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Apr-26-2008MARKET SNAPSHOT: US Stock Indexes Close With Weekly Gains(topic overview)
CONTENTS:
- NEW YORK (AP) — Wall Street ended its second straight winning week with a moderate advance Friday, overcoming concerns about consumer confidence and inflation. (More...)
- The Dow Jones index ended the week at a nearly four-month high as U.S. sharemarkets as scooped up a variety of financial shares in active trading on Friday. (More...)
- Going into late afternoon trading, the Dow is currently down 67.49 at 12,781.54, while the Nasdaq is down 30.06 at 2,398.86 and the S&P; 500 is down 2.67 at 1,386.15. (More...)
- The Dow Jones Wilshire 5000 Composite Index — a free-float weighted index that measures 5,000 U.S. based companies — ended Friday at 14,089.21, up 71.91 points, or 0.51 percent, for the week. (More...)
- The troubling data made investors skittish, sending the markets lower for the majority of the session, as consumer spending makes up 70 percent of the U.S. economy. (More...)
- The benchmark ten-year note opened lower and remained negative throughout the session, although it saw some volatility after the release of the consumer confidence data. (More...)
- The stock set a two-month closing high. (More...)
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NEW YORK (AP) — Wall Street ended its second straight winning week with a moderate advance Friday, overcoming concerns about consumer confidence and inflation. After slumping early in the session in response to weak consumer confidence and a spike in oil prices, investors seemed to turn their attention to broader signs, including the week's generally satisfactory earnings reports, that suggested that government efforts to steady the economy appear to be working. That shift in focus sent stocks up late in the day. Although the Reuters/University of Michigan consumer sentiment index came in with its lowest reading since the early 1980s, Tom Lydon, president of Global Trends Investments in Newport Beach, Calif., said companies' first-quarter reports convinced investors that "overall, things aren't all that bad." "I think a lot of people went into the weekend feeling they didn't want to be on the short side," Lydon said. [1] NEW YORK (Reuters) - The Dow and S&P; rose on Friday, after signs that American Express Co (AXP.N: Quote, Profile, Research ) was holding its own amid the economic slowdown, but Microsoft Corp's (MSFT.O: Quote, Profile, Research ) weak profit forecast pulled down the Nasdaq. American Express said its quarterly profit fell, but the results beat expectations and the company affirmed its full-year earnings forecast, lifting its shares 5.7 percent and helping to boost the Dow. The three major indexes ended Friday at their highest closing levels since January, continuing a rally started in mid-March after the Federal Reserve pumped cash into the financial system following the collapse of Bear Stearns.[2] The tech-heavy Nasdaq ended the session moderately lower, however, as traders were unimpressed with Microsoft's (MSFT) quarterly results. While stocks moved lower over the course of the morning, Dow component American Express kept selling pressure to a minimum after the credit card company reported first-quarter net earnings that came in above analysts' expectations and affirmed its full year earnings forecast.[3] The company also gave a tepid outlook for the fourth quarter. Dow component American Express (AXP) is keeping selling pressure to a minimum after the credit card company reported first-quarter net earnings that came in above analysts' expectations and affirmed its full year earnings forecast.[4]
Of the blue chip index's 30 components, 18 ended in positive turf, with the advance led by American Express Co. (AXP), up 5.7% after the credit card giant on Thursday reported a less-than-forecast first-quarter profit drop. Blue-chip losses were led by Microsoft, off 6.2%, in the wake of its earnings report Thursday, in which the company reported an 11% profit drop on virtually flat revenue.[5]
