Stocks sink on oil fears

The Dow Jones industrial average (INDU) sank 80 points, or 0.7% the S& P 500 (SPX) fell 11 points, or 0.8% and the tech-heavy Nasdaq (COMP) shed 40 points, or 1.4%.

" It's pretty clear that we're dealing with international and Middle East tensions here," said Jason Pride, director of investment strategy at Glenmede. " The reality is, oil is getting into the price range now where people are going to start questioning its impact on the broader economy."

Investors are keeping a close eye on commodities, after crude oil rose to more than $106 a barrel early Monday on continued tensions in Libya. Oil finished the day at about $105.44, an increase of more than a dollar.

" The stock market wants to bask in the recent slew of good economic data, but its Achilles' heel is this oil market right now," said Phil Flynn, senior market analyst with PFG Best. " This is really a situation that we're going to have to monitor every day."

Meanwhile, gold set a new intraday record in early trading, rising to $1,445 an ounce, as investors sought safety in the precious metal. It pared back those gains later in the day though, settling at $1,434.50 an ounce on the Chicago Mercantile Exchange.

U.S. stocks managed to claw out gains last week, despite a sharp sell-off on Friday.

Companies: Tech stocks dragged on the entire market after Wells Fargo downgraded the semiconductor sector Monday. Intel (INTC, Fortune 500) fell 1.6% and the Philadelphia Semiconductor Index (SOX) dropped 2.7%.

Western Digital's (WDC, Fortune 500) stock climbed 15.6%, after the company agreed to acquire Hitachi's (HIT) hard disk drive business. The stock and cash transaction is valued at $4.3 billion.

Western Digital's top rival, Seagate Technology (STX), rose 9% on the news.

Starbucks (SBUX, Fortune 500) stock rose 1.5%, after Morgan Stanley analysts upgraded the company's price target and CEO Howard Schultz told the Wall Street Journal the coffee company is planning several acquisitions over the next 12 to 18 months to bolster its consumer products division.

Starbucks is kicking off a campaign celebrating its 40th anniversary this week, starting with newspaper articles Monday and rolling out with television ads and in-store promotions Tuesday.

World markets: Analysts at Moody's slashed Greece's credit rating three notches Monday to B1.

" The country's very large debt burden and the significant implementation risks in its structural reform package both skew risks to the downside," Moody's wrote in its report.

European stocks finished lower. Britain's FTSE 100 lost 0.3%, France's CAC 40 fell 0.7% and the DAX in Germany eased 0.2%.

Economy: Consumer credit increased by $5 billion in January, according to a report by the Federal Reserve released Monday afternoon. Economists surveyed by Briefing.com had expected consumer credit to have increased by $3.3 billion in January.

Currencies: The dollar gained against the euro and the British pound, but fell versus the Japanese yen.

Bonds: The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 3.50% from 3.55% late Friday.   

Dow jumps 190 on jobs data, lower oil

At the preliminary close, the Dow Jones industrial average (INDU) rose 191 points, or 1.6%, to 12,258. The gains were the best for the blue-chip indicator in 2011 and the largest since Dec. 1. 

The S& P 500 (SPX) added 22.5 points, or 1.7%, to 1331 and Nasdaq (COMP) composite climbed 51 points, or 1.9%, to 2799.

Thursday's rally was fairly broadbased and held steady the entire day. Twenty of the Dow's 30 members advanced more than 1%, while the worst-performing member of the Dow was AT& T (T, Fortune 500), falling a modest 0.1%.

Wall Street's bulls rallied behind a considerably better-than-expected weekly jobless claims report, which showed the number of people who filed for benefits dropping to its lowest level since May 2008, along with a modest cooling in energy prices.

" [The initial jobless claims data] is giving the market a lot of optimism going into tomorrow's non-farm payrolls report," said John Dickson, chief market strategist at D.A. Davidson & Co.

