Oil Stocks

NEW YORK -- Stocks gained yesterday after the Labor Department reported that producer prices were unchanged last month, a sign that inflation was under control.The Dow Jones industrial average rose 13.29 points, to 3,505.01. The Dow's rise was restrained by declines in Texaco Inc., Exxon Corp. and Chevron Corp. For the week, the Dow was down 40.13.Oil stocks slumped as crude prices fell below $19 a barrel for the first time since early January. The decline in oil prices was prompted by Kuwait's rejection of an OPEC agreement to maintain a current ceiling on oil production.

Slippery when wet: American investors turning to oil company stocks for some good reasons in 1993 must keep in mind there is also reason to be cautious.Gains of these issues have been steady and impressive this year, fueled by a number of circumstances:* Prices of oil stocks were depressed as the year began, thereby positioning them for a comeback.* Strong dividend yields make them attractive compared with low money-market and certificate-of-deposit rates.* Negative surprises in other groups, such as Philip Morris Cos. in tobacco and U.S. Surgical in health care, have sent investors running to the relative safety of oil.* As talk of a possible stock market correction grows louder, oil stocks are considered by more investors because of their long-standing image as a defensive play.

NEW YORK -- Stocks closed little changed yesterday amid concern that today's consumer price report might reveal a resurgence of inflation. Declines in drug and other health care stocks outweighed strength in oil and utility issues."

NEW YORK -- Stock prices finished lower yesterday as equity investors weighed the drawbacks of possible tax hikes in President Clinton's deficit-cutting package.An early slump in Treasury bond prices, as well as plunges in health care and oil stocks, also drove shares lower, traders said.The Dow Jones industrial average fell 30.26 to close at a session low of 3392.42, down 49.71 points from its all-time closing high of 3442.14, set last Friday. Allied-Signal Inc. accounted for about 5 points of the slide.

NEW YORK -- U.S. stocks rallied yesterday as a decline in Treasury bond yields and surging oil-related stocks spurred the market.Yesterday was "the best day the stock market has had this year," said Edward Collins, executive vice president of institutional trading at Daiwa Securities (America).The Dow Jones industrial average closed 35.39 higher, at 3292.20, after rising as high as 3294.36. Gains in Exxon Corp., Texaco Inc. and Chevron Corp. accounted for about one-third of the advance as oil stocks soared on speculation that OPEC might seek to cut production.

NEW YORK -- U.S. stocks closed mixed yesterday as a slid in international oil shares offset gains in the banking sector.The Dow Jones industrial average closed 3.79 points higher, at 3274.91, led by a late flurry of computer-driven buy orders.Advancing common stocks roughly equaled the number of declining issues on the New York Stock Exchange. Trading was active considering many investors took the day off to observe the Martin Luther King Jr. holiday. About 198 million shares traded on the Big Board.

NEW YORK -- Stocks stumbled yesterday for a second consecutive day after the release of disappointing economic news.Sales of new single-family homes tumbled in October by 10.3 percent, the largest decline since March, the Commerce Department reported. "The economic report definitely caught some people by surprise," said Alfred Goldman, market analyst at A.G. Edwards & Sons Inc.The Dow Jones industrial average declined 8.11, to 3,286.25, led by a slump in Caterpillar, which fell $2.25, to $54.375, after the company said it would report a loss in the fourth quarter.

NEW YORK -- U.S. stocks declined yesterday, led by a slump in international oil issues and jitters tied to the presidential election.The Dow Jones industrial average fell 9.73, to 3252.48, with Chevron Corp., Texaco Inc. and Exxon Corp. accounting for much of the slide.Declining common stocks outnumbered advancing issues by about 8-to-7 on the New York Stock Exchange. Trading was active, with about 210 million shares changing hands on the Big Board.Standard & Poor's 500 index fell 2.83, to 419.92, the NASDAQ Combined Composite index declined 2.98, to 604.59, and the Dow Jones transportation average slumped 8.66, to 1357.

Sell or be a long-term investor willing to ride out the storm. That's the advice investors are getting about their oil company stocks these days.Crude oil prices are likely to stay between $18 and $20 a barrel this year, a result of OPEC disarray and the willingness of major producer Saudi Arabia to accept current price levels.Motorists, happily, will see flat gasoline prices, except for a "business-as-usual" 5-to-7-cent-a-gallon increase between now and the peak summer driving season.Investors, on the other hand, are left in the lurch.