U.S. Stocks Climb for Second Day; Chevron, Bear Stearns Advance
By Michael Patterson
Jan. 8 (Bloomberg) -- U.S. stocks advanced the most in two weeks, led by miners and energy producers, after gold rose to a record and oil rebounded from its biggest decline in more than a month.
Chevron Corp., the second-largest U.S. energy company, and Schlumberger Ltd., the world's biggest oilfield-services provider, climbed. Freeport-McMoRan Copper & Gold Inc. and Newmont Mining Corp. rallied as prices for precious and industrial metals increased. Bear Stearns Cos. gained after a person with knowledge of the matter said Chief Executive Officer James Cayne plans to resign.
Shares rose in Europe and Asia, led by miners and telephone companies. The Dow Jones Stoxx 600 Index of European shares added 0.9 percent for its first gain of the year.
``With oil where it is right now between $90 and $100, the oil companies do pretty darn well and they still look relatively inexpensive,'' Jeffrey Saut, who helps oversee about $190 billion as chief investment strategist at Raymond James & Associates, said in a Bloomberg Television interview.
U.S. equities also got a boost as the cost for banks to borrow in dollars and euros slid, signaling efforts by central banks to restore confidence in money markets is working. Investors will get further clues on the outlook for economic growth and interest rates from a private report today that may show pending home sales fell for the first time in three months.
Yesterday's Gain
U.S. stocks advanced yesterday for the first time this year, trimming the S&P 500's 2008 slide to 3.6 percent. Equities have retreated as reports on manufacturing and employment suggested the world's biggest economy may slip into recession.
Chevron added 81 cents to $92.94. Schlumberger gained 97 cents to $97.78.
Crude oil for February delivery rose as much as 2.2 percent to $97.20 a barrel in New York on speculation U.S. inventories fell for an eighth week. Prices for gasoline, heating oil and natural gas also advanced.
Freeport-McMoRan, the largest publicly traded copper producer, added $2.77 to $98.23. Newmont Mining, the world's second-largest gold producer, rose $1.58 to $53.10.
Copper increased to a seven-week high, while gold rose to a record as higher oil prices and a weaker dollar spurred demand for the precious metal as a hedge against inflation.
Bear Stearns, the second-largest U.S. mortgage-bond underwriter, added $1.31 to $77.56. Cayne, 73, has begun notifying members of his board that he will step down as CEO and remain chairman of the New York-based company, according to the person, who declined to be identified because the decision isn't public.
To contact the reporter on this story: Michael Patterson in New York at [color=#0000ff][email protected][/color] .
By Michael Patterson
Jan. 8 (Bloomberg) -- U.S. stocks advanced the most in two weeks, led by miners and energy producers, after gold rose to a record and oil rebounded from its biggest decline in more than a month.
Chevron Corp., the second-largest U.S. energy company, and Schlumberger Ltd., the world's biggest oilfield-services provider, climbed. Freeport-McMoRan Copper & Gold Inc. and Newmont Mining Corp. rallied as prices for precious and industrial metals increased. Bear Stearns Cos. gained after a person with knowledge of the matter said Chief Executive Officer James Cayne plans to resign.
Shares rose in Europe and Asia, led by miners and telephone companies. The Dow Jones Stoxx 600 Index of European shares added 0.9 percent for its first gain of the year.
``With oil where it is right now between $90 and $100, the oil companies do pretty darn well and they still look relatively inexpensive,'' Jeffrey Saut, who helps oversee about $190 billion as chief investment strategist at Raymond James & Associates, said in a Bloomberg Television interview.
U.S. equities also got a boost as the cost for banks to borrow in dollars and euros slid, signaling efforts by central banks to restore confidence in money markets is working. Investors will get further clues on the outlook for economic growth and interest rates from a private report today that may show pending home sales fell for the first time in three months.
Yesterday's Gain
U.S. stocks advanced yesterday for the first time this year, trimming the S&P 500's 2008 slide to 3.6 percent. Equities have retreated as reports on manufacturing and employment suggested the world's biggest economy may slip into recession.
Chevron added 81 cents to $92.94. Schlumberger gained 97 cents to $97.78.
Crude oil for February delivery rose as much as 2.2 percent to $97.20 a barrel in New York on speculation U.S. inventories fell for an eighth week. Prices for gasoline, heating oil and natural gas also advanced.
Freeport-McMoRan, the largest publicly traded copper producer, added $2.77 to $98.23. Newmont Mining, the world's second-largest gold producer, rose $1.58 to $53.10.
Copper increased to a seven-week high, while gold rose to a record as higher oil prices and a weaker dollar spurred demand for the precious metal as a hedge against inflation.
Bear Stearns, the second-largest U.S. mortgage-bond underwriter, added $1.31 to $77.56. Cayne, 73, has begun notifying members of his board that he will step down as CEO and remain chairman of the New York-based company, according to the person, who declined to be identified because the decision isn't public.
To contact the reporter on this story: Michael Patterson in New York at [color=#0000ff][email protected][/color] .
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