US stocks up as oil prices fall

Wall Street inched higher today as a broad retreat in commodities prompted investors to shift money out of oil and raw materials-based companies and into other stock sectors.

Falling prices for petroleum and metals led to declines in shares of commodities producers; Exxon Mobil and Alcoa, both Dow Jones Industrial components, were among the session’s biggest decliners.

The six-day slide in crude prices, which closed under 66 per barrel today, was welcomed by Wall Street as a sign US inflation will be kept under control. Cheaper oil also could help boost consumer spending, as well as corporate profits.

Investors have been looking for any direction about the state of the US economy, but have also traded with relatively little conviction, ahead of the Federal Reserve’s next meeting on September 20. St Louis Fed President William Poole said in a speech that inflation was “pretty well controlled” – but offered little else about the economy.

The Dow Jones industrial average rose 4.73, or 0.04%, to close at 11,396.84, after moving in and out of positive territory during erratic afternoon trading. The Dow slipped 0.63% last week.

Broader stock indicators also closed higher. The Standard & Poor’s 500 index added 0.62, or 0.05%, to close at 1,299.54, and the Nasdaq composite index rose 7.46, or 0.34%, to end the day on 2,173.25.