Updated from 4:19 p.m. EDT
Stocks closed slightly higher on a somber anniversary for Wall Street and the nation, as investors put their money to work in equities amid a selloff in commodities and fixed-income securities.
Dow Jones Industrial Average
rose 4.73 points, or 0.04%, to 11,396.84, and the
tacked on 0.62 point, or 0.05% to 1299.54. The
added 7.46 points, or 0.34%, at 2173.25.
Procter & Gamble
helped the Dow by adding 1.3% or more.
A gain of 7.4% in
American Power Conversion
and an advance of 5.4% in
Bed Bath & Beyond
supported the Nasdaq.
Monday's session took place against the backdrop of numerous events commemorating the fifth anniversary of the worst terrorist attacks in U.S. history and the destruction of the World Trade Center. Trading floors took several moments of silence to remember the victims of Sept. 11, 2001.
Volume was moderate to start the week, with about 1.32 billion shares changing hands on the
New York Stock Exchange
. Decliners beat advancers by a 9-to-7 margin. Volume on the Nasdaq was 1.73 billion shares, and losers edged winners 8 to 7.
Oil prices extended their losing streak to six days, as the October contract fell 64 cents to $65.61 a barrel. Most other energy prices were also lower. Gold futures sank $20 to $597.30 an ounce, and silver plummeted by $1.05 to $11.24 an ounce.
"The energy and material sectors were hit so hard, so the market held up thanks to a selloff in crude and gold," said Robert Pavlik, chief investment officer with Oaktree Asset Management. "Weakening oil prices will be a focus this week. In addition, people are digesting the idea that inflation will be taken care of by a slowing economy."
President Cathy Minehan gave a speech saying that she expects growth for the next year or so in the high 2% range, "approximately full employment and core inflation subsiding. Not a bad picture."
Following her comments, the benchmark 10-year Treasury note was down 5/32 in price, yielding 4.80%. The dollar weakened against the euro and rose against the Japanese yen.
Marc Pado, U.S. market strategist with Cantor Fitzgerald, said "10-year Treasury bond yields may have bounced off of technical support at 4.70%, but the curve remains inverted to the Fed fund rate by about 50 basis points. This has been a precursor to many recessions in the past."
Markets closed higher to end the holiday-shortened week on Friday, with the Dow adding 61 points, the S&P 500 gaining 5 points, and the Nasdaq rising 10.5 points. For the week, the Dow lost 72 points, or 0.6%, and the S&P 500 fell by 12 points, or 0.9%. The Nasdaq gained 27 points, or 1.2%, over the four sessions.
"Last week's action may have appeared to have been somewhat benign, but the Dow's decline masked deterioration in some key components," said Pado. "Perhaps more important was the 2.68% decline in the Dow Jones Transportation Index. The decline in the Transports came despite a better than 4% drop in crude prices."
, the controversy over a program to secretly access the phone records of directors and a group of journalists continued. This weekend, the company's board met, partly to discuss the future of Patricia Dunn, the chairman, but no decision was reached. H-P finished higher by 27 cents, or 0.8%, to $36.36.
, formerly part of
, is reportedly in line to be sold to a group of investors for more than $16 billion. The report, published in
The New York Times
, lifted Freescale's shares by 20.5% to $37.06.
A confirmed deal involved
, a steel company that set plans to buy
for $66 a share, or $1.46 billion. Shares of NS Group surged 39.4% to finish at $64.31.
was preparing for a midquarter update after the close. The chipmaker's shares finished Friday at $31. TI climbed 78 cents, or 2.5%, to $31.78.
edged lower on word that the PC seller will delay the filing of its quarterly report for the fiscal second quarter ended Aug. 4. The company cited questions raised in the informal investigation by the
Securities and Exchange Commission
into certain accounting and financial reporting matters. Dell was lower by 46 cents, or 2.1%, at $21.19.
traded lower a day before its media event in San Francisco. The company's presentation, dubbed "It's Showtime," is expected to include the addition of downloadable full-length movies to the iTunes Music Store, in addition to rumors about upgrades to Apple's iPod music players. Shares eased by 2 cents to close at $72.50.
posted fiscal fourth-quarter earnings of $44 million, or 11 cents a share, down from $96 million, or 23 cents, last year. Excluding items, the company earned 23 cents a share, beating the Thomson First Call average estimate by a penny. However, quarterly sales of $1.45 billion fell short of expectations for $1.55 billion. Shares added 27 cents, or 0.7%, to $37.45.
jumped 3.2% before its fiscal second-quarter earnings report, due Tuesday morning. The company is expected to post EPS of 44 cents, according to Thomson First Call. Shares closed up $1.46 to $47.77.
Among analyst moves, UBS downgraded homebuilder
to neutral from buy, citing severe margin declines. Still, Lennar gained 40 cents, or 0.9%, to $43.11.
Overseas, Europe's equities were mixed. London's FTSE 100 closed down 0.5% to 5851, and Frankfurt's Xetra DAX was up 0.1% to 5798. In Asia, Tokyo's Nikkei 225 eased by 1.8% to 15,794, and Hong Kong's Hang Seng gave back 1.2% to 16,948.