Closing Bell: Stocks Gain, Oil Dips as Investor Fears of Syria Strike Fade

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Stocks rose and oil prices fell Tuesday as the risk that the U.S. would attack Syria appeared to fade.

The Dow Jones industrial average (^DJI) picked up 127 points, or 0.7 percent, to 15,191, the Standard & Poor's 500 index (^GPSC) gained 12 points, or 0.7 percent, to 1,684 and the Nasdaq composite index (^IXIC) added 22 points, or 0.6 percent, to 3,729.

Fears of action against Syria eased after President Barack Obama said Monday he saw a possible breakthrough in the situation after Syria's prime minister backed a Russian proposal that Syria hand over its chemical weapons to representatives of Russia, the UN and "other countries" for destruction.

Crude oil, which had closed above $110 a barrel Friday, lost $2.13, or 2 percent, to $107.39 a barrel.

Apple (AAPL) introduced two new iPhones, including the "iPhone 5C" that comes in five colors and starts at $99 with a contract. The new model is priced to bring one of the industry's costliest smartphones within reach of the masses in poorer emerging markets.

But the announcements left investors unimpressed. Shares of Apple, the most valuable technology company, lost $11.53, or 2.3 percent, to close at $494.64 and were the biggest drag on the S&P 500 and Nasdaq composite indexes.

In related news, the makeup of the Dow is getting a shakeup. It's dropping Bank of America, Hewlett-Packard and Alcoa, to be replaced by Goldman Sachs, Nike, and Visa at the start of trading on Sept. 23. The Dow is made up of 30 stocks.

S&P Dow Jones Indices said the change won't disrupt the level of the industrial average. It said it made the change to diversify the sector and industry group representation of the index.


Hewlett-Packard (HPQ) dipped 0.4 percent to $22.27, Alcoa (AA) was off a mere 3 cents to $8.06 and Bank of America (BAC) actually rose almost 1 percent to $14.61. Meanwhile, Visa (V) rose 3.4 percent to $184.59; Nike (NKE) added 2.2 percent to $66.82; and Goldman Sachs (GS) tacked on 3.5 percent to $165.14.

Tesco, Britain's largest retailer by sales, has agreed to sell 150 of its 200 loss-making Fresh & Easy stores in the United States to Los Angeles-based Yucaipa Cos., a private-equity firm. Tesco chief executive Philip Clarke said more than 4,000 jobs will be protected by the sale.

More Stocks in the News:
  • McDonald's (MCD) gained 0.5 percent to $96.89 after the fast-food restaurant chain reported a better-than-expected 1.9 percent increase in global sales at established restaurants in August.
  • Shares of Urban Outfitters (URBN) slid more than 10 percent to $38.35 after the retailer said its third-quarter sales increases were weaker than earlier in the year.
  • ConAgra (CAG) shares lost 6 percent to $31.54 after it revised downward its expectations for first-quarter profit below analyst expectations, because of weak sales at its consumer foods business, which includes Chef Boyardee canned pasta, Hunt's sauces and Slim Jim beef jerky. The stock ended Monday up 14 percent for the year.
  • PVH Corp. (PVH) shares sank 5.6. percent to $124.66 after the clothier gave a weak outlook for the year. The company, whose brands include Calvin Klein and Tommy Hilfiger, warned late Monday that is taking a cautious stance on the remainder of the year due to uncertain economic conditions.
  • Microsoft (MSFT) rose 2.3 percent to $32.39 on rumors about who might succeed CEO Steve Ballmer when he retires next year.
  • Netflix (NFLX) jumped 6.4 percent to $313.06 as it continued to regain investor confidence after gaffes two years ago that initially drove away subscribers.
What to Watch Wednesday:
  • The Commerce Department releases July data on wholesale trade.
  • Men's Wearhouse (MW) is scheduled to report quarterly corporate earnings.
-Compiled from staff and wire reports.



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15 Comments

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betty_brock

Waiting a month after an attack to strike back doesn't cut it. What if we had waited a month after Pearl Harbor? Obama wants war. He should have gone ahead

September 11 2013 at 2:48 PM Report abuse +1 rate up rate down Reply
Colin Snider

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September 11 2013 at 10:51 AM Report abuse rate up rate down Reply
mac2jr

As for the Stock (Bingo, Casino, Gaming, Con) Market and its ups and downs, it has lost its purpose, its reason for existing, and its collective mine. The Stock Market no longer bears any resemblance to its original self or purpose, and is no longer helping companies advance, but in many instances is destroying what are otherwise good and profitable companies that are producing goods made in America with American materials and American labor.

September 11 2013 at 2:19 AM Report abuse -2 rate up rate down Reply
mac2jr

I back Obama on the Syria problem as should all sane and decent peoples, but due to the MSM (Main Stream Media) the entire world now thinks that we, Americans, are insane. The stupid questions, the inept reporting, the lies by some media outlets (mostly Republican), and the endless 'what ifs' by the MSM have the average citizen going nuts.

One has to feel for Obama, he is the first President to rule under Facebook and Twitter, and ten of dozens of anti-government, anti-Obama, anti-democrat commentary boards. NO other President in the history of the country has put up with so much MSM nonsense; and if George Washington had ruled in this situation, we would still be British.

September 11 2013 at 2:15 AM Report abuse -2 rate up rate down Reply
mac2jr

Tomahawk cruse missile is what, US$1,410,000 each. How many should we fire at Syria. The math is simple, how much does the CEO of Raytheon Missile Systems want as a salary this year?

September 11 2013 at 2:09 AM Report abuse -2 rate up rate down Reply
toosmart4u

On Social Security and medicare, thank a democrat. If you want to end these 2 fine programs vote republican. Lets save these 2 fine programs for our children and grand children. Only the democrats can save these programs.

September 10 2013 at 10:58 PM Report abuse +2 rate up rate down Reply
1 reply to toosmart4u's comment
betty_brock

toosmart is not too smart

September 11 2013 at 2:49 PM Report abuse +1 rate up rate down Reply
toosmart4u

The American people are tired of wars. Thanks to Bush Jr. we have been at war for the past 14 years and still at it today. Our wars are the product of our defense contractors. Vietnam, Iraq, etc. was for the contractors to pratice their new weapons. Now they have come out with a new vehicle, cost 260,000 each if ordered 15,000 at a time. The GOP is in the pocket of the defense contractors.

September 10 2013 at 10:56 PM Report abuse +1 rate up rate down Reply
betty_brock

Obama should have struck immediately after the gas attack if he was going to strike at all. He just wants to be able to blame Congress if anything goes wrong.

September 10 2013 at 9:05 PM Report abuse -1 rate up rate down Reply
elendil3136

Watch Obama's tough talk tonight drop the market 200 points tomorrow.

September 10 2013 at 8:55 PM Report abuse -1 rate up rate down Reply
betty_brock

Obama wants to go to war. If a Republican wanted to go to war, we libs would crucify him. We are such hypocrites.

September 10 2013 at 8:40 PM Report abuse -1 rate up rate down Reply