NYSE Dow Jones finished today at:

[bigdog]

Source: http://finance.yahoo.com

Wall Street was closed for the Martin Luther King public holiday

European stock markets rose Monday as speculation of a pickup in corporate dealmaking kept investors interested on a day Wall Street was closed for the Martin Luther King public holiday and Greece's budgetary woes continued to weigh on the euro.

The FTSE 100 index of leading British shares closed up 39.02 points, or 0.7 percent, at 5,494.39, while Germany's DAX rose 42.58 points, or 0.7 percent, at 5,918.55. The CAC-40 in France ended 23.08 points, or 0.6 percent, higher at 3,977.46.

The NYSE DOW closed for Martin Luther King public holiday
Sym. Last......... ........Change..........
Dow 10,609.65
Nasdaq 2,287.99
S&P 500 1,136.03
30-yr Bond 4.5750%

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,494.39 +39.02 +0.72%
DAX 5,918.55 +42.58 +0.72%
CAC 40 3,977.46 +23.08 +0.58%

Asia
Symbol...... Last...... .....Change.......
Nikkei 225 10,855.08 -127.02 -1.16%
Hang Seng 21,460.01 -194.15 -0.90%
Straits Times 2,912.02 +3.60 +0.12%

http://finance.yahoo.com/news/Europ...5.html?x=0&sec=topStories&pos=4&asset=&ccode=

European stocks rise amid merger speculation

European stocks rise amid merger speculation despite Greek budget concerns; Wall Street closed

By Pan Pylas, AP Business Writer , On Monday January 18, 2010, 2:32 pm EST

LONDON (AP) -- European stock markets rose Monday as speculation of a pickup in corporate dealmaking kept investors interested on a day Wall Street was closed for the Martin Luther King public holiday and Greece's budgetary woes continued to weigh on the euro.

The FTSE 100 index of leading British shares closed up 39.02 points, or 0.7 percent, at 5,494.39, while Germany's DAX rose 42.58 points, or 0.7 percent, at 5,918.55. The CAC-40 in France ended 23.08 points, or 0.6 percent, higher at 3,977.46.

A lot of the interest in Europe centered on Britain's International Power PLC and Gaz de France SA and whether weekend speculation that they were looking at some sort of tie-up would materialize.

However, International Power's statement that merger talks had ended saw a massive reverse in the company's fortunes and a share price that had been 8 percent higher in the day ended over 3 percent lower -- making it the biggest faller on the FTSE 100.

British candy maker Cadbury PLC also remained in the spotlight amid speculation that its suitor Kraft Foods Inc. was preparing to sweeten its offer before a Tuesday deadline. Cadbury ended around 1.5 percent higher but investors remain skeptical that the current stand-off between the two companies can be ended.

"Some traders seem to feel that this has dragged on long enough, making any sort of deal unlikely," said David Jones, chief market strategist at IG Index.

Even though talks between International Power and Gaz de France failed to yield anything, analysts said there are mounting expectations that the amount of mergers and acquisitions taking place will increase over the coming months as the global economy recovers from recession. One corollary of increased confidence is an increase in mergers and acquisitions.

When Wall Street returns on Tuesday, the focus will turn towards the next batch of fourth quarter corporate earnings -- so far, earnings have been fairly mixed, with upside surprises from the likes of Intel Corp. offset by disappointments elsewhere, most notably Alcoa Inc.

Banks will be in the spotlight especially after U.S. stocks fell 1 percent on Friday -- the Dow Jones industrial average suffered its worst day of the year so far -- as JP Morgan Chase & Co. offered a cautious earnings guidance even though it reported a fairly strong set of results.

"We get Citigroup tomorrow which has less of the good bits of banking and more of the bad bits," said Kit Juckes, chief economist at ECU Group.

A meeting of the 16 finance ministers of the countries that use the euro in Brussels later will be closely monitored in the currency markets as the main topic of debate will be the shaky state of Greece's public finances.

Concern about Greece's debts has been one of the reasons why the euro has floundered over the last month or so from 16-month highs above $1.50. Earlier it hit a ten-day low of $1.4336 before recovering slightly to $1.4380.

Greece's problems have fueled concerns that the country may eventually have to be bailed out by its partners in the eurozone. Some observers are even speculating about a possible Greek exit from the single currency zone.

"With rising concerns about the workability of the Greek government's stability and growth plan, the firm rejection from within the eurozone of the idea of a bailout, the rapidly rising cost of default insurance on Greek sovereign debt and concerns over deficits elsewhere in the region, the problems for the single currency are mounting rapidly," said Neil Mellor, a currency strategist at Bank of New York Mellon.

"Given that these come at a time when the euro is trading significantly above its long term averages against a wide range of currencies -- 23 percent against the dollar -- after years of being used as the prime vehicle for reserve diversification, there is plenty of space for it to fall," he added.

Earlier in Asia, Japan's Nikkei 225 stock average ended 127.02 points, or 1.2 percent, lower at 10,855.08 while Hong Kong's Hang Seng fell 194.15 points, or 0.9 percent, to 21,460.01. Markets in Singapore and Taiwan also lost ground.

Other markets fared better, with South Korea's Kospi gaining 0.6 percent to 1,711.78 and Australia's stock measure adding 0.2 percent and Shanghai's index rising 0.4 percent.

Oil prices rose modestly, with benchmark crude for February delivery up 40 cents at $78.40. On Friday, the contract slid $1.39 to settle at $78. The price was down $4.75 for the week after declining for five straight days.

 

[bigdog]

Source: http://finance.yahoo.com

There weren't many truly positive catalysts this session, but participants showed support for stocks as they stepped in to buy the many names that were sent lower in the previous session. Their efforts drove stocks to a fresh 52-week closing high.

Stocks started the session in mixed fashion, but a steady stream of buyers helped stocks fully recover from their 1.1% loss this past Friday. Though technical resistance at 52-week intraday highs contained the move, the advance remained broad based and strong into the close.

Investors moved back into stocks on hopes that an election in Massachusetts will weaken Senate Democrats and make it harder for President Barack Obama to make changes to health care.

The vote Tuesday to fill the seat of late Sen. Edward M. Kennedy could shift power in the Senate if Republican Scott Brown wins. That would give Republicans the 41 votes necessary to block Democratic proposals, including the health care bill.

The prospect of a logjam in Washington over health care eased concerns that profits at companies like insurers and drug makers would suffer. Rising health stocks pulled the broader market higher.

The NYSE DOW closed HIGHER +115.78 +1.09% on Tuesday January 19
Sym. Last......... ........Change..........
Dow 10,725.43 +115.78 +1.09%
Nasdaq 2,320.40 +32.41 +1.42%
S&P 500 1,150.23 +14.20 +1.25%
30-yr Bond 4.5980% +0.2300

NYSE Volume 5,164,258,500 (prior day 5,459,121,500)
Nasdaq Volume 2,078,695,250 (prior day 2,685,826,500)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,513.14 +18.75 +0.34%
DAX 5,976.48 +57.93 +0.98%
CAC 40 4,009.67 +32.21 +0.81%

Asia
Symbol...... Last...... .....Change.......
Nikkei 225 10,764.90 -90.18 -0.83%
Hang Seng 21,677.98 +217.97 +1.02%
Straits Times 2,912.92 +0.90 +0.03%

http://finance.yahoo.com/news/Healt...0.html?x=0&sec=topStories&pos=1&asset=&ccode=

Health stocks pull market higher as Mass. votes

Health stocks lift market on hopes Massachusetts vote will weaken Democrats' power in Senate

By Tim Paradis and Ieva M. Augstums, AP Business Writers , On Tuesday January 19, 2010, 4:36 pm

NEW YORK (AP) -- Investors moved back into stocks on hopes that an election in Massachusetts will weaken Senate Democrats and make it harder for President Barack Obama to make changes to health care.

The vote Tuesday to fill the seat of late Sen. Edward M. Kennedy could shift power in the Senate if Republican Scott Brown wins. That would give Republicans the 41 votes necessary to block Democratic proposals, including the health care bill.

The prospect of a logjam in Washington over health care eased concerns that profits at companies like insurers and drug makers would suffer. Rising health stocks pulled the broader market higher.

The Dow Jones industrial average rose 116 points to a 15-month high after sliding 101 on Friday. Broader indexes also rose and demand for the safety of government debt waned.

Meanwhile, Kraft Foods Inc.'s agreement to acquire Cadbury PLC for $19.5 billion boosted hopes that corporate dealmaking will continue to rebound. Investors see buyouts as a sign of confidence in the economy.

Technology stocks got a boost after a Credit Suisse analyst raised his rating on Ciena Corp., a maker of telecommunications equipment, predicting that revenue would exceed expectations.

Shares of tech companies will draw more attention Wednesday after IBM Corp. reported a 9 percent increase in earnings for the final three months of 2009. The company said after the closing bell Tuesday that its revenue rose for the first time in a year and a half. IBM also predicted that its 2010 earnings will come in at the high end of its previous forecast.

Tuesday's gains came after stocks fell Friday when JPMorgan Chase & Co.'s quarterly results fell short of expectations. U.S. markets were closed Monday for Martin Luther King Jr. Day.

Analysts said that beyond a possible shift in plans for health care, the week's earnings reports will help chart the market's course in the coming months as companies update their expectations for the economy.

The stock market has been climbing for 10 months on hopes that an easing recession would boost corporate profits. But lingering problems like high unemployment and a weak housing market have raised questions about whether the jump in stocks is premature.

"This is just a critical period when we get to see the litmus test of earnings and then guidance," said Philip S. Dow, managing director of equity strategy at RBC Wealth Management in Minneapolis.

According to preliminary calculations, the Dow rose 115.78, or 1.1 percent, to 10,725.43. The broader Standard & Poor's 500 index rose 14.20, or 1.3 percent, to 1,150.23. It was the highest close for the Dow and the S&P 500 index since Oct. 1, 2008.

The Nasdaq composite index rose 32.41, or 1.4 percent, to 2,320.40.

Brett Hryb, a portfolio manager with MFC Global Investment Management in Toronto, said a defeat of the health bill could help some companies but that a win by Brown would not necessarily make that certain.

"It's not a slam dunk by any means," he said.

Among health stocks, insurers Aetna Inc. rose $1.30, or 4.2 percent, to $32.66 and UnitedHealth Group Inc. rose $1.38, or 4.1 percent, to $35.13. Pharmaceutical company Pfizer Inc. advanced 51 cents, or 2.6 percent, to $20.

Shares of Cadbury rose $3.19, or 6.2 percent, to $55.09. Kraft slipped 17 cents, or 0.6 percent, to $29.41.

Ciena jumped $1.28, or 11 percent, to $12.91.

Citigroup Inc. rose 12 cents, or 3.5 percent, to $3.54 after reporting a fourth-quarter loss of $7.6 billion mostly tied to repayment of $20 billion in government bailout money. The company said it is starting to see some stabilizing in the number of mortgage and credit card loans that are past due.

Earnings reports are due this week from Bank of America Corp., eBay Inc., General Electric Co., Goldman Sachs Group Inc., Google Inc., Morgan Stanley and Wells Fargo & Co.

Analysts said investors are hunting for clues about whether the market will continue its run in 2010 or begin to sputter if the economy doesn't show more signs it is strengthening.

"Everybody is looking for that catalyst that is going to take us higher," said Anthony Conroy, managing director and head trader for BNY ConvergEx Group. He contends that the market will find strength from companies that surprise investors by reporting stronger profits.

But Hryb said the run in stocks since March has left stocks with rich valuations and that even with big earnings stocks could be getting pricey.

"It is a tug-of-war between the growth in the earnings and what people are willing to pay for those earnings," Hryb said.

Bond prices fell, pushing their yields higher. The yield on the benchmark 10-year Treasury note rose to 3.71 percent from 3.68 percent late Friday.

The dollar mostly rose against other major currencies. Gold advanced, while crude oil rose $1.02 to settle at $79.02 per barrel on the New York Mercantile Exchange.

Three stocks rose for every one that fell at the New York Stock Exchange, where volume fell to 1 billion shares from 1.4 billion Friday.

The Russell 2000 index of smaller companies rose 11.19, or 1.8 percent, to 649.15.

Britain's FTSE 100 added 0.3 percent, Germany's DAX index rose 1 percent, and France's CAC-40 gained 0.8 percent. Japan's Nikkei stock average fell 0.8 percent.

 

[bigdog]

Source: http://finance.yahoo.com

Disregard for a large batch of better-than-expected earnings reports gave way to a stiff bout of selling pressure that put stocks on track for their worst loss in more than two months. However, financials were able to garner support into the close and help the broader market trim its losses.

Stocks set fractionally improved 52-week highs in the previous session, but momentum failed to carry over as global participants reacted negatively to news that China's authorities reportedly ordered some banks to curb lending in a move suggestive of tighter monetary policy. The order precedes the release of China's fourth quarter GDP numbers, so many have inferred that the report will feature a strong upside reading.

The stock market posted its biggest drop in a month on concerns that tighter lending in China could endanger an economic recovery. Disappointing earnings from IBM and Morgan Stanley added to investors' angst.

At the same time, a spike in the dollar pushed commodity prices sharply lower Wednesday, hurting stocks of energy companies and materials producers.

The Dow Jones industrial average fell 122 points from a 15-month high but ended well off its lows for the day. Demand for safe havens like government debt rose, pushing yields lower in the Treasury market.

The NYSE DOW closed LOWER -122.28 -1.14% on Wednesday January 20
Sym. Last......... ........Change..........
Dow 10,603.15 -122.28 -1.14%
Nasdaq 2,291.25 -29.15 -1.26%
S&P 500 1,138.04 -12.19 -1.06%
30-yr Bond 4.5430% -0.5500

NYSE Volume 5,453,405,000 (prior day 5,164,258,500)
Nasdaq Volume 2,395,161,750 (prior day 2,078,695,250)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,420.80 -92.34 -1.67%
DAX 5,851.53 -124.95 -2.09%
CAC 40 3,928.95 -80.72 -2.01%

Asia
Symbol...... Last...... .....Change.......
Nikkei 225 10,737.52 -27.38 -0.25%
Hang Seng 21,286.17 -391.81 -1.81%
Straits Times 2,893.13 -19.79 -0.68%

http://finance.yahoo.com/news/Stock...0.html?x=0&sec=topStories&pos=3&asset=&ccode=
Stocks fall as China clamps down on bank lending
Stock fall on concerns tighter lending in China will hurt growth; Banks are mixed on results

By Stephen Bernard and Tim Paradis, AP Business Writers , On Wednesday January 20, 2010, 4:51 pm EST

NEW YORK (AP) -- The stock market posted its biggest drop in a month on concerns that tighter lending in China could endanger an economic recovery. Disappointing earnings from IBM and Morgan Stanley added to investors' angst.

At the same time, a spike in the dollar pushed commodity prices sharply lower Wednesday, hurting stocks of energy companies and materials producers.

The Dow Jones industrial average fell 122 points from a 15-month high but ended well off its lows for the day. Demand for safe havens like government debt rose, pushing yields lower in the Treasury market.

Stocks have posted sharp swings since last week as investors try to determine the overall direction of the market. The Dow fell 101 points Friday and jumped 116 Tuesday.

The latest slide came as concern grew that China's efforts to cool its rapid growth could hurt a global recovery. A top banking regulator said Wednesday that China will increase monitoring of banks as it tries to prevent speculative bubbles in areas like real estate. Last week China took steps to restrict runaway lending.

Investors are also questioning whether a 68.2 percent gain in the benchmark Standard & Poor's 500 index in the past 10 months has been too much. Those doubts are intensifying as more companies report results from the final three months of 2009 this week. The early read is that cost-cutting has again helped boost profits, but revenues remain disappointingly weak.

IBM Corp. led the Dow lower. The company reported late Tuesday that its earnings rose 9 percent from a year earlier, while sales rose less than 1 percent. The company's forecast was seen as cautious.

