Wall
Street edged higher Tuesday morning, thanks to oil prices and a
narrower-than-expected drop in factory orders, however gains were
limited by news that GM will be shutting plants and a Lehman may need to raise more capital.
Factory orders rose 1.1% in April after increasing 1.5% in March, the government reported. Sales were expected to drop 0.1% in the month.
Financial
sector woes dragged on stocks Monday after S&P cut its debt rating
on a number of banks, and Wachovia and Washington Mutual announced
management shakeups.
Toll Brothers
reports results: The homebuilder reported a fiscal second-quarter loss
that was nonetheless narrower than what analysts were expecting,
sending shares higher.
The Federal Reserve Chairman Bernanke said
the economy remains under pressure, but implied that the central bank
is unlikely to cut interest rates again soon due to rising oil prices
and other inflationary pressures.
Oil prices fall: U.S. light crude oil for July delivery fell $1.31 to $126.45 a barrel on the New York Mercantile Exchange.
Treasury prices fell, raising the yield on the 10-year note to 4.01% from 3.96% late Monday.
COMEX gold for August delivery fell $10.50 to $886.50 an ounce.