Wall Street ended a choppy session with a moderate advance Wednesday after a better-than-expected profit report from Boeing and a seesaw day in the energy markets.
Boeing, one of the 30 stocks that make up the Dow Jones industrial average, reported a 38% jump in first-quarter earnings. The airplane manufacturer's results, along with stronger-than-anticipated forecasts at chip makers Broadcom and Anadigics, appeared to buoy investor sentiment about earnings season.
Investors also reacted positively to privately held Liberty Mutual's plan to acquire another insurance company, Safeco. The $6.1-billion deal, which would create the country's fifth-biggest property insurer, sent Safeco shares surging $20.71, or 46%, to $65.94.
Still, the stock market's movements were somewhat erratic Wednesday as investors who were concerned about inflation kept an eye on fluctuating oil prices. Oil initially pulled back but rebounded again as the government reported a rise in crude inventories but a drop in gasoline stockpiles. A day earlier, a record high price for oil helped send shares skidding.
"I think you're just going to get continued volatility," said Kevin Shacknofsky, co-portfolio manager of the Alpine Dynamic Dividend fund in Purchase, N.Y.
He said investors were concerned not only about rising energy prices but also the health of the financial sector.
The Dow rose 42.99, or 0.3%, to 12,763.22 after spiking 117 points, giving up those gains to trade down 17 points, then recovering some ground.
Broader stock indicators also closed higher. The Standard & Poor's 500 index rose 3.99, or 0.3%, to 1,379.93. The technology-focused Nasdaq composite index logged a more sizable advance, rising 28.27, or 1.2%, to 2,405.21.
Light, sweet crude oil for June delivery rose 23 cents to settle at $118.30 a barrel on the New York Mercantile Exchange while gasoline touched all-time highs. On Tuesday, May futures hit a trading record of $119.90.
Bond prices fell. The yield on the benchmark 10-year Treasury note, which moves opposite to its price, rose to 3.73% from 3.69% late Tuesday.
The dollar was mixed against other major currencies, with the euro losing 0.010 to $1.590 against the greenback.
Gold prices fell $16.10 to $906.20 an ounce.
So far, quarterly results haven't given investors enough insight into what will drive profit growth in the coming quarters, said Bill Schultz, chief investment officer at McQueen, Ball & Associates in Bethlehem, Pa.
