US STOCKS-Energy shares boost Dow, S&P 500 in light volume

Reuters: [2008-05-19 22:33:00]

(Updates to close)

* Dow, S&P 500 rise helped by big oil companies

* Tech shares fall as Sandisk warns on consumer spending

* Volume light on the New York Stock Exchange

By Kristina Cooke

NEW YORK, May 19 (Reuters) - The S&P 500 index and Dow Jones industrials eked out gains on Monday as record oil prices boosted energy shares, but the Nasdaq slipped after a chipmaker's warning about consumer spending hurt technology shares.

Crude closed at a record above $127 a barrel, lifting shares of Exxon Mobil Corp <XOM.N> nearly 2 percent. Higher oil prices also boosted coal companies, which analysts said stand to benefit from businesses looking for cheaper, alternative fuels.

The Dow Jones transportation average <.DJT> rose to an all-time high after a brokerage raised its rating on shares of Union Pacific <UNP.N>, a leading shipper of coal and grain.

But oil prices had a negative impact on the Nasdaq. After a sharp rise earlier in the session, semiconductor shares fell after the chief executive of Sandisk <SNDK.O>, a supplier of memory chips, said higher energy costs would hurt consumer spending.

"Anytime you hear anything about consumer spending being soft that's going to affect the broader market," said Edward Bretschger, director of equity sales and trading at Calyon Securities in New York.

The Dow Jones industrial average <.DJI> ended up 41.36 points, or 0.32 percent, at 13,028.16. The Standard & Poor's 500 Index <.SPX> edged up 1.28 points, or 0.09 percent, to close at 1,426.63. The Nasdaq Composite Index <.IXIC> closed down 12.76 points, or 0.50 percent, at 2,516.09.

Trading volume was light on the New York Stock Exchange, suggesting a lack of conviction behind the gains. Volume has been light all month, particularly on Mondays.

Earlier in the session, semiconductors had driven the market higher, after Goldman Sachs said the sector was attractive.

Concerns about spending on consumer electronics hurt the shares of Apple <AAPL.O> and Research In Motion <RIMM.O> <RIM.TO>. Apple shares fell 2.1 percent to $183.60, while Research in Motion shed 2 percent to $137.63.

Economic bellwethers, such as industrial conglomerate Caterpillar rose. Data in recent days has suggested the economy is likely to avoid a debilitating recession. On Monday, the Conference Board, a private business research group, said its Leading Economic Indicators index rose 0.1 percent in April, the same as in March.

Shares of Honeywell International Inc <HON.N>, the world's leading maker of cockpit electronics, rose 0.7 percent to $62.25 after it reaffirmed its sales and profit forecasts for the year and said U.S. economic weakness has had minimal impact on its businesses. Caterpillar shares rose 0.7 percent to $84.28.

Exxon Mobil <XOM.N> and Chevron Corp <CVX.N> shares rose 1.8 percent to end at $94.36 and $102.20, respectively.

Lowe's Companies <LOW.N> shares dropped 2.6 percent to $24.25 on the NYSE after the second-largest U.S. home improvement chain posted a drop in quarterly profit and slashed its full-year outlook.

About 1.1 billion shares changed hands on the New York Stock Exchange below last year's estimated daily average of roughly 1.9 billion. On Nasdaq, about 2.2 billion shares traded, above last year's daily average of 2.17 billion.

Declining stocks outnumbered advancing ones on the NYSE by 16 to 15 on the NYSE, and by 17 to 12 on the Nasdaq. (Editing by Gary Crosse) ((kristina.cooke@thomsonreuters.com; +1-646-223-6154; Reuters Messaging: rm://kristina.cooke.reuters.com@reuters.net)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com

* BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com)) Keywords: MARKETS STOCKS

UPDATE 3-French fishermen widen protest over fuel costs

Reuters: [2008-05-19 21:11:00]

(Adds Royal unblocking regional aid)

By Muriel Boselli

PARIS, May 19 (Reuters) - French fishermen on Monday widened their protest against rising fuel costs, with the blockade of the country's largest oil port of Fos-Lavera near Marseille.

Fishermen, who are meeting the country's agriculture minister, Michel Barnier, on Wednesday, are demanding help to cushion the effects of rising marine diesel fuel prices, driven higher by record oil prices above $125 a barrel.

