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Investor's Business Daily

| September 02, 2004 | COPYRIGHT 2004 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Oil Surges To $44 On Stockpiles

1After falling for 7 out of 8 sessions, Oct. crude rallied $1.88 to $44 a barrel -- hitting $44.40 intraday -- after reports showed U.S. stockpiles fell a sharp 4.2 mil barrels last week to a 5-month low. Crude stocks have fallen by 18 mil barrels, or 6%, since early July. There were reports of fresh sabotage on Iraqi pipelines. More on B13

Manufacturing Cools, Still Strong

2The ISM manufacturing index fell 3 points to 59 in Aug. That's far above the boom-bust 50 mark, but below the robust 60 line for the first time in 10 months. Indexes for jobs, supplier deliveries and order backlog all fell for a 4th straight month, but still held over 50. Factories are paying a lot for supplies like oil. More on this page, A2

Aug. N. America Auto Sales Weak

3Higher gas prices offset rising incentives. Adjusted for selling days, GM's sales fell 7% vs. Aug. '03 and Ford's slid 5.9%. Both cut Q4 production targets as inventories swell. DaimlerChrysler's Chrysler sales rose 1%. Toyota sales fell 2.8%, and Honda 7.1%. Hurricane Charley, high energy prices and gloomier consumers hit sales.

Russia School Kids Held Hostage

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