The Dow Jones index ended the week at a nearly four-month high as U.S. sharemarkets as scooped up a variety of financial shares in active trading on Friday. CNN reports that at the close of trading on Friday, the Dow Jones industrial average added 42.91 points, or 0.33 percent, to close at 12,891.86, its highest point since January 3. [6] Preliminary closing figures showed the Dow Jones Industrial Average rose 42.91 points (0.33 per cent) to 12,891.86 just after the market close and the tech-rich Nasdaq Composite Index dropped 5.99 points (0.25 per cent) to 2,422.93.[7] The Dow Jones industrial average rose 42.91 points to 12,891.86 while the technology heavy Nasdaq fell 5.99 points to 2,422.93.[8]
The Dow Jones industrial average.DJI rose 42.91 points, or 0.33 percent, to end at 12,891.86.[2] Based on the latest available data, the Dow Jones industrial average.DJI ended unofficially up 42.91 points, or 0.33 percent, at 12,891.86.[9] The Dow Jones Industrial Average was up 42.91, or 0.33 percent, to 12,891.86, after falling more than 100 points earlier in the session.[10] The Dow Jones industrial average ended the week up 42.50, or 0.33 percent, at 12,891.86.[1]
The Dow Jones Industrial Average gained 42.91 points, or 0.3%, to 12,891.86, giving it a 0.4% gain on the week.[5] New York's Dow Jones industrial average gained 42.91 points, or 0.33 per cent, to 12,891.86.[11] NEW YORK, April 25 (Reuters) - The Dow Jones industrial average and the S&P; 500 finished higher on Friday as robust profits from American Express Co (AXP.N: Quote, Profile, Research ) fueled optimism about the financial sector's prospects despite a slowing economy.[9]
Going into late afternoon trading, the Dow is currently down 67.49 at 12,781.54, while the Nasdaq is down 30.06 at 2,398.86 and the S&P; 500 is down 2.67 at 1,386.15. A weak consumer confidence report released this morning has caused traders to worry about weak consumer spending. [12] The worse-than-expected consumer confidence report rattled investors as consumer spending stokes about two-thirds of U.S. economic output and many economists believe the world's largest economy has already fallen into recession. The monthly survey conducted by the University of Michigan was revised lower to 62.6 for April, its lowest reading in 26 years. "It suggests further deterioration in consumer spending in the months ahead," said Natixis analyst Marie-Pierre Ripert.[7] U.S. STOCKS closed mixed yesterday after a dismal consumer confidence reading raised fears about spending that is critical for keeping the world's biggest economy in gear.[7]
U.S. stocks advanced yesterday, capping the first back-to-back weekly gains since February, after a late rally in financial shares overshadowed slumping consumer confidence and weaker sales growth at Microsoft.[13]
The advance was erased after the Reuters / University of Michigan index of consumer sentiment fell more than economists forecast, to the weakest level since 1982. The market resumed its climb as higher crude and metal prices lifted commodities producers and banks extended their rally. Consumer stocks also got a boost after J.P. Morgan Chase strategists led by Thomas Lee raised their outlook on the sector to "overweight" from "underweight," saying government tax rebates, congressional proposals to bolster the mortgage market and cheap valuations will spur gains in the shares.[13] Stock indexes sank after data from the University of Michigan/Reuters showed the U.S. consumer sentiment index fell to 62.6 in April, from 69.5 in March. "Consumer confidence is as bad as it's been since 1982 -- I'm losing confidence as well every time I put $90 of gas in my Jeep to get to work," said Art Hogan, chief market economist at Jefferies & Co.[5]
The consumer sentiment index fell to 62.6 for April from 69.5 a month earlier, reflecting Americans' concern about rising energy and food prices. While consumer spending represents about 70 percent of the economy, UBS equities strategist David Bianco said "it's the wrong thing to be looking at to gauge the prospects" for the Standard & Poor's 500 companies. "Business activity is strong in the U.S. and especially globally," he said. "That's far more important."[1] The Reuters/University of Michigan consumer sentiment index fell to 62.6 for April from 69.5 a month earlier. It was the lowest reading since the early 1980s, as Americans contended with rising energy and food prices.[10]
