Egypt Turmoil Sends Stocks Slipping, Oil Prices Surge

NEW YORK — Stocks dipped Thursday as concerns over violent protests in Egypt weighed against better-than-expected economic news in the U.S.

Clashes continued in Egypt between pro- and anti-government demonstrators, leaving some analysts worried about their impact on oil-rich countries throughout the Middle East like Saudi Arabia.

"That's the fear," said Peter Cardillo, chief market economist at Avalon Partners.

But better than expected December sales figures sent retail companies higher. Consumer discretionary companies in the Standard and Poor's 500-stock index gained 1 percent after national chains reported that sales were nearly double what analysts had forecast despite heavy snowstorms in much of the nation. Costco Wholesale Corp., Limited Brands Inc., Nordstrom Inc. and Gap Inc. all gained more than 3 percent.

The S&P 500 – the benchmark for most U.S. mutual funds – fell 2 points, or 0.1 percent, to 1,302 in midday trading. The Dow Jones industrial average fell 10 points, or 0.1 percent, to 12,033. The Nasdaq composite gained less than a point to 2,749.

Consumer discretionary stocks were the best performers among the 10 company groups that make up the S&P index. Energy companies had the largest fall, down 0.7 percent.

Among the positive economic reports, the Labor Department said Thursday that fewer people applied for unemployment benefits last week. A separate report showed that worker productivity in December rose by its largest amount since 2002. Economists say many employers have reached the limit in terms of how much work they can squeeze from their employees.

The Commerce Department said that factory orders rose in December, the fifth gain in six months.

Drugmaker Merck & Co. fell 2.6 percent after it issued a full-year profit forecast that was lower than analysts had expected. The company was the worst performer among the 30 stocks that make up the Dow average.

Warehouse club operator BJ's Wholesale Club Inc. rose 13.5 percent after it said it is considering selling itself after months of buyout speculation.

The better economic news pushed Treasury prices lower. The yield on the 10-year Treasury note rose to 3.51 percent from 3.48 percent late Wednesday. Bond prices move in the opposite direction of their yields.

Comments

[wlkcrk]

02:38 PM on 02/05/2011

Somebody sneezed and sent the oil prices up. I don't know who it was that sneezed but that's really the cause!!

[llozano]

11:23 AM on 02/05/2011

If I remember correctly oil and food prices were already rising since the summer. Furthermore the oil is still being moved through the Suez Canal. Even if the canal were blocked bringing the oil around the Cape of Africa would only add one week's time to the transport. This rise is due to speculation and nothing else. After another year of record profits the oil companies see another opportunity to make even more money. At the same time cities are cutting back on public transportation leaving people at the mercy of their automobiles and the oil companies. In the U.S. we can produce most of our own food yet we choose to import our food from other countries and move it here by ship which doesn't make sense unless you want to make money for the oil companies. Yet most of us are more concerned about who will win the super bowl and what commercial will make us laugh.

[arlandbaee]

01:11 AM on 02/04/2011

A butterfly was crushed in the Himalayas today and fear of the time paradox to come caused a brief selloff of time related stocks leaving the DOW down 20 points and the NASDAQ dipping by 1/10th a percent.

[logicanada]

03:10 PM on 02/03/2011

The Dow Jones industrial average fell 10 points, or 0.1 percent.

The Dow Jones Industrial Average is totally redundant in a country where industry has fled offshore for cheap labor and in anticipation of dwindling local energy supplies. It does not have any bearing on the well being of the average American and should not be used to imply national prosperity.

[GuyCybershy]

06:52 PM on 02/03/2011

QE2 is being used to prop up the stock market. It is also driving up the price of food around the world and contributing to the instablilty in the Middle East.

[jcarterla]

02:01 PM on 02/03/2011

So I don't own stocks and don't have a car. Why am I still suffering?

[jwoww]

03:15 PM on 02/03/2011

do you buy plastic good???

[jcarterla]

04:46 PM on 02/03/2011

I don't know, but I'll ask the next time.

[DFL]

01:44 PM on 02/03/2011

We didn't listen to president Carter and now we're slaves to the middle east for their oil.

[blindhammer]

01:55 PM on 02/03/2011

It is ironic that one of the first things that Reagan did when he took office was to take down the solar panels on the White House.

The symbolism in that was telling.

