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Home > TheStreet.com > Upbeat Start for Stocks

Upbeat Start for Stocks

Another decline in oil prices and a drop in durable-goods orders that wasn't as bad as expected help the major averages in New York rise early Wednesday.
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Updated from 8:08 a.m. EDT

Stocks in New York were buoyant at the open Wednesday as oil pulled back for a second day and durable-goods orders showed a decline that was far less severe than expected.

The Dow Jones Industrial Average climbed 32 points to 12,581, and the S&P 500 rose 4 points to 1389. The Nasdaq Composite was better by 8 points at 2489. All were higher by around 0.3%.

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As the new day began, oil stayed on a downward track following Tuesday's declines and, at one point, reached a one-week low of $126.37 a barrel. Recently, futures were losing $1.73 to $127.12. The United States Oil (USO) exchange-traded fund was down 2%.

Traders were also getting help from a Commerce Department report that total orders of durable goods -- those whose designed to last three years or more -- fell just 0.5% sequentially last month. That's a bit worse than the prior month's 0.3% slip, but economists were expecting a 1.5% drop.

Gold futures, meanwhile, were down $16.50 to $891.40. The U.S. dollar firmed by 0.2% against the euro to $1.5669 and added 0.4% against the yen to fetch 104.71.

On the corporate front, after the prior market close Archer Daniels Midland (ADM) said it was offering up to 35 million equity units for $50 apiece in an effort to raise $2 billion.

Elsewhere, a German business paper reported that Sweden's SEB and France-based BNP Paribas and Societe Generale might be interested in trying to acquire Citigroup's (C) Citibank unit. The banks are also reportedly Deutsche Postbank and Allianz's (AZ) Dresdner Bank.

Meanwhile, merger discussions between United Airlines operator UAL (UAUA) and US Airways (LCC) evidently have fallen apart, CNBC reported, citing people with direct knowledge of the talks.

UPS (UPS) was one of the early winners, gaining 3.3% after saying it's pursuing an agreement to provide transportation in its air network for all of DHL's express, deferred and international package volume within the U.S. UPS also would provide airlift for DHL packages between the U.S., Canada and Mexico.

Also, a Detroit paper reported that carmaker Ford (F) plans to slash its salaried work force by up to 12% as the company suffers from harsh economic conditions. Shares of Ford were up almost 3%.

Treasury prices were little changed. The 10-year note was flat in price to yield 3.92%, and the 30-year bond dipped 1/32 in price, yielding 4.64%.

Markets abroad were mixed. In Asia, Tokyo's Nikkei 225 sank 1.3% overnight, and the Nikkei 225 slipped 0.1%. Europe fared better however, as London's FTSE 100 rose 0.2% and Germany's Xetra Dax jumped 1.1%. The Paris Cac was up 1.4%.


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