AP Online
05-24-2004
Dateline: NEW YORK
Stocks opened higher Monday, as investors' worries about soaring energy prices were salved by reports that Saudi Arabia plans to boost its oil production.
The Dow Jones industrial average was up 62.67, or 0.6 percent, to 1,029.41.
Broader stock indicators were also higher.
The Standard & Poor's 500 index was up 6.84, or 0.6 percent, at 1,100.40, and the Nasdaq composite index was up 20.37, or 1.1 percent, at 1,932.46.
The early advance followed a meeting between U.S. and Saudi energy officials, during which the latter reportedly pledged to increase its crude oil production by up to 2 million barrels a day.
U.S. Energy Secretary Spencer Abraham said Sunday that Saudi Arabia has pledged to pump the additional 600,000 barrels a day starting in June, lifting its daily output to 9.1 million barrels. Saudi officials also agreed to meet market demand up to their full capacity of 10.5 million barrels going forward, he said.
The Saudi pledge comes as members of the Organization of Petroleum Exporting Countries continue to argue over the question of whether to boost output.
Early gainers included Lucent Technologies, which announced plans to buy Telica, a privately held Internet phone service provider, for about $295 million in stock and options. Lucent shares rose 6 cents, or 1.9 percent, to $3.25.
Campbell Soup Co. declined 16 cents, or 0.6 percent, to $26.24. The company announced a 10 percent rise in its third quarter profits, in line with analysts expectations.
The Russell 2000 index of smaller companies was up 5.79, or 1.1 percent, at 551.60.
Overseas, Japan's Nikkei stock average rose 0.3 percent. In afternoon trading, Britain's FTSE 100 was up 0.4 percent, Germany's DAX index was up 1.7 percent, and France's CAC-40 was up 0.9 percent.
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