Stocks Close Slightly Higher After Productivity Report, Drop in Oil
Associated Press
Thursday, February 8, 2007; Page D04
NEW YORK, Feb. 7 -- Wall Street ended a fractious session slightly higher Wednesday after falling oil prices hurt energy stocks and overshadowed a productivity reading that was stronger than expected. A Federal Reserve official's comments on interest rates also soured the market's early good mood.
The Dow inched up 0.56, or less than 0.01 percent, to 12,666.87. The Dow moved past 12,700 for the first time, trading as high as 12,700.28. The Standard & Poor's 500-stock index rose 2.02, or 0.14 percent, to 1450.02, and the Nasdaq composite index, responding to robust sales forecast from Cisco Systems, rose 19.01, or 0.77 percent, to 2490.50.
The Labor Department's productivity figures for the fourth quarter were nearly double what had been expected. Investors were encouraged by the figures because they suggested that employers could extract more work from employees and stave off the need to add workers in a tight labor market. Productivity grew at a 3 percent annual rate, and the Labor Department also reported that wage pressures eased somewhat in the last three months of the year.
The productivity data initially seemed to overshadow comments from Philadelphia Fed President Charles I. Plosser that an improving economy might force the central bank to raise short-term interest rates. Plosser said that the productivity gains were helping consumers but that it was too soon to declare the threat of inflation neutralized.
But the productivity figures failed to offset concerns about falling oil prices. Energy stocks moved lower after oil prices dropped.
Movers
Cisco rose 81 cents, to $28.09, after predicting its third-quarter revenue would rise 19 to 20 percent.
Chevron fell 73 cents, to $72.64.
Exxon Mobil fell 35 cents, to $74.79.
News Corp. gained 55 cents, to $24.70, after its second-quarter earnings were stronger than expected.
Multi-Fineline Electronix, which makes circuit boards, rose $2.70, to $20.28.
Whirlpool fell $2.54, to $92.36, after its fourth-quarter earnings fell 14 percent.
