4 October 2005, 17:47  Stocks open higher as market weighs energy price strength

U.S. stocks are trading higher Tuesday, as markets weighed energy price and dollar strength and automotive sector weakness. The Dow Jones industrial average is up 6.32 points, while the S&P 500 is ahead 1.25 points and the Nasdaq 100 is up 1.60 point On Monday, Dow industrials fell 33 points at 10,535, the S&P 500 fell 2.1 points at 1,226 while the Nasdaq Composite rose 3.74 points at 2,155, hurt by concerns over rising inflation. The dollar continued its strong run versus the Japanese yen, recently at Y114.28, up 0.1 percent, and it was down 0.14 percent versus the euro. Factory orders are expected to rise 1.2 percent in August after a 1.9 percent fall in July, according to economists polled by Dow Jones. But markets will be looking to Friday's data, when monthly non-farm payrolls comes out. There's also a busy docket for speeches by Federal Reserve members, with three regional presidents due to speak, starting with Dallas Fed President Richard Fisher. The yen weakness boosted Japan's bellwether Nikkei 225 index by 1.6 percent at 13,738.84, while gains by automakers lifted European stock markets. Crude-oil futures declined in Tuesday electronic trade, while natural-gas futures rose, continuing the same mixed trend from the previous session. Crude recently fell 58 cents at $64.89, while natural gas was at $14.046 per million British thermal units. General Motors Corp. and Ford Motor Co. may draw focus after both were put on CreditWatch by rating agency Standard & Poor's after Monday's close, citing both automakers' dependence on sport-utility vehicles and trucks amid rising energy prices. Spreads of the automakers' bonds against German bunds widened slightly in European trade, but the news was largely priced in, dealers said.

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