"We might see profitability out of companies this season but we're not really seeing revenue growth," said Dan Cook, senior market analyst at IG Markets in Chicago.

Banks posted mixed results. Bank of America Corp. reported better results and said credit conditions were improving, but also said the economic environment is "fragile." Wells Fargo & Co. sounded an optimistic note on consumer resilience, but Morgan Stanley fell short of expectations.

According to preliminary calculations, the Dow fell 122.28, or 1.1 percent, to 10,603.15. The Dow had been down as much as 208 points.

The broader S&P 500 index fell 12.19, or 1.1 percent, to 1,138.04, and the Nasdaq composite index fell 29.15, or 1.3 percent, to 2,291.25.

Stocks fell Friday following an increase in bad loans at JPMorgan Chase & Co. Then, after a long holiday weekend, the market rose Tuesday led by a gain in health care stocks on hopes that the Democrats' loss of their filibuster-proof majority in the Senate because of a special election in Massachusetts would slow down reforms that might hurt the profits of health companies.

Cook said questions about the stability of the market are likely to increase as Feb. 1 approaches. That is when the Federal Reserve plans to halt most of the emergency lending programs it set up to help revive the economy. Traders looking to deploy some of the low-cost money circulating through the financial system have helped drive the surge since March.

"Once that cheap cash goes away, what's left?" Cook said. He predicts a "sizable correction" to let the economy catch up with the market.

Bond prices rose, driving their yields lower. The yield on the benchmark 10-year Treasury note fell to 3.66 percent from 3.70 percent late Tuesday.

The dollar rose, reaching a five-month high against the euro as concern grew about heavy debt loads in Greece.

Gold fell. The gain in the dollar pushed commodity prices lower because a stronger greenback makes them more expensive for foreign buyers. Crude oil fell $1.40 to $77.62 per barrel on the New York Mercantile Exchange.

Traders have been hoping to see greater reassurances from companies that the economy is strengthening. So far the earnings results have been mixed.

"We're going to be in the dance of one step forward and one step back as people digest all these earnings reports," said Frank Ingarra, co-portfolio manager at Hennessy Funds.

IBM fell $3.89, or 2.9 percent, to $130.25 after its report.

Bank of America said it lost $5.2 billion in the fourth quarter, mostly from costs related to repaying $45 billion in government bailout money. The stock rose 17 cents to $16.49.

Despite improving bottom lines at Bank of America and Wells Fargo, many investors remain pessimistic about bank shares. JPMorgan Chase & Co. and Citigroup Inc. have both said in recent days that they remain cautious about the economy and aren't sure when loan losses will start to shrink.

Wells Fargo fell 46 cents to $27.82, while Morgan Stanley fell 53 cents to $30.63.

Brinker International, the owner of Chili's Grill & Bar, jumped $1.95, or 12.7 percent, to $17.26 after its results for the latest quarter topped expectations.

The Russell 2000 index of smaller companies fell 9.54, or 1.5 percent, to 639.61.

Three stocks fell for every one that rose on the New York Stock Exchange, where volume came to 1.1 billion shares compared with 1 billion Tuesday.

Overseas, Britain's FTSE 100 fell 1.7 percent, Germany's DAX index dropped 2.1 percent, and France's CAC-40 fell 2 percent. China's main Shanghai composite index dropped 2.9 percent, while Japan's Nikkei stock average fell 0.3 percent.

 

[bigdog]

Source: http://finance.yahoo.com

Threats of tighter monetary policy in China and increased bank regulation combined with a sell-the-news mentality to drop the stock market for its worst single-session percentage loss in nearly 12 weeks.

Stocks had already tumbled significantly in the previous session, but sellers were back at it after China reported stronger-than-expected fourth quarter GDP growth and a sharper-than-expected spike in inflation, which renewed concern that tighter monetary policy may be in the offing. Tighter policy in China would presumably crimp the country's growth and slow the global economic rebound.

The stock market stumbled Thursday as President Barack Obama proposed an overhaul of the nation's banking system that could limit financial companies' ability to make huge profits on trading.

The Dow Jones industrial average skidded 213 points after dropping 122 on Wednesday, giving the Dow its biggest two-day point drop since late March. The index has seen four straight triple-digit moves and the latest slide erased the Dow's gains for 2010. Bond prices rose as the stock market became more volatile.

Obama said he would seek to limit the size and complexity of large financial companies so that a bank's collapse wouldn't endanger the overall financial system. Tightening the rules on risk-taking and trading at banks could hurt profits at those companies.

The NYSE DOW closed LOWER -213.27 -2.01% on Thursday January 21
Sym. Last......... ........Change..........
Dow 10,389.88 -213.27 -2.01%
Nasdaq 2,265.70 -25.55 -1.12%
S&P 500 1,116.48 -21.56 -1.89%
30-yr Bond 4.5060% -0.3700

NYSE Volume 7,914,482,500 (prior day 5,453,405,000)
Nasdaq Volume 2,915,450,250 (prior day 2,395,161,750)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,335.10 -85.70 -1.58%
DAX 5,746.97 -104.56 -1.79%
CAC 40 3,862.16 -66.79 -1.70%


Asia
Symbol...... Last...... .....Change.......
Nikkei 225 10,868.41 +130.89 +1.22%
Hang Seng 20,862.67 -423.50 -1.99%
Straits Times 2,850.98 -42.15 -1.46%

http://finance.yahoo.com/news/Stock...2.html?x=0&sec=topStories&pos=1&asset=&ccode=

Stocks slide as Obama calls for tougher bank rules

Stocks fall for 2nd day as Obama calls for tighter restrictions on big banks; Dow falls 213

By Stephen Bernard and Tim Paradis, AP Business Writers , On Thursday January 21, 2010, 4:54 pm

NEW YORK (AP) -- The stock market stumbled Thursday as President Barack Obama proposed an overhaul of the nation's banking system that could limit financial companies' ability to make huge profits on trading.

The Dow Jones industrial average skidded 213 points after dropping 122 on Wednesday, giving the Dow its biggest two-day point drop since late March. The index has seen four straight triple-digit moves and the latest slide erased the Dow's gains for 2010. Bond prices rose as the stock market became more volatile.

Obama said he would seek to limit the size and complexity of large financial companies so that a bank's collapse wouldn't endanger the overall financial system. Tightening the rules on risk-taking and trading at banks could hurt profits at those companies.

The move could mean changes for how big financial institutions like Bank of America, Citigroup Inc. and JPMorgan Chase & Co. are structured. Each of the stocks fell more than 4 percent.

Weakness in manufacturing also brought concern that the economy might not be recovering as quickly as hoped. The Philadelphia Federal Reserve said manufacturing in its region fell in January from December. Its index of regional manufacturing conditions fell to 15.2 from a revised 22.5 last month.

Another test for the market could come Friday. Google Inc. posted a five-fold jump in its fourth-quarter profit after the closing bell on double-digit revenue growth, but the results fell short of expectations. The stock fell $30.13, or 5.2 percent, to $552.85 in after-hours electronic trading after edging up 0.4 percent in regular trading.

Patrick Galley, chief investment officer at RiverNorth Capital in Chicago, said stocks have risen so fast in the past 10 months that expectations about an economic recovery are getting too high.

"The market can be quite fickle just because of the huge run-up that we've had," he said. "A lot of folks have their trigger finger on the sell button if they start to sense that news won't meet expectations."

According to preliminary calculations, the Dow fell 213.27, or 2 percent, to 10,389.88, its biggest point and percentage drop since Oct. 30. The index is down 335.55 points, or 3.1 percent, in two days. That was the biggest point drop since the two days ended March 30 and the biggest percentage loss since June 16.

The index hasn't closed with triple digit moves in four straight trading days since May 6-11.

The broader Standard & Poor's 500 index fell 21.56, or 1.9 percent, to 1,116.48. The Nasdaq composite index fell 25.55, or 1.1 percent, to 2,265.70.

Stocks dropped Wednesday after China said it would curb bank lending to slow its economy. The latest sign of China's supercharged growth came on Thursday as the country reported 10.7 percent economic expansion in the fourth quarter and 8.7 percent for all of last year. The numbers reinforced concerns that China will take more steps to tighten monetary policy and rein in its economy, which could hamper a global economic rebound.

The questions about how profits will hold up at banks drove up expectations that trading will become more volatile. The Chicago Board Options Exchange's Volatility Index jumped 19.2 percent. A rise in the VIX, which is known as the market's fear index, signals that investors expect bigger swings in stocks.

Shares of Bank of America fell $1.02, or 6.2 percent, to $15.47, while Citigroup slid 19 cents, or 5.5 percent, to $3.27. JPMorgan fell $2.86, or 6.6 percent, to $40.54.

Concern about the U.S. economy grew Thursday after an unexpected jump in unemployment claims. The Labor Department said workers filing for unemployment benefits for the first time rose by 36,000 to 482,000 last week. Economists polled by Thomson Reuters were expecting a small drop. The four-week average rose for the first time since August.

The report provided a grim reminder that while the economy might be improving, a robust recovery is unlikely until companies start adding jobs. The unemployment rate remained at 10 percent last month.

Bond prices rose as the stock market fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.60 percent from 3.65 percent late Wednesday.

The dollar rose against other major currencies, while gold fell. A rise in the dollar hurt commodity prices, which become more expensive for foreign buyers when the dollar strengthens.

Crude oil fell $1.66 to $76.08 per barrel on the New York Mercantile Exchange.

The Russell 2000 index of smaller companies fell 11.25, or 1.8 percent, to 628.36.

Four stocks fell for every one that rose on the New York Stock Exchange, where volume came to 1.5 billion shares compared with 1.1 billion Wednesday.

Britain's FTSE 100 fell 1.6 percent, Germany's DAX index lost 1.8 percent, and France's CAC-40 fell 1.7 percent. Japan's Nikkei stock average rose 1.2 percent.

 

[bigdog]

Source: http://finance.yahoo.com

The Dow Jones industrial average closed the week down 436.67, or 4.1 percent, at 10,172.98. The Standard & Poor's 500 index fell 44.27, or 3.9 percent, to 1,091.76. The Nasdaq composite index fell 82.70, or 3.6 percent, to 2,205.29.

Not only did Friday mark the stock market's third straight loss, but it also marked its worst single-session percentage drop in more than two months. The recent string of losses has been underscored by a sell-the-news mentality among investors.

The stock market suffered its worst setback in more than 10 months this week as investors decided no matter what the news, it must be bad.

The Dow Jones industrial average slid 216 points, or 2.1 percent, on Friday its fourth big drop in five trading days. Wednesday-Friday, the Dow lost 552 points, or 5.2 percent. All the major indexes fell more than 2 percent Friday.

Investors continued to worry about President Barack Obama's plan to restrict big banks. They decided that good earnings reports weren't good enough. They didn't like mounting opposition to the reappointment of Federal Reserve Chairman Ben Bernanke. And they were still uneasy that a possible economic slowdown in China might spread.

The NYSE DOW closed LOWER -216.90 -2.09% on Friday January 22
Sym. Last......... ........Change..........
Dow 10,172.98 -216.90 -2.09%
Nasdaq 2,205.29 -60.41 -2.67%
S&P 500 1,091.76 -24.72 -2.21%
30-yr Bond 4.5100% +0.0400

NYSE Volume 7,310,355,500 (prior day 7,914,482,500)
Nasdaq Volume 2,844,347,500 (prior day 2,915,450,250)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,302.99 -32.11 -0.60%
DAX 5,695.32 -51.65 -0.90%
CAC 40 3,820.78 -41.38 -1.07%

Asia
Symbol...... Last...... .....Change.......
Nikkei 225 10,590.55 -277.86 -2.56%
Hang Seng 20,726.18 -136.49 -0.65%
Straits Times 2,819.71 -31.27 -1.10%

http://finance.yahoo.com/news/Stock...tml?x=0&sec=topStories&pos=main&asset=&ccode=

Stocks sink again on Obama's pushback on banks

Stocks retreat for a 3rd day as investors fret over Obama's financial overhaul plan

By Stephen Bernard and Tim Paradis, AP Business Writers , On Friday January 22, 2010, 7:06 pm EST

NEW YORK (AP) -- The stock market suffered its worst setback in more than 10 months this week as investors decided no matter what the news, it must be bad.

The Dow Jones industrial average slid 216 points, or 2.1 percent, on Friday its fourth big drop in five trading days. Wednesday-Friday, the Dow lost 552 points, or 5.2 percent. All the major indexes fell more than 2 percent Friday.

Investors continued to worry about President Barack Obama's plan to restrict big banks. They decided that good earnings reports weren't good enough. They didn't like mounting opposition to the reappointment of Federal Reserve Chairman Ben Bernanke. And they were still uneasy that a possible economic slowdown in China might spread.

Stocks have had their worst showing since they began their recovery last March. The market also is seeing the the kind of volatility that dominated the market's long slide -- the Dow has had a triple-digit move five straight days for the first time since December 2008.

The Dow lost 4.1 percent this week, its worst week since it hit a 12-year low in early March. It had reached its highest level since Oct. 1, 2008, only this past Tuesday, closing at 10,725.43. On Friday, it closed at 10,172.98.

John Brady, a senior vice president of global interest rates at MF Global, said concerns surrounding Obama's plan and China's efforts to slow its economy have investors reducing risk.

Obama rattled the market Thursday after asking Congress for limits on how large big banks can be and to end some of the risky trading large financial companies have used in recent quarters to boost their profits. It's not clear what will come of the proposed changes but investors are selling anyway.

"It appears to be a move to put some shackles on risk-takers," Mitch Schlesinger, managing partner at FBB Capital Partners in Bethesda, Md., said of the new proposals.

The problem with earnings reports is that they're not meeting investors' high expectations. Tech stocks were among the big losers Friday after Google Inc.'s fourth-quarter revenue didn't meet forecasts, and after a Citigroup analyst lowered his rating on the stocks of seven chip makers.

The market is particularly sensitive to tech companies, since they are seen as indicators that the economy is returning to health -- or possibly backsliding. But any part of any company's earnings report has the potential to upset the market.

"We expect (earnings) to be better," said Brett D'Arcy, chief investment officer at CBIZ Wealth Management Group in San Diego. "People are being more particular."

In some respects, stocks' big plunge isn't a surprise. Many analysts have been predicting a correction, which technically is a drop of 10 percent from a recent market high, since before the start of the year. They have warned that investors were expecting too much from companies this early in an economic recovery. They warned that there was no way that the market could sustain the rally that lifted the Standard & Poor's 500 index 65 percent from its March 9 lows.

The Dow fell 216.90, or 2.1 percent, to 10,172.98. The Dow's three-day loss was its worst since March.

The Standard & Poor's 500 index fell 24.72, or 2.2 percent, to 1,091.76. The index is down 5.1 percent in three days, its worst drop since March 2009.

Friday's drops were the worst for the Dow and the S&P 500 index since Oct. 30.

The Nasdaq composite index fell 60.41, or 2.7 percent, to 2,205.29, reflecting a pullback in technology stocks in response to Google's earnings, and also an analysts' downgrade of chip makers.

For the week, the Dow lost 4.1 percent, the S&P 500 index slid 3.9 percent, and the Nasdaq lost 3.6 percent.

There is more uncertainty for the markets next week, and not just because more earnings reports will arrive. The Fed holds its first meeting on interest rates of 2010. No one expects the central bank to boost rates but investors will be looking for the Fed's take on the economy.

Bernanke, whose term ends Jan. 31, is still waiting for the Senate to confirm his reappointment to another term. But a growing number of senators are blaming the Fed chairman for the nation's economic problems.

There are signs the big moves in the market will continue. The Chicago Board Options Exchange's Volatility Index jumped 52.5 percent for the week. An increase in the VIX, which is known as the market's fear gauge, is a sign that investors predict more gyrations in stocks. The VIX closed Friday at 27.31, above its historical average of 18-20 but well below the 89.5 it peaked at in October 28, during some of the worst selling of the financial crisis.

