NEW YORK – Stocks ended higher in volatile trading yesterday as investors weighed fears about mounting tension in Iran.
The major indexes bounced around, spending most of the session looking for direction as crude prices surged to a six-month high. Investors remain nervous about the West's response to British sailors held captive in Iran, and oil prices crossed the $66 mark.
Investors also bought and sold stocks to improve the appearance of their portfolios ahead of tomorrow's end of the first quarter. The modest advance snapped a three-day losing streak for the Dow Jones industrials.
“The market is at a pivotal point,” said Scott Fullman, director of investment strategy for Israel A. Englander & Co. “The market has become more volatile, and more sensitive, to news items.”
The Dow rose 48.39, or 0.39 percent, to 12,348.75. The index climbed as high as 12,381.91 in the morning. Broader stock indicators also finished higher. The Standard & Poor's 500 index rose 5.30, or 0.37 percent, to 1,422.53. The Nasdaq composite index edged up 0.78, or 0.03 percent, to 2,417.88.
Bonds slipped, with the yield on the benchmark 10-year Treasury note rising to 4.64 percent from 4.62 percent Wednesday. The dollar was mixed against other major currencies, while gold prices tumbled.
Oil prices extended their gains yesterday after settling at their highest level since mid-September on Wednesday amid political tensions in the Middle East. Declining U.S. supplies amid high demand also drove up prices. Light, sweet crude rose $1.95 to settle at $66.03 a barrel on the New York Mercantile Exchange, after rising as high as $66.50.
Early in the trading session, the Labor Department released a report that showed the number of newly laid-off workers signing up for unemployment benefits last week declined. This suggests the job market is still in good shape even as the economy goes through a sluggish spell.
In corporate news, U.S. Steel announced it will acquire Lone Star Technologies for $2.1 billion, which represents a 39 percent premium. U.S. Steel rose $3.61, or 3.7 percent, to $101.22, while Lone Star surged $17.66, or 36.5 percent, to $65.11.
RF Micro Devices, which makes radio frequency components, warned that weaker demand from a major customer would harm its first-quarter results. Shares fell 76 cents, or 10.8 percent, to $6.31.
Circuit board maker Multi-Fineline Electronix said its second-quarter sales and profit could decline from the first quarter. The stock fell $1.95, or 11.2 percent, to $15.55.
The Russell 2000 index of smaller companies rose 1.54, or 0.19 percent, at 798.94.
Advancing issues outnumbered decliners by about 2-to-1 on the New York Stock Exchange, where volume came to 2.81 billion shares, down from 2.88 billion Wednesday.
Overseas, Japan's Nikkei stock average closed up 0.05 percent. Britain's FTSE 100 was up 0.91 percent, Germany's DAX index added 1.18 percent and France's CAC-40 rose 1.42 percent.
