U.S. Stocks Gain, Led by Commodity Shares; Exxon, Newmont Rise


U.S. stocks rose for a second day, led by commodities producers, after the price of oil climbed to a record and the slumping dollar made metals more attractive to foreign buyers.

Exxon Mobil Corp., the largest energy producer, gained after crude advanced to as much as $93.20 a barrel. Freeport-McMoRan Copper & Gold Inc. and Newmont Mining Corp. climbed after the price of gold reached the highest since 1980. Humana Inc., the second-biggest U.S. provider of medical benefits to seniors, rallied to an all-time high on earnings that topped analysts' estimates.

The Standard & Poor's Index added 4.46, or 0.3 percent, to 1,539.74 as of 10:08 a.m. in New York. The Dow Jones Industrial Average climbed 37.63, or 0.3 percent, to 13,844.33. The Nasdaq Composite Index increased 13.38, or 0.5 percent, to 2,817.57. Stocks in Europe and Asia rallied.

Higher prices for energy and metals boosted the earnings outlook for producers of oil and raw materials, the two industries that have led the stock market's advance this year. The rally in commodities has been spurred by the dollar's decline to a record low against the euro on speculation the Federal Reserve will cut interest rates this week to prevent the economy from slowing.

 


Bloomberg
10/29/2007 7:16:50 AM