The Dow fought hard to close above 13,000 as a spike in oil prices took a bite out of a triple-digit rally. Blue chips settled for a 48 point gain. The S&P 500 rose 4, the Nasdaq dropped 3. For the week, the Dow bounced 1.3 percent, while the Nasdaq jumped 2.2 percent. The U.S. economy lost 20,000 jobs in April, but that figure was much smaller than feared. And in another positive sign - the unemployment rate surprisingly dropped to 5 percent. The report is leading many on Wall Street to re-think the idea of a U.S. recession, including Wachovia senior economist - Mark Vitner. "Ive never bought fully into it. Its going to be very difficult for real GDP to post a quarterly decline this year. Now we are not going to see a great deal of growth and GDP is going to average less than 1 percent for the year. But we are not likely to see declines either." Oil traders bet that means energy consumption will pick back up. Crude oil recouped three-days of loses to settle back above $116 a barrel. That strong rebound reignited worries about business and consumer spending. Looking at stocks impacted by higher oil prices: Wal-Mart down about 1 percent. AMR, parent of American Airlines, down 5-1
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Added: May 3, 2008 |
| Category: News |
Author: reuters |
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