U.S. Stocks Soar as Oil Prices Sink Lower
Updated from 8:04 a.m. EDT
Stocks in New York leapt out of the gate Tuesday, after a weaker-than-feared Hurricane Gustav failed to cause major oil-supply disruptions over the holiday weerkend, sending the price of crude substantially lower.
The
Dow Jones Industrial Average
soared 231 points to 11,774, and the
jumped 17 points to 1300. The
Nasdaq
added 40 points to 2408.
As trading got underway for the Labor Day-shortened week, the price of crude oil was plummeting $8.29 to $107.17, after Gustav hit the Louisiana coast but largely spared New Orleans and energy-production facilities in the area. Gold was down $36.50 to $798.70.
As for corporate news, Internet company
(GOOG) - Get Free Report
said it will develop its own Web browser in an effort to compete with
Microsoft
(MSFT) - Get Free Report
.
Elsewhere in technology,
Alcatel-Lucent
(ALU)
appointed Ben Verwayyan, former head of
BT Group
, as its new CEO. Alcatel-Lucent also selected Philippe Camus to be its nonexecutive chairman.
Meanwhile,
Bloomberg
reported that Korea Development Bank is holding discussions to buy a stake in struggling brokerage
Lehman Brothers
undefined
, continuing a rumor that has been around for the past couple of weeks but has yet to be confirmed.
Away from stocks, longer-dated U.S. Treasury securities were trading lower. The 10-year note was down 13/32 to yield 3.86%, and the 30-year was losing 20/32, yielding 4.46%. The dollar was rising sharply against the euro, yen and pound.
Turning to the day's economic data, traders will receive the U.S. Census Bureau's look at July construction spending, as well as the Institute for Supply Management's manufacturing index.
Overseas, European indices were looking strong, as the FTSE in London and the Dax in Frankfurt posted gains. In Asia, Japan's Nikkei was dropping, while Hong Kong's Hang Seng was slightly higher.