Investors are weighing in on a troubling consumer sentiment report along with a slew of corporate results. Consumer sentiment fell to its lowest level in 26 years in April, according to the revised reading of the Reuters/University of Michigan consumer sentiment index, with the index coming in below economist estimates.[4] The company also gave a tepid outlook for the fourth quarter. Consumer sentiment fell to its lowest level in 26 years in April, according to the revised reading of the Reuters/University of Michigan consumer sentiment index, with the index coming in below economist estimates.[3]
The reading on the consumer sentiment index for April was revised down to 62.6 from the previously reported 63.2.[4]
The Dow Jones Wilshire 5000 Composite Index — a free-float weighted index that measures 5,000 U.S. based companies — ended Friday at 14,089.21, up 71.91 points, or 0.51 percent, for the week. [1] The Nasdaq composite index retreated 5.99, or 0.3 percent, to 2422.93. The Dow rose 0.3 percent this week to the highest since Jan. 3, while the Nasdaq climbed 0.8 percent.[13] The Nasdaq composite index, depressed by disappointment with a Microsoft Corp. forecast, fell 5.99, or 0.25 percent, to 2,422.93, after dropping as much as 1.6 percent during the session.[1] The Nasdaq composite index lost 5.99 points, or 0.25 per cent, to 2,422.93 on Microsoft's news.[11] The Nasdaq Composite Index.IXIC slipped 5.99 points, or 0.25 percent, to close unofficially at 2,422.93.[9] The broader Standard & Poor's 500 index added 9.02 points, or 0.65 percent, to close at 1,397.84, while the technology-based Nasdaq composite lost 5.99 points, or 0.25 percent, to close at 2,422.93.[6]
The S&P; 500 (SPX) added 9.02 points, or 0.7%, to 1,397.84, leaving it 0.5% higher on the week, while the technology-laden Nasdaq Composite (RIXF) declined 5.99 points, or 0.3%, to 2,422.93, up 0.8% from last Friday.[5] The Dow closed up 42.91 points or 0.3 percent at 12,891.86 and the S&P; 500 closed up 9.02 points or 0.7 percent at 1,398.74, while the Nasdaq closed down 5.99 points or 0.3 percent at 2,422.93.[3] The Dow posted a weekly gain of 0.3 percent, while the Nasdaq rose 0.8 percent and the S&P; 500 added 0.5 percent.[3] For the week, the Dow had a gain of less than 1%, while the S&P; 500 rose 2.1% and the Nasdaq 1.4%.[14]
With the gains, the Dow and the S&P; 500 ended the week at three-month closing highs.[3]
The dow ended its second straight winning week with a moderate gain Friday, overcoming investors''' concerns about consumer confidence falling to its lowest level since the early 1980s.[14] NEW YORK, April 25 (Xinhua) -- Wall Street ended mixed Friday on weak consumer confidence.[10]
The release of mixed corporate earnings and a weak consumer confidence report have kept stocks in the red throughout most of today's trading.[12] Technology stocks are seeing particularly weakness, hurt by a sharp decline by Microsoft (MSFT). After the close of trading on Thursday, Microsoft's third quarter earnings came in above expectations but its quarterly revenue fell short of analysts' forecast.[4] Pfizer closed 2 percent higher. Microsoft posted a notable loss after the company reported its third-quarter results. Despite seeing quarterly earnings come in above expectations, its quarterly revenue fell short of analysts' forecast.[3]
The tiremaker, which reported a loss for the same period a year earlier, said it focused on higher-priced tires and international markets. American Express Co. rose $2.59, or 5.7 percent, to $47.77 after reporting its first-quarter earnings fell 6 percent as more U.S. cardholders failed to make their payments.[1] "Consumers were a little bit weaker than expected. You net all those together and the earnings season is turning out as people thought it would before it started." Microsoft fell $1.97, or 6.2 percent, to $29.83, after its first-quarter report.[1]
New York markets closed mainly higher, but the Nasdaq stayed weak on a disappointing earnings report issued late Thursday by Microsoft Corp.[11] Microsoft's disappointing earnings report late Thursday weighed on technology-heavy Nasdaq.[10]