Tech stocks suffered in particular Friday. Google dropped $32.97, or 5.7 percent, to $550.01, while chip maker Advanced Micro Devices Inc. fell $1.11, or 12.4 percent, to $7.88.

The mood in the market was dark enough that upbeat earnings Friday from General Electric Co. and McDonald's Corp. weren't enough to sway investors

GE reported a better-than-expected profit and said orders and backlogs for its products and services are increasing. Its shares rose 9 cents to $16.11. McDonald's earnings showed that it was holding up better than its competitors as consumers cut back their spending. The stock rose 19 cents to $63.39.

Five stocks fell for every one that rose on the New York Stock Exchange. Consolidated volume came to 6.3 billion shares compared with 6.95 billion Thursday.

Bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, was flat at 3.59 percent from late Thursday.

The dollar was mixed against other major currencies, while gold fell.

Crude oil fell $1.54 to settle at $74.54 per barrel on the New York Mercantile Exchange.

The Russell 2000 index of smaller companies fell 11.24, or 1.8 percent, to 617.12.

Overseas, Britain's FTSE 100 fell 0.6 percent, Germany's DAX index lost 0.9 percent, and France's CAC-40 dropped 1.1 percent. Japan's Nikkei stock average fell 2.6 percent.

The Dow Jones industrial average closed the week down 436.67, or 4.1 percent, at 10,172.98. The Standard & Poor's 500 index fell 44.27, or 3.9 percent, to 1,091.76. The Nasdaq composite index fell 82.70, or 3.6 percent, to 2,205.29.

The Russell 2000 index, which tracks the performance of small company stocks, fell 20.84, or 3.3 percent, for the week to 617.12.

The Dow Jones U.S. Total Stock Market Index -- which measures nearly all U.S.-based companies -- ended at 11,182.41, down 422.41, or 3.6 percent.
1623

 

[bigdog]

Source: http://finance.yahoo.com

Late pressure left stocks to finish the session on a rather weak note, but the major indices were still able to settle in positive territory.

Gains were varied for the entire session as choppy trade made it difficult for stocks to put together any sort of sustainable relief rally in the wake of the stock market's three consecutive slides. Disappointing December existing home sales numbers didn't help either.

The major stock indexes rose Monday, as momentum shifted in favor of the reappointment of Federal Reserve Chairman Ben Bernanke.

Investors want a sign that Bernanke will remain in control of the Fed because that would make a big shift in interest rate policy far less likely.

Democratic Sens. Max Baucus of Montana, chairman of the Senate Finance Committee, and Dianne Feinstein of California said Monday they would support his appointment. Presidential adviser David Axelrod said Bernanke has enough votes to be confirmed. Last week, several Senators expressed doubt about Bernanke's reappointment, which had seemed assured.

The NYSE DOW closed HIGHER +23.88 points +0.23% on Monday January 25
Sym. Last......... ........Change..........
Dow 10,196.86 +23.88 +0.23%
Nasdaq 2,210.80 +5.51 +0.25%
S&P 500 1,096.78 +5.02 +0.46%
30-yr Bond 4.55% +0.43

NYSE Volume 5,164,770,000 (prior day 7,310,355,500)
Nasdaq Volume 2,186,417,000 (prior day 2,844,347,500)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,260.31 -74.79 -1.40%
DAX 5,631.37 -63.95 -1.12%
CAC 40 3,781.85 -38.93 -1.02%

Asia
Symbol...... Last...... .....Change.......
Nikkei 225 10,512.69 -77.86 -0.74%
Hang Seng 20,598.55 -127.63 -0.62%
Straits Times 2,811.71 -8.00 -0.28%

http://finance.yahoo.com/news/Stock...2.html?x=0&sec=topStories&pos=2&asset=&ccode=

Stocks turn higher as Bernanke's prospects improve

Stocks stabilize as hopes improve for Bernanke's reappointment, break worst slide since March

By Stephen Bernard and Tim Paradis, AP Business Writers , On Monday January 25, 2010, 4:56 pm

NEW YORK (AP) -- The major stock indexes rose Monday, as momentum shifted in favor of the reappointment of Federal Reserve Chairman Ben Bernanke.

Investors want a sign that Bernanke will remain in control of the Fed because that would make a big shift in interest rate policy far less likely.

Democratic Sens. Max Baucus of Montana, chairman of the Senate Finance Committee, and Dianne Feinstein of California said Monday they would support his appointment. Presidential adviser David Axelrod said Bernanke has enough votes to be confirmed. Last week, several Senators expressed doubt about Bernanke's reappointment, which had seemed assured.

The Dow Jones industrial average rose 24 points after losing 552 points over the previous three days. The Dow skidded from Wednesday to Friday of last week as President Barack Obama stepped up his campaign to tighten oversight of banks. Signs last week that Bernanke's appointment could be in trouble contributed to the big drop.

Bernanke's term expires on Sunday, and the Senate is expected to vote on his reappointment this week.

Bernanke was a key player in guiding the nation through the worst financial crisis since the 1930s, and has pledged to keep interest rates low to stimulate the economy. That has helped boost the stock and bond markets while also providing a steady supply of cheap funding to banks.

Many traders don't want to see a change because that would bring another set of unknowns for a market already burdened by uncertainty about the economy.

Technology shares could get a boost Tuesday from Apple Inc., which said after the closing bell that its profit jumped nearly 50 percent for the final three months of 2009 as it sold more Mac computers. Trading in the stock was halted after hours.

Russell Croft, portfolio manager at Croft Leominster Investment Management in Baltimore, said questions about what will happen with Bernanke as well as bank regulation and possible changes to health care have brought concerns that Washington will spoil a recovery.

"Anytime you get the political haranguing going on -- worries about the Fed chief or whatever -- it's obviously going to spook the markets," Croft said.

According to preliminary calculations, the Dow rose 23.88, or 0.2 percent, to 10,196.86 after being up as much as 84 points. The fluctuations were modest, however, after a five straight days in which the Dow moved by more than 100 points.

The Standard & Poor's 500 index rose 5.02, or 0.5 percent, to 1,096.78, while the Nasdaq composite index rose 5.51, or 0.3 percent, to 2,210.80.

Bond prices fell, pushing yields higher. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.64 percent from 3.61 percent late Friday.

The questions about Bernanke's reappointment came as Fed policymakers are set to gather for the first meeting of the year on interest-rate policy. The two-day meeting starts Tuesday. The Fed is expected to hold rates at record lows, so investors will be examining the accompanying statement from the Fed for clues about when the central bank might begin to raise rates.

Investors will get a rush of earnings and economic reports during the week to help determine how the economy is faring.

Most earnings have topped analysts' expectations, but unlike in recent quarters, that has not helped send stocks higher. Traders are paying more attention to specifics within earnings reports, such as revenue growth, and forecasts rather than seizing on a better-than-expected profit as a reason to buy shares.

Dozens of companies will report earnings throughout the week, including Amazon Inc., AT&T Inc. and Johnson & Johnson. Apple rose $5.32, or 2.7 percent, to 203.07 and trading was halted after hours.

The dollar was mixed against other major currencies, while gold rose.

Crude oil rose 72 cents to $75.26 per barrel on the New York Mercantile Exchange.

Three stocks rose for every two that fell on the New York Stock Exchange, where volume came to 1.1 billion shares, compared with 1.5 billion Friday.

The Russell 2000 index of smaller companies rose 0.99, or 0.2 percent, to 618.11.

Stocks slid overseas, with shares falling in Asia on concerns about banks. The Bank of China said it plans to raise billions of dollars to replenish capital and meet new government requirements.

Britain's FTSE 100 fell 0.8 percent, Germany's DAX index fell 1.1 percent and France's CAC-40 lost 1 percent. Japan's Nikkei stock average fell 0.7 percent.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks were able to overcome a weak start, but their advance ran into resistance and rolled over late in the session. However, the slide was stopped short as support was secured at the lows set last week.

Premarket selling pressure made for a lower start to the session as participants showed a moderately negative reaction to steep losses in Asia, where China's regulators followed through with plans to raise reserve requirements at select banks and Japan's sovereign debt was put on a negative outlook from Standard & Poor's. A subsequent flight to quality boosted the buck, which didn't help the early tone of trade either.

Stocks gave up a healthy advance and closed slightly lower Tuesday as investors suffered another bout of anxiety over President Barack Obama's plan to regulate banks.

The Dow Jones industrial average, up 90 points in the early afternoon, closed with a loss of 2.57. The other major indexes were also down modestly.

Uneasiness about Obama's plan to limit the size and trading operations of big banks pulled financial stocks and then the entire market lower. News reports that Paul Volcker, the head of the President's Economic Recovery Advisory Board, would testify about the plan before Congress next week, contributed to the market's turnaround.

The NYSE DOW closed LOWER -2.57 points -0.03% on Tuesday January 26
Sym. Last......... ........Change..........
Dow 10,194.29 -2.57 -0.03%
Nasdaq 2,203.73 -7.07 -0.32%
S&P 500 1,092.17 -4.61 -0.42%
30-yr Bond 4.5660% +0.1300

NYSE Volume 5,469,008,500 (prior day 5,164,770,000)
Nasdaq Volume 2,406,852,250 (prior day 2,186,417,000)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,276.85 +16.54 +0.31%
DAX 5,668.93 +37.56 +0.67%
CAC 40 3,807.04 +25.19 +0.67%

Asia
Symbol...... Last...... .....Change.......
Nikkei 225 10,325.28 -187.41 -1.78%
Hang Seng 20,109.33 -489.22 -2.38%
Straits Times 2,740.33 -71.38 -2.54%

http://finance.yahoo.com/news/Stock...8.html?x=0&sec=topStories&pos=2&asset=&ccode=

Stocks give up advance as financial stocks slide

Stocks erase gains as anxiety over Obama bank plan gives market its 5th drop in 7 days
By Tim Paradis, AP Business Writers , On Tuesday January 26, 2010, 5:23 pm

NEW YORK (AP) -- Stocks gave up a healthy advance and closed slightly lower Tuesday as investors suffered another bout of anxiety over President Barack Obama's plan to regulate banks.

The Dow Jones industrial average, up 90 points in the early afternoon, closed with a loss of 2.57. The other major indexes were also down modestly.

Uneasiness about Obama's plan to limit the size and trading operations of big banks pulled financial stocks and then the entire market lower. News reports that Paul Volcker, the head of the President's Economic Recovery Advisory Board, would testify about the plan before Congress next week, contributed to the market's turnaround.

The drop was the market's fifth in seven days, and the fact that it came shortly before the closing bell showed how uneasy investors are; last-hour pullbacks were the hallmark of a troubled market during the financial crisis of 2008.

Obama's announcement of his plan last week helped give the market its worst week in 10 months. Traders said some investors had started to regard the proposals as political bluster before the latest reports dashed those hopes.

"There is maybe more than just a bark. Maybe this thing does have a bite," said Dan Deming, a trader with Stutland Equities in Chicago.

Even banks seen as strong like JPMorgan Chase & Co. and Goldman Sachs Group Inc. fell sharply.

The market had climbed most of the day on upbeat economic and corporate earnings news. The Conference Board said its index of consumer confidence rose to 55.9 in January from 53.6 in December. It was the third straight increase and the highest level in more than a year.

And insurer Travelers Cos. said an absence of catastrophe costs and a recovery in its investment portfolios lifted profits 60 percent for the final three months of 2009.

The Dow fell 2.57, or less than 0.1 percent, to 10,194.29. The Standard & Poor's 500 index slid 4.61, or 0.4 percent, to 1,092.17. The Nasdaq composite index dropped 7.07, or 0.3 percent, to 2,203.73.

Two stocks fell for every one that rose on the New York Stock Exchange. Volume was 1.1 billion shares, in line with Monday.

The day began with a bout of selling as China moved ahead with a plan to curb bank lending. Investors in the U.S. and elsewhere are concerned a slowdown in China's big economy could destabilize a worldwide recovery.

The drop Tuesday came as Federal Reserve policymakers began a two-day meeting on interest rate policy. The central bank is expected to keep rates at record lows, though investors will be looking at the Fed's assessment of the economy in a statement that will follow the meeting on Wednesday.

Investors on Wednesday also will be awaiting Obama's first State of the Union address.

Stocks broke a three-day slide Monday as Fed Chairman Ben Bernanke's prospects for confirmation to another four-year term brightened. His term ends Sunday. Doubts last week about his ability to get confirmed in the Senate, combined with the White House's latest drive to clamp down on U.S. banks, led to the big drop in the market from Wednesday through Friday.

The dollar rose against other major currencies Tuesday, while gold advanced.

Crude oil fell 55 cents to $74.71 per barrel on the New York Mercantile Exchange.

Bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, was unchanged at 3.63 percent from late Monday.

Dow component Travelers rose $1.34, or 2.7 percent, to $50.23 after its report.

Apple Inc. rose $3.07, or 1.5 percent, to $205.94 after posting a profit increase late Monday.

The Russell 2000 index of smaller companies fell 5.95, or 1 percent, to 612.16.

Asian markets fell as concerns rose about Japan's economy hurting the country's bond rating. Standard & Poor's lowered its outlook on Japan's credit rating to negative from stable, saying it would slash the country's long-term rating if its economy remains weak and debt stays high.

Japan's Nikkei stock average fell 1.8 percent, while Hong Kong's Hang Seng fell 2.4 percent.

In later trading, Britain's FTSE 100 rose 0.3 percent, Germany's DAX index and France's CAC-40 each advanced 0.7 percent.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks spent most of the session mired in moderate weakness, but were able to push higher in the wake of the latest statement from the Federal Open Market Committee (FOMC).

Stocks reversed an early slide and ended higher Wednesday after the Federal Reserve issued a more upbeat assessment of the economy.

Major stock indexes were down before the Fed released its statement following a two-day meeting on interest rates, then advanced as investors digested the central bank's comments. Treasury prices also reversed direction, falling after the announcement as investors withdrew money from safe haven holdings.

The Fed said it believes "economic activity has continued to strengthen" since its last meeting in December. However, the Fed did not repeat its assertion that the housing market is improving.

The NYSE DOW closed HIGHER +41.87 points +0.41% on Wednesday January 27
Sym. Last......... ........Change..........
Dow 10,236.16 +41.87 +0.41%
Nasdaq 2,221.41 +17.68 +0.80%
S&P 500 1,097.50 +5.33 +0.49%
30-yr Bond 4.5530% -0.1300

NYSE Volume 6,137,939,500 (prior day 5,469,008,500)
Nasdaq Volume 2,491,988,250 (prior day 2,406,852,250)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,217.47 -59.38 -1.13%
DAX 5,643.20 -25.73 -0.45%
CAC 40 3,759.80 -47.24 -1.24%

Asia
Symbol...... Last...... .....Change.......
Nikkei 225 10,252.08 -73.20 -0.71%
Hang Seng 20,033.07 -76.26 -0.38%
Straits Times 2,706.26 -34.07 -1.24%

http://finance.yahoo.com/news/Stocks-end-higher-on-Feds-apf-2131313936.html?x=0

Stocks end higher on Fed's economic assessment

Stocks rebound from slide as Federal Reserve sounds more upbeat note on economy; Dow adds 42

By Tim Paradis, AP Business Writers , On Wednesday January 27, 2010, 4:40 pm
NEW YORK (AP) -- Stocks reversed an early slide and ended higher Wednesday after the Federal Reserve issued a more upbeat assessment of the economy.

Major stock indexes were down before the Fed released its statement following a two-day meeting on interest rates, then advanced as investors digested the central bank's comments. Treasury prices also reversed direction, falling after the announcement as investors withdrew money from safe haven holdings.

The Fed said it believes "economic activity has continued to strengthen" since its last meeting in December. However, the Fed did not repeat its assertion that the housing market is improving.

The Fed said it is leaving interest rates near zero, as expected, but also that Kansas City Federal Reserve President Thomas Hoenig has voted against the decision to keep rates low.

