NEW YORK - Wall Street advanced Monday but gave back some of its gains after crude oil prices pulled off their lows and the Federal Reserve said more banks are tightening lending standards.
A rebound for oil dims market rally
By TIM PARADIS, A ssociated Press
August 12, 2008 at 1:56AM
Oil's big drop over the past month has eased investors' concerns about the drag of rising prices on the economy, but its move off its lowest levels Monday deflated a stock market rally that was building upon steep gains from last week. Light, sweet crude still fell 75 cents to settle at $114.45 per barrel on the New York Mercantile Exchange after dipping to $112.72, its lowest since early May.
The Dow Jones industrials, up more than 130 points in afternoon trading, ended the day up 48.03, or 0.41 percent, at 11,782.35 after rising more than 300 on Friday.
The Fed's report reminded investors that the nation's credit situation is still deeply troubled. The central bank said about 75 percent of the banks it surveyed in July had increased requirements for prime mortgages, up from about 60 percent in April. The tighter standards can make it more expensive and difficult for borrowing that could stimulate the economy.
Falling oil prices and the continuing problems in the financial sector have competed for Wall Street's attention in recent sessions, with oil's pullback sending stocks higher and credit-related news tending to limit or halt the rallies.
Broader stock indicators also advanced Monday. The Standard & Poor's 500 index rose 9.00, or 0.69 percent, to 1,305.32. The Nasdaq composite index rose 25.85, or 1.07 percent, to 2,439.95, after names such as Amazon.com Inc. jumped $7.58, or 9.4 percent, to $88.09 following release of upbeat comments from analysts.
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TIM PARADIS, A ssociated Press
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