"The fishermen are blocking the entrances of the Fos-Lavera oil port but the rest of the Marseille port is not affected," a port spokeswoman said.

"The order is to ensure no ships enter the port," one port source said, adding that at least two oil tankers were lining up to enter the port and other ships were at sea.

"A total of 10 loadings and unloadings have been cancelled since Sunday at 2100 (1900 GMT)," the port spokeswoman said.

Fishermen forced French President Nicolas Sarkozy to increase aid to the fishing industry last November after blocking off various ports and oil depots during a six-day strike.

Segolene Royal, the Socialist who ran against Sarkozy in the 2007 elections and who is the president of the Poitou-Charentes region in southwest France, on Monday announced emergency aid worth 500,000 euros would be made available to help fisherman in the region.

Fishermen in western France have also been blocking access to the oil terminal in the port of La Rochelle since Sunday at 1700 GMT.

Protesting fishermen said they would only lift their blockade at the oil hub if there is a positive outcome at the meeting with Barnier, who has said the state has already handed over 30 million euros ($46.4 million) of aid to the fishing industry this year, with another 23 million on the way.

In a gesture of goodwill, the fishermen lifted their blockade of the town's Chef de Baie fishing port, the Minimes boating port and the old town's port but said they would block those ports again if the negotiations were not satisfactory.

Since last week, fishermen have also cut off access to the nearby Atlantic ports at Ile d'Oleron and La Cotiniere.

Some 20 fishermen are also blocking BP's <BP.L> fuel stocks at the southern city of Frontignan.

Operations at the Fos-Lavera oil hub had already been disrupted by a rolling strike since mid-April against government plans to privatise loading activities at state-run ports.

Fos-Lavera supplies crude to eight refineries in southeast France with a total production capacity of around 800,000 barrels per day. (Additional reporting by Claude Canellas and Nicolas Fichot, editing by Matthew Lewis) ((muriel.boselli@reuters.com; + 33 1 4949 5270; Reuters Messaging: muriel.boselli.reuters.com@reuters.net)) Keywords: FRANCE PORT/BLOCKADE

US STOCKS-Tech, energy shares lift market

Reuters: [2008-05-19 20:13:00]

(Updates to afternoon, changes byline)

* Semiconductor shares rise after broker upgrade

* Big oil company shares continue upward march

* Dow Jones transportation average rises to record high

By Kristina Cooke

NEW YORK, May 19 (Reuters) - Wall Street stocks rose on Monday as investors bet that the U.S. economy will avoid sinking into a recession, boosting growth-sensitive sectors such as transport and technology.

Shares of energy companies, including Exxon Mobil Corp <XOM.N>, were boosted by high oil prices. Oil futures traded at $126.24 per barrel, just short of Friday's record of $127.82.

Investors snapped up technology shares on hopes that business spending will hold up, with shares of Oracle Corp <ORCL.O>, the world's second-largest software maker, up 3.9 percent and among the top advancers on the Nasdaq.

The Dow Jones transportation average <.DJT> rose to a record high, led by Union Pacific <UNP.N>. Shares of economic bellwethers like Caterpillar Inc <CAT.N> and Honeywell <HON.N> also climbed.

Data in recent days has suggested the economy is likely to avoid a debilitating recession. On Monday, the Conference Board, a private business research group, said its Leading Economic Indicators index rose 0.1 percent in April, the same as in March.

"It is a bigger picture theme today, with the resilience of equities continuing even in the face of high oil prices," said Michael James, senior trader at regional investment bank Wedbush Morgan in Los Angeles.

"There's a realization that we haven't seen, at least to date, a significant economic impact from the high oil prices and there is a general comfort level with the economic data."

The Dow Jones industrial average <.DJI> was up 121.31 points, or 0.93 percent, at 13,108.11. The Standard & Poor's 500 Index <.SPX> was up 11.62 points, or 0.82 percent, at 1,436.97. The Nasdaq Composite Index <.IXIC> was up 16.22 points, or 0.64 percent, at 2,545.07.

Shares of Amazon.com Inc <AMZN.O> shot up 9.2 percent to $83.50 after Goldman Sachs raised its price target on the stock and added the Internet retailer to its "Americas conviction buy" list.

