Wall Street Near High as Oil Swings    08/11 09:46

   U.S. stocks are hanging around their records on Tuesday, while oil prices 
keep swinging on uncertainty about when the war with Iran will allow crude to 
flow freely again.

   NEW YORK (AP) -- U.S. stocks are hanging around their records on Tuesday, 
while oil prices keep swinging on uncertainty about when the war with Iran will 
allow crude to flow freely again.

   The S&P 500 was flat and remained near its all-time high set on Friday. The 
Dow Jones Industrial Average was up 101 points, or 0.2%, as of 9:35 a.m. 
Eastern time, and the Nasdaq composite was 0.1% lower.

   The action was stronger in the oil market, where the price for a barrel of 
Brent crude briefly jumped above $90 in the morning before pulling back toward 
$87. It was most recently at $87.18, down 0.6% from Monday's settlement price.

   Such swings have become typical since the United States and Israel attacked 
Iran in late February, which led to the closure of the Strait of Hormuz and 
kept much of the world's oil pent up in the Middle East. Last month alone, 
Brent's price veered between $72 and $102 per barrel.

   Higher oil prices make inflation worse, and they've sent the average cost 
for a gallon of regular gasoline to $4.01, according to AAA. That's up from 
less than $3.14 a year ago, though it's down from last week's nearly $4.09.

   That has Wall Street's attention focused on Wednesday, when the U.S. 
government will release the latest monthly reading on inflation. Economists 
expect it to show inflation remains high but that it decelerated to 3.4% in 
July from 3.5% in June.

   That could help the Federal Reserve, whose members are notably split on 
whether they should be raising the country's interest rates to keep a lid on 
inflation. While higher rates could help slow the increases of prices on store 
shelves, they would also slow the overall U.S. economy by making it more 
expensive for U.S. households and businesses to borrow money. They would also 
undercut prices for stocks and other investments.

   Traders are betting on a slightly better than coin flip's chance that the 
Fed will raise its main interest rate at its next meeting in September, 
according to data from CME Group. If it does, that would be the first increase 
in more than three years. It also could anger President Donald Trump, who has 
been arguing for lower interest rates.

   Treasury yields have jumped since the war with Iran because of higher oil 
prices and worries about inflation, sending long-term mortgage rates to their 
highest levels in a year.

   The 10-year Treasury yield eased back a bit Tuesday, falling to 4.68% from 
4.72% late Monday. But it remains well above its 3.97% level from before the 
war with Iran.

   On Wall Street, Cardinal Health jumped 8.1% after becoming the latest big 
U.S. company to report a stronger profit for the spring than analysts expected.

   Businesses have blown past analysts' forecasts, which Wall Street loves 
because stock prices tend to follow the path of corporate profits over the long 
term.

   Aramark, the food company and facilities manager, rallied 8.3% after 
reporting stronger profit and revenue for the latest quarter than analysts 
expected.

   They helped offset a dip of 0.5% for Intel, which said it would sell $20 
billion of its stock at $95 per share. That's up from the $15 billion that it 
said it would sell the day before, and such moves dilute the ownership stakes 
of people who already own Intel stock.

   Intel plans to use the cash it's raising for investments to take advantage 
of the boom in demand for artificial-intelligence technology.

   In stock markets abroad, indexes edged higher in Europe following a mixed 
finish in Asia. Hong Kong's Hang Seng fell 1.1% for one of the world's bigger 
moves.

   ___

   AP Business Writers Matt Ott and Elaine Kurtenbach contributed to this 
report.

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