Stocks fluctuate as energy rises, financials fall
NEW YORK -- Stocks fluctuated today as gains by energy, utilities and materials companies at times offset losses among some financials.
Stocks began the session sharply lower after the government reported an unexpected slowdown at cash registers last month and as investors tried to glean insights into Lehman Brothers Holdings Inc.'s race to sell itself or otherwise regain Wall Street's confidence.
Lehman's shares have spiraled lower this week, heaping pressure on top executives at the No. 4 U.S. investment bank to line up a buyer or shore up the company's balance sheet. Lehman shares, which tumbled 42 percent Thursday and are off more than 94 percent for the year, fell another 51 cents, or 12 percent, to $3.71 in midday trading Friday.
Wall Street's worries about souring debt and weak cash positions hit other financial stocks. American International Group Inc. fell $3.56, or 20 percent, to $13.99, making it by far the biggest decliner among the 30 stocks that make up the Dow Jones industrial average. Meanwhile, Merrill Lynch & Co. fell 52 cents, or 2.7 percent, to $18.91. Washington Mutual Inc. fell 3 cents, 1.1 percent, to $2.80.
"I think today is an example of where people might be trying to take an opportunity on the materials and energy side of the market," said Russell Croft of Croft Value Fund. "People are trying to pick some good bargains."
"Hopefully over the weekend there's some merger activity. It would be great for the market to see," he said.
In midday trading, the Dow fell 72.38, or 0.63 percent, to 11,361.33 after falling more than 150 points early in the session.
Broader stock indicators came well off their lows of the session and at times advanced. The Standard & Poor's 500 index fell 4.97, or 0.40 percent, to 1,244.08, and the Nasdaq composite index fell 10.29, or 0.46 percent, 2,247.93. The major indexes each rose more than 1 percent Thursday so some pullback likely wasn't a surprise to traders.
Bond prices fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.70 percent from 3.64 percent late Thursday. The dollar was mixed against other major currencies, while gold prices rose.
Light, sweet crude rose 59 cents to $101.46 on the New York Mercantile Exchange as Hurricane Ike churned across the Gulf of Mexico toward the Texas coast and refining and drilling operations in the region.
