* Dow, S&P buoyed by energy sector as quarter ends
* Wal-Mart rises as brokerage raises price target
* Financials fall amid forecasts of further credit losses
(Updates to midafternoon, changes byline)
By Cal Mankowski
NEW YORK, June 30 (Reuters) - The Dow and S&P 500 rose on
Monday as record crude oil prices boosted energy shares on the
final trading day of the second quarter, offsetting weakness in
financial stocks amid fears of further credit losses.
Bellwether energy stocks Exxon and Chevron both rose more
than 1 percent and ranked among the Dow's biggest gainers and
also boosted the S&P. An oil index <.OIX> shot up 1.5 percent.
Oil jumped to a record of $143.67 a barrel and then pulled
back to trade at $140.20.
"With energy prices where they're at, that's about the only
place where you can look for something positive," said Peter
Jankovskis, director of research at OakBrook Investments LLC in
Lisle, Illinois.
Reflecting the gloom in the financial sector, the chief
executive of the Bank of New York Mellon Corp <BK.N> said he
expects further losses from the sector and believes the U.S.
housing market crisis could continue for some time.
The Dow Jones industrial average <> rose 50.65 points,
or 0.45 percent, to 11,397.16. The Standard & Poor's 500 Index
<.SPX> climbed 6.09 points, or 0.48 percent, to 1,284.47. The
Nasdaq Composite Index <> fell 7.58 points, or 0.33
percent, to 2,308.05.
The S&P financial index <.GSPF> dropped 1.5 percent, while
shares of insurer American International Group <AIG.N> and
Citigroup <C.N>, the largest U.S. bank, ranked among the
heaviest drags on the S&P 500. AIG also led the list of the
Dow's top-weighted decliners.
Wal-Mart <WMT.N> shares gained 1.4 percent to $57.08,
boosting the Dow and the S&P, after UBS increased its price
target on the discount retailer's stock.
Exxon Mobil Corp <XOM.N> rose 1.3 percent to $87.63 and
Chevron Corp <CVX.N> climbed 1.3 percent to $99.03, both on the
New York Stock Exchange.
Shares of AIG fell 4 percent to $26.61 and Citigroup
declined 3 percent to $16.70.
Shares of Wachovia Corp <WB.N>, the fourth-largest U.S.
bank, fell 5 percent to $15.41 after the New York Post said
Prudential Financial Inc <PRU.N> could force the bank to buy
its stake in their Wachovia Securities joint venture.
A Wachovia spokeswoman said she could not comment on what
Prudential may or may not do.
The Nasdaq composite index fell slightly. A gauge of
information technology stocks <.GSPT> was down 0.22 percent.
On the economic front, a report showed business activity in
the U.S. Midwest contracted in June for a fifth straight month
but activity was not as weak as analysts feared.
Another report showed the downturn in New York City
business activity continued in June after May's brief pause.
(Editing by Kenneth Barry)
