Wall Street Gains Ahead of Economic Data

By JOE BEL BRUNO

NEW YORK – Wall Street extended its November rally into a new week Monday, betting that a series of economic reports this week will show strength in the overall economy with inflation contained.

Comments from Federal Reserve Bank of Dallas President Richard Fisher put investors at ease about upcoming economic and retail sales reports. He said the economy continues to grow strongly, and he did not indicate that inflation was presenting a problem.

The market also gained traction as oil prices continued to tumble, helping lift sectors that typically are large energy consumers. Lower energy prices are viewed as a boost for consumers, especially heading into the holiday shopping period.

“There is a tremendous amount of momentum built into the market,” said Steven Goldman, chief market strategist for Weeden & Co. “We’ve had a good run, we’ve consolidated, and we need this acceleration going into the holidays.”

He pointed out that technology stocks continue to drive the market higher, with both Intel Corp. and Dell Inc. pushing the Nasdaq near to a 6-year high. Merck & Co. helped lead the Dow Jones industrials after it said one of its painkillers did not result in increased risk of heart attacks.

In midday trading, the Dow Jones industrial average rose 43.14, or 0.36 percent, to 12,151.57.

Broader stock indicators also gained. The Standard & Poor’s 500 index was up 5.17, or 0.37 percent, to 1,386.07, and the Nasdaq composite index rose 12.82, or 0.54 percent, at 2,402.54.

Fisher’s speech in San Antonio had little impact on the bond market, which, like Wall Street, is still awaiting the Tuesday release of the Labor Department’s Producer Price Index and the Commerce Department’s retail sales data. Bonds were weaker, with the yield on the benchmark 10-year Treasury note rising to 4.62 percent from 4.59 percent late Friday.

Oil prices declined, with a barrel of light sweet crude down 84 cents at $58.75 on the New York Mercantile Exchange. The dollar was mixed against other major currencies, while gold prices fell.

Intel led both the Nasdaq and Dow Jones industrials, rising 34 cents to $20.92. The world’s largest maker of chips for computers benefited after Citigroup upgraded the entire semiconductor sector.

Dell, which reports earnings this week, rose 43 cents to $25.32 after being upgraded by Deutsche Bank. The bank told clients it expects the company’s shares to hit $28 within the next 12 months.

Tyson Foods Inc. spiked 65 cents, or 4.6 percent, to $15.00 after saying it expects to return to profitability this fiscal year. The company had reported a fourth-quarter loss due to one-time charges and losses in the chicken and beef sectors. Swiss drug maker Novartis AG shed 67 cents to $58.69 after it disclosed in a filing with the Securities and Exchange Commission delays with its Galvus drug.

A memo leaked to The Wall Street Journal stated that Toyota hopes to gain a 15 percent market share by targeting Russia, India, China and Brazil. However, the stock gave up $1.01 to $120.81. General Motors Corp. rose 46 cents to $35.13.

Gannett Co. picked up 85 cents to $60.01 on reports the media company is interested in acquiring rival Tribune Co., whose shares rose 47 cents to $32.50.

The Russell 2000 index of smaller companies was up 1.63, or 0.21 percent, to 770.78.

Advancing issues outnumbered decliners by about 2 to 1 on the New York Stock Exchange, where volume came to 636.4 million shares, compared with 650.9 million at the same point on Friday.

Overseas, Japan’s Nikkei stock average closed lower 0.55 percent. In afternoon trading, Britain’s FTSE 100 was down 0.11 percent, Germany’s DAX index was up 0.65 percent, and France’s CAC-40 was up 0.91 percent.

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