Oil’s continued rise depresses stocks

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From Times staff writer Walter Hamilton:

Oil prices kept going higher today –- and that was more than enough to send stock prices lower.

The major averages all finished in the red as the inexorable surge in crude oil prices showed no signs of abating. Not even an unexpected rise in U.S. inventories could do the trick as oil closed above $123 a barrel.

Financial stocks led the way lower as traders sold stocks that had recently rallied.

The Dow Jones industrial average sagged back below 13,000, falling 206.48 points, or 1.6%, to 12,814.35.

The Standard & Poor’s 500 index dropped below 1,400 -- skidding 25.69 points, or 1.8%, to 1,392.57. And the Nasdaq composite index gave back 44.82 points, or 1.8%, to 2,438.49.

Some analysts have looked on in wonderment as stocks kept rising in the face of rising crude. Not only will gas prices keep climbing, they say, but prices of food and manufactured goods will also go up in lockstep.

The stock sell-off dented the market’s incipient rally, raising some concern that gas-shock fears could stop the market in its tracks.

Money & Co. blogger Tom Petruno is on vacation this week. He returns May 12.