Rising Commodities, Dealmaking Lift Stocks

SARA LEPRO

NEW YORK (AP) — Investors sidestepped some of their doubts about the economy and bought energy and industrial stocks as commodity prices rose.

Stocks ended back-and-forth trading mostly higher Tuesday as a spike in the price of gold and corporate dealmaking extended an advance from Monday. The gains in commodity prices helped stocks pare early losses.

The Dow Jones industrial average slipped 18 points, while broader indexes rose modestly.

Investors were encouraged by billionaire investor Warren Buffett's decision to pay $34 billion for the railroad Burlington Northern Santa Fe in what he termed an "all-in wager" on the future of the U.S. economy. Meanwhile, tool maker Stanley Works struck a deal to acquire Black & Decker Corp. for $3.46 billion in stock.

They also took some cues from commodities including gold, which jumped to a new high after India's central bank bought $6.7 billion worth of the metal from the International Monetary Fund.

Still, even with the gains in commodities, traders remained on edge about unemployment and the strength of an economic recovery.