Jamie Cox of Harris Financial Group in Colonial Heights, Va., said Hoenig's vote signals the central bank is moving closer to boosting rates.

"That means there are a couple of people who feel like that the economy is getting better at a nice rate that no longer warrants these exceptionally low rates," he said.

Stocks had fallen ahead of the Fed's announcement as the Commerce Department said sales of new homes fell 7.6 percent in December.

According to preliminary calculations, the Dow Jones industrial average rose 41.87, or 0.4 percent, to 10,236.16. It was down 40 ahead of the Fed's statement.

The Standard & Poor's 500 index rose 5.33, or 0.5 percent, to 1,097.50, while the Nasdaq composite index rose 17.68, or 0.8 percent, to 2,221.41.

The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.66 percent from 3.63 percent late Tuesday.

The dollar rose against most other major currencies, while gold fell.

Scott Marcouiller, senior equity market strategist Wells Fargo Advisors in St. Louis, said the Fed's statement that it is slowing its purchase of mortgage-backed securities suggests the central bank believes the U.S. housing market is improving.

The Fed said it expects to complete the purchase of $1.25 trillion in agency mortgage-backed securities and about $175 billion in agency debt by the end of the first quarter.

"Once we settle in here, the market will like this," he added. "This (statement) tells me that they're comfortable with how the economy is progressing, even though they didn't come right out and say that."

Reassurance from the Fed couldn't erase all of investors' worries about the economy. Caterpillar Inc. hurt the Dow industrials after the equipment maker issued a cautious forecast. The stock fell $2.41, or 4.3 percent, to $53.44.

Apple Inc. rose $1.94, or 0.9 percent, to $208.99 after the company announced a tablet-style computer that looks like a large iPhone.

The Fed's announcement was the latest event in Washington to command investors' attention.

Treasury Secretary Timothy Geithner defended the government's rescue last year of insurance giant American International Group Inc. in hearings on Capitol Hill. Analysts said the sometimes heated exchanges between Geithner and members of the House Committee on Oversight and Government Reform underscored concerns that Washington would be more assertive in its dealings with Wall Street.

Geithner oversaw the bailout as head of the Federal Reserve Bank of New York. Former Treasury Secretary Henry Paulson also testified.

Traders are also waiting to see whether Fed chairman Ben Bernanke, whose term ends Sunday, will win Senate approval for a second, four-year term. A vote is expected on Thursday.

The hearings came after President Barack Obama said last week that he would seek to limit trading by major financial institutions. That drew concerns from investors that bank profits would suffer.

Investors also looked to Obama's State of the Union speech Wednesday evening for clues about his plans to tighten restrictions on banks.

In other trading, crude oil fell $1.04 to settle at $73.67 per barrel on the New York Mercantile Exchange.

Falling stocks narrowly outpaced those that rose on the New York Stock Exchange, where volume came to 1.3 billion shares compared with 1.1 billion Tuesday.

The Russell 2000 index of smaller companies rose 6.22, or 1 percent, to 618.38.

Overseas markets fell for a second straight day on concerns about China's move to curb bank lending. The country is trying to prevent speculative bubbles and rapid inflation as its economy continues to grow quickly. A slowdown in growth in China could stunt a global economic recovery.

Japan's Nikkei stock average fell 0.7 percent and Hong Kong's Hang Seng lost 0.4 percent. Britain's FTSE 100 fell 1.1 percent, Germany's DAX index lost 0.5 percent, and France's CAC-40 dropped 1.2 percent.

 

[bigdog]

Source: http://finance.yahoo.com

Losses among large-cap tech issues left the broader market mired in weakness, despite another big batch of generally better-than-expected earnings results.

Stocks opened the session in mixed fashion amid news that Procter & Gamble (PG 61.68, +0.87), Colgate-Palmolive (CL 79.99, -0.40), 3M (MMM 80.75, -1.55), Ford (F 11.41, -0.14), Bristol-Myers Squibb (BMY 24.10, -0.20), and Nokia (NOK 13.98, +1.06) topped Wall Street's earnings estimates. Not all of the announcements featured upside surprises, though; AT&T (T 25.54, -0.08) and Baxter International (BAX 58.20, -0.71) both met expectations, but Eli Lilly (LLY 35.75, -0.64) came short of the consensus.

The stock market resumed its slide Thursday as disappointing forecasts from technology companies brought new concerns about the economy.

A weaker outlook from technology maker Qualcomm Inc. dragged the Nasdaq composite index lower. Drops in Motorola Inc. and Apple Inc. also hurt tech stocks. The Dow Jones industrial average fell almost 116 points, its sixth loss in nine days.

Technology could get a bounce Friday from Amazon.com Inc. and Microsoft Corp., which posted improved earnings after the closing bell. Their stocks rose in after-hours electronic trading.

The NYSE DOW closed LOWER -115.70 points -1.13% on Thursday January 28
Sym. Last......... ........Change..........
Dow 10,120.46 -115.70 -1.13%
Nasdaq 2,179.00 -42.41 -1.91%
S&P 500 1,084.53 -12.97 -1.18%
30-yr Bond 4.5690% +0.1600

NYSE Volume 6,385,494,500 (prior day 6,137,939,500)
Nasdaq Volume 2,906,601,250 (prior day 2,491,988,250)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,145.74 -71.73 -1.37%
DAX 5,540.33 -102.87 -1.82%
CAC 40 4,012.91 -1.06 -0.03%


Asia
Symbol...... Last...... .....Change.......
Nikkei 225 10,414.29 +162.21 +1.58%
Hang Seng 20,356.37 +323.30 +1.61%
Straits Times 2,757.68 +51.42 +1.90%

http://finance.yahoo.com/news/Disappointing-tech-forecasts-apf-1436636166.html?x=0

Disappointing tech forecasts drag stocks lower

Stocks resume drop as weak forecasts from technology companies add to concerns about economy

By Tim Paradis, AP Business Writer , On Thursday January 28, 2010, 5:40 pm

NEW YORK (AP) -- The stock market resumed its slide Thursday as disappointing forecasts from technology companies brought new concerns about the economy.

A weaker outlook from technology maker Qualcomm Inc. dragged the Nasdaq composite index lower. Drops in Motorola Inc. and Apple Inc. also hurt tech stocks. The Dow Jones industrial average fell almost 116 points, its sixth loss in nine days.

Technology could get a bounce Friday from Amazon.com Inc. and Microsoft Corp., which posted improved earnings after the closing bell. Their stocks rose in after-hours electronic trading.

The market's drop Thursday also came in response to a report from Standard & Poor's that said it no longer considers Britain's banking system among the "most stable and low-risk." The report added to recent concern about rising debt levels in countries such as Greece and drove the dollar higher as investors sought safety. That sent some commodities prices lower, hurting materials stocks.

The tech forecasts and bank worries were yet more concerns for investors who have been focused on politics, not the economy. Stocks have been sliding as concern builds that a fragile economic recovery could be derailed by missteps in Washington. The questions have some analysts saying that a 10-month surge of 60.3 percent in the Standard & Poor's 500 index isn't warranted.

President Barack Obama's plan to overhaul banking regulations and restrict trading at large financial institutions spooked the market during the past week. The possibility that Federal Reserve Board chairman Ben Bernanke wouldn't be confirmed for a second term also had investors on edge, though those worries eased as the vote neared. The Senate voted to confirm Bernanke for a second term as the market was closing. His first four-year term ends Sunday.

"Our full-contact politics is really beginning to affect the markets as it's migrating into subjects that investors care deeply about, like who is our Fed chairman going to be," said Lawrence Creatura, portfolio manager at Federated Clover Investment Advisors. "That wasn't uncertain two weeks ago."

During his State of the Union address Wednesday, Obama avoided talking about the banking overhaul plan. Uncertainty over details of how that might be enacted are adding to investors' uncertainty.

Concerns about economy are also creeping back to the forefront. The Fed said Wednesday it would keep interest rates at historic lows and that the economy was showing signs of improvement. That helped stocks reverse a slide to end higher.

The enthusiasm faded Thursday after the Labor Department said weekly jobless claims decreased by less than expected last week and the Commerce Department reported durable goods orders didn't rise as fast as anticipated last month. The reports provided reminders that the economic recovery is likely to be slow.

The Dow fell 115.70, or 1.1 percent, to 10,120.46. The drop put the psychological barrier of 10,000 back in investors' sights. The Dow, which had been down as much as 181 points Thursday, hasn't traded below 10,000 since Nov. 6.

The Standard & Poor's 500 index fell 12.97, or 1.2 percent, to 1,084.53, while the Nasdaq fell 42.41, or 1.9 percent, to 2,179.00.

The recent drop in stocks is worrisome for some analysts because Friday is the last trading day of January. Traders often note that as goes January, so goes the year. The so-called January barometer holds that the performance of the S&P 500 index in January is a predictor of how stocks will end the year. There have been only five major errors since 1950, for an accuracy rate of 91.5 percent, according to the Stock Trader's Almanac.

The S&P 500 index is down 2.7 percent for January. It was down 5.7 percent since closing at a 15-month high last week, still short of a correction, which is generally defined as a drop of at least 10 percent.

Bond prices rose, pushing yields lower. The yield on the benchmark 10-year Treasury note fell to 3.64 percent from 3.66 percent late Wednesday.

The dollar rose against other major currencies, while gold fell.

Crude oil fell 3 cents to settle at $73.64 per barrel on the New York Mercantile Exchange.

Jason Weisberg, director institutional trading at Seaport Securities Corp. in New York, said the concerns about how Washington will change the rules for banks and steer the economy are overshadowing profit reports that are stronger.

"There is a disconnect between corporate earnings forecasts and guidance from those companies and the political environment," Weisberg said.

He predicts that stocks will resume their climb as some of the political uncertainties dissipate.

Investors might not be drawing much cheer from improved forecasts but they are punishing companies that fall short.

Tech stocks slid after Qualcomm, which makes chips and other technologies used in cell phones, said it expects a "subdued" rebound in the economy and reduced its full-year sales forecast. The stock fell $6.72, or 14.2 percent, to $40.48.

Motorola slid 92 cents, or 12.4 percent, to $6.48 after its profit forecast fell short of expectations. Apple Inc. fell $8.59, or 4.1 percent, to $199.29.

In economic news, new requests for unemployment benefits dropped by 8,000 last week to 470,000. Economists polled by Thomson Reuters expected a bigger decrease.

Meanwhile, orders to U.S. factories for big-ticket manufactured goods rose less than expected in December, increasing 0.3 percent. Economists expected a 2 percent rise.

On Friday, the government releases its initial reading on fourth-quarter gross domestic product. Analysts predict that GDP, which measures the country's economic output, likely rose at an annualized rate of 4.5 percent during the final three months of 2009.

More than two stocks fell for every one that rose on the New York Stock Exchange, where volume came to 1.1 billion shares compared with 1.1 billion Wednesday.

The Russell 2000 index of smaller companies fell 10.45, or 1.7 percent, to 607.93.

Britain's FTSE 100 fell 1.4 percent, Germany's DAX index dropped 1.8 percent, and France's CAC-40 fell 1.9 percent. Earlier, Japan's Nikkei stock average rose 1.6 percent.

 

[bigdog]

Source: http://finance.yahoo.com

The Dow Jones industrial average closed the week down 105.65, or 1 percent, at 10,067.33. The Standard & Poor's 500 index fell 17.89, or 1.6 percent, to 1,073.87. The Nasdaq composite index fell 57.94, or 2.6 percent, to 2,147.35.

A better-than-expected GDP report couldn't keep stocks from selling off and logging their third straight weekly loss, which has left the stock market down nearly 4% since the start of the new year.

Stocks started the session in positive territory and even made their way to a gain of more than 1%. The move was underpinned by an advance fourth quarter GDP reading that showed annualized quarter-over-quarter growth of 5.7%, which was considerably stronger than the 4.7% rate of expansion that had been widely forecast. Core personal consumption expenditures (PCE) increased at an annualized quarter-over-quarter rate of 1.4%, which is slightly stronger than the 1.3% increase that had been expected.

Stocks ended a disappointing January with a loss as investors questioned whether the economy will be able to sustain its big fourth-quarter growth rate. Downbeat earnings at technology companies also pulled stocks down.

The Dow Jones industrials fell 53 points Friday to close the month down 3.5 percent. Just 10 days earlier, the average was at a 15-month high. Investors who are increasingly uneasy about the economy, earnings and politics have been pulling money out of the market over the past week.

January was the worst month for the market since last February. Many market watchers believe January sets the tone for stocks for the rest of the year, and historical data backs that up. Since 1950, the Standard & Poor's 500's full-year direction has matched its January performance more than 90 percent of the time, according to the Stock Trader's Almanac.

The NYSE DOW closed LOWER -53.13 points -0.52% on Friday January 29
Sym. Last......... ........Change..........
Dow 10,067.33 -53.13 -0.52%
Nasdaq 2,147.35 -31.65 -1.45%
S&P 500 1,073.87 -10.66 -0.98%
30-yr Bond 4.5100% -0.5900

NYSE Volume 6,622,243,000 (prior day 6,385,494,500)
Nasdaq Volume 3,164,490,250 (prior day 2,906,601,250)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,188.52 +42.78 +0.83%
DAX 5,608.79 +68.46 +1.24%
CAC 40 4,012.91 -1.06 -0.03%

Asia
Symbol...... Last...... .....Change.......
Nikkei 225 10,198.04 -216.25 -2.08%
Hang Seng 20,121.99 -234.38 -1.15%
Straits Times 2,745.35 -12.33 -0.45%

http://finance.yahoo.com/news/Stocks-fall-on-doubts-about-apf-1535724108.html?x=0

Stocks fall on doubts about recovery's strength

Stocks end January with a loss, dogged by questions about how sustainable the recovery will be

Stephen Bernard, AP Business Writer, On Friday January 29, 2010, 6:21 pm EST
NEW YORK (AP) -- Stocks ended a disappointing January with a loss as investors questioned whether the economy will be able to sustain its big fourth-quarter growth rate. Downbeat earnings at technology companies also pulled stocks down.

The Dow Jones industrials fell 53 points Friday to close the month down 3.5 percent. Just 10 days earlier, the average was at a 15-month high. Investors who are increasingly uneasy about the economy, earnings and politics have been pulling money out of the market over the past week.

January was the worst month for the market since last February. Many market watchers believe January sets the tone for stocks for the rest of the year, and historical data backs that up. Since 1950, the Standard & Poor's 500's full-year direction has matched its January performance more than 90 percent of the time, according to the Stock Trader's Almanac.

Still, the January barometer can be faulty. Last year, when the market had its worst January ever, the Dow fell 11.4 percent for the month, and then went on to post an 18.8 percent gain for all of 2009.

Stocks inititally rose Friday after the Commerce Department said gross domestic product, the broadest measure of the economy, expanded at an annual rate of 5.7 percent during the fourth quarter, easily topping forecasts of 4.5 percent. The strong growth, coupled with an upbeat report on manufacturing in the Midwest, reassured investors about the economy.

However, details within the GDP report also raised questions about how well the recovery can be sustained. Most of the growth came from companies replenishing low inventories. Rebuilding inventories tends to create just a temporary bump in growth.

"The GDP report looks shiny and new on the surface," said Alan Gayle, senior investment strategist for RidgeWorth Investments. "But once you open up the hood, you start to see it's not as great as on the outside."

Michael Sheldon, chief market strategist at RDM Financial Group said the report "is going to leave doubts" in the minds of investors who are looking for consistent economic improvement.

Questions about the report added to the market's growing list of concerns. Investors were already uneasy after China said it was trying to limit its economic growth and as President Barack Obama announced plans to overhaul banking regulations. Shares have fallen sharply since hitting a 15-month high last week.

The Dow fell 53.13, or 0.5 percent, Friday to 10,067.33. The Dow is now down 658.10, or 6.1 percent, since reaching its 15-month high of 10,725.43 on Jan. 19.

