NEW YORK, Oct 11 (AFP) - US shares drifted higher Monday in a modest snapback from last week`s losses as investors shrugged off new record highs for oil prices that could dampen economic growth.
The Dow Jones Industrial Average gained 21.68 points, or 0.22 percent, to 10,076.88, and the tech-heavy Nasdaq composite edged up 1.93 points, or 0.10 percent, to 1,921.90 at 1540 GMT.
The Standard and Poor`s 500 broad-market index eked out a gain of a fractional 0.99 points at 1,123.13.
In a light session during the Columbus Day observance for some firms and the federal government, buyers appeared to shrug off the first 50 dollar oil price for Brent oil in London and a new record high of 53.67 dollars a barrel on the New York Mercantile Exchange.
There was some bargain hunting after a week in which the Dow blue-chip index slid 1.34 percent and the Nasdaq tumbled by 1.14 percent.
Alfred Goldman at AG Edwards said President George W. Bush`s performance in Friday`s campaign debate against John Kerry appeared to boost his chances and give a modest lift to stock investors.
"The debate was generally considered a tie but President Bush performed much better, which will encourage Wall Street," he said.
Despite the snapback, First Albany analyst High Johnson said markets are stalled out as investors await a full docket of information over the next few weeks, including economic data, earnings and statements from the Federal Reserve.
"This is a motionless market. It`s stuck, it`s motionless and we`re waiting for something from (Fed chairman Alan) Greenspan, something from the earnings reports to get us off dead center," Johnson said.
Johnson said markets have been holding up pretty well since oil prices began heating up in August.
"I take that to mean investors are first looking to 2005 ... and the answer that I`m getting is that oil prices at current levels are manageable," he said.
Among active shares, Merck climbed 24 cents to 30.58 dollars after news that the embattled pharmaceutical giant started looking outside the company for a possible successor to Raymond Gilmartin, the company`s chairman and chief executive officer.
Semiconductors came under pressure after negative comments on the sector from Deutsche Bank. Intel dropped 13 cents 20.42, Micron Technology dipped 29 cents to 11.72 and Texas Instruments shed 60 cents to 20.45. Advanced Micro Devices bucked the trend with a gain of 24 cents to 13.74, recouping some of last week`s steep losses.
Airline shares remained under pressure from high oil prices. Delta Airlines lost eight cents to 3.18, Northwest Airlines retreated 20 cents to 7.67, Continental Airlines dipped a penny to 8.53, American Airlines parent AMR fell three cents to 7.00 and Southwest Airlines shed 15 cents to 13.66.
The bond market was closed due to Columbus Day.