Stocks Flat, Techs Outweigh Dollar Woes
By Megan Davies NEW YORK (Reuters) - U.S. stocks were little changed on Monday, edging back from a negative start, as rises in semiconductor stocks and crude prices slipping from recent highs, offset caution ahead of the U.S. presidential election and the impact of a lower dollar. Chip stocks were ahead after brokerage Smith Barney upgraded its rating on the U.S. semiconductor sector to "overweight," dealers said on Monday. S&P component Texas Instruments Inc. (TXN.N: Quote , Profile , Research ) rose 2.2 percent to $22.83. Meanwhile, Deutsche Bank Securities upgraded Dow component and insurance company American International Group Inc. (AIG.N: Quote , Profile , Research ) to "buy" from "hold." Its stock rose 1.75 percent to $56.46. That upgrade helped pull the major indices back from earlier losses, following a negative start which sent the blue-chip Dow to fresh intra-day lows for the year. The Dow Jones industrial average rose 7.77 points, or 0.08 percent, to 9,755.77. The Standard & Poor's 500 Index was down 1.16 points, or 0.11 percent, at 1,094.58. The technology-laced Nasdaq Composite Index was up 1.55 points, or 0.08 percent, at 1,916.68. A retreat in the price of oil from its peak of $55.67 also helped, although paring earlier losses after a profit-taking bout waned. Crude for December crude (CLZ4: Quote , Profile , Research ) was off 44 cents at $54.73 a barrel. "Oil is down a little bit and that is helping the market... People are looking at the fact that energy prices have come down and that it will help the income statements of some of the companies," said Tom Schrader, managing director, U.S. equity trading, Legg Mason Wood Walker. Meanwhile, shares of home building stocks soared after a report by the National Association of Realtors showed that sales of existing U.S. home surged unexpectedly in September. The Dow Jones U.S. Home Construction Index , a broad measure of home builder stocks, was up nearly 4 percent. Shares that are down include Kimberly-Clark Corp. (KMB.N: Quote , Profile , Research ) , maker of Kleenex tissues and member of the S&P 500, which fell about 3 percent to $60.22 after its third-quarter profit narrowly trailed analysts' mean estimates. Meanwhile, a drop in the dollar weighed on stocks, strategists said, by dissuading overseas investors from buying American stocks or bonds. (Additional reporting by Anupama Chandrasekaran)
Quelle "Stocks Flat, Techs Outweigh Dollar Woes" : reuters.com
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