The S&P 500 index fell 10.66, or 1 percent, to 1,073.87, while the Nasdaq composite index fell 31.65, or 1.5 percent, to 2,147.35, lagging the other indicators following a disappointing earnings report from Microsoft Corp.

For the month, the S&P 500 is down 3.7 percent, while the Nasdaq is off 5.4 percent.

Unlike most Januarys, there wasn't a flood of fresh money moving into the market this month, since so much cash went into last year's big rally, said Alan Gayle, senior investment strategist for RidgeWorth Investments. Without that injection of money, portfolio managers are left to collect profits from last year's big run, he said.

The recent spate of bad news and uncertainty led many professional investors to decide the best course of action was to sell.

"The market is in the process of recalibrating," Gayle said. "we will get some retrenchment."

There was good economic news Friday, but not enough for the market to hold its gains. The Chicago Purchasing Managers Index rose more than expected, providing some evidence the manufacturing sector, at least in the Midwest, is rebounding as well. The Chicago PMI climbed to 61.5 in January from 58.7 last month. Economists were expecting 57.5.

The Chicago report is seen as a precursor to the national Institute for Supply Management report due out Monday.

The market is still wary about government plans to increase the regulation of banks. Obama's calls last week to restrict the size of banks and to limit risky trading by big financial institutions helped spark the sell-off in stocks.

"Political uncertainty always gets people nervous," said Peter Zuger, co-portfolio manager of the Touchstone Mid Cap Value fund.

The unknowns coming out of Washington have helped stall the rally that sent the S&P 500 up 59 percent since last March. One political worry was put to rest Thursday when Federal Reserve Chairman Ben Bernanke won Senate confirmation for a second term.

Declining stocks outnumbered advancers by about 2 to 1 on the New York Stock Exchange, where consolidated volume came to 5.73 billion shares, up from 5.51 billion on Thursday.

Fourth-quarter earnings reports continued, and extended the pattern of mixed results among the companies that have already reported.

Microsoft said late Thursday it beat analysts' expectations, but the company reported slow spending on software by corporations. Analysts say companies can no longer get by just beating expectations; they need to show revenue growth and signs of future strengthening.

The company's stock fell 98 cents, or 3.4 percent, to $28.18.

Bond prices edged higher Friday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.60 percent from 3.64 percent late Thursday.

The dollar rose against other major currencies, while gold prices fell.

The Russell 2000 index of smaller companies fell 5.89, or 1 percent, to 602.04.

Overseas markets were mixed. Asian stocks stumbled on disappointing company forecasts and Toyota's recall of millions of cars, while Europe's major indexes rose following a report that showed inflation remained relatively benign in the 16 countries that use the euro and the strong U.S. GDP report.

Japan's Nikkei stock fell 2.1 percent, while Hong Kong's Hang Seng dropped 1.2 percent. Britain's FTSE 100 rose 0.8 percent, Germany's DAX index gained 1.2 percent, and France's CAC-40 climbed 1.4 percent.

The Dow Jones industrial average closed the week down 105.65, or 1 percent, at 10,067.33. The Standard & Poor's 500 index fell 17.89, or 1.6 percent, to 1,073.87. The Nasdaq composite index fell 57.94, or 2.6 percent, to 2,147.35.

The Russell 2000 index, which tracks the performance of small company stocks, fell 15.08, or 2.4 percent, for the week to 602.04.

The Dow Jones U.S. Total Stock Market Index -- which measures nearly all U.S.-based companies -- ended at 10,991.11, down 191.30, or 1.7 percent.
2135

 

[bigdog]

Source: http://finance.yahoo.com

Strength among natural resource plays helped the stock market put together a low-volume advance that concluded at session highs with all 10 major sectors in positive ground.

Encouraging economic reports lifted stocks Monday and bolstered hopes that the recovery is in better shape than many had believed.

The Dow Jones industrial average rose 118 points after falling for the last two days. Energy stocks led the market higher following a strong earnings report from Exxon Mobil Corp.

Gains in manufacturing and personal incomes gave the market a strong start to February after rising doubts about the economy led to three weeks of losses.

The NYSE DOW closed HIGHER +118.20 points +1.17% on Monday February 1
Sym. Last......... ........Change..........
Dow 10,185.53 +118.20 +1.17%
Nasdaq 2,171.20 +23.85 +1.11%
S&P 500 1,089.18 +15.31 +1.43%
30-yr Bond 4.5690% +0.5900

NYSE Volume 4,815,103,000 (prior day 6,622,243,000)
Nasdaq Volume 2,234,145,750 (prior day 3,164,490,250)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,247.41 +101.67 +1.98%
DAX 5,654.48 +45.69 +0.81%
CAC 40 4,012.91 -1.06


Asia
Symbol...... Last...... .....Change.......
Nikkei 225 10,205.02 +6.98 +0.07%
Hang Seng 20,243.75 +121.76 +0.61%
Straits Times 2,736.17 -9.18 -0.33%

http://finance.yahoo.com/news/Stocks-climb-as-manufacturing-apf-105375914.html?x=0

Stocks climb as manufacturing, spending increase

Jumps in manufacturing activity and consumer spending lift stock prices; Dow gains 118 points
By Tim Paradis and Ieva M. Augstums, AP Business Writers , On Monday February 1, 2010, 5:45 pm

NEW YORK (AP) -- Encouraging economic reports lifted stocks Monday and bolstered hopes that the recovery is in better shape than many had believed.

The Dow Jones industrial average rose 118 points after falling for the last two days. Energy stocks led the market higher following a strong earnings report from Exxon Mobil Corp.

Gains in manufacturing and personal incomes gave the market a strong start to February after rising doubts about the economy led to three weeks of losses.

Investors were already becoming more optimistic thanks to news on Friday that the economy grew at the fastest pace in six years in the last three months of 2009.

"The market exhaled today," said Mike Shea, managing partner at Direct Access Partners LLC in New York. "This has been a very skittish market for the last three to four weeks."

The strongest piece of economic news came from the Institute for Supply Management, which said its index of U.S. manufacturing activity grew for a sixth straight month in January to the strongest level since August 2004. The trade group said factories increased production as customers replenished inventories.

The ISM's manufacturing index jumped to 58.4 in January from 54.9 in December, well above the 55.5 that analysts polled by Thomson Reuters had expected. Any reading above 50 signals growth.

Surveys released Monday in Europe and China showed that factories are going strong overseas too, which helped send shares of industrial companies higher.

Meanwhile the Commerce Department said consumer spending increased by 0.2 percent in December, its third straight monthly gain. The government also said personal income increased more than expected in December.

"The economy and the recovery seem to be on track," said Kevin Shacknofsky, portfolio manager of the Alpine Dynamic Dividend Fund in Purchase, N.Y.

The government reported last Friday that the U.S. economy grew at an annual rate of 5.7 percent in the final three months of 2009, a pace far stronger than economists had forecast.

The positive signals lent support to a market that fell sharply in late January, marking its worst monthly performance since major stock indexes hit 12-year lows early last year. The Dow reached a 15-month high of 10,725 on Jan. 19 and it is still down 5 percent since then. It lost 3.5 percent in January.

The Dow rose 118.20, or 1.2 percent, to 10,185.53, its biggest gain since Jan. 4. The broader Standard & Poor's 500 index rose 15.32, or 1.4 percent, to 1,089.19. The Nasdaq composite index rose 23.85, or 1.1 percent, to 2,171.20.

Bond prices fell, pushing yields higher. The yield on the benchmark 10-year Treasury note rose to 3.66 percent from 3.60 percent late Friday.

The dollar mostly fell against other major currencies, while gold rose.

President Barack Obama sent Congress a $3.83 trillion budget that would pour more money into the fight unemployment -- which is still high at 10 percent -- and boost taxes on the wealthy.

Kent Engelke, chief economic strategist at Capitol Securities Management in Glen Allen, Va., said an improvement in the ISM's employment measure bodes well for the government's January employment report, which is due Friday and is the most important economic report on the calendar.

Engelke predicts that the jobs report will come in better than expected. While that would be good for the economy, an especially strong reading on the job market might also prompt concerns about when the Federal Reserve will have to start raising interest rates from their historic lows.

That could trip up the stock market as well as bonds, which have benefited greatly from the near-zero short term lending rates and other steps the Fed has taken to shore up U.S. banks and the debt markets.

"What are we going to do? The Fed is going to take away our high-octane fuel," Engelke said. "We're no longer going to have sugar being injected into our veins."

Investors also looked to earnings at Exxon Mobil, which topped expectations and helped pull energy stocks higher. The company's shares rose $1.75, or 2.7 percent, to $66.18.

Industrial stocks rose on the economic reports. Aluminum producer Alcoa Inc. rose 63 cents, or 5 percent, to $13.36, while United States Steel Corp. rose $2.89, or 6.5 percent, to $47.32.

Mining company BHP Billiton Ltd. rose $2.73, or 3.9 percent, to $72.10.

The technology-heavy Nasdaq lagged the broader market as Amazon.com fell $6.54, or 5.2 percent, to $118.87. The online retailer agreed to sell e-books at higher prices after getting pressure from publisher Macmillan.

Crude oil rose $1.54 to $74.43 per barrel on the New York Mercantile Exchange.

More than three stocks rose for every one that fell on the New York Stock Exchange, where consolidated volume came to 4.2 billion shares compared with 5.7 billion Friday.

The Russell 2000 index of smaller companies rose 7.21, or 1.2 percent, to 609.25.

Britain's FTSE 100 rose 1.1 percent, Germany's DAX index rose 0.8 percent, and France's CAC-40 rose 0.6 percent. Earlier, Japan's Nikkei stock average rose 0.1 percent.

 

[bigdog]

Source: http://finance.yahoo.com

Despite a sluggish start and a lack of concerted leadership, the stock market made its way back above 1100 as buyers offered broad-based support for the second straight session.

For fear that the previous session's low-volume rally was anything more than a reflex bounce that followed last week's losses, participants showed reservation in the early going. That made for listless, choppy trade.

Signs of strength in the housing market pushed the Dow Jones industrial average to its second straight gain of more than 100 points.

An increase in the number of people with contracts to buy homes and the first profit at homebuilder D.R. Horton in three years raised hopes that one of the weakest parts of the economy is improving.

The Dow rose 111 points Tuesday, boosting its two-day gain to 230 points and extending a recovery from a slide in January. It was the biggest back-to-back advance for the Dow in three months.

The NYSE DOW closed HIGHER +111.32 points +1.09% on Tuesday February 2
Sym. Last......... ........Change..........
Dow 10,296.85 +111.32 +1.09%
Nasdaq 2,190.06 +18.86 +0.87%
S&P 500 1,103.32 +14.14 +1.30%
30-yr Bond 4.5500% -0.1900

NYSE Volume 5,502,060,000 (prior day 4,815,103,000)
Nasdaq Volume 2,509,005,750 (prior day 2,234,145,750)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,283.31 +35.90 +0.68%
DAX 5,709.66 +55.18 +0.98%
CAC 40 4,012.91 -1.06 -0.03%


Asia
Symbol...... Last...... .....Change.......
Nikkei 225 10,371.09 +166.07 +1.63%
Hang Seng 20,272.18 +28.43 +0.14%
Straits Times 2,720.87 -15.30 -0.56%

http://finance.yahoo.com/news/Signs-of-strength-in-housing-apf-298260406.html?x=0

Signs of strength in housing market boost stocks

Stocks extend advance as pending home sales rise; Dow posts two-day gain of 230 points

By Stephen Bernard and Tim Paradis, AP Business Writers , On Tuesday February 2, 2010, 5:39 pm

NEW YORK (AP) -- Signs of strength in the housing market pushed the Dow Jones industrial average to its second straight gain of more than 100 points.

An increase in the number of people with contracts to buy homes and the first profit at homebuilder D.R. Horton in three years raised hopes that one of the weakest parts of the economy is improving.

The Dow rose 111 points Tuesday, boosting its two-day gain to 230 points and extending a recovery from a slide in January. It was the biggest back-to-back advance for the Dow in three months.

The National Association of Realtors, a trade group, said its index of sale contracts rose 1 percent in December. It was the ninth improvement over the past 10 months as buyers scrambled to take advantage of a first-time homebuyer tax credit before it was set to expire in November.

"It's a slow, sustainable growth," said Daniel Penrod, senior industry analyst for the California Credit Union League. "Most people would prefer a quick rebound but that's not likely to happen."

The home sales report was the latest bit of encouraging news on the economy. Stocks rose on Monday after a surprisingly strong reading on the manufacturing industry, and on Friday the government reported that the U.S. economy grew at an annual rate of 5.7 percent in the final three months of 2009, a faster pace than expected.

D.R. Horton Inc. posted its first earnings since 2007 during its fiscal first quarter. Much of its $192 million profit during the October-December period came from a tax gain, but its revenue rose because of a 36 percent jump in home sales. Orders increased 45 percent.

The reports brought a positive tone to the market, which stumbled in the second half of January as concerns arose that the recovery might be stalling and that the market's 10-month advance was running out of gas. The Standard & Poor's 500 index fell 3.7 percent in January, its worst month since hitting a 12-year low nearly a year ago.

On Tuesday, the Dow rose 111.32, or 1.1 percent, to 10,296.85. The Dow's two-day climb of 229.52, or 2.3 percent, is the biggest point and percentage gain since Nov. 4-5.

The S&P 500 index rose 14.13, or 1.3 percent, to 1,103.32, while Nasdaq composite index advanced 18.86, or 0.9 percent, to 2,190.06.

Bond prices rose, pushing yields lower. The yield on the benchmark 10-year Treasury note slipped to 3.65 percent from 3.66 percent late Monday.

Crude oil jumped $2.80 to $77.23 per barrel on the New York Mercantile Exchange, its biggest one-day gain in four months as stocks advanced and hopes grew that the economy is strengthening. The dollar fell against other major currencies, while gold rose.

Investors are turning their attention to a series of economic reports this week to see whether the growth of late last year has a good chance of continuing. The most important indicator will come on Friday when the Labor Department releases its January employment report.

Confidence also grew after Treasury Secretary Tim Geithner told the Senate Finance Committee that the economy is in better shape than a year ago but that the government still needs to take steps to bring down unemployment, which stands at 10 percent.

The market's two-day climb is helping stocks recover from its mid-January slide.

Michael Cannivet, portfolio manager and senior analyst at Palo Capital Inc. in Newport Beach, Calif., said the recent drop drew in people who were waiting to buy on dips.

"We think there is so much buying power on the sidelines that that is what's keeping the market from a full correction," Cannivet said, referring to a drop of at least 10 percent. Before the advance this week, the S&P 500 index was down 6.6 percent from its recent peak on Jan. 19.

Among home builders, D.R. Horton jumped $1.30, or 10.9 percent, to $13.21. Toll Brothers Inc. rose $1.04, or 5.6 percent, to $19.66, while Pulte Homes Inc. rose 79 cents, or 7.5 percent, to $11.35.

Lexmark International Inc. said lower costs helped increase its fourth-quarter earnings. The printer and copier maker rose $3.21, or 12 percent, to $30.01.

Ann Taylor Stores Corp. rose $2.36, or 17.6 percent, to $15.75 after saying its fourth-quarter earnings would top expectations on stronger sales and profit margins.

Neil Massa, senior trader at MFC Global Investment Management in Boston, noted that trading volume has been lighter on up days for the market than down days. That's a sign of fragile confidence because there are more investors standing pat when the market rises than when it falls.

"I'm just hesitant to think we've turned a corner," he said. Massa expects the market will trade in a tight range as Friday's jobs report approaches.

More than three stocks rose for every one that fell on the New York Stock Exchange, where volume came to 1.2 billion shares compared with 1 billion Monday.

The Russell 2000 index of smaller companies rose 4.80, or 0.8 percent, to 614.05.

Britain's FTSE 100 rose 0.7 percent, Germany's DAX index gained 1 percent, and France's CAC-40 rose 1.3 percent. Japan's Nikkei stock average rose 1.6 percent.

