April 29, 2005


Dow Ends Up 122 Points As Oil Prices Skid (Michael J. Martinez, 4/29/05, AP)

Wall Street ended a volatile week with a big advance Friday as oil prices tumbled below $50 per barrel and jittery investors took solace in a pair of economic reports that eased their inflation concerns. The Dow Jones industrial average gained 122 points for the session, but the major indexes finished the week mixed.

A late selloff in crude futures helped Wall Street solidify its gains in an otherwise uncertain session. A barrel of light crude settled at $49.72, down $2.05, on the New York Mercantile Exchange, its lowest level since Feb. 18. Oil prices began the week above $55 per barrel.

The buying was further buoyed by economic data that showed prices and labor costs remained in check. The Commerce Department reported a 0.5 percent increase in income and a 0.6 percent hike in spending for March, and the Labor Department said labor costs for businesses were falling. Both are key inflation readings which bode well for interest rates and the economy.

Well, those folks watched long enough for a woodpecker and finally found one. Keep an eye out for a few decades and you'll see inflation again.

Posted by Orrin Judd at April 29, 2005 6:07 PM
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