Financial Markets                      03/30 09:32

   

   NEW YORK (AP) -- U.S. stocks are swinging again Monday as oil prices keep 
climbing because of uncertainty about when the war with Iran could end.

   The S&P 500 inched up by 0.1% in morning trading, coming off its worst week 
since the war with Iran began. The Dow Jones Industrial Average was up 164 
points, or 0.4%, as of 10 a.m. Eastern time, and the Nasdaq composite was 0.1% 
lower.

   That followed gains for stock markets in much of Europe, but caution was 
still prevalent throughout financial markets. On Wall Street, the S&P 500 
quickly gave up nearly all its gain of 0.9% from the start of trading. Stocks 
in some Asian markets fell sharply, while the price for a barrel of Brent crude 
delivered in June rose 3.2% to $108.73.

   The mixed movements followed a whirlwind of action in the war over the 
weekend, none of which cleared up when the fighting may end. The main issue for 
investors worldwide is whether oil and natural can resume their full flow from 
the Persian Gulf to customers and prevent a brutal blast of inflation.

   Shortly before the U.S. stock market opened for trading Monday, President 
Donald Trump said on his social media network that "great progress has been 
made" with "A NEW, AND MORE REASONABLE, REGIME to end our Military Operations 
in Iran."

   But he also threatened the possibility of "blowing up and completely 
obliterating" Iranian power plants if a deal is not reached shortly and if the 
Strait of Hormuz, an integral waterway for the flow of oil, is not opened 
immediately.

   The statement fit and condensed last week's pattern, where Trump would tout 
progress being made in talks and offer some optimism for the market, only for 
doubts to rise quickly afterward about whether the war can end soon.

   All the back and forth has some investors saying they're giving Trump's 
pronouncements less weight than before. But stock prices are nevertheless 
cheaper than they were before the war, which has some investors waiting for an 
opportune time to buy.

   The S&P 500 finished last week 7.4% below its all-time high, which was set 
in January. The Dow and Nasdaq both were more than 10% below their records, a 
steep-enough fall that professional investors call it a "correction."

   Taking into account how much profits are expected to grow in the coming year 
for companies in the S&P 500, the index looks 17% cheaper than before the war, 
by one measure. That's in a similar range as where prior growth scares for the 
market ended, as long as they didn't result in a recession or the Federal 
Reserve hiking interest rates, according to strategists at Morgan Stanley.

   That's one of the signs that the strategists led by Michael Wilson point to 
as "growing evidence the S&P 500 correction is getting closer to its ending 
stages."

   Of course, the Federal Reserve could upset that if it decides oil prices are 
threatening to stay so high that it needs to raise interest rates. Higher 
interest rates would help keep a lid on inflation, but they would also slow the 
economy and push down on prices for all kinds of investments.

   Treasury yields have been leaping in the bond market since the war began 
because of such worries, but they eased somewhat on Monday.

   The yield on the 10-year Treasury fell to 4.35% from 4.44% late Friday. 
That's a significant move for the bond market and offers some breathing room 
for Wall Street, though it remains far above its 3.97% level from before the 
war.

   On Wall Street, Alcoa jumped 10.7% on thoughts it could get more revenue 
after Iranian attacks damaged rival aluminum facilities in the Middle East over 
the weekend.

   Sysco fell 11.8% after it said it was buying Jetro Restaurant Depot for 
$21.6 billion in cash and enough Sysco shares to value the company at about 
$29.1 billion.

   In stock markets abroad, the FTSE 100 in London climbed 1.1%, and the CAC 40 
in Paris rose 0.4%. That followed drops of 3% for Seoul's Kospi, 2.8% for 
Tokyo's Nikkei 225 and 0.8% for Hong Kong's Hang Seng.

   ___

   AP Business Writers Yuri Kageyama and Matt Ott and AP journalist Ayaka 
McGill contributed to this report.

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