Financial Markets                      05/04 09:34

   

   NEW YORK (AP) -- The U.S. stock market is holding tentatively near its 
record heights Monday, while oil prices climb with uncertainty about when oil 
tankers can resume crossing the Strait of Hormuz and restore the world's flow 
of crude. Dueling claims about a possible Iranian strike on a U.S. Navy vessel 
in the strait heightened the tensions.

   The S&P 500 slipped 0.1%, coming off its latest all-time high. The Dow Jones 
Industrial Average was down 216 points, or 0.4%, as of 9:35 a.m. Eastern time, 
and the Nasdaq composite was up 0.1%.

   The action was stronger in the oil market, where the price for a barrel of 
Brent crude climbed 2% to $110.37 and briefly topped $114 during the morning. 
Iran's closure of the Strait of Hormuz due to its war with the United States 
has kept oil tankers pent up in the Persian Gulf and away from customers 
worldwide. That in turn has sent the price of Brent soaring from roughly $70 
per barrel before the war.

   President Donald Trump said Sunday that the United States would guide ships 
through the strait, which could get oil flowing again and bring down its price. 
But prices instead climbed after Iranian news agencies claimed Monday that Iran 
had struck a U.S. Navy vessel southeast of the Strait of Hormuz, accusing it of 
"violating maritime security and navigation norms."

   The U.S. military quickly rejected the claims and later said two 
American-flagged merchant ships had "successfully transited through the Strait 
of Hormuz."

   Even with all the uncertainty about how long the war with Iran will last, 
the U.S. stock market has managed to power to record after record. Hope is 
still high on Wall Street that the global economy can avoid a worst-case 
scenario because of the war. And in the meantime, companies continue to deliver 
big growth in profits.

   Tyson Foods joined the list Monday, topping analysts' expectations for both 
profit and revenue during the latest quarter. It sold less beef than it did a 
year ago, but it did so at prices that were 11.5% higher, so its total beef 
revenue edged up. After initially rising, its stock swung lower and was down 
2.2%.

   Norwegian Cruise Line Holdings likewise delivered better profit for the 
latest quarter than analysts expected. But it's feeling the effects of the war, 
which has not only raised pressure on fuel prices but also pushed some 
customers to think twice about travel plans, particularly to Europe. The cruise 
operator said some "execution missteps" also have bookings below where it would 
like.

   Its stock fell 4.7%.

   Jumping to one of Wall Street's biggest gains was eBay, which climbed 5.6% 
after GameStop said it wanted to buy its much bigger rival for $125 per share 
in cash and stock. Coming into the day, eBay had a total market value that was 
nearly quadruple GameStop's.

   GameStop said it has already built a 5% stake in eBay and sees opportunities 
to cut $2 billion in annual costs quickly. GameStop, whose stock briefly soared 
to market-shaking heights during the meme stock craze of 2021, fell 4%.

   In stock markets abroad, indexes jumped 5.1% in South Korea and 1.2% in Hong 
Kong, while markets were closed in mainland China and Japan for holidays.

   European indexes fared worse, with France's CAC 40 falling 1%.

   In the bond market, Treasury yield edged up as oil prices climbed. The yield 
on the 10-year Treasury rose to 4.41% from 4.39% late Friday.

   ___

   AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

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