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Apr-27-2008A Week Ends Almost Where It Started(topic overview)
CONTENTS:
- An index that records consumer sentiment may also affect the markets later in the morning. (More...)
- For the week, the Dow rose 0.33 per cent, the S& P 500 0.5 per cent and the Nasdaq 0.8 per cent. (More...)
- 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. (More...)
- By the end of the week, 75% of the S&P; 500 will have posted first quarter earnings. (More...)
- The stock fell 9.1 percent, pulling back from the monthly closing high set in the previous session. (More...)
- 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. (More...)
- Of the 30 stocks that make up the Dow, 19 ended the day up while 11 closed down. (More...)
- The reading on the consumer sentiment index for April was revised down to 62.6 from the previously reported 63.2. (More...)
- Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. (More...)
- North American stock index futures were up about an hour prior to the opening bell. (More...)
- Home Depot Inc. (nyse: HD - news - people ) advanced 86 cents, or 3 percent, to $29.78, as an analyst started coverage of rival Lowe's Cos. (nyse: LOW - news - people ) with a high rating and said the home improvement retailer will be the first to rebound once the housing market improves. (More...)
- Among individual stocks, Netgear Inc. (NTGR) is seeing significant selling pressure after the company posted quarterly results that came in below analysts' expectations. (More...)
- Economists had forecasted the index to fall to 63.2 from the March reading of 69.5, which was already a significant drop. President Bush announced that the federal government will start distributing stimulus checks sooner than originally planned in order to help Americans with the affects of high oil and food prices. (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...)
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An index that records consumer sentiment may also affect the markets later in the morning. The stock markets may get a boost from Dow component American Express (AXP) after the credit card company reported first-quarter net earnings that came in above analysts' expectations and affirmed its full year earnings forecast. American Express said it earned $0.85 per share in its first quarter, while analysts were expecting the company to report earnings of $0.81 per share. [1] 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.[2] 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.[3] NEW YORK, April 25 (Reuters) - The Dow Jones industrial average opened higher on Friday as robust profits from American Express Co (AXP.N: Quote, Profile, Research ) fueled optimism about prospects for financial shares although disappointment with Microsoft Corp's (MSFT.O: Quote, Profile, Research ) results weighed, causing the Nasdaq to slip.[4]
American Express Co.' s first-quarter profit lifted shares of the credit card lender and helped send the Dow Jones industrial average to a higher finish on Friday.[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] At the close, the S&P; 500 Index finished up 9 points to1,398, the Nasdaq Composite Index finished down 6 points to 2,423, and the Dow Jones Industrial Average finished up 43 points to 12,892.[8] Dow Jones Industrial Average added 42.91 or 0.33% to a close of 12,891.86, S&P; 500 closed up 9.02 or 0.65% to 1,397.84, and Nasdaq Composite Index decreased 5.99 or 0.25% to close at 2,422.93.[9]
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.[10] The blue-chip Dow Jones Industrial Average rose 42.91 points, or 0.33 per cent, to 12,891.86.[11] Futures for the Dow Jones industrial average rose 72 points, to 12,903, as investors remain enthusiastic about the dip in crude oil prices, the stronger U.S. dollar and more enthusiasm for the U.S. financial sector.[12] The Dow Jones industrial average.DJI rose 42.91 points, or 0.33 percent, to end at 12,891.86.[3] 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.[13] 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.[14] The Dow Jones industrial average.DJI climbed 34.12 points, or 0.27 percent, to 12,883.07.[4]
The Dow Jones industrial average ended the week up 42.50, or 0.33 percent, at 12,891.86.[15]
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.[15]
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.[15] The climb came despite a drop in a key consumer confidence index from Reuters and the University of Michigan, while Microsoft's poor earnings report Thursday night led technology stocks lower on the day.[11]
U.S. stocks ended mostly higher as traders shook off dismal consumer confidence data and focused on signs the credit crunch was easing. The Dow and S&P; rose, after signs that American Express was holding its own amid the economic slowdown, but Microsoft Corp's weak profit forecast pulled down the Nasdaq.[16] The broader market finished mixed, with the Dow industrials and Standard & Poor's 500 index recovering from earlier losses after a consumer confidence index fell to a 26-year low and Microsoft's disappointing forecast dragged tech stocks lower.[17]
