trading Wednesday. http://www.cnnfn.com/2000/03/09/markets/stockswatch/

-- Chris (!@#$@pond.com), March 09, 2000.