War between Russia and Georgia failed to rattle energy markets Monday. Oil dropped below $114 per barrel at one point on Monday before recovering a bit. On the NYMEX, crude oil for September delivery fell 60 cents to $114.60 per barrel.

Fighting between Russia and Georgia over a disputed territory is causing worries some oil shipments might be disrupted.

Meanwhile, the average price of a gallon of gas in the U.S. was $3.81 Monday, down from $4.11 on July 17.

On Monday, the Dow Jones Industrial Average gained 48.03 points, or 0.41%, to 11,782.35. The broader S&P 500 rose 9 points, or 0.69%, to 1,305.31. The tech-heavy Nasdaq composite index gained 25.85 points, or 1.07%, to 2,439.95.

On the New York Stock Exchange, 20 stocks moved higher for every 12 in negative territory. On the Nasdaq, the ratio was 20 to 8 positive.

On Friday, the Dow jumped 303 points, or 2.65%, while the S&P 500 rose 2.39% and the Nasdaq rose 2.48%.

Five of the biggest credit unions in the U.S. reported large losses on mortgage-related securities. Despite credit unions' reputation for conservative banking practices, U.S. Central Federal Credit Union, Western Corporate Federal Credit Union, Members United Corporate Federal Credit Union, Southwest Corporate Federal Credit Union, and Constitution Corporate Federal Credit Union together have about $5.7 billion in unrealized paper losses. Federal regulators say the losses will probably be reversed when mortgage markets stabilize.

Among stocks in the news, Waste Management (WM) raised its bid for Republic Services (RSG) to $6.7 billion. The nation's largest trash hauler is now offering $37 per share, up from $34, for Republic, the number three trash firm. The bid is designed to thwart Republic's plans to acquire the number-two player, Allied Waste Industries (AW).

National City Corp. (NCC) says it was notified June 30 that the SEC is conducting an informal investigation of the company. The SEC requested documents concerning NCC's loan underwriting, dividends, regulatory matters and the sale of First Franklin Financial Corp.

Verizon Communications (VZ) reached a tentative deal on three-year contracts with the Communications Workers of America and the International Brotherhood of Electrical Workers, two unions that represent 65,000 Verizon employees in its telecom business group.

Fannie Mae (FNM) saw several of its debt ratings lowered by S&P Ratings Service. Also, analysts at Keefe, Bruyette & Woods downgraded the stock from outperform to market perform.

Amazon.com (AMZN) was upgraded by Citigroup analyst who believe sales of Amazon's Kindle could exceed expectations.

Illinois Tool Works (ITW) announced plans to divest its decorative surfaces segment and its Click Commerce industrial software business.

Diebold (DBD) reported earings of 38 cents per share, beating analyst estimates but falling short of earnings of 40 cents per share a year ago. Revenue rose 11% to $771 million.

Clear Channel Outdoor Holdings (CCO) posted earnings of 23 cents per share, vs. 19 cents a year ago. Revenue rose 9.3%.

Fuel Tech (FTEK) posted earnings of 2 cents per share, vs. 1 cent a year ago, as revenue rose 16%.

Major European stock indexes were higher Monday. In London, the FTSE 100 index gained 0.96% to 5,541.80. In Paris, the CAC 40 index added 1.04% to 4,538.49. Germanys DAX index rose 0.73% to 6,609.63.

Major Asian indexes were mixed on Monday. Japans Nikkei 225 index gained 1.99% to 13,430.91. In Hong Kong, the Hang Seng index slid 0.12% to 21,859.34.

Treasury Market

Treasury prices fell as equities gained ground. The 10-year note tumbled 17/32 to 99-00/23 for a yield of 4.99%, while the 30-year bond sank 36/32 to 98-06/32 for a yield of 4.61%.

Story Source: Business Week