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.[18] 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.[19]
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."[15] Investors have become jittery on the news as weak consumer sentiment could result in weak consumer spending. 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.[20] 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.[2]
The University of Michigan's consumer sentiment index was released earlier in the day, showing that consumer sentiment fell to its lowest level in more than 25 years.[21]
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.[14]
Light sweet crude for June delivery jumped sharply today, closing up $2.46 to $118.52 a barrel, after news that a U.S. Naval ship fired warning shots at two Iranian boats in the Persian Gulf. Speculators worried that this may cause supply issues from an already unstable Middle-East region. A report on U.S. consumer confidence fell to 62.6 according to the University of Michigan index to its weakest point since 1982.[8] 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] The market got off to a poor start as a worse-than-expected consumer confidence report rattled investors. A 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. Wall Street -- up some 5 per cent so far in April -- managed to ride its momentum to keep the rally largely on track.[16]
Microsoft Corp. is still very much in focus, a day after the technology giant issued a mixed earnings report that beat expectations but nonetheless showed that earnings fell 11 per cent. It issued a forecast that didn't exactly blow away expectations. It's stock sank 4.7 per cent in after hours trading on Thursday and was down 3.9 per cent in Frankfurt on Friday. Investors will also be watching the company closely for any indication for how it will proceed in its takeover battle with Yahoo Inc., with a weekend deadline fast approaching.[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 per share came in above analysts' expectations but its quarterly revenue fell short of analysts' forecast.[20]
Important economic data next week include a look at first quarter gross domestic product on Wednesday; data on construction spending, auto sales and personal income on Thursday; and a closely watched April jobs report next Friday. Among other stocks in the news Friday, Altria Group ( MO ) said it earned 29 cents per share last quarter, down from 33 cents a year ago as the company took charges related to its spin-off of Philip Morris International.[22] ITT Corp. ( ITT ) posted earnings of 93 cents per share, vs. 74 cents a year ago, as revenue rose 25%. The company raised its 2008 profit forecast.[22] Baidu.com ( BIDU ), the Chinese Internet company, posted earnings of 68 cents per share, vs. 67 cents a year ago, on sharply higher revenue of $81.9 million.[22]
MEMC Electronic Materials ( WFR ) reported earnings of 84 cents per share, vs. 58 cents a year ago, as sales were up 14%.[22] Devry ( DV ) reported earnings of 53 cents per share, vs. 32 cents a year ago.[22]
Goodyear Tire & Rubber ( GT ) posted earnings of 60 cents per share, vs. a loss of 61 cents a year ago.[22]
The software maker expects earnings of $2.13 to $2.19 per share next year.[22]
Excluding one-time charges, the home networking products maker reported first-quarter net income of $0.39 per share, down from $0.40 per share a year ago.[20] Microsoft reported net income for the third quarter of $0.47 per share, compared to $0.50 per share in the year-ago quarter.[2]
On the New York Mercantile Exchange, June crude rose $YS2.46, or 2.12 per cent, to settle at $US118.52 a barrel. Microsoft weighed on sentiment in the tech sector after the world's biggest software maker reported after Thursday's market close that its third-quarter profit had slipped and gave mixed guidance for the current quarter.[16] Tyre maker Goodyear rallied 6.1 per cent to $US28.91 as it swung to profit in the first quarter, a day after a positive earnings surprise from auto giant Ford Motor Co.[16]
Better-than-expected earnings from financial services group American Express, up 5.7 per cent at $US47.77, helped lift that troubled sector.[16] 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.[15] 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.[23] 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.[19] Traders also closely watched earnings season, as results from American Express ( AXP ) impressed investors but Microsoft's ( MSFT ) profits fell short.[22]
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.[2]
The Nasdaq closed up 1 percent, the Dow closed up 0.7 percent and the S&P; 500 closed up 0.6 percent. Among individual stocks, Ariba (ARBA) may see significant buying interest on Friday after the company issued its second-quarter financial results.[1] 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.[2]
