NYSE Dow Jones finished today at:

[bigdog]

The NYSE DOW closed LOWER by 42 points on Monday 23:

Symbol ----- Last --- Change
Dow 12,919.40 -42.58 (0.33%)
Nasdaq 2,523.67 -2.72 (0.11%)
S&P 500 1,480.93 -3.42 (0.23%)
10-Yr Bond 4.6500% -0.0220
NYSE Volume 2,610,247,000
Nasdaq Volume 2,012,985,000

http://biz.yahoo.com/ap/070423/wall_street.html?.v=53
Stocks Fall, Dow Retreats From 13,000
Monday April 23, 5:51 pm ET
By Madlen Read, AP Business Writer
Wall Street Retreats on Rising Oil Prices After Dow Nears 13,000 Mark

NEW YORK (AP) -- Stocks retreated from historically lofty levels Monday as rising oil prices chilled investor enthusiasm for strong earnings reports and new takeover activity. The Dow Jones industrials came within 17 points of 13,000 before pulling back.

The blue chip index hit a new trading high of 12,983.92 after British bank Barclays PLC said it will acquire Dutch bank ABN Amro NV for $91.16 billion, and British drugmaker AstraZeneca PLC said it will buy U.S. drugmaker MedImmune Inc. for $15.6 billion. Though the U.S. economy has been slowing and the dollar has been weakening, global takeover activity remains robust, giving investors reason to believe U.S. companies will keep finding ways to pull in profits.

But the market was still vulnerable to a downturn. Corporate growth is slower than it has been in years, though, and investors grew cautious as they awaited more clues about the direction of the economy. And so Monday, a spike in crude oil prices above $65 a barrel reignited inflation worries, and reminded Wall Street that other economic obstacles exist as well, such as a weak dollar and slow housing market.

Analysts said investors were trading deliberately -- and avoided succumbing to pre-13,000 euphoria. Although the Dow passed 12,000 only last October, there appeared to be little of the kind of frenzy that drove the market's major indexes to record after record during the dot-com boom.

"Anytime you approach a new milestone -- especially 13,000, which is a psychological barrier -- it's not going to happen overnight. It's going to take some time," said Peter Cardillo, chief market economist at New York-based brokerage house Avalon Partners Inc. "The market has gone up on earnings, and the earnings story has already been factored in .... There are a lot of negative things out there that the market has been ignoring."

The Dow Jones industrial average fell 42.58, or 0.33 percent, to 12.919.40. On Friday, the Dow rose more than 150 points to 12,961.98, posting its seventh straight gain and third straight record close. The blue chip index appears to have recovered from its stumble in late February, and has hit 34 record closes since the beginning of October last year.

The broader Standard & Poor's 500 index fell 3.42, or 0.23 percent, to 1,480.93. The index is about 3 percent away from its record close of 1,527.46, reached in March 2000.

The technology-dominated Nasdaq composite index lost 2.72, or 0.11 percent, to 2,523.67. It stands at about half its record closing level of 5,048.62, also reached in March 2000.

Bonds rose as stocks fell. The yield on the benchmark 10-year Treasury note fell to 4.65 percent from 4.67 percent late Friday.

Crude oil prices climbed $1.65 to $65.76 a barrel on the New York Mercantile Exchange on growing concerns that oil supplies could be disrupted as violence escalates in Nigeria.

Gold prices slipped. The dollar rose slightly against the euro and British pound, but is still trading at historically low levels versus those currencies.

The dollar's recent drop is not necessarily bad for the U.S. economy; it makes U.S. goods comparatively cheaper and therefore more attractive to foreign importers. However, a weaker dollar reduces its allure as an investment currency, especially as interest rates rise in other countries.

Corporate profits have been cooling after more than three years of double-digit growth, but nonetheless have been generally stronger than expected so far this earnings season.

After the closing bell, Texas Instruments Inc. issued better-than-expected first-quarter results. Shares closed down 9 cents at $32.41 in the regular session, but surged 8.6 percent to $35.20 in after-hours trading.

Other earnings reports from companies including Hasbro Inc., Novartis SA and Kimberly-Clark Corp. came in strong.

Hasbro rose $2.33, or 7.7 percent, to $32.54, while U.S. shares of Novartis fell 39 cents to $57.44.

Kimberly-Clark fell 84 cents to $71.10.