Goldman also raised the U.S. semiconductor sector to "attractive" from "neutral" according to theflyonthewall.com. An index of semiconductor stocks <.SOXX> was up 0.3 percent.

Honeywell International Inc <HON.N>, the world's leading maker of cockpit electronics, shares rose 1.4 percent to $62.67 after it reaffirmed its sales and profit forecasts for the year and said U.S. economic weakness has had minimal impact on its businesses. Caterpillar shares rose 2 percent to $85.35.

Union Pacific shares rose 2.8 percent to $157.36 after Stifel recommended investors buy the railroad's stock, according to theflyonthewall.com.

Exxon shares rose 1.3 percent to $93.88, helping drive the S&P 500 above its 200-day moving average, a key trend measure, for the first time since late December.

Chevron Corp <CVX.N> gained 1.8 percent to $102.22.

Oracle shares rose 3.7 percent to 22.48 on the Nasdaq, a day after financial weekly Barron's said the stock was poised to resume its long-term ascent after stagnating this year. For more see [ID:nN18495242].

Lowe's Companies <LOW.N> shares dropped 2.4 percent to $24.29 on the NYSE after the second-largest U.S. home improvement chain posted a drop in quarterly profit and slashed its full-year outlook. [ID:nWNAS4576]. (Editing by James Dalgleish) ((kristina.cooke@thomsonreuters.com; +1 646 223 6154; Reuters Messaging: rm://kristina.cooke.reuters.com@reuters.net)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com))

Keywords: MARKETS STOCKS

US STOCKS-Oil, technology gains boost Wall Street

Reuters: [2008-05-19 19:05:00]

(Updates to midday, changes byline)

* Semiconductor shares rise after upgraded opinion

* Amazon.com advances on broker action

* Big oil company shares continue higher

By Cal Mankowski

NEW YORK, May 19 (Reuters) - Wall Street stocks rose on Monday, driving the Dow Jones industrials up 1 percent as investors bet that the U.S. economy will avoid sinking into recession, giving a boost to growth-sensitive sectors such as transport and technology.

Shares of energy companies, including Exxon Mobil Corp <XOM.N>, were boosted by near-record crude oil prices. Oil futures traded at $126.50 per barrel, below Friday's record of $127.82.

The Dow Jones transportation average <.DJT> was last up 2.4 percent and hit a record high. Shares of big manufacturers, including Caterpillar Inc <CAT.N>, also headed higher. Caterpillar was up 2.35 percent to $85.67.

Economic data in recent days has signaled that the economy is likely to avoid a debilitating recession, including a report on Monday from the Conference Board, a private business research group, which said its Leading Economic Indicators index rose 0.1 percent in April, the same as in March.

Shares of Amazon.com Inc <AMZN.O> shot up 10.25 percent to $84.30 after Goldman Sachs raised its price target on the stock and added the Internet retailer to its "Americas conviction buy" list.

"The market is starting to think that we're not going to get the prolonged, deep recession that the subprime crisis seemed to imply," said Brian Gendreau, investment strategist with ING Investment Management-Americas in New York.

"All along it has been a mixed economy with some sectors such as housing and finance in recession and others such as technology and industrials not in recession," Gendreau said.

The Dow Jones industrial average <.DJI> was up 121.31 points, or 0.93 percent, at 13,108.11. The Standard & Poor's 500 Index <.SPX> was up 11.62 points, or 0.82 percent, at 1,436.97. The Nasdaq Composite Index <.IXIC> was up 16.22 points, or 0.64 percent, at 2,545.07.

Investors snapped up technology shares on hopes that business spending will hold up, with shares of Oracle Corp <ORCL.O>, the world's second-largest software maker, up 3.9 percent and among the top advancers on the Nasdaq.

Goldman Sachs raised the U.S. semiconductor sector to an "attractive" rating from "neutral" according to theflyonthewall.com. An index of semiconductor stocks <.SOXX> was up 1.1 percent.

Exxon shares rose 1.58 percent to $94.13, helping drive the S&P 500 above its 200-day moving average, a key trend measure, for the first time since late December.

Chevron Corp <CVX.N> gained 2.26 percent to $102.64.