 

[bigdog]

Source: http://finance.yahoo.com

Support for large-cap tech helped the Nasdaq Composite recover from the red to finish flat, but weakness in the broader market left the S&P 500 to chop along in negative territory as participants looked past several positive headlines and strong gains by China's markets.

China's Shanghai Composite and Hong Kong's Hang Seng both booked gains in excess of 2% in their latest session as a couple of banks tightened lending in order to head off government mandates. However, neither those gains nor news that the ADP Employment Report showed a smaller-than-expected loss of 22,000 private sector jobs in January aroused support. An in-line reading of 50.5 for the January ISM Services Index was also dismissed.

Given the stock market's strong gains in the two previous sessions, buyers opted to take a break from this session's action. That's not to say that sellers reclaimed control, though; overall losses were contained.

A disappointing report on services industries halted a two-day advance in the stock market.

The Dow Jones industrial average fell 26 points Wednesday after jumping a total of 230 points in the first two days of the week. The broader Standard & Poor's 500 index posted a steeper drop, while the Nasdaq composite index was little changed.

The report on services businesses, which make up the biggest slice of the U.S. economy, reminded investors that a recovery will be slow.

The NYSE DOW closed LOWER -26.30 points -0.26% on Wednesday February 3
Sym. Last......... ........Change..........
Dow 10,270.55 -26.30 -0.26%
Nasdaq 2,190.91 +0.85 +0.04%
S&P 500 1,097.28 -6.04 -0.55%
30-yr Bond 4.63% +0.82

NYSE Volume 4,914,568,000 (prior day 5,502,060,000)
Nasdaq Volume 2,341,890,500 (prior day 2,509,005,750)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,253.15 -30.16 -0.57%
DAX 5,672.09 -37.57 -0.66%
CAC 40 4,012.91 -1.06 -0.03%

Asia
Symbol...... Last...... .....Change.......
Nikkei 225 10,404.33 +33.24 +0.32%
Hang Seng 20,722.08 +449.90 +2.22%
Straits Times 2,764.84 +43.97 +1.62%

http://finance.yahoo.com/news/Stock...2.html?x=0&sec=topStories&pos=2&asset=&ccode=

Stocks slip as growth in services falls short

Stocks fall as growth in service businesses in January lags expectations; Dow slips 26 points

By Tim Paradis, AP Business Writer , On Wednesday February 3, 2010, 5:30 pm
NEW YORK (AP) -- A disappointing report on services industries halted a two-day advance in the stock market.

The Dow Jones industrial average fell 26 points Wednesday after jumping a total of 230 points in the first two days of the week. The broader Standard & Poor's 500 index posted a steeper drop, while the Nasdaq composite index was little changed.

The report on services businesses, which make up the biggest slice of the U.S. economy, reminded investors that a recovery will be slow.

The Institute for Supply Management said its index of service activity rose to 50.5 in January from a revised 49.8 in December. The January reading was below the level of 51 analysts polled by Thomson Reuters had been expecting. Any number above 50 signals growth.

The weaker activity in service companies chilled enthusiasm about a report that private employers cut fewer jobs than expected last month. The news on jobs from ADP, a payroll company, comes ahead of the government's January employment report on Friday, which is expected to show employers added 5,000 jobs in the first month of the year but that unemployment edged up to 10.1 percent from 10 percent.

ADP said employers cut 22,000 non-farm, private jobs last month. That was the best showing since employment started to weaken in February 2008.

A reduced forecast from Pfizer Inc. dragged health care stocks lower. Meanwhile, bank stocks fell after PNC Financial Services Group Inc. said it would repay $7.6 billion in bailout funds to the U.S. government. Traders grew concerned that other regional banks would face pressure to follow suit.

The market could get a boost Thursday from Cisco Systems Inc. The world's largest maker of computer networking equipment issued earnings and forecasts after the closing bell Wednesday that came in well ahead of expectations. CEO John Chambers, an important voice on Wall Street, said strengthening in the company's business was "a clear indication that we are entering the second phase of the economic recovery." The company's stock rose more than 2 percent in after-hours trading.

Stocks jumped the first two days of this week on encouraging reports about the economy. The advance came after stocks ended January with a loss. The market retreated late last month on concerns that the recovery was faltering and a strong 10-month rally was running out of steam.

Events in Washington continued to ripple through the stock market. Transportation Secretary Ray LaHood said he misspoke when he said early Wednesday that owners of Toyota cars and trucks should stop driving them because of problems with accelerator pedals in some models. Toyota shares fell sharply but pulled off their lows after LaHood clarified his remarks.

The zigzag in Toyota's stock was the latest reminder that events in Washington are high on investors' list of concerns. Worries that tougher laws, including President Barack Obama's proposal to restrict banks trading activity, would hurt profits helped drive the market lower last month.

"We have a lot of problems to get through and every once in a while Washington throws an incendiary device into the room," said William Rutherford, president of Rutherford Investment Management in Portland, Ore. "Talk about tax increases and more government regulation is putting a lot of pressure on the markets."

The Dow fell 26.30, or 0.3 percent, to 10,270.55. The S&P 500 index fell 6.04, or 0.6 percent, to 1,097.28, while the Nasdaq rose 0.85, or less than 0.1 percent, to 2,190.91.

Three stocks fell for every two that rose on the New York Stock Exchange, where volume came to 1.1 billion shares compared with 1.2 billion Tuesday.

The Dow rose Monday and Tuesday on upbeat reports about manufacturing and housing. The 230-point gain was the biggest back-to-back advance for the Dow in three months. It came after the Dow lost 3.5 percent in January.

In other trading Wednesday, bond prices fell and pushed yields higher. The yield on the benchmark 10-year Treasury note rose to 3.71 percent from 3.65 percent late Tuesday.

The dollar rose against other major currencies, while gold fell.

Crude oil fell 25 cents to $76.98 per barrel on the New York Mercantile Exchange.

Kim Caughey, vice president and investment analyst at Fort Pitt Capital Group in Pittsburgh, said the economic numbers are driving short-term trading but that uncertainty about how lawmakers might rewrite the rules that govern corporations is still hanging over the market.

"There is tough language in some bills out there that if passed currently could prove chilling," she said. "I'm betting that that there will be some damage done but not nuclear Armageddon."

Cisco which rose 5 cents to $23.07 in regular trading, was trading at $23.72 after the market closed.

Pfizer Inc. posted increased fourth-quarter earnings but the results were weaker than analysts had forecast. The stock fell 44 cents, or 2.3 percent, to $18.62.

PNC fell 94 cents, or 1.7 percent, to $53.71 after saying it would repay bailout money.

Other regional banks posted steeper drops. Fifth Third Bancorp fell 48 cents, or 3.9 percent, to $12, while Huntington Bancshares Inc. slid 22 cents, or 4.5 percent, to $4.71.

Toyota Motor Corp. fell $4.69, or 6 percent, to $73.49 after sliding as much as 8 percent.

The Russell 2000 index of smaller companies fell 3.39, or 0.6 percent, to 610.66.

Britain's FTSE 100 fell 0.6 percent, Germany's DAX index lost 0.7 percent, and France's CAC-40 fell 0.5 percent. Japan's Nikkei stock average rose 0.3 percent.

 

[bigdog]

Source: http://finance.yahoo.com

Woes over the fiscal health of select European nations and some disappointing jobless claims numbers fueled a selling frenzy that culminated in the market's worst single-session percentage loss since April.

Concerns for the fiscal health of Portugal, Greece, and Spain in the wake of some tepid bond auction results stirred early selling interest, which intensified with news that initial jobless claims for the week ended Jan. 30 increased more than expected week-over-week to 480,000. Continuing claims remained steady week-over-week at 4.60 million, but that was still higher than the consensus call for 4.58 million continuing claims.

Disappointment over the headlines led global participants to seek safety in the dollar, which spiked 0.7% to a new six-month high

Stocks buckled Thursday under the growing belief that the global economy is weaker than many investors expected and likely to stop companies from hiring. The Dow Jones industrials briefly traded below 10,000 for the first time in three months.

A flood of bad news, including rising debt levels in European nations and an unexpected jump in the number of Americans filing for unemployment benefits, had investors pulling money out of assets like stocks and commodities that look increasingly risky. Fears of more disappointing news Friday, when the government issues its January employment report, contributed to the slide.

Demand for safer investments sent the dollar and Treasurys higher and the euro falling. Major indexes skidded as much as 3.1 percent to their lowest levels in three months. The Dow fell 268 points and briefly traded below 10,000 for the first time since Nov. 6. The Dow's 2.6 percent drop was its biggest in seven months. And it was the ninth time in 14 days that the Dow has moved by more than 100 points.

The NYSE DOW closed LOWER -268.37 points -2.61% on Thursday February 4
Sym. Last......... ........Change..........
Dow 10,002.18 -268.37 -2.61%
Nasdaq 2,125.43 -65.48 -2.99%
S&P 500 1,063.11 -34.17 -3.11%
30-yr Bond 4.5450% -0.8700

NYSE Volume 6,928,269,500 (prior day 4,914,568,000)
Nasdaq Volume 2,836,818,250 (prior day 2,341,890,500)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,255.63 +2.48 +0.05%
DAX 5,695.97 +23.88 +0.42%
CAC 40 4,012.91 -1.06 -0.03%

Asia
Symbol...... Last...... .....Change.......
Nikkei 225 10,355.98 -48.35 -0.46%
Hang Seng 20,341.64 -380.44 -1.84%
Straits Times 2,744.98 -19.86 -0.72%

http://finance.yahoo.com/news/Stock...tml?x=0&sec=topStories&pos=main&asset=&ccode=

Stocks tumble on worries about jobs, European debt

Market slides, pulling Dow below 10,000 on rise in jobless claims, debt problems in Europe

By Tim Paradis, AP Business Writer , On Thursday February 4, 2010, 5:40 pm

NEW YORK (AP) -- Stocks buckled Thursday under the growing belief that the global economy is weaker than many investors expected and likely to stop companies from hiring. The Dow Jones industrials briefly traded below 10,000 for the first time in three months.

A flood of bad news, including rising debt levels in European nations and an unexpected jump in the number of Americans filing for unemployment benefits, had investors pulling money out of assets like stocks and commodities that look increasingly risky. Fears of more disappointing news Friday, when the government issues its January employment report, contributed to the slide.

Demand for safer investments sent the dollar and Treasurys higher and the euro falling. Major indexes skidded as much as 3.1 percent to their lowest levels in three months. The Dow fell 268 points and briefly traded below 10,000 for the first time since Nov. 6. The Dow's 2.6 percent drop was its biggest in seven months. And it was the ninth time in 14 days that the Dow has moved by more than 100 points.

Just 273 stocks rose on the New York Stock Exchange, while more than 2,800 fell. On of the worst performers was metals producer Freeport-McMoRan Copper & Gold Inc., which tumbled 5.3 percent. The few winners included Cisco Systems Inc. following a big increase in its earnings. Trading volume at the NYSE rose to 1.5 billion shares from 1 billion Wednesday.

The day's news reminded investors that the global economic recovery remains tenuous. It also raised questions about whether the market can resume its rebound from 12-year lows it hit last March.

The market's slide began in Europe on concerns about onerous debt levels in Greece, Portugal and Spain. Worries about those countries set off broader concerns that governments will have difficulty containing rising debts and borrowing more money to help revive their economies.

"The market is becoming aware that the wall of cash that lifted it last year is coming to an end," said Jon Merriman, chief executive of Merriman Curhan Ford in San Francisco.

The euro hit a seven-month low against the dollar on the news. The rising dollar hurt demand for commodities, which are priced in dollars and become more expensive to foreign buyers when the dollar climbs. Gold tumbled $49, or 4.4 percent.

The market's drop was the latest leg of a stumble that began in mid-January. Stocks fell then in response to China's attempts to curb its overheated growth. Those moves raised fears that the other world economies could suffer as a result. The pullback in stocks worsened as leaders in Washington said they would impose tighter regulations on U.S. banks.

Investors also worry that a slowdown in foreign countries would spill over to the U.S. and make it harder for the economy to overcome its biggest problem: unemployment.

The Labor Department said Thursday that claims for unemployment benefits rose by 8,000 to 480,000 last week. The news disappointed investors who had hoped for a drop. It was the fourth increase in the past five weeks.

The jobless claims numbers chilled expectations that the government's January jobs report would show that employers added workers in the first month of the year. Analysts currently expect Friday's report to show that employers added 5,000 jobs in January. The government is also expected to report that the unemployment rate ticked up to 10.1 percent from 10 percent.

"You've got the recipe for a market in which my screen is entirely red," said Bernie McSherry, senior vice president of strategic initiatives at Cuttone & Co. in New York.

The Dow fell 268.37, or 2.6 percent, to 10,002.18. The Dow has fallen 723 points, or 6.7 percent, since closing at a 15-month high of 10,725.43 on Jan. 19.

The broader Standard & Poor's 500 index fell 34.17, or 3.1 percent, to 1,063.11, its steepest drop since April 20, 2009.

The Nasdaq composite index slid 65.48, or 3 percent, to 2,125.43.

In other trading, bond prices rose sharply, pushing yields lower. The yield on the benchmark 10-year Treasury note fell to 3.61 percent from 3.71 percent late Wednesday.

The Chicago Board Options Exchange's Volatility Index jumped 20.7 percent. An increase in the VIX, which is known as the market's fear gauge, is a sign that investors predict more big moves in stocks.

Demand for safety jumped as traders remained skeptical about Greece's plan to slash its budget deficit from 12.7 percent of the nation's gross domestic product in 2009 to less than 3 percent in 2012. Meanwhile, Portugal on Wednesday cut a planned treasury bill issue. And Spain said its deficits will be more than anticipated in the coming three years.

Charles Norton, portfolio manager of the ALPS/GNI Long-Short Fund, said the renewed questions about foreign governments' ability to finance their deficits are a sign that investors have been too optimistic in predicting a recovery in the world's economies.

Norton said signs of improvement in the U.S. economy are less impressive than they first appear. The government said last week that the economy grew at an annual rate of 5.7 percent during the fourth quarter. A big part of that gain came from companies rebuilding inventories.

"They are the only sources of economic activity that we've seen so far," Norton said. "They're both likely to wane over the course of this year. Then what's left?"

The bad news on employment and European government debt overshadowed pockets of better than expected sales reports from some U.S. retailers. Macy's Inc. raised its profit forecast after sales rose and it discounted fewer items.

The rise in the dollar hit commodity prices and stocks of companies that produce them. Crude oil fell $3.84 to settle at $73.14 per barrel on the New York Mercantile Exchange. It was the biggest one-day drop in four months.

Aluminum producer Alcoa Inc. fell 58 cents, or 4.3 percent, to $12.91, while Freeport-McMoRan fell $3.72, or 5.3 percent, to $66.74.

Cisco rose 9 cents, or 0.4 percent, to $23.16. Macy's rose 43 cents, or 2.7 percent, to $16.67.

Energy stocks fell as oil slid. Exxon Mobil Corp. fell $1.88, or 2.8 percent, to $64.72, while Chevron Corp. fell $1.84, or 2.5 percent, to $71.37.

The Russell 2000 index of smaller companies fell 20.98, or 3.4 percent, to 589.68.

Britain's FTSE 100 dropped 2.2 percent, Germany's DAX index slid 2.5 percent, and France's CAC-40 lost 2.8 percent. Japan's Nikkei stock average fell 0.5 percent.

 

[Atlas79]

Hope and change, baby. Hope... and... change.

Remember the Bush years? Yeah, that Bush everyone hated.

 

[bigdog]

Source: http://finance.yahoo.com

The Dow Jones industrial average closed the week down 55.10, or 0.5 percent, at 10,012.23. The Standard & Poor's 500 index fell 7.68, or 0.7 percent, to 1,066.19. The Nasdaq composite index fell 6.23, or 0.3 percent, to 2,141.12.