Merger-and-acquisition activity continues to surge. Barclays' buy of ABN Amro would be the world's biggest bank deal, and will lead to ABN Amro selling its U.S. unit, LaSalle Bank, to Bank of America Corp. for $21 billion. Bank of America fell 53 cents to $50.51.

MedImmune, AstraZeneca's takeover target, rose $8.56, or 17.8 percent, to $56.57. AstraZeneca fell $3.13, or 5.3 percent, to $55.91.

Later this week, investors will see results from six more of the Dow component companies, as well as data on the housing market, durable goods, gross domestic product and consumer confidence.

"We still have quite a bit of earnings news this week. Generally, that's going to be positive. As long as the economic data falls in line, we should still continue to push prices higher," said Jack Ablin, chief investment officer at Harris Private Bank.

Advancing issues narrowly outnumbered decliners on the New York Stock Exchange, where consolidated volume came to 2.56 billion shares, down from 3.29 billion on Friday.

The Russell 2000 index of smaller companies fell 1.31, or 0.16 percent, to 827.55.

Overseas, China's Shanghai Composite Index rose 3.5 percent and Japan's Nikkei stock average gained 0.02 percent. Britain's FTSE 100 dropped 0.11 percent, Germany's DAX index slipped 0.09 percent, and France's CAC-40 lost 0.36 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

The NYSE DOW closed Higher by 34 points on Tuesday 24:

Symbol ----- Last --- Change
Dow 12,953.94 +34.54 (0.27%)
Nasdaq 2,524.54 +0.87 (0.03%)
S&P 500 1,480.41 -0.52 (0.04%)
10-Yr Bond 4.62% -0.03
NYSE Volume 3,192,368,000
Nasdaq Volume 2,339,467,000

http://biz.yahoo.com/ap/070424/wall_street.html?.v=48
Stocks Recover, Close Mixed on Earnings
Tuesday April 24, 5:41 pm ET
By Joe Bel Bruno, AP Business Writer
Stocks Recover, Close Higher As Investors Focus on Strong Earnings, Look Past Housing Data

NEW YORK (AP) -- Wall Street was mixed Tuesday, recovering from an early loss as investors shrugged off disappointing housing and consumer confidence data to focus on stronger-than-expected quarterly earnings. The Dow Jones industrials set a new trading high, and resumed their trek toward 13,000.

The market picked up momentum in mid-afternoon. Investors seemed to lose some of the earlier caution they adopted after the National Association of Realtors reported sales of existing homes in March had their biggest one-month decline since January 1989. Also, the Conference Board reported consumer confidence fell more than expected in April due to higher gas prices and broader economic concerns.

Robust first-quarter earnings reports have been driving the market higher over the past week, allowing the Dow to approach 13,000, and there were more upbeat results cheering the market on Tuesday: from U.S. military contractor Lockheed Martin Corp., Dow industrials AT&T Inc. and Dupont Co., and chip maker Texas Instruments Inc.

"A general optimistic tone related to better-than-expected earnings is what's moving it," said Richard E. Cripps, chief market strategist for Stifel Nicolaus, a broker based in St. Louis. However, "it's not a market that's necessarily very broad in its advance."

He pointed out that the Dow's strong gains in afternoon trading were driven by only a few companies, notably International Business Machines Corp. and Honeywell International Inc., which both made dividend announcements. Also, there were much smaller moves in the broader Standard & Poor's 500 and Nasdaq composite indexes -- which so far this year have risen by greater percentages than the Dow.

The Dow rose 34.54, or 0.27 percent, to 12,953.94. The index set a new intraday high of 12,989.86, less than 11 points away from 13,000.

Broader markets were mixed. The S&P 500 index was down 0.52, or 0.03 percent, at 1,480.41, and the Nasdaq rose 0.87, or 0.03 percent, to 2,524.54.

The Nasdaq is slightly above the halfway point to its record close of 5,048.62, while the S&P is just 3 percent below its record close of 1,527.46. Both records were reached in March 2000, at the end of the dot-com boom.

"Where I think you'll get a lot more excitement is when the S&P pushes past the 2,000 level. That's going to be a real event," Cripps said.

Investors weren't buying with abandon: Declining issues outnumbered advancers Tuesday by about 3 to 2 on the New York Stock Exchange, where consolidated volume came to 3.11 billion shares, up from Monday's 2.56 billion.

