Aangsunu's Blog

U.S. Stocks Reverse Losses as Goldman Sachs, BP Shares Rally

Posted by aangsunu on 16 July 2010

source : bloomberg.com

U.S. stocks recovered from an early slump as BP Plc said it temporarily halted the flow of oil from its Gulf of Mexico well and Goldman Sachs Group Inc. rallied before settling the federal government’s fraud lawsuit.

BP’s U.S. shares advanced 7.6 percent. Goldman Sachs jumped 4.4 percent in regular trading after the Securities and Exchange Commission said it planned a “significant announcement” when markets closed. Once the $550 million settlement was announced, Goldman shares extended their gains, rising another 2.9 percent.

The Standard & Poor’s 500 Index reversed a loss of as much as 1.3 percent to close up 0.1 percent at 1,096.48. The Dow Jones Industrial Average fell 7.41 points, or less than 0.1 percent, to 10,359.31 to halt a seven-day streak of gains, its longest in three months.

“The finalization of financial reform and the Goldman speculation turned things around because they bring clarity and it means we can finally get back to the business of banks making money,” said Frank Ingarra, a Stamford, Connecticut-based money manager at Hennessy Advisors Inc., which oversees about $800 million. “The BP news is helpful too because it looks like we might get resolution on that issue as well, but the market is moving on headlines and it can make you seasick.”

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