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.[2] 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%.[24]
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.[25] In recent trading, the Dow has joined the Nasdaq in negative territory while the S&P; 500 remains just above the unchanged line.[21] 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.[25]
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.[24]
The tech-heavy Nasdaq composite, hurt by a disappointing profit report from Microsoft, dropped 5.99 points, or 0.25 per cent, to 2422.93.[16] 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.[19]
Shares of Netgear are currently trading 14.5 percent lower, breaking out of a nearly two-month trading range. Earlier in the day, the stock fell to its worst intraday level in well over a year. McAfee (MFE) is also posting a substantial loss after reporting a 27 percent decline in its first-quarter profits on rising operating costs and a much higher provision for income taxes.[20] The stock lost $1.97, or 6.2 percent, to $29.83. Moody's (nyse: MCO - news - people ) Investors Service lowered its outlook on General Motors Corp. (nyse: GM - news - people ) on worries about the mortgage unit of GMAC LLC (nyse: GJM - news - people ), the auto maker's former finance arm, which sent shares down 73 cents, or 3.3 percent, to $21.38.[5] American Express (nyse: AXP - news - people )'s international segment helped offset sluggishness in the U.S., and the stock jumped $2.59, or 5.7 percent, to $47.77.[5]
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.[19]
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.[15] 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] Investors are continuing to consider a weak consumer confidence report and the release of several mixed corporate earnings. Technology, airline and tobacco stocks are among the biggest losers throughout this morning's trading.[26]
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.[18] U.S. stocks rose on Friday and ended the week in positive territory, led by financial shares buoyed by Fannie Mae's brighter earnings forecast, dpa reported.[11] Shares of large pharmaceutical companies closed higher Friday, ending a week of mixed earning reports.[10]
"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.[15] 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.[15] 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.[18] The Nasdaq Composite Index.IXIC slipped 5.99 points, or 0.25 percent, to close unofficially at 2,422.93.[13] 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 Nasdaq Stock Market's biotechnology index, which covers a broader range of small- and midcap stocks, fell.38 points, to 805.63.[27] A gain in the dollar prompted investors to sell commodities and buy into the stock market. The major averages moved well off of their intraday highs going into the close, although they still ended the session substantially higher, with the Nasdaq setting a three-month closing high.[1] Advancers were well ahead of decliners in the broader Nasdaq Stock Market, and for the week, the Nasdaq gained 1.4 percent.[15]
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.[2] The Morgan Stanley Healthcare Provider Index is currently climbing 2.6 percent. Natural gas stocks are also posting substantial gains, helped by the rising price of their underlying commodity. The Amex Natural Gas Index is up 2.6 percent, although it remains well off of its record closing high set on Tuesday.[20]
With the gain, the index set a new record closing high. Other stocks that posted notable gains include chemical, health insurance and brokerage stocks.[2]
The Amex Disk Drive Index is down 3.2 percent. Software stocks are also seeing significant selling pressure after Microsoft provided lackluster guidance for its fiscal year.[20] Telecommunications stocks are posting substantial losses as well, with the Amex North American Telecommunications Index sliding 1.3 percent.[20] The American Stock Exchange's biotechnology index rose 1.97 points to 751.51.[27]
In London, the FTSE 100 index of leading shares was up 0.67 per cent at 6091.40, in Paris, the CAC 40 rose 0.99 per cent to 4978.21 and in Frankfurt the Dax 30 added 1.10 per cent to 6896.58 points.[16] The broad-market S&P; 500 index climbed 9.02 points, or 0.65 per cent, to 1397.84.[16] The Standard & Poor's 500 Index climbed 9.27 points (0.67 per cent) to 1,398.09.[7]
For the week, the Dow rose 0.33 per cent, the S& P 500 0.5 per cent and the Nasdaq 0.8 per cent. [11] In Europe, the U.K.' s FTSE 100 rose 0.5 per cent and Germany's DAX rallied 1.6 per cent in early afternoon trading there.[12] Citigroup added 3.3 per cent at $US26.60, Goldman Sachs rose 1.9 per cent to $US192.00 and Bank of America firmed 1.1 per cent to $US38.30.[16] The yield on the 10-year U.S. Treasury bond rose to 3.866 per cent from 3.827 per cent on Thursday and that on the 30-year bond rose to 4.589 per cent from 4.544 per cent.[16] Higher oil prices underpinned the market's rise by lifting shares of oil services companies nearly 2 per cent after a cargo ship chartered by the U.S. military fired warning shots at two small boats in the Gulf.[16] Revenue rose 18%, and new undergraduate enrollment was up 12.1%. Downey Financial ( DSL ) said it would slash its quarterly dividend, from 12 cents per share to 1 cent.[22] Excluding one-time items, Ariba reported net income of $0.09 per share, while analysts were expecting the company to earn $0.08 per share.[1]
