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Stocks get boost, crude oil rally cools

NEW YORK, Aug. 37 (UPI) -- A strengthening financial sector helped boost U.S. stock indexes Wednesday as the storm-nervous crude oil rally cooled.

The Dow Jones industrial average closed up 89.64 points, or 0.79 percent, at 11,502.51. The Nasdaq composite was up 20.49, or 0.87 percent, at 2,382. The Standard & Poor 500 climbed 20.25 points, or 0.82 percent, to close at 1,281.66.

Stocks got a boost from generally upbeat data during the day, especially the report on orders for durable goods increasing 1.3 percent last month to a seasonally adjusted $219.26 billion.

The dollar was mixed. The euro rose to $1.4710 compared to $1.4645 late Tuesday. Against the Japanese currency, the dollar rose to 109.65 yen from 109.64 yen.

Treasury prices were also mixed. The 10-year note was unchanged, yielding 3.776 percent.

Crude oil tops $118 in another slow day

NEW YORK, Aug. 27 (UPI) -- Crude oil prices closed just ver $2 at $118.27 a barrel Wednesday as the oil rally cooled a bit despite storm concerns in the Gulf of Mexico.

Tropical Storm Gustav continued on its path toward the gulf, home to a quarter of U.S. oil production. The storm, still a long a way off, slammed Haiti, killing 11, and is drawing comparisons to Hurricane Katrina.

The National Hurricane Center expects that Gustav will intensify to a Category 3 hurricane and make its way toward landfall around Louisiana and Mississippi over the next few days.

Natural gas was up .18 cents at $8.57 per million British thermal units.

Heating oil was up 5.31 cents at326.59 cents a gallon. Refurbished gas rose 10.67 cents at 307.60 cents a gallon.

U.S. motorists were paying an average of $3.667 for a gallon of regular unleaded gasoline, down from $3.672, the AAA said in its fuel gauge report.

SEC looks toward international switch

WASHINGTON, Aug. 27 (UPI) -- The U.S. Securities and Exchange Commission voted unanimously to seek public comment on requiring American companies to switch to international accounting.

The SEC wants to float its trial balloon for 60 days on the plan being considered for 2014, officials said in Washington Wednesday.

The SEC would like to implement the new system on a voluntary basis at some large U.S. multinational firms in 2010, followed by an SEC vote in 2011 on whether to require all U.S. companies to make the switch, The Wall Street Journal said.

Durable sales up, expert sees problems

WASHINGTON, Aug. 27 (UPI) -- The U.S. Commerce Department reports durable goods orders were up 1.3 percent in July, reportedly confounding some experts who expected less.

Orders for business equipment -- defense capital goods less aircraft -- were up 2.6 percent in July and up an average of 1.2 percent over the last three months, Commerce said.

This is a very strong showing, said Peter Morici, former chief economist at the U.S. International Trade Commission, adding, however, he sees tougher times ahead.

The current picture, he said, reflects the bounce from a weaker dollar and exports, and efforts by industry to adapt to higher energy prices.

"However, with growth slowing in Europe, Japan, China, and elsewhere and the dollar recovering a bit, it is questionable whether export strength will continue," Morici says.