The Standard & Poor's 500 and Nasdaq indexes rose for the second session on Wednesday, as a trio of positive reports underscored the strengthening economy, but gains were tempered by worries about world oil supply after attacks on Iraq's oil pipelines.
The blue chip Dow ended marginally lower. Energy stocks, led by Exxon Mobil Corp, supported blue chips, as oil prices rose earlier in the day after pipeline attacks choked Iraq's ability to export oil. The Standard & Poor's Energy Index jumped 1.76 percent.
Oracle Corp weighed on the technology-heavy Nasdaq, even after the software maker posted improved quarterly earnings late Tuesday. But results disappointed some investors and analysts who had expected stronger license sales.
In economic news, the government reported US housing data beat forecasts in May, as prospects of rising interest rates failed to dampen demand, while another report showed industrial production surged, posting its biggest monthly gain in almost six years. The US jobs picture showed signs of improvement in April and May, the Federal Reserve said in its "Beige Book" report, as potentially worrisome pressures on wages and consumer prices appeared tame.
The Dow Jones industrial average dipped 0.85 of a point, or 0.01 percent, to 10,379.58, while the broader S&P 500 Index rose 1.55 points, or 0.14 percent, to 1,133.56, and the Nasdaq Composite Index added 2.63 points, or 0.13 percent, to 1,998.23, based on the latest available data.
On the New York Mercantile Exchange, July crude oil futures settled up 13 cents at $37.32 a barrel. But the price of crude is still below the 21-year high hit on June 2, when it soared to a record high of $42.45.
US Treasury bond prices fell, after the economic data led traders to lock in gains from Tuesday, and offered more evidence that an interest-rate increase from the Fed is in the wind. The price of the benchmark 10-year note slipped 12/32 to 100-5/32, pushing its yield up to 4.73 percent vs 4.68 percent late Tuesday.
On the New York Stock Exchange, trading was moderate, with 1.17 billion shares changing hands, below the 1.4 billion daily average for last year. About 1.35 billion shares were traded on Nasdaq, also below last year's 1.69 billion daily average.
Shares of Exxon Mobil, the world's biggest publicly traded oil company, added 65 cents, or 1.5 percent, to $44.73. Rival ChevronTexaco Corp, the No 2 US oil company, gained $1.39, or 1.5 percent, to $91.99.
Shares of oil-services companies also shot higher, including Halliburton Co, up 97 cents, or 3.3 percent, at $30.35, and Schlumberger Ltd, up $2.43, or 4.1 percent, at $62.23.
Oracle topped the Nasdaq's most-active issues, falling 36 cents, or 3.1 percent, to $11.35, even after it reported late Tuesday its quarterly earnings rose 15 percent.
Best Buy Co Inc shares fell, even after the electronics retailer reported its quarterly earnings jumped 65 percent, driven by sales of high-profit items.
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