Volatility returned to the market this week, with a sharp 3% drop in the S&P 500 on Thursday and big swings in the major averages today. However, looking at the end result the picture is less dramatic, as S&P 500 declined just -0.7% on the week. The increased volatility has stemmed from sovereign debt concerns centered around the more fiscally troubled European nations such as Portugal, Spain and Greece. This uncertainty pressured overseas markets over the past two days, and resulted in strength in the dollar.

A battered stock market recovered from a sharp drop in late trading Friday but still posted its fourth straight weekly drop.

The Dow Jones industrials, down nearly 170 points in afternoon trading, clawed their way back to finish with a gain of 10. But more stocks fell than rose on the New York Stock Exchange as investors contended with another series of troubling signals about the global economy.

Investors are concerned that European governments will have trouble getting their massive deficits under control. The Labor Department, meanwhile, offered only modest hope of improvement in the jobs market in its closely watched monthly report.

The NYSE DOW closed HIGHER +10.05 points +0.10% on Friday February 5
Sym. Last......... ........Change..........
Dow 10,012.23 +10.05 +0.10%
Nasdaq 2,141.12 +15.69 +0.74%
S&P 500 1,066.19 +3.08 +0.29%
30-yr Bond 4.4930% -0.5200

NYSE Volume 7,766,628,500 (prior day 6,928,269,500)
Nasdaq Volume 2,836,146,250

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,060.92 -78.39 -1.53%
DAX 5,434.34 -98.90 -1.79%
CAC 40 3,563.76 -125.49 -3.40%


Asia
Symbol...... Last...... .....Change.......
Nikkei 225 10,057.09 -298.89 -2.89%
Hang Seng 19,665.08 -676.56 -3.33%
Straits Times 2,683.56 -61.42 -2.24%

http://finance.yahoo.com/news/Stocks-pull-out-of-slump-but-apf-3414941666.html?x=0&.v=33

Stocks pull out of slump but end week lower

Stocks cap fourth straight losing week; Dow recovers from drop of nearly 170 points to end up

By Stephen Bernard and Tim Paradis, AP Business Writers , On Friday February 5, 2010, 6:17 pm EST

NEW YORK (AP) -- A battered stock market recovered from a sharp drop in late trading Friday but still posted its fourth straight weekly drop.

The Dow Jones industrials, down nearly 170 points in afternoon trading, clawed their way back to finish with a gain of 10. But more stocks fell than rose on the New York Stock Exchange as investors contended with another series of troubling signals about the global economy.

Investors are concerned that European governments will have trouble getting their massive deficits under control. The Labor Department, meanwhile, offered only modest hope of improvement in the jobs market in its closely watched monthly report.

"Clearly we've entered the worry, fear camp," said Rob Lutts, president and chief investment office at Cabot Money Management. "It's a very fragile investor psychology today. It doesn't take much ... to send them running for the hills."

The late-day comeback appeared to be partly due to the Federal Reserve's announcement that consumers borrowed less for an 11th straight month in December. But the drop of $1.8 billion was far less than the decrease of $9 billion analysts forecast. That fueled hopes that consumer spending will increase.

But for the second straight day, there was unsettling economic news. On Thursday, the Dow fell 268 on growing worries about the global economy.

The U.S. unemployment rate unexpectedly fell in January to 9.7 percent from 10 percent, the government reported. At the same time, however, employers cut 20,000 jobs, more than the gain of 5,000 economists predicted, according to Thomson Reuters. The two numbers are calculated from different surveys.

Timothy Speiss, head of Eisner LLP's Personal Wealth Advisors group, said the improving unemployment rate was a good sign, but that investors are well aware that other problems exist in the world's economies.

The jobs report came as more troubling news emerged in Europe that Portugal and other weak economies were falling behind in efforts to control their deficits.

Portugal's opposition parties defeated a government austerity plan Friday and passed their own bill allowing the country's autonomous regions to rack up more debt. That raised new questions about European countries' ability to control their swollen budget deficits, which are undermining faith in the region's euro currency. Greece and Spain are also grappling with massive deficits. Concerns about debt could make it harder for countries to maintain spending that would revive their economies.

"People were so relieved that things got better but now I think people are starting to think about the hospital bill," said Karl Mills, chief investment officer at Jurika, Mills & Keifer LLC in Oakland, Calif., referring to the debt loads.

The concerns about European nations are adding to a pile of worries that also include China's efforts to keep its growth in check and plans in Washington to restrict big banks.

The Dow rose 10.05, or 0.1 percent, to 10,012.23 after being down as much as 167 points.

For the week, the Dow lost 0.5 percent. The index hadn't fallen for four straight weeks since July. The Dow is down 713 points, or 6.7 percent, since closing at a 15-month high of 10,725.43 on Jan. 19.

The broader Standard & Poor's 500 index rose 3.08, or 0.3 percent, to 1,066.19 and ended down 0.7 percent for the week. The S&P 500 index hasn't fallen four straight weeks since March.

The Nasdaq composite index rose 15.69, or 0.7 percent, to 2,141.12. It lost 0.3 percent for the week.

About three stocks fell for every two that rose on the NYSE, where consolidated volume came to 6.5 billion shares compared with 5.9 billion Thursday.

The late-day turnaround may have been the result of a defensive move by short sellers, or investors who bet that a stock will fall in value, said Christian Bendixen, director of technical research at Bay Crest Partners in New York.

When stocks turn higher, short sellers can be pressured to quickly unwind their positions to limit future losses. To do that, they have to buy shares, which can push the stock price up even more in what's known as a "short squeeze."

"I think there was a little bit of a short squeeze," Bendixen said. "People started getting nervous that the selloff was too quick. They went from extremely bullish to extremely bearish."

Still, Bendixen said many investors dumped risky assets heading into the weekend amid worries about the global economy, including growing fears of a debt crisis in Europe.

"It almost feels a little bit like 2008 when no one wanted to hold risk over the weekend because you didn't know what news would come out on Monday," he said.

The Labor Department revised some of its past statistics lower, but analysts said there were some encouraging signs. The number of average hours worked and hourly pay both improved, as did the number of employers adding temporary workers. The hiring of temporary employees usually precedes companies adding permanent jobs during a recovery.

"Jobs may not be a plus yet," said John Merrill, chief investment officer at Tanglewood Wealth Management. But, he added: "the trend is unmistakable. It's clearly positive."

Demand for safer investments rose. The dollar climbed, while Treasury bond prices inched higher. The yield on the benchmark 10-year Treasury note, which moves opposite to its price, fell to 3.57 percent from 3.61 percent.

Gold fell. Oil dropped $1.95 to settle at $71.19 a barrel on the New York Mercantile Exchange.

The Russell 2000 index of smaller companies rose 3.30, or 0.6 percent, to 592.98.

Overseas markets fell following the global rout the day before. Britain's FTSE 100 lost 1.5 percent, Germany's DAX index dropped 1.8 percent, and France's CAC-40 tumbled 3.4 percent. Japan's Nikkei stock average fell 2.9 percent.

AP Business Writer Stephenson Jacobs contributed to this story.

The Dow Jones industrial average closed the week down 55.10, or 0.5 percent, at 10,012.23. The Standard & Poor's 500 index fell 7.68, or 0.7 percent, to 1,066.19. The Nasdaq composite index fell 6.23, or 0.3 percent, to 2,141.12.

The Russell 2000 index, which tracks the performance of small company stocks, fell 3.06, or 0.5 percent, for the week to 598.98.

The Dow Jones U.S. Total Stock Market Index -- which measures nearly all U.S.-based companies -- ended at 10,900.29, down 90.82, or 0.8 percent

2521

 

[bigdog]

Source: http://finance.yahoo.com

Weakness among financial issues took the broader market through a near-term technical support level to settle at a session low, and left the Dow to close below 10,000 for the first time in three months.

Financial stocks dropped 2.2% as participants pressured the sector after it had rallied this past Friday for a 1.2% gain. Financials traded as laggards for the entire session, but didn't drag down the broader market until late in the session.

The Dow Jones industrial average closed below 10,000 for the first time in three months Monday on nagging concerns about debt loads in Europe.

The Dow, down almost 104 points, had its 10th triple-digit move in 16 trading days. Shares of big banks pulled the market lower, extending a slump that has led to four straight weekly losses.

Mounting deficits in weaker European economies including Greece, Portugal and Spain have raised questions about the health of the global financial system. That compounded concerns about growth in China and proposed U.S. bank regulations took the market down from a 15-month high reached in January.

The NYSE DOW closed LOWER -103.84 points -1.04% on Monday February 8
Sym. Last......... ........Change..........
Dow 9,908.39 -103.84 -1.04%
Nasdaq 2,126.05 -15.07 -0.70%
S&P 500 1,066.18 -0.01 -0.00%
30-yr Bond 4.5220% +0.2900

NYSE Volume 4,909,233,500 (prior day 7,766,628,500)
Nasdaq Volume 2,059,284,750 (prior day 2,836,146,250

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,092.33 -160.82 -3.06%
DAX 5,484.85 +50.51 +0.93%
CAC 40 4,012.91 -1.06 -0.03%

Asia
Symbol...... Last...... .....Change.......
Nikkei 225 9,951.82 -105.27 -1.05%
Hang Seng 19,550.89 -114.19 -0.58%
Straits Times 2,693.62 +10.06 +0.37%

http://finance.yahoo.com/news/Dow-c...tml?x=0&sec=topStories&pos=main&asset=&ccode=

Dow closes below 10,000 for first time in 3 months

Stocks fall as investors remain wary of rising debt problems in Europe; Dow slides 104

By Tim Paradis, AP Business Writer , On Monday February 8, 2010, 5:34 pm

NEW YORK (AP) -- The Dow Jones industrial average closed below 10,000 for the first time in three months Monday on nagging concerns about debt loads in Europe.

The Dow, down almost 104 points, had its 10th triple-digit move in 16 trading days. Shares of big banks pulled the market lower, extending a slump that has led to four straight weekly losses.

Mounting deficits in weaker European economies including Greece, Portugal and Spain have raised questions about the health of the global financial system. That compounded concerns about growth in China and proposed U.S. bank regulations took the market down from a 15-month high reached in January.

Greece's finance minister said Monday the government is preparing to boost some taxes to shore up its finances. But civil servants opposed to cutbacks have pledged to strike on Wednesday.

Brett Hryb, a portfolio manager with MFC Global Investment Management in Toronto, said the latest concern is that the financial troubles in a country like Greece, whose economy is small compared with the rest of Europe, will spill into other countries.

"Clearly Greece itself is nothing. It's just a blip. It's what the contagion could be," he said.

Monday's drop extends the stumble the market began in mid-January. At that time, China announced plans to contain economic growth and the Obama administration proposed rules to restrict trading by large financial institutions.

The Dow fell 103.84, or 1 percent, to 9,908.39. On Thursday, the Dow traded below the psychological barrier of 10,000 for the first time since November. It hadn't closed below that mark since Nov. 4. The Dow is still up 51.3 percent since March.

The broader Standard & Poor's 500 index fell 9.45, or 0.9 percent, to 1,056.74, while the Nasdaq composite index fell 15.07, or 0.7 percent, to 2,126.05.

Bond prices edged higher, pushing yields lower. The yield on the benchmark 10-year Treasury note was flat at 3.57 percent from late Friday.

The dollar fell against other major currencies, while gold rose.

Crude oil rose 70 cents to settle at $71.89 per barrel on the New York Mercantile Exchange.

Questions about the global economy have interrupted a 10-month climb in stocks, which hit 12-year lows last March. The Dow is down 817 points, or 7.6 percent, from its recent high of 10,725.43 on Jan. 19.

Jerry Webman, chief economist at OppenheimerFunds Inc., said he doesn't expect that problems with rising debt loads in Europe will cascade into other parts of the world's economy, but he remains cautious.

"Right now, when anybody says the word 'contained' I start to tremble," he said, referring to his skepticism about those who downplay worries about Greece and other countries with rising deficits.

Webman is also concerned by the shrugs that have greeted corporate earnings reports. Three out of four of the companies in the S&P 500 index that have reported results for the fourth quarter have posted stronger sales and profit numbers than analysts forecast, according to Thomson Reuters.

"The market is obviously not that enthusiastic about these good bottom-line and good top-line numbers," Webman said, adding that he sees that as a reason to be concerned about the direction of stocks.

In earnings news, the toymaker Hasbro Inc. said its profit surged 77 percent in the fourth quarter while drugstore chain CVS Caremark Corp. said its earnings rose 11 percent. The results beat analysts' estimates.

Hasbro jumped $3.91, or 12.7 percent, to $34.71, while CVS rose $1.65, or 5.3 percent, to $32.72.

Three stocks fell for every two that rose on the New York Stock Exchange, where volume came to 1.1 billion shares compared with 1.6 billion Friday.

The Russell 2000 index of smaller companies fell 6.49, or 1.1 percent, to 586.49.

Britain's FTSE 100 rose 0.6 percent, Germany's DAX index gained 0.9 percent, and France's CAC-40 rose 1.2 percent. Earlier, Japan's Nikkei stock average fell 1.1 percent.

 

[bigdog]

Source: http://finance.yahoo.com

The Dow Jones industrial average jumped back above 10,000 on hope that the European Union will help Greece manage its growing debt burden.

The Dow rose +150.25 points Tuesday, a day after closing below 10,000 for the first time in three months. The major indexes all gained more than 1 percent.

Global markets bounced back on reports that European Central Bank President Jean-Claude Trichet is changing his travel schedule to attend a meeting of EU officials on Thursday and that plans are being developed to rescue Greece. The reports are raising hopes that policymakers will take bigger steps to contain troubles in Greece. The county is struggling with big budget gaps and is seeing demand fall for its debt.

The NYSE DOW closed HIGHER +150.25 points +1.52% on Tuesday February 9
Sym. Last......... ........Change..........
Dow 10,058.64 +150.25 +1.52%
Nasdaq 2,150.87 +24.82 +1.17%
S&P 500 1,070.52 +13.78 +1.30%
30-yr Bond 4.5680% +0.4600

NYSE Volume 6,120,557,500 (prior day 4,909,233,500)
Nasdaq Volume 2,067,552,750 (prior day 2,059,284,750)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,111.84 +19.51 +0.38%
DAX 5,498.26 +13.41 +0.24%
CAC 40 3,612.76 +5.49 +0.15%


Asia
Symbol...... Last...... .....Change.......
Nikkei 225 9,932.90 -18.92 -0.19%
Hang Seng 19,790.28 +239.39 +1.22%
Straits Times 2,745.02 +51.40 +1.91%

http://finance.yahoo.com/news/Stock...tml?x=0&sec=topStories&pos=main&asset=&ccode=

Stocks climb on hopes for Greece debt assistance

Stocks rally on hopes EU will help Greece with growing debt; Dow climbs back above 10,000

By Stephen Bernard and Tim Paradis, AP Business Writers , On Tuesday February 9, 2010, 3:42 pm

NEW YORK (AP) -- The Dow Jones industrial average jumped back above 10,000 on hope that the European Union will help Greece manage its growing debt burden.

The Dow rose +150.25 points Tuesday, a day after closing below 10,000 for the first time in three months. The major indexes all gained more than 1 percent.

Global markets bounced back on reports that European Central Bank President Jean-Claude Trichet is changing his travel schedule to attend a meeting of EU officials on Thursday and that plans are being developed to rescue Greece. The reports are raising hopes that policymakers will take bigger steps to contain troubles in Greece. The county is struggling with big budget gaps and is seeing demand fall for its debt.

Though Greece's economy is small, investors are concerned that troubles there will spill into other countries. World stock markets have been tumbling in recent weeks on concerns that debt problems would spread. Investors are also concerned by budget gaps in Ireland, Portugal, Spain and the uncertainty has undermined Europe's common currency, the euro.

The European debt problems are the latest obstacle for investors who have put the market's 10-month rally on hold. Stocks began retreating in mid-January after China said it would try to control its economy to avoid speculative bubbles. Things got worse when President Barack Obama announced plans to curb trading by large financial institutions.