Oil fell 40 cents a barrel on news reports that Libyan leader Moammar Gadhafi mightagree to a peace negotiations mediated by Venezuela's Hugo Chavez.

" This has been a very headline-driven market in recent weeks, the oil market especially," Dickson said.

Economy: The Labor Department reported that initial jobless claims totaled 368,000 in the week ended Feb. 26 -- the lowest weekly figure since May 31, 2008.

Analysts surveyed by Briefing.com had expected the number of people filing for unemployment benefits to rise to 400,000 from the revised tally of 388,000 the previous week.

The report came a day before the big labor report, the monthly employment figures from the government. Economists surveyed by CNNMoney expect that 192,000 jobs were created in February, with the unemployment rate rising to 9.1% from 9% in January.

" The economic data this week has just been exceptional, it's really created an optimistic mood going into Friday's jobs report" said Paul Zemsky, head of asset allocation with ING Investment Management.

The Institute for Supply Management's service industries index was also a positive force for the markets, rising to a stronger-than-expected reading of 59.7 for February. Economists had been looking for a reading of 59. Any reading above 50 signals expansion in the sector.

Companies: Valero Energy (VLO, Fortune 500) was the best-performing stock in the S& P 500 on Thursday, jumping 7.7%, after the oil refining company said it expects to post adjusted earnings between 76 cents and 91 cents a share, well ahead of the 48 cents a share analysts had forecast.

Shares of Big Lots (BIG, Fortune 500) rose 4% after the company reported a 15% increase in earnings to $1.46 a share. Analysts were looking for $1.38 a share, according to Briefing.com.

World markets: European stocks closed broadly higher. Britain's FTSE 100 rose 1.4%, the DAX in Germany ticked up 0.5% and France's CAC 40 added 0.5%.

Currencies and commodities: The dollar rose versus the British pound, and made slight gains against the Japanese yen and the euro.

Oil for April delivery slipped 35 cents to $101.87 a barrel. The commodity had been down as much as 1.4% earlier in the day.

Gold futures for April delivery fell $21.30 to $1,416.40 an ounce. On Wednesday gold hit an intraday all-time high of $1,441 an ounce, before setting a settlement record of $1,437.70.

Bonds: The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 3.52% from 3.46% late Wednesday.   

Stocks: $102 oil has investors on edge

The Dow Jones industrial average (INDU) rose 9 points, or 0.1%, with Caterpillar (CAT, Fortune 500) and 3M (MMM, Fortune 500) posting the biggest gains.

The S& P 500 (SPX) added 2 points, or 0.2%, and the Nasdaq (COMP) gained 11 points, or 0.4%.

Yahoo (YHOO, Fortune 500) was a big winner on both of those indexes, with the stock popping 3.3% amid reports that the online portal company is in talks to sell its 30% stake in its Yahoo Japan venture.

U.S. stocks sank Tuesday, with all three major indexes falling more than 1%, as oil prices spiked almost 3%.

Oil prices continued to advance Wednesday, rising $2.60, or 2.6%, to settle at $102.23 a barrel, the highest since September 2008.

" The key is to watch how far and how quickly oil prices rise," Mills said. " The economy can handle where oil is now, but nobody sees the geopolitical uncertainties going away, and higher oil prices could curb economic growth here and in Europe."

Gold futures for April delivery also rose, as investors made a play for safety. The yellow metal touched an intraday all-time high of $1,441 an ounce, before easing slightly to settle at a fresh record of $1,437.70 an ounce.

World markets: World markets slumped Wednesday, a day after the big U.S. sell-off, as forces loyal to leader Moammar Gadhafi attacked rebels in eastern Libya.

European stocks posted losses. Britain's FTSE 100 slipped 0.4%, the DAX in Germany lost 0.6% and France's CAC 40 fell 0.8%.

Asian markets ended sharply lower. The Shanghai Composite slid 0.2%, while the Hang Seng in Hong Kong tumbled 1.5% and Japan's Nikkei sank 2.4%.