Shares of biotechnology companies closed mixed Friday, ending a week of earnings reports from the sector.[15] Blue chips were stronger throughout the day, following strong earnings reports from American Express, Ericsson and others that topped forecasts.[6] Boosted by American Express' positive earnings, bank stocks also saw significant buying interest.[3]
American Express' results suggested that while many U.S. consumers may be hit by the credit crisis, upscale consumers have been unscathed, said Victor Pugliese, director of listed equity trading at Broadpoint Securities in San Francisco. "Maybe the economy isn't as bad as people think," Pugliese said, but he acknowledged: "People are looking for good news."[2] American Express was one of the biggest gainers of the Dow. Earlier, Standard & Poor's noted that the credit card company should be able to weather the credit market problems due to the high quality credit of its customers.[3] American Express posted the biggest gain in the Dow as overseas growth boosted results.[13]
Earlier, a Lehman Brothers analyst initiated coverage on the stock with an Overweight rating. Other Dow components that saw notable gains include Alcoa (AA), Boeing (BA) and Pfizer (PFE).[3] The main index was still up about 19 per cent from the lows hit on Jan. 21, but analysts found it worrying that the gains have come largely on the back of higher energy stocks as oil has jumped 23 per cent since the start of the year.[11] Healthcare provider stocks turned in some of the best performances after two healthcare stocks were upgraded. The Morgan Stanley Healthcare Provider Index closed up 3.9 percent, adding to gains posted in the previous two sessions to end the day at its best closing level in two months.[3] With the gain, the index set a new record closing high. Other stocks that posted notable gains include chemical, health insurance and brokerage stocks.[3]
The stock added to a gain posted in the previous session to set a two-month closing high.[3] The stock fell 9.1 percent, pulling back from the monthly closing high set in the previous session.[3]
General Motors fell 3.3 percent, pulling back from the six week closing high set on Thursday.[3]
The Amex Software Index ended the day down 1.7 percent, pulling back from the three-month closing high set on Thursday.[3] The Amex Disk Drive Index fell 2 percent, nearly reversing two day's worth of gains, although it remains stuck in a three-week trading range.[3] The S&P; Chemical Index closed up 3.2 percent, while the Morgan Stanley Healthcare Payor Index saw a 3.1 percent gain.[3] The S&P; Bank Index climbed 3.3 percent, adding to a strong gain posted in the previous session.[3]
The S&P; 500 index gained 9.02, or 0.65 percent, to 1,397.84, and rose 2.1 percent for the week.[1] The Standard & Poor's 500-stock index rose 9.02, or 0.7 percent, to 1397.84, and advanced 0.5 percent on the week.[13]
The French CAC 40 Index rose 1 percent compared to a 1.1 percent advance by the German DAX Index and a 0.7 percent gain by the U.K.' s FTSE 100 Index.[3] Britain's FTSE 100 rose 0.67 percent, Germany's DAX index advanced 1.10 percent, and France's CAC-40 rose 0.99 percent.[1] The Russell 2000 index of smaller companies rose 4.81, or 0.67 percent, to 721.88.[1]
The American Stock Exchange's biotechnology index rose 1.97 points to 751.51.[15] The Nasdaq Stock Market's biotechnology index, which covers a broader range of small- and midcap stocks, fell.38 points, to 805.63.[15] Advancers were well ahead of decliners in the broader Nasdaq Stock Market, and for the week, the Nasdaq gained 1.4 percent.[1]
U.S. stocks on Friday pulled off a late-session turnaround, with financials paving the way higher, and only the Nasdaq Composite ending in the red in the wake of software giant Microsoft Corp.' s profit drop.[5]
Blue chips rose 42.91 to 12,891.86, after falling more than 100 points in earlier trading. The S&P; 500 gained 9.02 to 1,397.84, and the Nasdaq, depressed by Microsoft, recovered much of its earlier losses to fall 5.99 at 2,422.93.[14] Heading into mid-afternoon trading, the Dow is currently down 61.63 at 12,787.32, while the Nasdaq is down 28.59 at 2,400.33 and the S&P; 500 is down 2.42 at 1,386.40.[12]
