[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Mail] [Sign-in] [Setup] [Help] [Register]
|
Status: Not Logged In; Sign In
United States News Title: U.S. Stocks Rise on Corporate Earnings, Jobless Claims Data U.S. stocks rose, as companies from EBay Inc. to McDonald’s Corp. reported earnings that beat analyst estimates while jobless claims decreased. EBay, the owner of the world’s largest auction site, jumped 8.7 percent, while McDonald’s gained 1.9 percent. Netflix Inc., the movie-rental service, surged 12 percent after increasing subscriber projections. Bank of America Corp. dragged on financial companies amid concerns that banks will be forced to buy back soured mortgages. Alcoa Inc. and Occidental Petroleum Corp. slumped at least 1.5 percent as commodities prices sank following a gain in the U.S. dollar. The Standard & Poor’s 500 Index gained 0.3 percent to 1,181.34 at 1:17 p.m. in New York, paring an earlier advance of as much as 1 percent. The Dow Jones Industrial Average rose 38.33 points, or 0.4 percent, to 11,156.03 and earlier topped the highest level on a closing basis since the week Lehman Brothers Holdings Inc. filed for bankruptcy in September 2008. “The turn in corporate profits is feeding into the economy itself,” said Michael Strauss, who helps oversee about $27 billion at Commonfund in Wilton, Connecticut. “We’re seeing the overwhelming majority of companies beating earnings estimates. There’s a pick-up in spending activity and some of that may include hiring. That’s a good environment for equities.” Earnings Scorecard Benchmark gauges yesterday surged the most in two weeks as profit at Boeing Co. and Yahoo! Inc. topped projections and speculation grew the Federal Reserve will pump more cash into the economy in a tactic known as quantitative easing. Per-share earnings have topped estimates at more than 85 percent of companies in the S&P 500 that have reported results since Oct. 7, according to data compiled by Bloomberg. Net income has grown 47 percent for the group as sales increased 7.5 percent. The S&P 500 rose 1.1 percent to 1,178.17 yesterday as the Fed said in its Beige Book business survey that U.S. economic growth showed little sign of accelerating last month, fueling speculation it will boost purchases of government debt. Stocks maintained gains today after the index of U.S. leading indicators climbed in September for the third straight month, signaling the recovery will extend into 2011. Another report showed that manufacturing in the Philadelphia region expanded less than forecast in October as a measure of orders contracted for a fourth month. Jobless Claims Initial jobless claims fell by 23,000 to 452,000 in the week ended Oct. 15, Labor Department figures showed today before markets opened. The total number of people receiving unemployment insurance fell, while those getting extended payments rose. “The latest economic figures show that the jobs market is improving at a slow pace albeit in the right direction,” said Jason Pride, director of investment strategy at Glenmede in Philadelphia, which manages $18 billion. “Corporate profits have been pretty good. Investors are reacting accordingly.” EBay rallied 8.7 percent to $27.89 after the auction site forecast higher-than-estimated sales and earnings. Chief Executive Officer John Donahoe, halfway through a three-year campaign to revive growth, has cut listing fees to lure more sellers and taken steps to make EBay’s Marketplaces commerce site easier to use. McDonald’s McDonald’s climbed 1.9 percent to $78.84. The world’s largest restaurant chain posted a 10 percent gain in third- quarter profit after luring more customers with new menu items. Net income rose to $1.39 billion, or $1.29 a share. That compared with the $1.25 average of estimates compiled by Bloomberg. Netflix soared 12 percent to $171.22. Netflix, an online and mail-order movie service provider, projected fourth-quarter profit of as much as 74 cents a share, beating the average analyst estimate of 70 cents. Netflix also raised its year-end subscriber forecast to as much as 19.7 million from up to 18.5 million. Home Depot Inc. and Amazon.com Inc. led a gauge of companies that rely on consumer discretionary spending to the biggest gain among 10 groups in the S&P 500. Home Depot rose 3.5 percent to $31.81, the biggest advance in the Dow, following a rally in homebuilders. September existing home sales are likely to beat expectations, Josh Levin, a housing industry analyst with Citigroup Inc. wrote today in a note. The National Association of Realtors will publish the data on Oct. 25. Amazon.com advanced 3.6 percent to $164.36. The Web retailer was raised to “buy” from “neutral” at Bank of America. The price estimate was lifted to $190 from $176. Bank of America Bank of America slid 2.7 percent to $11.43, leading the S&P 500 Diversified Financials Index down 0.9 percent, the largest decline among 24 industries. The lender has fallen 7.3 percent in the last three days as concerns grew that flawed foreclosure procedures could worsen the earnings outlook for the industry. “There’s a dark cloud over the financials,” said Michael Nasto, senior trader at U.S. Global Investors Inc., which manages about $2.5 billion in San Antonio. “Bank of America is selling off pretty hard again. It’s fear about the foreclosure situation. Even as earnings beat estimates, there’s a potential for things to get worse in the future.” Steve Leuthold, whose Leuthold Core Investment Fund has beaten 88 percent of its rivals in the past five years, said he’s willing to consider investing in banks. ‘Another Look’ “We’re getting some of the bank groups that are rating attractive at this time, so I will take another look,” Minneapolis-based Leuthold said today in an interview on Bloomberg Television’s “In the Loop with Betty Liu.” “You are looking at values, and sometimes when you are trying to be a value player, you must look beyond the short-term negative fundamentals. We do not own any now, but it is possible.” Caterpillar Inc. had the biggest decline in the Dow, falling 2.2 percent to $78.10. The world’s largest maker of construction and mining equipment said its third-quarter sales mix was negative compared with the year-ago period. Alcoa slumped 1.5 percent to $12.75, while Occidental Petroleum declined 2.8 percent to $78.68, leading gauges of raw- materials and energy lower as the dollar rose, reducing the appeal of commodities as an alternative investment. The S&P GSCI Spot Index of 24 commodities declined 1.6 percent. The Dollar Index, which tracks the U.S. currency against six major peers, rose 0.2 percent to 77.34, rebounding from as low as 76.84.
Post Comment Private Reply Ignore Thread Top • Page Up • Full Thread • Page Down • Bottom/Latest Begin Trace Mode for Comment # 20.
#3. To: go65, Badeye (#0)
I bet Boofer is really glad he abandoned the market 1000 points ago.
I might join him and abandon it before January 3rd. Things will get worse next year if the GOP takes control of the House.
Sigh...I suppose the juvenile stuff is just going to increase as the election approaches from you, huh? Pity.
Why do you think it's juvenile to expect the GOP to eliminate the deficit once they control the power of the purse?
There are no replies to Comment # 20. End Trace Mode for Comment # 20.
Top • Page Up • Full Thread • Page Down • Bottom/Latest |
|
[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Mail] [Sign-in] [Setup] [Help] [Register]
|