COMMODITY PRICES DON'T RISE:

Stocks Turn Higher As Oil Prices Fall (JOE BEL BRUNO , 09.11.2006, AP)

Wall Street trended higher Monday as a broad retreat in commodities promoted investors to shift money out of oil and raw materials-based companies and into other sectors.

With prices for commodities dropping, particularly crude oil, investors sold stock in companies including Exxon Mobil Corp. and aluminum maker Alcoa Inc., theorizing that other companies will now be paying less for raw materials, a trend that will help preserve corporate profits. Moreover, a decline in commodities could portend a drop in inflation.

Also lifting stocks was a speech from St. Louis Federal Reserve President William Poole, who said he believes inflation is "pretty well controlled." His comments soothed some of the market's concerns about interest rates ahead of the Federal Reserve's meeting on Sept. 20.

"The drop in oil prices is becoming a catalyst, as is other commodities, and giving people confidence to put money into areas that have somewhat been lagging such as technology," said Scott Fullman, director of investment strategy for Hapoalim Securities. "Investors have been in commodity-based stocks, and you're seeing a reallocation of capital within the market."