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U.S. stocks ended higher today as crude oil prices decreased and American International Group rallied. The Dow rose 16.84 points to close at 10,421.14. Besides, both the Nasdaq and the S&P rose. The Nasdaq rose 6.26 points to close at 1,991.07, meanwhile, the S&P climbed 3.20 points to close at 1,176.12.

American International Group’s shares fell to two-year lows on Friday, based on news that an employee destroyed records of the company. However, shares of the insurance company closed up 4.6 percent after a report said that New York Attorney General Eliot Spitzer said he believes that a settlement between his office and the company was “achievable”.

Among Dow components, Procter and Gamble (P&G) posted gains. P&G rose 2.5 percent, since Lehman Bros issued a research note showing that the company posted sales growth of 3.2 percent for the four weeks ended March 19. Nevertheless, United Technologies, Altria Group, and General Motors posted the biggest losses.

Chevron Texaco Corp. agreed to buy Unocal Corp. for $16.4 billion in stock and cash to increase reserves in Asia, which is the fastest growing energy market. Today, Unocal rose to a record $64.60 last week, and up 49 percent for the year. The Unocal purchase will add reserves in Asian countries, such as Indonesia and Thailand, where Chevron Texaco is the largest producer.

Morgan Stanley, the world’s second largest securities firm, said its board authorized management to pursue the sale of its Discover Credit card unit. After this approval, shares of Morgan Stanley finished up 2.5 percent to $58.30. Discover is the fourth biggest player in the U.S. credit card market after Visa, MasterCard, and American Express.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter

Today, U.S. stocks ended lower due to concerns about inflation and the probabilities of higher interest rates. The Dow closed at 10,404.30, after falling 99.46 points. Besides, both the Nasdaq and the S&P fell today. The technology index fell 14.42 points, to close at 1,984.81, while the S&P closed at 1,172.95 after falling 7.67 points.

Among the Nasdaq components, Simclar rose 54.6 percent after the company posted a fourth-quarter earnings of $495,000, or a 15 percent rise on sales and strong full-year results. However, Gentex, which makes auto-dimming mirrors for the auto industry, fell 1.2 percent after the company announced a 2-for-1 stock split. Shares of Gentex traded down 37 cents to $31.53.

According to an economic report, there was a weaker-than-expected rise in U.S. payrolls this March. This caused the unemployment rate to fall to 5.2 percent from 5.4 percent. However, the increase in March payroll was short of Wall Street expectations. Besides, average hourly earnings increased 4 cents, or 0.3 percent, to $15.95, keeping the average workweek steady at 33.7 hours.

American International Group (AIG) shares slumped to a 2-year low today. AIG shares fell $4.46, or 8.1 percent to $50.95. Two days ago, the company admitted to a series of accounting frauds, which may wipe $1.77 billion off shareholders’ equity. But, regulators such as Spitzer and the Securities Exchange Commission have been investigating AIG since last year, specifically for its surplus of capital, and loss ratio.

Crude oil and gasoline surged to record highs on speculation that rising demand may outpace U.S. refinery production this summer. Crude oil for May delivery rose $1.87, or 3.4 percent, to $57.27 a barrel on the New York Mercantile Exchange. This price represents the highest close since trading began in 1983.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter