Energy helps Wall Street inch higher
NEW YORK (Reuters) - Stocks edged higher on Thursday as shares of Exxon Mobil (XOM.N) and other energy companies rose on supply concerns, offsetting worries about the economy and a pullback in bank stocks.
Trading was volatile after a two-day surge as investors wrestled with conflicting economic reports, disappointing retail profit reports and news of a pipeline explosion in the U.S. Midwest.
Shares of Exxon rose nearly 1 percent as an explosion at a pipeline disrupted the flow of oil from Canada to U.S. Midwest refineries.
Caution before a speech by Federal Reserve Chairman Ben Bernanke on Thursday evening also kept a lid on the market and some investors opted to sell some of the winners from the recent rebound, such as banks.
"This is a highly volatile market," said Subodh Kumar, chief investment strategist at Subodh Kumar & Associates in Toronto, Canada. "It has suddenly shifted to big energy and financial shares are a little weaker."
The Dow Jones industrial average .DJI gained 22.28 points, or 0.17 percent, to 13,311.73. The Standard & Poor's 500 Index .SPX added 0.70 points, or 0.05 percent, to 1,469.72. The Nasdaq Composite Index .IXIC rose 5.22 points, or 0.20 percent, to 2,668.13.
PLAYING DEFENSIVE
Exxon was second-biggest contributor, behind Altria Group Inc (MO.N), to the S&P 500 and the Dow's climb, ending up 0.8 percent at $88.59 on the New York Stock Exchange.
Shares of ConocoPhillips (COP.N) gained 1.4 percent at $78.82, while Chevron (CVX.N) gained 0.6 percent to $86.56.
Shares of Altria, parent of cigarette maker Philip Morris, ended up 2.6 percent at $75.98 on the NYSE, after surging to an all-time high of $76.15.
Companies that make consumer staples such as cigarettes, fast-food and soft drinks are seen as better investments in the face of a slowing economy.
AT&T, APPLE RING UP GAINS
AT&T Inc (T.N), the No. 1 U.S. mobile provider, also stood out, ending up 1.4 percent at $38.03. Its chief executive announced 2008 plans for a new version of Apple Inc's (AAPL.O) iPhone with high-speed wireless Web links.
Apple shares lent the biggest boost to the Nasdaq's advance, ending up 2.3 percent at $184.29.
But after the bell, Dell Inc (DELL.O), the world's second-largest personal computer maker, gave a cautious outlook despite reporting a higher quarterly profit, sending its stock down nearly 7 percent. Continued...
