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Oil jumps again but Wall Street rebounds after Friday's dive

January 31, 2011 |  9:34 am

After Friday’s slump, global markets have stabilized Monday despite the continuing unrest in Egypt.

But oil prices were up sharply after trading modestly higher for much of the morning in New York. Near-term crude futures, which shot up $3.70 to $89.34 a barrel on Friday, were up $1.84, or 2%, to $91.18 at about 9:30 a.m. PST. That's getting closer to the two-year high of $91.86 a barrel reached Jan. 12.

Stock markets were mostly lower in Asia, but European markets were little-changed. The German market was off 0.4% while Spanish shares were up 0.6%. And the euro resumed its rally against the dollar, rising to $1.372 from $1.361 on Friday.

Wall Street was broadly higher, as some upbeat economic data brought buyers back in. The Dow Jones industrial average was up 63 points, or 0.5%, to 11,886 at about 9:30 a.m. PST, after sliding 166 points, or 1.4%, on Friday. That was the biggest drop since Nov. 16.

Rising stocks outnumbered losers by 2,262 to 774 on the New York Stock Exchange in early trading.

Government data reported Monday showed that personal spending rose more than expected in December, though many Americans apparently dipped into their savings to sustain their spree at the malls.

But in another sign that the economy began the year with good momentum, an index of manufacturing activity in the Chicago region soared to a 22-year high in January.

Treasury bond yields, which tumbled on Friday as some investors ran for cover, were up modestly Monday. The 10-year T-note was at 3.36%, up from 3.32%.

-- Tom Petruno

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