Economy: ADP released its latest private-sector jobs report, showing a gain of 217,000 jobs for February. Economists had forecast the ADP report to show that private businesses hired 165,000 new workers last month.

Employers announced plans to cut 50,702 jobs in February, a 32% increase over last month, according to Challenger, Gray & Christmas.

In the Federal Reserve's Beige Book report, a reading of the economic situation from the regional Fed banks, the central bank said manufacturers and retailers across all 12 of the Fed's districts are passing on rising commodity prices to consumers, but the economy continues to grow at a moderate pace.

Companies: Shares of Apple (AAPL, Fortune 500) rose 0.8% after the company's CEO Steve Jobs made a surprise appearance on stage in San Francisco to debut the iPad 2, which received a new, thinner design and an updated " A5" dual-core microprocessor.

Currencies and bonds The dollar fell against the euro and the British pound but rose versus the Japanese yen.

The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 3.46% from 3.40% late Tuesday.

Stocks drop more than 1% as oil spikes near $100

The Dow Jones industrial average (INDU) sank 168 points, or 1.4%, with Alcoa (AA, Fortune 500) and Caterpillar (CAT, Fortune 500) leading the decline. The S& P 500 (SPX) fell 21 points, or 1.6%, and the Nasdaq (COMP) lost 45 points, or 1.6%.

The sell-off came as oil prices for April delivery continued to head higher, climbing $2.66 to settle at $99.63 a barrel amid ongoing uprisings in Libya and the Middle East. In electronic trading, crude prices topped $100 a barrel Tuesday afternoon, after crossing that mark last week for the first time since 2008.

As crude climbed, gas prices rose for a seventh straight day. Meanwhile, gold prices surged $21.30, or 1.5%, to settle at a record high of $1,431.20 an ounce.

Tensions in the Middle East and North Africa will continue to cast a shadow on the market, said Matt King, chief investment officer at Bell Investment Advisors.

Investors also tuned into Federal Reserve Chairman Ben Bernanke's testimony on Capitol Hill. Bernanke warned that a sustained rise in oil prices could pose a danger to economic growth.

" Bernanke's comments reconfirm what the market's fear has been since the Libyan situation started," King said. " Bernanke hasn't been too concerned about inflation, especially in relation to high commodity prices, so this is the first time he's outlining a potential scenario with inflation."

Markets also came under pressure after the Securities and Exchange Commission filed a lawsuit against former Goldman Sachs (GS, Fortune 500) director Rajat Gupta for insider trading.

" It's just another hit to investor confidence, and it's scary to think about potential repercussions," said Dave Rovelli, managing director of U.S. equity trading at Canaccord Adams. " All this insider trading at hedge funds can make individual investors hesitant to come back to the market."

Investors are also looking ahead to the government's monthly payroll report on Friday, which will reveal how many jobs were created in February.

Despite a slight step back last week, stocks closed out February on an upbeat note -- posting their third-straight month of gains. Overall, all three major indexes were up nearly 3% during the month, and have risen more than 5% since the beginning of the year.

Economy: The Institute for Supply Management's manufacturing index rose for a 19th consecutive month, reaching 61.4% -- a level last seen in May 2004. The level signals continuing expansion in the sector.

Companies: General Motors (GM) said total U.S. sales rose 46% last month on an annual basis, while Ford's sales rose 14%. Shares of both U.S. automakers fell about 2%.

Shares of Japanese automaker Toyota (TM) slipped 0.5% after the company said sales rose 42% last month from a year earlier, when monthly sales fell 8.7% on recall problems.

Shares of Las Vegas Sands (LVS, Fortune 500) dropped 6.3% after the casino operator said that it has received a subpoena from the SEC requesting documents related to the Foreign Corrupt Practices Act. The company said it is also being investigated by the Department of Justice.