A majority of the Dow components moved back into positive territory in late-day trading, sending the blue chip index modestly higher.[3]
Of the 30 stocks that make up the Dow, 19 ended the day up while 11 closed down.[3] Stocks slipped throughout the day on Friday over surging oil and a weak report on U.S. consumer sentiment, however investors shrugged off most of the day's losses by late afternoon with strength in financials and retailers.[6] Oil prices, meanwhile, jumped on a series of troubling events overseas, including word that a ship under contract with the U.S. Navy fired flares and warning shots at two small boats of unknown origin in the Persian Gulf. Craig Hester, chief executive at Hester Capital Management in Austin, Texas, said stocks will likely fluctuate as investors digest corporate results from this week and while they await the Fed rate decision. "The big risks I see for stocks right now are earnings," he said, adding that next week's economic data should also help give investors a better picture, with reports due on the nation's gross domestic product and employment.[1]
Crude-oil futures spiked more than $2 a barrel on news reports of a U.S. cargo ship firing at two unidentified boats in the Persian Gulf, with crude for June delivery gaining $2.46 to end at $118.52 a barrel on the New York Mercantile Exchange. Volume on the New York Stock Exchange topped 3.8 billion, with declining stocks edging ahead of those advancing nearly 2 to 1.[5] Advancing issues outpaced decliners by 2 to 1 on the New York Stock Exchange.[1]
The June contract for light, sweet crude gained $2.46 (U.S.) a barrel to $118.52 on the New York Mercantile Exchange.[11]
The troubling data made investors skittish, sending the markets lower for the majority of the session, as consumer spending makes up 70 percent of the U.S. economy. [3] The index of consumer expectations for six months from now, which more closely projects the direction of consumer spending, dropped to 53.3 from 60.1 last month.[13]
The Standard & Poor's 500 Index climbed 9.27 points (0.67 per cent) to 1,398.09.[7] Toronto's S&P;/TSX composite index jumped 137.54 points, or 0.98 per cent, to 14,103.87.[11]
Britain's FTSE 100 rose 0.67 per cent, Germany's DAX index advanced 1.10 per cent and France's CAC-40 gained 0.99 per cent.[11] The Russell 2000 index of smaller companies rose 4.81, or 0.67 per cent, to 721.88.[11]
The June bullion contract on the Nymex rose 30 cents an ounce to $889.70, taking the TSX's gold sector 1.65 per cent higher.[11] The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.87 per cent from 3.83 per cent late Thursday.[11] Bond prices fell ahead of the Federal Reserve's meeting on interest rates next Wednesday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.87 percent from 3.83 percent late Thursday.[1]
Higher oil prices underpinned the market's rise by lifting shares of oil services companies nearly 2 percent after a cargo ship chartered by the U.S. military fired warning shots at two small boats in the Gulf.[2] Shares of the credit card company closed 5.7 percent higher, adding to gains posted in the past two sessions.[3] Shares of the software giant ended the day down 6.2 percent, reversing the gains posted in the previous two sessions.[3]
Microsoft weighed on indexes on Friday after it reported weak Windows software sales and a below-target profit forecast a day earlier, driving the software maker's shares down 6.2 percent.[2] Microsoft reported net income for the third quarter of $0.47 per share, compared to $0.50 per share in the year-ago quarter.[3]
Whitehouse Station, N.J. -based Merck & Co. shares up 75 cents to $40.72.[8]
Stocks opened higher after a UBS report that the worst is over for bank write-downs helped spark gains in financial shares.[13] Natural gas stocks ended the day sharply higher as well, helped by an increase in the price of natural gas.[3] The Amex Natural Gas Index ended the day up 3.2 percent, nearly reversing two day's worth of declines.[3] The Standard & Poor's 500 Index.SPX finished unofficially up 9.02 points, or 0.65 percent, at 1,397.84.[9] The Russell 2000 index finished the week up 0.81, or 0.11 percent, at 721.88.[1]
