Issue link: https://www.epageflip.net/i/12156
Thursday, June 17, 2010 – Daily News – 3B BP’s agreement to put $20 billion into a fund for victims of the Gulf of Mexico oil spill lifted the stock market off its lows and sent the major index- es to a narrowly mixed finish. The oil company also said Wednesday it has canceled a dividend pay- ment totaling about $2.6 billion that was scheduled for June 21. It also won’t declare a dividend for the second and third quarters. Investors saw the news as an end to the uncertainty about BP’s stability, and that helped steady the overall market. The Dow Jones industrial average rose about 4 points, while the Standard & Poor’s 500 index fell less than a point and the Nasdaq composite index was vir- tually unchanged. BP’s plans to place $20 billion in a fund to com- penste victims were announced after a meet- ing between BP execu- tives and President Barack Obama at the White House. Traders had been questioning how BP will handle the mounting costs of the spill, which began April 20 when a rig operated by BP exploded. ‘‘One source of uncer- tainty has been at least partially resolved,’’ said Brian Gendreau, a market strategist with Financial Network Investment Corp. The market began the day by falling on news that home construction and applications for building permits slumped Stocks end flat; BP agrees to fund Wall Street NEW YORK (AP) — in May following the end of a homebuyer tax credit. Meanwhile, FedEx Corp. released a disappointing profit forecast for the fis- cal year that began June 1, and that raised more ques- tions about the economic recovery. The package delivery company is seen as a barometer of the economy because ship- ping demand tends to increase as business con- ditions improve. The stock fell almost 6 per- cent. The Commerce Department’s report on housing raised concerns that weaker demand for homes will hurt an eco- nomic rebound. Construc- tion of homes and apart- ments fell 10 percent from a month earlier to an annual rate of 593,000, well below the 650,000 economists had forecast. A 17 percent drop in con- struction of single-family homes was the largest since January 1991. Applications for build- ing permits fell 5.9 per- cent to the lowest level in a year. Analysts had fore- cast an increase. Demand for permits is an indicator of future homebuilding activity. The weaker-than- expected numbers come after a homebuyer tax credit expired in April. Kevin Smith, a housing market analyst at Chapde- laine Credit Partners in New York, said the drop in the home construction and permit numbers extends a string of choppy readings since October, and that it’s too soon to tell how housing will hold up. He noted that the pre- vious month had been the best in more than two years. ‘‘It’s going to be a bumpy ride,’’ Smith said. He said housing won’t make a strong recovery until unemployment falls and overall confidence grows. The Dow rose 4.69, or 0.05 percent, to 10,409.46, its fourth advance in five days. Dur- ing morning trading, the Dow was down as much as 72. The S&P 500 fell 0.62, or 0.06 percent, to 1,114.61, and the Nasdaq crept up 0.05 to 2,305.93. Losing stocks were ahead of advancers by 3 to 2 on the New York Stock Exchange, where consolidated volume came to 5.1 billion shares, up from 4.7 billion on Tuesday. Bond prices edged higher, pushing down interest rates. The yield on the benchmark 10-year Treasury note slipped to 3.27 percent from 3.31 percent late Tuesday. The Dow is still down more than 7 percent from the 2010 high of 11,205.03 it reached April 26. Crude oil rose 72 cents to $77.66 per barrel on the New York Mercantile Exchange. Gold climbed. The Russell 2000 index of smaller compa- nies fell 2.64, or 0.4 per- cent, to 666.13.