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.[3] 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.[14] A sharp decline from Western Digital (WDC) is pulling the disk drive sector lower. Despite reporting better than expected profits and revenues in its third quarter, Western Digital is currently trading 8.8 percent lower.[20]
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.[2] Al Goldman at Wachovia Securities said a second day of gains for the U.S. dollar "cleared near-term trading resistance and increased speculation that at least a short-term bottom is in place" for the stock market.[16] The Australian dollar slipped to US94.35 cents. Other analysts also said the tone of the stock market had improved after a horrific start to 2008. "The strengthening U.S. dollar and the possibility of the Fed completing its round of rate cuts could provide what we would call the second bell announcing the near completion of the bottoming process for the stock market over the last three months," said Fred Dickson, market strategist at DA Davidson.[16]
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] 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.[2] The weak results are concerning to investors, as consumer spending makes up 70 percent of the U.S. economy.[21]
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." [3]
American Express led gainers in the Dow Jones index with a rise of 5.7% followed by gains in Citigroup of 3.3%, in Home Depot of 2.97%, in Alcoa of 2.5%, and n Boeing of 2.22%.[9] American Express posted the biggest gain in the Dow as overseas growth boosted results.[18]
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.[2]
American Express shares climbed despite the company posting an 11- per-cent fall in first-quarter profits Thursday night.[11] American Express (NYSE: AXP) finished the day up just over 5% even though the credit-card lender reported a decrease in quarterly profit of 6%.[8]
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.[2] American Express earnings and revenue declined but international markets showed healthy gains.[9] American Express surged 4% after it reported 11% decline in revenue and earnings.[9]
By the end of the week, 75% of the S&P; 500 will have posted first quarter earnings. At this point in the earnings season, according to Thomson Reuters, S&P; 500 earnings are expected to fall 14.1% from a year ago. Another major news item next week is the meeting of the Federal Reserve on Tuesday and Wednesday. [22] Ford reported an unexpected first quarter profit, led by strong results in Europe and South America. The dollar saw its biggest one-day gain against the euro in years after the Wall Street Journal suggested that the Federal Reserve might stop cutting rates after easing its overnight interest rate by a quarter of a percentage point next week.[1] Nomura Holdings reported first quarter loss of 154 billion yen compared to a profit of 33 billion yen from a year ago.[9]
The company reported 39.3% rise in net profit to 1,792.30 crore rupees on 41.8% increase net revenues to 7,446.82 crore rupees in the fourth quarter.[9]
The decline is reversing the gain posted in the previous session, when the index set a two-week closing high. Despite the decline in the telecommunication sector, Ericsson Telephone (ERIC) is posting a substantial gain after the company reported surprisingly strong results in its first-quarter, boosted by its core network operations.[20] The S&P; Bank Index climbed 3.3 percent, adding to a strong gain posted in the previous session.[2] The S&P; Chemical Index closed up 3.2 percent, while the Morgan Stanley Healthcare Payor Index saw a 3.1 percent gain.[2]
The S&P; 500 index gained 9.02, or 0.65 percent, to 1,397.84, and rose 2.1 percent for the week.[15] 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.[18]
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.[2] The Amex Software Index is falling 2.4 percent, reversing the gains posted in the previous two sessions.[20] The Amex Airline Index is currently down 2.3 percent, reversing most of the strong gain posted in the previous session.[20]
Shares of the software giant ended the day down 6.2 percent, reversing the gains posted in the previous two sessions.[2] Shares of the credit card company closed 5.7 percent higher, adding to gains posted in the past two sessions.[2] Shares of the pharmaceutical company are up 33.9 percent after setting a seven-week intraday high earlier in the session.[20]
The stock fell 9.1 percent, pulling back from the monthly closing high set in the previous session. [2] The stock is down 5.6 percent, reversing the gain posted in the previous session.[20]
