Oil sinks on stronger dollar to $115 a barrel
Fannie Mae loses $2.3B in quarter as defaults rise
UBS settles $18.6B auction-rate securities case
Insurance weighs on Berkshire Hathaway's 2Q
DJIA 11,734.32 +302.89 +2.65%
S&P500 1,296.32 +30.25 +2.39%
Oil Hits intraday low of $114.61 and settled at $115.15
The precipitous slide, fueled in part by a recovery in the U.S. dollar, has now taken oil prices to around $115 a barrel -- or more than 20 percent below a record set July 11.
A slide in energy prices is a welcome boost in an economy hamstrung by the housing slump and mounting mortgage losses in the financial services sector.
In the near term, consumers and business should feel some respite as energy costs recede, boosting prospects for a range of market constituents, including airlines, retail, industrial and technology sectors.
Financials are also a major beneficiary as investors shift money out of energy stocks in search for bargains elsewhere.
"I think the trend in stocks is up. I do feel that July 15 represented the bottom for stocks and we are going to move higher," said Bruce Zaro, chief technical strategist at Delta Global Advisors in Boston.
"I really feel that what investors are looking for right here is signs that the economy is starting to pick up right now."
And as the latest earnings reporting season is fast winding down, investors will have plenty of economic reports to watch next week. Continued...
Source: Reuters, Yahoo Finance.