Financial Markets                      04/09 16:08

   

   NEW YORK (AP) -- U.S. stocks rose Thursday, even though oil prices did too, 
as financial markets moved more modestly a day after surging on optimism about 
a ceasefire in the war with Iran.

   The morning began with moderate losses for Wall Street following drops for 
Asian and European stocks. But the S&P 500 erased its dip and finished with a 
0.6% gain after Israel's prime minister authorized direct negotiations with 
Lebanon. That eased worries that the two-week ceasefire announced late Tuesday 
may already be in trouble because of Israel's bombardment of Lebanon.

   The Dow Jones Industrial Average added 275 points, or 0.6%, and the Nasdaq 
composite climbed 0.8% after both indexes likewise recovered from early losses.

   Crude oil prices pared some of their gains, but they nevertheless remained 
higher for the day on uncertainty about when oil tankers can start fully 
flowing through the Strait of Hormuz. The narrow waterway has been at the 
center of President Donald Trump's demands of Iran, and blockages there have 
kept oil and natural gas stuck in the Persian Gulf and away from customers 
worldwide.

   The price for a barrel of benchmark U.S. crude rose 3.7% to settle at $97.87 
after briefly nearing $103 in the morning. Brent crude, the international 
standard, added 1.2% to $95.92 per barrel.

   Given how far apart the United States and Iran seem to be in their demands, 
upward pressure on oil prices may be "here to stay for a while" according to 
strategists at Macquarie led by Thierry Wizman. Risks remain for renewed 
fighting, which could cause customers worldwide to hoard whatever oil supplies 
they do get. That could itself keep oil off the market, much like actual 
fighting targeting pipelines or oil tankers.

   Oil prices have been swinging through sharp and sudden reversals for weeks 
with hopes rising and falling for the Strait of Hormuz to fully reopen and 
allow production of oil and natural gas to kick back into gear. Brent oil has 
gone from roughly $70 per barrel before the war in late February to more than 
$119 at times.

   Despite all the swings, the U.S. stock index at the heart of many 401(k) 
accounts isn't far from its all-time high. The S&P 500 is just 2.2% below its 
record set in January.

   Constellation Brands climbed 8.5% for one of the index's biggest gains on 
Thursday after reporting stronger results for the latest quarter than analysts 
expected. The company, which sells Modelo beer and Robert Mondavi wines, said 
it saw encouraging trends heading into its new fiscal year. But it pulled its 
financial forecasts for the following fiscal year because of "limited near-term 
visibility" and other factors.

   CoreWeave rose 3.5% after announcing an expanded, $21 billion deal with Meta 
Platforms to provide AI cloud capacity through December 2032. Meta climbed 2.6%.

   On the losing end of Wall Street was Simply Good Foods, which sank 18.1% 
after reporting a worse drop in revenue than analysts expected. CEO Joe Scalzo 
called the results unsatisfactory and said the company behind the Quest and 
Atkins brands is making immediate changes to turn around its performance.

   All told, the S&P 500 rose 41.85 points to 6,824.66. The Dow Jones 
Industrial Average added 275.88 to 48,185.80, and the Nasdaq composite climbed 
187.42 to 22,822.42.

   Mixed reports on the U.S. economy also helped keep Wall Street in check. One 
said an underlying measure of inflation the Federal Reserve considers important 
was slightly hotter in February than economists expected. It decelerated before 
the war with Iran began, but not by as much as economists expected.

   A separate report said that more U.S. workers applied for unemployment 
benefits last week than economists expected. The number was not very high 
compared with history, but it could indicate an acceleration in layoffs.

   Treasury yields swiveled up and down in the bond market following the 
reports before pulling near where they were the day before.

   The yield on the 10-year Treasury edged down to 4.28% from 4.29% late 
Wednesday. It's still well above its 3.97% level from before the war, which has 
sent rates higher for mortgages and other kinds of loans going to U.S. 
households and businesses.

   If oil prices stay high and keep upward pressure on inflation, the Federal 
Reserve would have a tough time resuming its cuts to interest rates to help the 
slowing economy, even if the job market weakens. A growing number of Fed 
officials seem to be considering the possibility of a hike in rates, according 
to minutes of their latest meeting released on Wednesday.

   In stock markets abroad, South Korea's Kospi fell 1.6%, and Germany's DAX 
lost 1.1% for two of the world's biggest moves.

   ___

   AP Writers Chan Ho-him, Matt Ott and Aniruddha Ghosal contributed to this 
report.

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