Oracle shares rose 4.3 percent to 22.62 on the Nasdaq, a day after financial weekly publication Barron's said the stock was poised to resume its long-term ascent after stagnating this year. For more, see [ID:nN18495242]

Lowe's Companies <LOW.N> shares dropped 2.3 percent to $24.31 on the NYSE after the second-largest U.S. home improvement chain posted a drop in quarterly profit and slashed its full-year outlook. [ID:nWNAS4576] (Additional reporting by Ellis Mnyandu; editing by Gary Crosse)

((cal.mankowski@thomsonreuters.com; +1-646-223-6132; Reuters Messaging: cal.mankowski.reuters.com@reuters.net)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com

* BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com)) Keywords: MARKETS STOCKS

 
============================================================== 
 To access running updates on what's moving U.S. stocks double 
click on [STXNEWS/US] 
============================================================== 
 For other U.S. market data and news, click on codes in 
brackets: 
 U.S. Equities speed guide........................<US/EQUITY> 
 S&P 500 index ........................................<.SPX> 
 Dow Jones industrial average..........................<.DJI> 
 Nasdaq Composite index...............................<.IXIC> 
 Nasdaq 100............................................<.NDX> 
 Russell 2000 small cap................................<.RUT> 
 S&P major sectors..............................<0#.GSPMAJOR> 
 NYSE most active.....................................<.AV.N> 
 Nasdaq most active...................................<.AV.O> 
 Top NYSE pct gainers.................................<.PG.N> 
 Top NYSE pct losers..................................<.PL.N> 
 Top Nasdaq pct gainers...............................<.PG.O> 
 Top Nasdaq pct losers................................<.PL.O> 
 52 week highs: 
    NYSE...............<t.YH.N>  Nasdaq..............<t.YH.O> 
 52 week lows: 
    NYSE...............<t.YL.N>  Nasdaq..............<t.YL.O> 
 
    Main global stock indexes and market reports: 
 FTSE Eurotop 300 .....<.FTEU3>  European report .......[.EU] 
 Nikkei 225.............<.N225>  Tokyo report............[.T] 
 FTSE 100...............<.FTSE>  London report...........[.L] 
 Xetra DAX.............<.GDAXI>  Frankfurt market stories[.F] 
 CAC-40.................<.FCHI>  Paris market stories...[.PA] 
 World Indices.....................................<0#.INDEX> 
 Reuters survey of world bourse outlook.........<EQUITYPOLL1> 
 U.S. IPO diary........................................[IPO/] 
 U.S. Asset Allocation Table.......................[US/ASSET] 
 
 More Reuters News on equities at a glance: 
 Equities ............[E]   US company news.........[TOP/EQU] 
 
    Key non-equities market reports: 
 Foreign exchange......................................[FRX/] 
 Oil....................................................[O/R] 
 US Treasuries.........................................[US/N] 
 International bonds...................................[EUB/] 
 Gold.......................................[GOL/X] or [GOL/] 
 CRB index of commodity futures........................[CRB/] 

UPDATE 2-Bank robbers open fire near Nigeria Shell site

Reuters: [2008-05-19 17:53:00]

(Recasts with police comment)

PORT HARCOURT, Nigeria, May 19 (Reuters) - Nigerian security forces clashed with gunmen trying to rob a bank on Monday outside the gates of a Royal Dutch Shell <RDSa.L> compound on Bonny Island, in the southern Rivers state, police said.

"The gunmen came to attack the Oceanic Bank outside the gates of the Shell compound in Bonny. Several people were injured," said Rita Inoma-Abbey, spokeswoman for Rivers state police command.

Bonny Island is home to the Nigerian Liquefied Natural Gas facility, one of sub-Saharan Africa's biggest single industrial projects, which is operated by Shell.

Attacks on oil facilities and compounds are frequent in the Niger Delta, where militant groups launched a violent campaign in 2006 to press for greater local control of oil revenues, but the line between criminality and militancy has become blurred.

Oil companies and trading sources say a recent spate of attacks and sabotage have shut in about 559,000 barrels per day of Nigerian production, about 19 percent of the installed output capacity of around 3 million bpd in the West African state. (Reporting by Austin Ekeinde; Writing by Nick Tattersall) ((Reuters messaging: nicholas.tattersall.reuters.com@reuters.net, Lagos Newsroom +234 1 463 0257))

Keywords: NIGERIA SHELL/GUNMEN