PortfolioCrafter - Market Commentary 8/29/05
August 29th, 2005 / 6:42 pm / by portfoliocrafter
Today, it was day of gains for the U.S. stock market. The Dow rose 65.76 points, to close at 10,463.05. Besides, the Nasdaq increased 16.88 points, to close at 2,137.65. Meanwhile, the S&P also rose 7.18 points, to close at 1,212.28.
Although U.S. stocks opened lower today, due to worries that Hurricane Katrina could devastate New Orleans in addition to curtailing Gulf of Mexico oil production, the market posted gains after crude futures remained below the record of $70.80 per barrel. Profits in the market indicate that investors are still confident about the economy’s outlook. However, the dollar finished session high as traders were waiting for more precise news about Hurricane Katrina’s impact. The dollar last traded up 0.4 percent at 110.62 yen, as the euro fell 0.05 percent, to close at $1.2228.
Among stocks that posted losses today, airline stocks fell due to concerns that higher oil prices will force carriers to charge more for airline tickets. For example, American Airlines parent AMR Corp. closed down 1.9 percent. Besides, paper stocks suffered declines by worries that Katrina could decrease U.S. paper-making capacity. So, International Paper lost 1 percent of its value. On the other hand, home-improvement retailers posted gains, as a consequence of forecasts that the storm will force consumers in the Gulf Coast to buy goods to repair their homes. Thus, Home Depot closed 1.8 percent higher, and Lowes Cos. increased 2.3 percent.
Finally, shares of companies of energy finished session high, as investors believe in an increase in business because of damage to pipelines and oil production from Hurricane Katrina. Schlumberg Ltd., the biggest oilfield contractor by market value, added 96 cents, to close at $83.04. Also, Halliburton Co., the world’s largest oilfield-services contractor by sales, rallied 54 cents, to close at $57.80.
All the best,
Manuel Jesus-Backus
The Portfolio Crafter
