Traders-Blog.com

An increase in oil prices forced the major indexes to decline today. The Dow finished session down 13.96 points, to close at 10,609.11. Besides, the Nasdaq closed at 2,088.13, after falling slightly 1.98 points. Meanwhile, the S&P fell 0.86 points, to close at 1,216.10.

The benchmark July contract of crude surged past $59 a barrel due to security concern in Nigeria, which is a major oil supplier to the United States. Now, America and Britain have closed their embassies in the African country for security worries. The front-month contract ended up 90 cents at $59.37 a barrel in New York. On the other hand, the August contract, which becomes the lead contract this week, increased 57 cents to close at $59.75 a barrel.

Among Dow components, Boeing Co. fell about 1.5 percent, after the company lost a $6 billion Air Canada order for its 777, and 787 jets. The cancellation was a consequence of the members of the carrier’s pilots union, which rejected a cost-cutting deal that would have cleared the way for the purchase. This rejection has being said to be related to an unresolved dispute over seniority rather than an unwillingness to accept new planes.

John Rigas, the founder of Adelphia Communications Corp., was sentenced to 15 years in prison, while his son Timothy, the ex-finance executive, was sentenced with 20 years for reasons of cheating investors about finances of the company. John Rigas was Adelphia’s CEO until his ouster in May 2002. Adelphia sought Chapter 11 bankruptcy protection in June 2002.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter
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