Stocks Mixed as Oil Surges

Georgian conflict raises supply fears; analysts downgrade financials
By Nick McMaster,  Newser Staff
Posted Aug 21, 2008 3:22 PM CDT
A trader pauses before the start of trading on the floor at the New York Stock Exchange in New York, in this undated file photo.   (AP Photo/Seth Wenig)
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(Newser) – Stocks saw mixed results today as the Dow and S&P 500 managed to claw back from early losses due to surging oil and a weak dollar, the Wall Street Journal reports. The Dow closed up 12.78 at 11,430.21; the Nasdaq fell 8.70 to 2,380.38, while the S&P 500 gained 3.18 to finish at 1,277.72.

Financials led declines as the possibility of a Fannie/Freddie bailout loomed and Citigroup analysts cut third-quarter forecasts for Goldman Sachs, Lehman Bros. and Morgan Stanley. Oil rose $5.62 to $121.18 on concerns the Georgian conflict would disrupt supply pipelines. In positive news, the Labor Department reported a 13,000 fall in weekly jobless claims, and the Philadelphia Fed said business activity rose in the area.