Bond yields and prices move in opposite directions. European stocks closed higher, holding on to most of their early gains as investors cheered strong results at Swedish telecom giant Ericsson.[16] Of the 30 stocks in Dow Jones Industrial Average, 18 closed higher, 12 closed lower, and none was unchanged.[9] 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.[19]
Microsoft led decliners in the Dow Jones index with a loss of 6.2% followed by losses in General Motors of 3.3%, in Hewlett Packard of 1.86%, and in 3M of 1.66%.[9] A majority of the Dow components moved back into positive territory in late-day trading, sending the blue chip index modestly higher.[2]
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. [24] With the gains, the Dow and the S&P; 500 ended the week at three-month closing highs.[2]
The Dow is currently down 54.06 at 12,794.89, the Nasdaq is down 28.95 at 2,399.97 and the S&P; 500 is down 2.21 at 1,386.61.[20] 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.[19] The tech-heavy Nasdaq composite index fell 5.99 points, or 0.25%, to 2,422.93.[22]
Microsoft (NASDAQ:MSFT) led the Nasdaq Composite lower after the software maker reported a 24% drop in Windows sales last quarter, as well as issued guidance that did not meet expectations due to a slowing U.S economy.[8] On the losing side, Microsoft Corp. (nasdaq: MSFT - news - people )'s stock took the largest fall, after sales from the units that make Windows and Office products slipped in the fiscal third quarter.[5]
Microsoft's disappointing earnings report late Thursday weighed on technology-heavy Nasdaq.[14] Microsoft earnings declined 11% to $4.39 billion on nearly flat revenue of $14.45 billion.[9] 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.[2] The comments came after the company reported better than expected first quarter earnings.[2] Within the disk drive sector, Western Digital (WDC) closed sharply lower despite reporting better than expected third quarter earnings and revenues.[2]
Of the 30 stocks that make up the Dow, 19 ended the day up while 11 closed down. [2] 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).[2]
Stocks opened higher after a UBS report that the worst is over for bank write-downs helped spark gains in financial shares.[18] The stock added to a gain posted in the previous session to set a two-month closing high.[2] Natural gas, brokerage and health insurance stocks remain on the upside. Going into afternoon trading, stocks have moved off their lows of the session but remain in the red.[26] Ericsson is currently trading 12.3 percent higher after setting a four-month intraday high. Other stocks that are showing weakness include semiconductor, tobacco and housing stocks.[20] The reduction in stamp duty on trading in China lifted stocks for the second day in a row.[9]
Natural gas stocks ended the day sharply higher as well, helped by an increase in the price of natural gas.[2]
The Amex Software Index ended the day down 1.7 percent, pulling back from the three-month closing high set on Thursday.[2] The Amex Natural Gas Index ended the day up 3.2 percent, nearly reversing two day's worth of declines.[2]
The Standard & Poor's 500 Index.SPX finished unofficially up 9.02 points, or 0.65 percent, at 1,397.84.[13] The Russell 2000 index finished the week up 0.81, or 0.11 percent, at 721.88.[15] The Russell 2000 index of smaller companies rose 4.81, or 0.67 percent, to 721.88.[15] 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.[15]
The reading on the consumer sentiment index for April was revised down to 62.6 from the previously reported 63.2. [23] The final reading for the consumer sentiment index was 62.6 in April, down from 69.5 in March.[22]
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.[18] A weak consumer confidence report released this morning has caused traders to worry about weak consumer spending.[20]
NEW YORK, April 25 (Xinhua) -- Wall Street ended mixed Friday on weak consumer confidence.[14]
Most energy companies also saw gains as crude oil climbed more than 2 dollars to 118.52 dollars per barrel in New York trading and petrol prices in the United States reached a new record.[11] On the New York Stock Exchange, 19 stocks moved higher for every 12 in negative territory.[22] Advancing issues outpaced decliners by 2 to 1 on the New York Stock Exchange.[15]
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. [4]
Of the stocks in S&P; 500 index, 354 stocks increased, 144 declined, and 2 were unchanged.[9] Ford Motor led decliners in the S&P; 500 index with a loss of 11% followed by losses in First Horizon of 7.9%, in MEMC Electric Materials of 6.4%, in Microsoft of 6.2%, in Fidelity National of 5.33%, in Genworth Financial of 5%.[9] Tenet Healthcare led gainers in the S&P; 500 index with a rise of 13.4% followed by increases in Fannie Mae of 10.4%, in Perkin Elmer of 9.8%, in Eastman chemical of 7.7%, and in Freddie Mac of 7.4%.[9]
