Oil packs a punch
Friday, June 06, 2008
Oil is gushing and investors are running.
On Friday at midday, the Dow Jones industrial average fell 272 points, or 2.2 per cent, to 12,332 – obliterating Thursday's gains. All 30 stocks in the index were in negative territory. Underlining the distaste that investors have for stocks right now, even the Dow's big energy stocks are down (though only slightly). Exxon Mobil Corp. fell 0.9 per cent and Chevron Corp. fell less than 0.1 per cent.
Crude oil traded at $134.52 (U.S.) a barrel, up $6.73. Gold rose about $19 an ounce, to $896.American International Group Inc. fell 6.3 per cent, Boeing Co. fell 4.2 per cent, Citigroup Inc. fell 3.9 per cent and General Motors Corp. fell 3.8 per cent.
The broader S+P 500 fell 23 points, or 1.7 per cent, to 1381. There, 92 per cent of the stocks were down.
The S[amp]amp;P/TSX composite index initially surged to a new record high of 15,154.7 in early trading, as investors cheered oil's resurgence. Since then, the exuberance has died down and the index has fallen about 100 points from its intraday high as any stock not associated with the commodities boom looks vulnerable.
The benchmark rose 57 points, or 0.4 per cent, to 15,040 at midday. The energy and materials sub-indexes were the only sectors enjoying gains; the other eight were down. EnCana Corp. rose 2.4 per cent and Barrick Gold Corp. rose 3.9 per cent. Leading the way down, Research In Motion Ltd. fell 1.9 per cent, Royal Bank of Canada fell 1.5 per cent and Canadian National Railway Co. fell 3.1 per cent.
Friday, June 06, 2008
Oil is gushing and investors are running.
On Friday at midday, the Dow Jones industrial average fell 272 points, or 2.2 per cent, to 12,332 – obliterating Thursday's gains. All 30 stocks in the index were in negative territory. Underlining the distaste that investors have for stocks right now, even the Dow's big energy stocks are down (though only slightly). Exxon Mobil Corp. fell 0.9 per cent and Chevron Corp. fell less than 0.1 per cent.
Crude oil traded at $134.52 (U.S.) a barrel, up $6.73. Gold rose about $19 an ounce, to $896.American International Group Inc. fell 6.3 per cent, Boeing Co. fell 4.2 per cent, Citigroup Inc. fell 3.9 per cent and General Motors Corp. fell 3.8 per cent.
The broader S+P 500 fell 23 points, or 1.7 per cent, to 1381. There, 92 per cent of the stocks were down.
The S[amp]amp;P/TSX composite index initially surged to a new record high of 15,154.7 in early trading, as investors cheered oil's resurgence. Since then, the exuberance has died down and the index has fallen about 100 points from its intraday high as any stock not associated with the commodities boom looks vulnerable.
The benchmark rose 57 points, or 0.4 per cent, to 15,040 at midday. The energy and materials sub-indexes were the only sectors enjoying gains; the other eight were down. EnCana Corp. rose 2.4 per cent and Barrick Gold Corp. rose 3.9 per cent. Leading the way down, Research In Motion Ltd. fell 1.9 per cent, Royal Bank of Canada fell 1.5 per cent and Canadian National Railway Co. fell 3.1 per cent.