[MrStat1]

04:38 PM on 02/03/2011

You are right. No one listend to Carter, the most worthless President of my lifetime!

[-swift]

12:55 PM on 02/03/2011

Once again, we have a situation that isn't shaping events directly, but oil prices are rising. It's the speculation that causes the increases more than any other thing.

If we had a government that actually cared about such things, they would release large amounts of oil reserves to slap down the speculators every time this happened.

[jwoww]

12:54 PM on 02/03/2011

oil has been rising steadily over the past 2 months. this is just HP's reason to start talking about it since they can no longer hide the issue. sorry BO this one is on you and your friends at the EPA

windmills and solar panels just dont cut it. We need to start mining, drilling, and collecting the fossils fuels that we have in the United States. in conjunction start a massive renewable nuclear energy program that will sustain us for lifetimes and create massive amounts of jobs in all sectors of business.

[Pamski]

01:35 PM on 02/03/2011

Shill baby, shill.

[blindhammer]

01:35 PM on 02/03/2011

The US has been thoroughly explored for oil, already. We hit peak oil in the 1970s. Drilling off-coast or in ANWR will not put a dent in global supply. I believe US production is at about 5.5 BBD while the US imports average roughly 11 BBD. It's not going to happen.

Nuclear power plants are extremely energy intensive during the construction and enrichment phases . It also takes around 15 years to get one built in the United States and there are currently no nuclear plants on the drawing board.

[jwoww]

03:20 PM on 02/03/2011

and windfarms do not power cars, produce plastics and today only employ 86,000 people.

yet the oil workers in the gulf account for 20,000 waiting to go back to work. there is oil in colorado, ND, off the VA coast, CA coast, continental shelf, gulf of mexico & ANWR not to mention massive amounts of coal in the Appliachian Mountain states and the natural gas
deposits all over the country.

take advantage of what we have while we develop nuclear energy programs built around 1 design. why can the world do it but not the US.

[doodlebug2]

12:22 PM on 02/03/2011

I do not think VLCC's go thru the Suez? go around the cape of good hope.

cool that when oil gets dumped into the water, speculators do not make price go up., interesting.

[stargazer13]

11:43 AM on 02/03/2011

would squeeze corporate profits and hit the global economic recovery.

that statement above is very telling in and of it self !

[stargazer13]

11:33 AM on 02/03/2011

there speculating oil AGAIN !

using Egypt's protest as a reason !

making things harder on every one in the end !

[doodlebug2]

12:19 PM on 02/03/2011

agreed, oil didn't seem to rise much when it was flowing into the water.

[blindhammer]

01:42 PM on 02/03/2011

That is partially because demand was destroyed due to the recession. When and if the economy recovers, expect oil prices to sky rocket.

[ConcernedAboutRFuture]

11:18 AM on 02/03/2011

Come on.... let's bring on the $6.50 a gallon gas prices. Once the GOP sheep have their faces put to the fire, maybe then our country can be innovative about energy. Right now, we behave like a 3rd world country.... rape, pillage and leave.

[mrcontinental]

10:56 AM on 02/03/2011

The bankster criminals are loving this. They are probably praying for all out world war since wars generate the largest profits.

[Joseph Joyal]

09:50 AM on 02/03/2011

Anything to make oil go up. Oil prices are a scam the supply is there but the greed keeps the prices up.

[blindhammer]

01:37 PM on 02/03/2011

No. The supply isn't there. Many, if not most, oil experts agree that the world hit peak oil production in 2006. The only reason oil prices are low right now is because demand was destroyed due to recession.

[Joseph Joyal]

03:48 PM on 02/03/2011

The experts are paid by the oil companies or government. There are several Geo reports that show a great deal of untapped oil right here in the USA.
Oil prices are what created the economic down turn and if they stay were they are or go up the world economy will not recover.
Oil prices are were they are because of speculators in the energy market

[Bocababs]

09:09 AM on 02/03/2011

Just wait till the Summer if this keeps up. Miami -- 87 Octane...$3.36 a gallon. I watch the gas needle go down in my car, and I have one of the larger 4 cylinder. In a pervere way, as gas prices move towards $4.00 a gallon.....this can only help the auto industry as everyone in this country takes a good look a what they are driving these days.

[eric14]

09:16 AM on 02/03/2011

Echoes of statements made periodically over last 35 years!