NEW YORK (AP) — The stock market bounced between small gains and losses Friday, a day after another big earthquake in Japan sent indexes lower.
Investors are watching Washington, where Republicans and Democrats are in the final day of talks to reach a budget agreement that would prevent a government shutdown. A shutdown would close government services that aren’t considered essential. That means the government will stop publishing most economic reports.
The Dow Jones industrial average dropped 7 points, or 0.1 percent, to 12,402 in midday trading. The Standard & Poor’s 500 index was essentially unchanged at 1,334. The Nasdaq composite fell 2, or 0.1 percent, to 2,793.
Oil prices were up 1.2 percent to nearly $112. Over the past two months, most stocks have fallen following large jumps in oil prices as investors worried that higher transportation costs would cut into company margins and consumer spending.
Energy companies rose, leading the 10 industry groups within the S&P 500. Occidental Petroleum Corp. rose 2.1 percent, and Halliburton Co. rose 0.5 percent.
Todd Salamone, director of research at Schaeffer’s Investment Research, said stocks tend to rise along with oil prices over the long term. “The recent breakdown in the pattern has largely been due to fears of supply shocks,” he said. “But the oil rally could also be attributed to a stronger world economy.”
World markets rose broadly. The Euro Stoxx 50, an index of European blue chips, gained 0.7 percent. Japan’s benchmark Nikkei index rose 1.9 percent.
Expedia Inc. rose 11 percent, the most in the S&P 500 index, after it said it would split off its TripAdvisor.com division.
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