Traders-Blog.com

U.S. stocks ended session mixed today. The Dow fell 17.76 points, to close at 10,623.15. However, both the Nasdaq, and the S&P posted gains. The Nasdaq rallied 10.55 points, to close at 2,195.38. Also, the S&P rose slightly 1.17 points, to close at 1,235.35.

Among Dow components, Home Depot Inc. fell 1.5 percent, to close at $42.86. This decrease was mainly caused by a report on Friday that showed that the company received a grand jury subpoena from the U.S. Attorney’s office in Los Angeles. Also, Merck (MRK) fell 1.2 percent, to close at $30.68, after news showed that a New Yersey judge has certified a class action suit against the company in relation to its Vioxx drug. Merck also announced a management shuffling in order to help focus executives on the drug maker’s best near-term prospectus, which includes vaccines.

Today, crude oil rose to a record of $62.30 per barrel, after news reported that Saudi Arabia’s King Fahd died. This event created a big concern among investors about the stability of the word’s largest oil exporter. Saudi Arabia is the largest producer in the Organization of Petroleum Exporting Countries, which supplies almost 40 percent of the world’s oil. And, the U.S consumes about 25 percent of the world’s oil, which has caused prices to rise. Prices of oil also rose due to refinery disruptions in U.S as well as Europe. Crude oil for September delivery rose $1, or 1.7 percent, to close at a record of $61.57 per barrel on the New York Mercantile Exchange.

The Institute for Supply Management announced today that its factory index rose to 56.6 in July (and, readings higher than 50 show that there are signs of growth). Manufacturing is rebounding due to limited orders during the first 6 months of the year for companies, such as General Motors Corp. Finally, the National Association of Realtors said that its index of pending homes resale rose 0.6 percent to 126.3 in June, which is the third highest level ever.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter