Wall Street closes on a high note as oil cools, economic outlook stays firm

NEW YORK (AFP) - Wall Street closed on a high note, boosted by receding oil prices and on upbeat readings that the US economy is poised for solid growth in 2005.
The Dow Jones Industrial Average closed up 23.89 points, or 0.23 percent, at 10,216.54 while the tech-heavy Nasdaq composite was higher 10.20 points, or 0.53 percent, at 1,952.40.
The broad market Standard and Poor's 500 index climbed 3.67 points, or 0.32 percent, to 1,135.17.
Stocks extended last week's closing rally as oil prices, which had closed above 50 dollars for the first time in New York on Friday, fell back under the 50 dollar mark with the New York Mercantile Exchange's November crude futures contract closing at 49.91 dollars a barrel.
Buoyant economic expectations also gave the market a lift as a National Association of Business Economists panel determined the US economy will grow solidly in 2005 no matter whether President George W. Bush or Democratic rival John Kerry is in the White House.
The panel forecast gross domestic product -- total economic output -- was expected to grow 3.7 percent in 2005 after a 4.3-percent expansion in 2004, despite rocketing oil prices.
However, an unexpected fall in US-made factory goods in August, on plunging demand for civilian aircraft, slightly tarnished Monday's optimism.
Orders in August fell by a seasonally adjusted 0.1 percent, the Commerce Department said, defying widespread predictions by economists for a gain of 0.1 percent and partially reversing a 1.7-percent surge in July.
"The headline number is a little weaker than expected but the report as a whole is still indicative of solid factory conditions," said RBS Greenwich Capital Markets economist Steve Stanley.
A total 1.53 billion shares changed hands on the New York Stock Exchange, while 1.85 billion Nasdaq stocks were traded.
PeopleSoft remained in focus following its firing of chief executive Craig Conway, which some observers believe might clear the way for Oracle's 7.7 billion dollar hostile takeover bid.
The software group closed down 63 cents, or 2.76 percent, at 22.20 dollars.
The Visa and MasterCard credit card groups expressed disappointment after the US Supreme Court upheld findings they had engaged in anti-competitive practices by banning member banks from issuing credit cards through rival providers owned by American Express and Morgan Stanley.
Morgan Stanely said it was seeking undisclosed damages from the card issuers while American Express Co. chairman and CEO Kenneth Chenault praised the court's decision.
Insurance behemoth American International Group said staff at the Securities and Exchange Commission (SEC) were considering recommending the regulator file a civil suit against AIG alleging it violated federal securities laws.
The possible civil suit hinges on three AIG press releases related to three deals marketed by AIG Financial Products Corp (AIGFP). The SEC declined to comment on the AIG statement.
AIG closed lower 23 cents, or 0.33 percent, at 68.49 dollars.
In other stock news, Lockheed Martin Corp announced a Lockheed-led team has won a potential three billion dollar contract from the US Postal Service to revamp its vast data communication networks.
The deal requires the Lockheed team to provide managed network services across the entire US Postal Service, covering more than 37,000 locations.
Lockheed closed higher 28 cents, or 0.50 percent, at 56.60 dollars.
Bond prices reversed course to trade higher.
The yield on the 10-year US Treasury bond dropped to 4.173 percent from 4.191 percent Friday while the yield on the 30-year bond slipped to 4.933 percent from 4.949 percent. Bond yields and prices move in opposite directions.