Shares of J. Crew Group (JCG) rose 1% after stockholders agreed to adopt the previously announced merger agreement with Chinos, an affiliate of private equity firms TPG Capital and Leonard Green & Partners.

World markets: European stocks closed lower. Britain's FTSE 100 lost 0.8%, the DAX in Germany fell 0.5% and France's CAC 40 declined by 0.7%.

Asian markets ended higher. The Shanghai Composite rose 0.5%, the Hang Seng in Hong Kong added 0.2% and Japan's Nikkei jumped 1.2%.

Currencies and commodities: The dollar rose against the euro, was weaker versus the British pound and firmer versus the Japanese yen.

Bonds: The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 3.41% from 3.43% late Monday.   

Stocks end 'tough month' in the black

The Dow Jones industrial average (INDU) rose 96 points, or 0.8%, on Monday the S& P 500 (SPX) rose 3 points, or 0.2% the Nasdaq (COMP) was flat for the day.

But that doesn't mean the ride wasn't a bumpy one. While stocks started February off strong thanks to solid earnings reports, uprisings in the Middle East sent oil prices skyrocketing and stocks falling last week.

" It's really been kind of a tough month," said Jack Ablin, chief investment officer of Harris Private Bank in Chicago. " I'm hopeful that as long as consumers believe higher energy prices are temporary, I think we can work our way through this."

Investors are looking ahead to the government's monthly payroll report on Friday, which will reveal how many jobs were created in February.

Economy: A report showing that personal incomes climbed 1% in January got investors in an upbeat mood early in the day, even though most of that increase was due to a 2% payroll tax holiday passed by legislators in late 2010.

" We saw a knee-jerk reaction to that headline," Ablin said. " I'm surprised that number wasn't already baked into the market."

Later, investors also welcomed a report on Chicago-area manufacturing showing that sector accelerated at a faster-than-expected pace in February. The Chicago PMI rose to 71.2 from 68.8 in January, although economists had expected a slight decline.

Investors remain generally unfazed by a potential shutdown of the federal government, which could occur if Congress fails to approve a spending bill before midnight Friday.

Companies: Humana (HUM, Fortune 500) shares rose 3.9% after the company announced the Department of Defense awarded the health insurer a major contract, covering military personnel and their families in the South.

UnitedHealth Group (UNH, Fortune 500) had previously held the contract, and its shares were flat Monday.

Kenneth Cole Productions (KCP) shares tumbled 7% Monday, after the high-end clothing company announced its CEO Jill Granoff is stepping down, effective immediately. The company posted a loss of $2.7 million in the fourth quarter, an improvement over a $52 million loss in the year-ago quarter.

The fashion house's namesake had recently come under fire in the social media sphere, for tweeting a promotion that joked about protests in Egypt.

Shares of Overstock.com (OSTK) soared 9%, after the online retailer announced earnings that beat Wall Street estimates.

3M (MMM, Fortune 500) gained 2.2%, after a Barrons article reported the company will launch a " blizzard" of new products and soon see rising sales in international markets. Over the weekend, 3M CEO George Buckley slammed President Obama as " anti-business," calling his policies " Robin Hood-esque."

Amazon (AMZN, Fortune 500) shares fell more than 2.2%, after UBS downgraded its stock to " neutral."

World markets: European stocks ended the day mixed. Britain's FTSE 100 fell 0.1%, the DAX in Germany ticked up 1.2% and France's CAC 40 edged up 1.3%.

Asian markets ended the session higher. The Shanghai Composite added 0.9%, the Hang Seng in Hong Kong gained 1.4% and Japan's Nikkei rose 0.9%.

Currencies and commodities: The greenback fell against the euro, the British pound and the Japanese yen.

Oil for April delivery slipped 91 cents to settle at $96.97 a barrel.

Gold futures for April delivery rose 60 cents to settle at $1,409.90 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 3.43% from 3.59% late Friday.