On Tuesday, Greece took its latest steps to calm markets, pledging to increase retirement ages, raise fuel taxes and accelerate reforms. However a strike over the government's new austerity measures is still expected to proceed on Wednesday.

"There's some euphoria that maybe it's not going to be blowing up," said Erik Davidson, director of investments for Wells Fargo Private Bank in Carmel, Calif., referring to easing fears over Greece.

The Dow also got a boost from Morgan Stanley's upgrade to shares of Caterpillar Inc. It was Morgan's first upbeat take on the stock in three years. A cautious forecast from the equipment maker hurt stocks late last month.

In late afternoon trading, the Dow rose 200.50, or 2 percent, to 10,108.89, its steepest gain since Nov. 9. The Standard & Poor's 500 index rose 17.47, or 1.7 percent, to 1,074.21, while the Nasdaq composite index rose 30.72, or 1.4 percent, to 2,156.77.

Stocks have become more volatile in recent weeks as concerns grow about the strength and sustainability of a global economic recovery. The Dow, which fell almost 104 points Monday, has posted triple-digit moves in 10 of the last 16 trading days. The index has posted four consecutive Dow market has retreated 7.6 percent since hitting a 15-month high in the middle of January.

The market's leap higher illustrates how reliant investors around the world are on soothing words from policymakers. In the U.S., stocks have barreled higher for nearly a year because the Federal Reserve has pledged to hold interest rates low to help revive the economy. The flow of cheap cash has perhaps been the biggest driver of the market as investors look for places to stick their money.

Analysts are asking how markets will fare as the Fed dismantles some of its emergency support programs for the economy, as it has started to do. There are concerns, for example, that home loan rates will rise will rise as the Fed ends a program to purchase mortgage debt to drive up demand.

"It's sort of like last call at the bar," Davidson said. "People have to start to look what the world is going to look like without being awash in liquidity."

The dollar fell against the euro, while gold rose.

Crude oil rose 98 cents to $72.87 per barrel on the New York Mercantile Exchange.

Stephen A. Lieber, chief investment officer at Alpine Woods Capital Investors LLC in Purchase, N.Y., said the market's response to reports that other EU countries will throw Greece a life preserver illustrate that investors are hungry for reassurances from policymakers.

"People are scared that the entire delicate reconstruction of the system, which has been going on for two years, might be shattered," he said. "If the leaders are riding to the rescue then the market will feel renewed confidence."

Caterpillar was the biggest gainer among the 30 stocks that make up the Dow. The stock rose $3.14, or 6.2 percent, to $53.92.

Coca-Cola Co. reported fourth-quarter profit that matched analysts expectations. Its revenue topped forecasts as sales rose globally. Coca-Cola rose $1.78, or 3.4 percent, to $54.43.

Four stocks rose for every one that fell on the New York Stock Exchange, where volume came to 960.2 million shares compared with 766.3 million shares traded at the same point Monday.

The Russell 2000 index of smaller companies rose 9.23, or 1.6 percent, to 595.72.

Britain's FTSE 100 rose 0.4 percent, Germany's DAX index and France's CAC-40 each rose 0.2 percent. Earlier, Japan's Nikkei stock average fell 0.2 percent.

 

[bigdog]

Source: http://finance.yahoo.com

Continued speculation about loan guarantees for Greece and Fed Chairman Bernanke's hint at a rate hike kept the dollar in focus this session. Its advance took stocks lower, save financials.

The Dollar Index spent the entire session in positive territory as newswires were filled with conflicting reports about whether Germany will lead a bailout for Greece and other European countries currently in need. Its strength grew as Fed Chairman Bernanke's prepared remarks about how the Fed may opt to raise the discount rate before long made the rounds. The greenback had been up as much as 0.7% against competing currencies, but eased back a bit to settle with a 0.4% gain.

The stock market managed to steady itself after hearing Federal Reserve Chairman Ben Bernanke's plans to dismantle the central bank's supports for the economy.

The Dow Jones industrial average closed with a loss of 20 points Wednesday after falling nearly 100 in early trading. Treasury prices fell as demand for safe havens eased.

Bernanke revealed the Fed's thinking on how to wean the market from emergency measures put in place to keep the economy afloat. He said the Fed will likely start tightening credit by boosting the interest rate it pays banks on deposits with the central bank.

The NYSE DOW closed LOWER -20.26 points -0.20% on Wednesday February 10
Sym. Last......... ........Change..........
Dow 10,038.38 -20.26 -0.20%
Nasdaq 2,147.87 -3.00 -0.14%
S&P 500 1,068.13 -2.39 -0.22%
30-yr Bond 4.6360% +0.6800

NYSE Volume 4,982,941,500 (prior day 6,120,557,500)
Nasdaq Volume 2,039,927,880 (prior day 2,067,552,750)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,131.99 +20.15 +0.39%
DAX 5,536.37 +38.11 +0.69%
CAC 40 4,012.91 -1.06 -0.03%

Asia
Symbol...... Last...... .....Change.......
Nikkei 225 9,963.99 +31.09 +0.31%
Hang Seng 19,922.22 +131.94 +0.67%
Straits Times 2,734.39 -10.63 -0.39%

http://finance.yahoo.com/news/Stock...8.html?x=0&sec=topStories&pos=4&asset=&ccode=

Stocks stall as Bernanke signals end of stimulus

Bernanke reminds market cheap borrowing will end; Fed chief lays out plan for ending supports
By Stephen Bernard and Tim Paradis, AP Business Writers , On Wednesday February 10, 2010, 5:51 pm

NEW YORK (AP) -- The stock market managed to steady itself after hearing Federal Reserve Chairman Ben Bernanke's plans to dismantle the central bank's supports for the economy.

The Dow Jones industrial average closed with a loss of 20 points Wednesday after falling nearly 100 in early trading. Treasury prices fell as demand for safe havens eased.

Bernanke revealed the Fed's thinking on how to wean the market from emergency measures put in place to keep the economy afloat. He said the Fed will likely start tightening credit by boosting the interest rate it pays banks on deposits with the central bank.

The talk of a smaller role for the Fed in U.S. markets came as investors looked for the opposite overseas. Investors are hoping European Union countries will extend a bailout to Greece. The country is facing big budget gaps. There is concern that financial woes in Greece as well as in Portugal, Ireland and Spain could spread and threaten a global economic recovery.

"We're in a messy transition period," said Paul Ballew, chief economist at Nationwide Insurance in Columbus, Ohio. "While you see policymakers back off in some areas you're going to continue to see them intervene in other areas."

Officials said the EU member nations have made no decisions about how to help Greece. A gathering of EU officials is scheduled for Thursday.

The European debt problems have added to a series of economic problems that have stalled a 10-month advance in stocks. Investors have also been concerned about China's plans to curtail economic growth to avoid speculative bubbles. And they're uneasy about political matters, including President Barack Obama's calls to restrict trading at large financial institutions.

The prospect of a more restrained Fed shook the markets at first, although it wasn't a surprise.

Bernanke said in a statement the Fed likely will begin tightening credit by raising the interest rate it pays to banks on the money they have deposited at the Fed. That would lead to an increase in borrowing rates for consumers and businesses. The Fed chief said the central bank is not yet ready to boost interest rates, which stand at record lows.

Craig Kaufman, co-founder and head of capital markets at Kaufman Bros. L.P. in New York, said the Fed's plan is reasonable and didn't represent a shift in policy.

"We're sort of in this fake world and we need to show that we're moving back to a normalized process," Kaufman said, referring to the record-low interest rates.

The Dow fell 20.26, or 0.2 percent, to 10,038.38 a day after jumping 150 points as hope of a Greece bailout grew.

The broader Standard & Poor's 500 index fell 2.39, or 0.2 percent, to 1,068.13, while Nasdaq composite index fell 3.00, or 0.1 percent, to 2,147.87.

Bond prices slid for a second day after an auction of 10-year Treasury notes brought only modest demand. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.69 percent from 3.65 percent late Tuesday.

The dollar rose against most other currencies. Gold slid.

Crude oil rose 77 cents to $74.52 per barrel on the New York Mercantile Exchange.

Financial stocks rose after Legg Mason Inc. said its assets under management are higher than last year. The stock rose $1.37, or 5.5 percent, to $26.45.

Among companies reporting earnings, Dean Foods Co. fell $2.45, or 13.9 percent, to $15.19, after the dairy company said higher operating costs hurt its fourth-quarter results. The company's profit forecasts also fell short of analysts' expectations.

Shares of The Walt Disney Co. edged up 19 cents to $30.03 after the company's fiscal first-quarter earnings were about the same as a year earlier but above what analysts had predicted.

Advancing stocks narrowly outpaced those that fell on the New York Stock Exchange, where volume came to 1 billion shares, compared with 1.2 billion Tuesday. Analysts said volume was light in part because heavy snow along the East Coast kept some traders out of the market.

The Russell 2000 index of smaller companies rose 0.65, or 0.1 percent, to 595.82.

Britain's FTSE 100 rose 0.4 percent, Germany's DAX index gained 0.7 percent, and France's CAC-40 climbed 0.6 percent. Japan's Nikkei stock average rose 0.3 percent.

 

[bigdog]

Source: http://finance.yahoo.com

Participants continue to take their cues from the dollar, which surrendered a strong gain against a basket of foreign currencies to give both stocks and commodities a broad-based lift.

Stocks actually started the session on weak footing as the Dollar Index made its way from a moderate loss to a healthy gain. The move led many to dismiss a relatively pleasing weekly jobless claims report, which featured a larger-than-expected decline in initial jobless claims to 440,000 and a continuing claims tally of 4.54 million -- a one-year low.

Relief about Europe's pledge to support Greece sent the stock market charging higher Thursday.

The Dow Jones industrial average jumped 106 points as confidence grew that aid to Greece would extinguish one of the several threats that investors see to an economic recovery.

The market's advance was broad-based, but energy and materials stocks logged some of the biggest gains after oil prices rose for a fourth day. A tame report on inflation in China suggested the country wouldn't have to move more aggressively to slow its economy.

The NYSE DOW closed HIGHER +105.81 points +1.05% on Wednesday February 11
Sym. Last......... ........Change..........
Dow 10,144.19 +105.81 +1.05%
Nasdaq 2,177.41 +29.54 +1.38%
S&P 500 1,078.47 +10.34 +0.97%
30-yr Bond 4.6790% +0.4300

NYSE Volume 5,165,277,500 (prior day 4,982,941,500)
Nasdaq Volume 2,149,687,250 (prior day 2,039,927,880)

Europe
Symbol.... Last...... .....Change.......
FTSE 100 5,161.48 +29.49 +0.57%
DAX 5,503.93 -32.44 -0.59%
CAC 40 4,012.91 -1.06 -0.03%


Asia
Symbol...... Last...... .....Change.......
Nikkei 225 9,963.99 +31.09 +0.31%
Hang Seng 20,290.69 +368.47 +1.85%
Straits Times 2,753.63 +19.24 +0.70%

http://finance.yahoo.com/news/Stocks-climb-after-EU-pledges-apf-2042586982.html?x=0

Stocks climb after EU pledges support for Greece

Stocks rise after EU officials offer support for Greece; First-time jobless claims fall

By Tim Paradis, AP Business Writer , On Thursday February 11, 2010, 5:47 pm

NEW YORK (AP) -- Relief about Europe's pledge to support Greece sent the stock market charging higher Thursday.

The Dow Jones industrial average jumped 106 points as confidence grew that aid to Greece would extinguish one of the several threats that investors see to an economic recovery.

The market's advance was broad-based, but energy and materials stocks logged some of the biggest gains after oil prices rose for a fourth day. A tame report on inflation in China suggested the country wouldn't have to move more aggressively to slow its economy.

China's rapid economic expansion has been driving up demand for natural resources, and the benign signal on inflation there sent shares of materials companies higher. Oil and gas company Pioneer Natural Resources Co. and metals producer Freeport-McMoRan Copper & Gold Inc. each rose more than 4 percent.

A drop in the dollar also helped to lift commodity prices, which are priced in dollars and become less expensive to foreign buyers when the dollar falls.

Encouraging news about jobs in the U.S. also supported the stock market. The Labor Department said first-time claims for jobless benefits fell more than expected last week. Economists say a lasting economic recovery can't take hold without big gains in jobs.

Analysts warned that a patch to Greece's finances won't necessarily be enough to restart a 10-month rally in stocks that stalled last month. Questions are still looming over the market about how the U.S. economy will fare after the government starts to unwind the supports it used to stabilize the financial system over the past two years.

Stephen Wood, chief market strategist at Russell Investments, predicts that financial problems will continue to sideswipe the market.

"Stories similar to Greece are not going to let up for a while," Wood said.

Concerns about China's efforts to slow its rapid economic growth and questions about proposed regulatory changes in Washington for banks are still weighing on the market. The benchmark Standard & Poor's 500 index is down 6.2 percent from a 15-month high in mid-January.

Fed Chairman Ben Bernanke on Wednesday outlined plans to begin to wean the economy from government aid. The market initially took the news poorly but then recovered later in the day as many analysts viewed the plans as a logical next step for policymakers.

"What has really stood out is how negative sentiment has gotten and how quickly it got there. To me, it suggests a pretty skittish market," said Max Bublitz, chief strategist at SCM Advisors in San Francisco.

Still, the brightening prospects for Greece managed to give stocks a bounce. Expectations had been building that a Thursday summit of European leaders would produce a solution for the problem. EU leaders said they would take steps to guard financial stability in Europe but did not offer details.

The Dow rose 105.81, or 1.1 percent, to 10,144.19, its highest close in more than a week. The S&P 500 index rose 10.34, or 1 percent, to 1,078.47. The Nasdaq composite index rose 29.54, or 1.4 percent, to 2,177.41.

Bond prices were mixed following weak demand at a government auction of 30-year Treasury notes. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.73 percent from 3.69 percent late Wednesday.

Crude oil climbed 76 cents to $75.28 per barrel on the New York Mercantile Exchange. Gold also rose.

Fred Fraenkel, chairman of investment policy Beacon Trust Company in Madison, N.J., said the concerns about Greece and countries like Portugal, Spain and Ireland are overblown. He contends that traders were simply nervous that the market had been rising too fast and wanted a pause.

"It's pretty normal that people come up with lots of things to worry about," Fraenkel said. "None of the things are new. They're all pretty much things we've been watching unfold for the last year."

The Labor Department said the number of newly laid-off workers seeking unemployment benefits fell by 43,000 to a seasonally adjusted 440,000, the lowest level in a month. Economists polled by Thomson Reuters had expected a more modest drop.

The decrease came after claims rose in four of the previous five weeks. The recent rise in claims raised questions about whether an economic recovery would be sustainable. High unemployment is one of the biggest obstacles to a rebound.

Economic news from China signaled that inflation eased in January. Consumer prices rose 1.5 percent, less than in December. The report brought speculation that China wouldn't have to slow its economy as a way to fight inflation. Reduced growth would cut into demand for foreign goods and materials.

Among stocks, Pioneer Natural Resources rose $1.96, or 4.3 percent, to $47.33, while Freeport McMoran rose $3.14, or 4.4 percent, to $74.17.

Energy stocks also gained after a buyout in the industry. Utility company FirstEnergy is acquiring rival power provider Allegheny Energy for about $4.7 billion in stock. It will also assume about $3.8 billion in debt.

Allegheny jumped $2.53, or 12 percent, to $23.55, while FirstEnergy fell $1.87, or 4.5 percent, to $39.59.

Three stocks rose for every one that fell on the New York Stock Exchange, where volume came to 1.1 billion shares compared with 1 billion Wednesday.

The Russell 2000 index of smaller companies rose 9.64, or 1.6 percent, to 605.46.

Britain's FTSE 100 rose 0.6 percent, Germany's DAX index fell 0.6 percent, and France's CAC-40 lost 0.5 percent. Japanese markets were closed for a holiday.