North American stock index futures were up about an hour prior to the opening bell. [12] Of the stocks in the index, 11 stocks fell more than 3% and 65 gained more than 3%.[9]
Stocks were mixed Friday after a measure of consumer sentiment hit the lowest level since 1982.[22] 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.[2] Investors seemed relieved after the Labor Department's report on initial jobless claims in the week ended April 19th showed that jobless claims unexpectedly decreased compared to the revised data for the previous week.[1] Investors could also get further insights into the health of the consumer next week with reports due from names like Tyson Foods Ind., Kellogg Co., Kraft Foods Inc., Burger King Holdings Inc. and Procter & Gamble Co.[15]
Home Depot Inc. (nyse: HD - news - people ) advanced 86 cents, or 3 percent, to $29.78, as an analyst started coverage of rival Lowe's Cos. (nyse: LOW - news - people ) with a high rating and said the home improvement retailer will be the first to rebound once the housing market improves. [5] Citigroup Inc. (nyse: C - news - people ) added 84 cents, or 3.3 percent, to $26.60.[5]
Shares of computer and printer maker Hewlett-Packard Co. (nyse: HPQ - news - people ) gave up 90 cents to $47.45.[5] Whitehouse Station, N.J. -based Merck & Co. shares up 75 cents to $40.72.[10]
Kenilworth, N.J. -based Schering-Plough up 52 cents, or 2.9 percent, to $18.64.[10] Goodyear Tire & Rubber Co. rose $1.66, or 6.1 percent, to $28.91 after posting a first-quarter profit amid increased revenue.[15] 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.[15] General Motors fell 3.3 percent, pulling back from the six week closing high set on Thursday.[2] Subsequently, the yield on the ten-year note closed up 3.9 basis points at 3.866 percent, setting a two-month closing high.[2] 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.[2]
The credit card lender's total provisions for credit losses jumped 48 percent from a year earlier to $1.27 billion.[15] Microsoft earnings declined and issued a cautious guidance for the rest of the year.[9]
Among individual stocks, Netgear Inc. (NTGR) is seeing significant selling pressure after the company posted quarterly results that came in below analysts' expectations. [20] Friday April 25, 2008: 5:00 P.M. ET- U.S. stocks closed mixed today on strength in financials and weakness in technologies.[8]
Economists had forecasted the index to fall to 63.2 from the March reading of 69.5, which was already a significant drop. President Bush announced that the federal government will start distributing stimulus checks sooner than originally planned in order to help Americans with the affects of high oil and food prices. [8] All times are ET. : Time reflects local markets trading time. - Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. Disclaimer[19] 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.[23] The major averages staged a recovery in the afternoon, lifting the Dow and the S&P; 500 into positive territory.[2]
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. [2]
SOURCES
1. RTTNews - Realtime Stock Market News, Market Trends, Stock Alerts, Stock Information.
2. RTTNews - Financial Market News, US Market Update, US Market News, Economic News .
3. American Express lifts Dow and S&P; Nasdaq dips | Markets | Hot Stocks | Reuters
4. US STOCKS-Dow opens up on AmEx; Microsoft drags tech | Markets | Markets News | Reuters
5. DJIA Leaders & Laggards: AXP MSFT - Forbes.com
6. Dow Ends At Four Month High
7. Consumer confidence down in US: report | smh.com.au
8. News Briefs - Comtex SmarTrend Alert
9. Oil Up $2 Techs Down Financials Rally - Market Update
10. Closing Glance: Pharmaceuticals - Forbes.com
11. Trend Capital : Stocks climb on financial shares, close up for the week
12. globeandmail.com: Market Blog - Premarket: Microsoft's next move
13. US STOCKS-Dow, S&P; finish up on AmEx; Nasdaq slips | Markets | U.S. | Reuters
14. Wall Street trades mixed on weak consumer confidence, Microsoft's earnings_English_Xinhua
15. The Associated Press: Dow ends up 43 as many investors overcome economic worries
16. Amex lifts Wall Street higher | The Australian
17. Closing Glance: Telecom stocks finish higher - Forbes.com
18. Dow Closes Highest Since Jan. 3 Behind Strong Financial Shares - washingtonpost.com
19. MARKET SNAPSHOT: U.S. Stock Indexes Close With Weekly Gains
20. RTTNews - Realtime Stock Market News, Market Trends, Stock Alerts, Stock Information.
21. RTTNews - Financial News Analysis, Coverage Reiterated, Sector/Indices Articles, Stock Market News, Broker Ratings .
22. Stocks End Mixed
23. RTTNews - Realtime Stock Market News, Market Trends, Stock Alerts, Stock Information.
24. Dow rises despite crumbling consumer confidence
25. RTTNews - Realtime Stock Market News, Market Trends, Stock Alerts, Stock Information.
26. RTTNews - Financial News Analysis, Coverage Reiterated, Sector/Indices Articles, Stock Market News, Broker Ratings .
27. Closing Glance: Biotechnology - Forbes.com
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