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U.S. Stocks Advance as Oil Slides
 Oct. 23 (Bloomberg) -- U.S. stocks rose, extending October's record-breaking rally, as falling oil prices bolstered optimism that consumer spending will sustain the economy. ``If oil prices continue to stay in this range or move lower, I can see the market jumping from here,'' said Don Schreiber, who manages $250 million as president of WBI Investments in Little Silver, New Jersey. ``You combine that with an attractive interest-rate environment, with the Fed pausing, and you have the market moving higher.''
Optimism that the pace of consumer spending will shore up the economy and companies will beat earnings estimates spurred stocks to build on an October rally that pushed the Dow above 12,000 for the first time. The S&P 500 has climbed 3.4 percent this month, putting it on pace for its best month this year. Central bankers begin a two-day meeting tomorrow. All 106 economists surveyed by Bloomberg News expect the Fed to keep interest rates unchanged at 5.25 percent for a third straight month as a weakening housing market slows the economy. Gross domestic product probably rose 2 percent in the July through September period, according to economists, easing from a 2.6 percent rate in the second quarter. The Commerce Department will release the data on Oct. 27. The GDP report is also projected to show consumer spending, which accounts for about 70 percent of the economy, grew at an annual rate of 3.1 percent last quarter, up from a 2.6 percent gain the previous three months. Today, oil retreated for a second day on skepticism that the Organization of Petroleum Exporting Countries will cut production by as much as members pledged last week. Crude oil for December delivery declined 0.9 percent to $58.81 a barrel in New York. Prices have plunged 25 percent from the record of $78.40 a barrel reached July 14. Posted by: Steve White 2006-10-24 |
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