US Stocks in good form

**Guest** Mon Oct 30, 2006 6:50 am

US Stocks in good form
The rally in U.S. stocks extended to a fifth week as earnings from energy companies.
Financial shares rose as Franklin Resources Inc., the manager of the Franklin and Templeton mutual funds, reported higher net income.

The S&P 500 advanced 0.6 percent to 1377.34; The Dow Jones Industrial Average added 0.7 percent to 12,090.26, setting records in each of the first four days of the week. The NASDAQ Composite Index added 0.4 percent to 2350.62.

The Federal Reserve did its part to fuel the record-breaking rally by saying that the world's largest economy is expanding and inflation is under control as it left interest rates unchanged for a third straight meeting. Energy stocks led the advance this week among 10 industry groups in the S&P 500, climbing 2.5 percent.

Exxon gained 2.8 percent to $71.46 and closed at a record $71.62 on Oct. 26. The world's biggest oil company said third- quarter net income rose 5.7 percent to $10.5 billion, or $1.77 a share, after crude prices soared to a record and production increased.

Chevron Corp. rose 3.7 percent to $67.68. The second-largest U.S. oil company said third-quarter profit rose 40 percent. Energy shares also got a boost after oil prices rebounded 2.4 percent to $60.75 a barrel in New York this week.

Rebounded oil prices given the relief to the market. This impact may be continuing for the short period until the OPEC increases its production.

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**Guest** Mon Oct 30, 2006 2:44 pm

U.S. stock-index futures fell before reports that may show growth in U.S. consumer spending decreased and inflation is accelerating at a pace the Federal Reserve will consider a threat to the economy.

Standard & Poor's 500 Index futures expiring in December lost 2.10 to 1382.70 at 8:08 a.m. in New York. Dow Jones Industrial Average futures slipped 19 to 12,118. Nasdaq-100 Index futures dropped 1 to 1730.50.

Investors are looking for a slowdown in growth, but not so much as to destroy corporate earnings.

U.S. stocks have climbed in each of the past five weeks, the longest such streak in 11 months, propelled by accelerating earnings growth and signs the world's largest economy is slowing without falling into a recession.

The Dow industrials set records in each of the four first days of last week. The rally slowed after a report Oct. 27 that showed the economy grew at the slowest pace since 2003 raised the possibility that earnings estimates may be too high.