Three previous days of losses in the energy and metals sectors had shaved about 350 points from the key index.[11] Economists had been expecting the index to come in unchanged from the previously reported reading.[4]
The computer software giant reported a 11 percent profit decline on virtually flat revenue and said current quarter earnings would come in below analyst estimates.[10] Goodyear Tire & Rubber Co. rose $1.66, or 6.1 percent, to $28.91 after posting a first-quarter profit amid increased revenue.[1]
The credit card lender's total provisions for credit losses jumped 48 percent from a year earlier to $1.27 billion.[1] Kenilworth, N.J. -based Schering-Plough up 52 cents, or 2.9 percent, to $18.64.[8]
Subsequently, the yield on the ten-year note closed up 3.9 basis points at 3.866 percent, setting a two-month closing high.[3] Hewlett Packard closed down 1.9 percent, compared to a 1.7 percent decline by 3M. Coca Cola ended the day 1.5 percent lower.[3] Alcoa ended the day up 2.5 percent, while Boeing saw an increase of 2.2 percent.[3]
In overseas trade, Asian markets ended on a mixed note, while European shares ended higher for a third day straight.[5]
The benchmark ten-year note opened lower and remained negative throughout the session, although it saw some volatility after the release of the consumer confidence data. [3] Rick Hutcheon, president and chief operating officer at RKH Investments, said that broad optimism over corporate results released so far has helped produce some confidence. "The earnings reports that have come out in the last little while haven't been that bad, certainly better than some of the negative participants in the market had thought," he said. Warne said the markets are also finding some optimism in a feeling that, although the problems in the credit market haven't been solved, they aren't getting worse.[11] There will be plenty of other economic news to digest as well, including the Commerce Department's first quarter GDP data and its personal income and consumption data. The Institute for Supply Management will release the data from its Manufacturing Survey and the Labor Department will release its monthly employment data. In earnings news, there are several key companies scheduled to release their quarterly results.[3]
All times are ET. : Time reflects local markets trading time. - Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. Disclaimer[5] In recent trading, the major averages are attempting to stage a recovery, although only the S&P; 500 has been able to move into positive territory.[4] The major averages staged a recovery in the afternoon, lifting the Dow and the S&P; 500 into positive territory.[3]
The stock set a two-month closing high. General Motors (GM) also saw considerable selling pressure after Moody's Investors Service lowered its outlook on the automaker to Negative over concerns about the mortgage unit of GMAC LLC, GM's former finance arm. [3] Among healthcare provider stocks, Tenet Healthcare (THC) was one of the biggest gainers after it was upgraded to an Outperform rating by an analyst at Credit Suisse.[3]
SOURCES
1. The Associated Press: Dow ends up 43 as many investors overcome economic worries
2. American Express lifts Dow and S&P; Nasdaq dips | Markets | Hot Stocks | Reuters
3. RTTNews - Financial Market News, US Market Update, US Market News, Economic News .
4. RTTNews - Realtime Stock Market News, Market Trends, Stock Alerts, Stock Information.
5. MARKET SNAPSHOT: U.S. Stock Indexes Close With Weekly Gains
6. Dow Ends At Four Month High
7. Consumer confidence down in US: report | smh.com.au
8. Closing Glance: Pharmaceuticals - Forbes.com
9. US STOCKS-Dow, S&P; finish up on AmEx; Nasdaq slips | Markets | U.S. | Reuters
10. Wall Street trades mixed on weak consumer confidence, Microsoft's earnings_English_Xinhua
11. TheStar.com | Business | Energy stock prices lift TSX, Dow Jones industrials advance
12. RTTNews - Realtime Stock Market News, Market Trends, Stock Alerts, Stock Information.
13. Dow Closes Highest Since Jan. 3 Behind Strong Financial Shares - washingtonpost.com
14. Dow rises despite crumbling consumer confidence
15. Closing Glance: Biotechnology - Forbes.com
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