Oil Falls, But So Does Manufacturing, And So Do Markets

It just doesn't want to seem to do it. I guess it's too big a resistance point, and everyone's trying to beat the anticipated, psychologically-driven sell-off as it crosses it.

It doesn't help that manufacturing is slowing:

-- Stocks turned positive and the Dow Jones industrial flirted with its all-time high close as investors focused on falling oil prices and shrugged off some lackluster economic data.

Crude oil futures fell. A barrel of light crude was quoted at $61.40, down $1.51, on the New York Mercantile Exchange.

Investors wondering whether the stock market's impressive third-quarter performance would continue looked to a batch of economic data to help gauge the health of the economy. The Institute for Supply Management said the manufacturing sector grew at the slowest pace in more than a year in September amid weaker U.S. auto sales and a cooling of the housing market.

Meanwhile, the Commerce Department said construction spending in August rose 0.3 percent after falling 1 percent in July. Also weighing in, the National Association of Retailers said pending home sales rose 4.3 percent in August.

Spot prices are still lower than future prices, so we still have a bit of glut.

posted by Ace at 01:53 PM

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