NEW YORK — Skyrocketing oil prices did little to quell the bulls on Wall Street last week as all the major indices rallied.
The Dow Jones Industrial Average rose 44 points Friday as stocks climbed for a fifth straight day, even as oil reached a record of $58.60 a barrel. As a result, the WWD Composite Stock Index gained 2.3 percent for the week to 1,163.04, which outpaced the S&P 500’s 1.6 percent weekly gain to 1,216.97.
One of the few stocks to soften was Saks Inc. Last Wednesday, the retailer received a notice of default on some of its debt. This led to three debt downgrades. But the stock fell slightly, down 1.2 percent to $17.85. It seems investors saw through the downgrades and felt confident that the retailer would be able to repay its debt load. Saks received the notice because it has yet to file an annual report. The company is in the midst of investigating improper markdown allowances.
Meanwhile, on Friday, Saks said it determined that holders of its $230 million, 2 percent convertible senior notes (the subject of the notice of default) could convert the notes into Saks shares “due to the downgrading of the ratings assigned to the convertible notes by the relevant rating agencies.”