Updated from 4:11 p.m. EDT
Stocks closed mixed Monday, with tech shares showing strength while blue chips were hampered by a jump in oil prices.
added 10.55 points, or 0.48%, to 2195.38. The
Dow Jones Industrial Average
fell 17.76 points, or 0.17%, to 10,623.15, and the
rose 1.17 points, or 0.09%, to 1235.35. The 10-year Treasury note was down 10/32 in price to yield 4.32%, while the dollar fell against the yen and euro.
About 1.33 billion shares changed hands on the
New York Stock Exchange
, with advancers beating decliners by a 9-to-8 margin. Trading volume on the Nasdaq was 1.48 billion shares, with advancers beating decliners 9 to 7.
"Today was some digestion along with nervousness in the oil sector," said Ken Tower, chief market strategist with CyberTrader. "The oil news offset better-than-expected earnings, and the market was never quite able to shrug that off."
Oil finished higher following the death of Saudi Arabia's King Fahd. Crude for September delivery closed up 98 cents to a record closing high of $61.55, extending a run that has added more than $2 to the price of a barrel since Wednesday. Crude prices touched a new intraday high of $62.30 earlier Monday.
"Increased volatility this week in the commodity, currency and bond markets may also create larger-than-usual swings in equities," says Paul Mendelsohn, chief investment strategist with Windham Financial. "Meanwhile, this is a heavy week for economic data, as traders will be positioning into Friday's July employment report."
On the economic front, the Institute for Supply Management said its manufacturing report for July came in at 56.6. Economists had expected a slight increase to 54.0 after a 53.8 reading in June.
"The survey is clearly signaling an end to the industrial slowdown, with orders, production and employment all rising," says Ian Shepherdson, chief economist with High Frequency Economics. "With consumers happy too, this is a great start to the third quarter."
Separately, the Commerce Department said construction spending fell 0.3%. Spending was expected to rise 0.8% in June after a 0.9% decline in May.
Stronger sectors Monday included energy, health care, technology, banks and airlines. Utilities, semiconductors, homebuilding and industrials were among weaker-performing sectors.
In corporate news,
Procter & Gamble's
fourth-quarter earnings rose about 10% from a year ago to $1.5 billion, or 56 cents a share, on a 10% sales rise to $14.26 billion. Both lines exceeded the Thomson First Call consensus. Shares of P&G were lower by 31 cents, or 0.6%, to close at $55.32.
A surge in Medicare clients lifted
second-quarter earnings to $84.1 million, or 51 cents a share, matching estimates. Revenue rose 3% from last year to $3.55 billion, about $10 million better than forecast. Humana gained $2.77, or 7%, to $42.62.
said second-quarter net income rose 5% to $241.2 million, or 36 cents a share, from $229.5 million, or 34 cents a share, a year ago. Results matched the Thomson First Call consensus. Net sales were $1.23 billion, up 4% from the same quarter a year ago. Teva rose 74 cents, or 2.4%, to $32.21.
firmed up its succession plans Monday, saying CEO Jorma Ollila will step down from the post next June, at which time Olli-Pekka Kallasvuo will take over the top slot. Kallasvuo now runs Nokia's mobile-phone segment. Nokia dipped 2 cents, or 0.1%, to $15.93.
rose after Smith Barney raised it to buy from hold and raised the price target to $51 from $45. Among other things, the brokerage cited a statement from
that it isn't developing an online payment system to compete with PayPal for the upgrade. eBay traded up $1.83, or 4.4%, to finish at $43.61.
closed higher after the company announced it has won Food and Drug Administration approval to resume sales of some of its defibrillators in the U.S. The stock added $2.52, or 3.7%, to $71.32.
Johnson & Johnson
, which is in the process of acquiring Guidant, rose 54 cents, or 0.8%, to $64.50.
said Saturday that same-store sales for its U.S. stores in July are expected to rise 4.4%. Previously issued guidance called for growth between 3% and 5%. Wal-Mart will release the July sales results on Aug. 4. Shares were up 18 cents, or 0.4%, to $49.53.
Meanwhile, rival retailer
closed lower after
said over the weekend that it believes the company's shares are too expensive. The article cited increasing competitive pressure from Wal-Mart, as well as the chain's commitment to the grocery business. The stock fell 95 cents, or 1.6%, to $57.80.
surged 14.1% after the electronics retailer said it will now sell cellular phones from Cingular Wireless and
instead of Verizon Wireless. Shares were also upgraded by brokerage firm CSFB to neutral from underperform. The stock was up $3.31 to $26.78.
was 1% higher Monday after the automaker said it's extending its employee pricing discounts through Sept. 6. The program is now set to include some of its 2006 model-year pickup trucks and sport-utility vehicles. Ford finished up 11 cents to $10.85.
Earnings season will pick up again Tuesday, with reports scheduled from
Marsh & McLennan
Mendelsohn said that "earnings growth is currently running at a 15% year-over-year rate during the quarter, which is lower than the 17% reported during the previous period, but well above the 8% forecast by analysts."
Overseas markets were higher, with London's FTSE 100 adding 0.2% to 5291, while Germany's Xetra DAX rose 0.1% to 4890. In Asia, Japan's Nikkei added 0.4% overnight to 11,947, while Hong Kong's Hang Seng rose 0.7% to 14,979.
To view Aaron Task's video take on today's market, click here