"Everyone is remembering where we were a year ago, when we were all talking about Dow 12,000, and then the market ended up tanking in May," said Matt Kelmon, portfolio manager of the Kelmoore Strategy Funds. "I think there's just nervousness out there that this could again be the case, and there really isn't a lot to propel the market with. You'll see a new focus on data."

Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.62 percent from 4.65 percent late Monday.

The dollar fell against other major currencies, with the euro close to its record high of $1.3667. Gold prices also fell.

Oil prices declined, with a barrel of light sweet crude down $1.30 at $64.59 on the New York Mercantile Exchange. There has been continued concerns about violence in Nigeria, a key oil producer, and the size of inventories of oil and gasoline in the U.S.

In earnings news, Texas Instruments surged $2.51, or 7.7 percent, to $34.92 after its first-quarter results surpassed Wall Street expectations. The world's largest maker of mobile phone chips also provided better-than-expected financial projections for the year.

Lockheed Martin, the nation's largest military contractor, reported quarterly profit rose 17 percent from the year-ago period. However, sales were weaker than expected, and its shares fell $2.25, or 2.3 percent, to $94.82.

AT&T reported profit doubled during the first quarter to beat Wall Street projections. However, shares fell 67 cents to $39.10 as growth in its wireless business lagged.

DuPont posted a 16 percent rise in first-quarter profit on higher sales of seeds and improved pharmaceuticals. Shares of the specialty chemicals maker rose 67 cents to $49.86.

IBM rose $3.28, or 3.4 percent, to $98.49 after the company increased its dividend payout by 10 cents and authorized an aggressive ramp-up of its share buyback program.

Honeywell rose $1.67, or 3.2 percent, to $52.90 after announcing late Monday a dividend of 25 cents a share.

Housing stocks moved broadly lower after the Realtors' report showed the subprime mortgage sector's problems pushed existing-home sales below what economists were expecting. DR Horton Inc. fell 6 cents to $22.53; Beazer Homes USA Inc. shed 15 cents to $33.23; and Lennar Corp. rose 8 cents to $43.24.

The Russell 2000 index of smaller companies was down 1.19, or 0.14 percent, at 826.36.

Overseas, Japan's Nikkei stock average closed down 0.02 percent. At the close, Britain's FTSE 100 was down 0.77 percent, Germany's DAX index was down 0.89 percent, and France's CAC-40 was down 0.53 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

The NYSE DOW closed Higher by 136 points on Wednesday 25:

Symbol ----- Last --- Change
Dow 13,089.89 +135.95 (1.05%)
Nasdaq 2,547.89 +23.35 (0.92%)
S&P 500 1,495.42 +15.01 (1.01%)
10-Yr Bond 4.6460% +0.0240
NYSE Volume 3,252,594,000
Nasdaq Volume 2,735,255,000

http://biz.yahoo.com/ap/070425/wall_street.html?.v=64
Dow Passes 13,000 on Earnings Data
Wednesday April 25, 6:00 pm ET
By Madlen Read and Tim Paradis, AP Business Writers
The Dow Jones Industrial Average Passes 13,000 As Upbeat Earnings Reports Continue

NEW YORK (AP) -- It looks like cause for celebration: The Dow Jones industrial average surged from 12,000 to 13,000 in just six months. But appearances can be deceiving, and there may be more reason to worry than rejoice about Wall Street's latest accomplishment.

Stronger-than-expected profits from several large companies helped push the stock market to historical heights. But many big corporations, including the Dow components, made a chunk of that money overseas, where economies are growing faster than in the United States. And many of the same worries that weighed on investors earlier in the year remain: rising energy costs, a slumping housing market and a possible credit crunch.

Still, the stock market's best-known indicator swept past its latest milestone shortly after trading began Wednesday, and even made it past 13,100, rising as high as 13,107.45. The Dow, which has risen in 18 of the past 20 sessions and gained more than 780 points in that time, closed at 13,089.89, up 135.95, or 1.05 percent. It was the Dow's 35th record close since the start of October.

The broader market shared in the rally. The Standard & Poor's 500 index rose 15.01, or 1.01 percent, to 1,495.42, after reaching 1,496.59, a six-and-a-half-year high. The technology-dominated Nasdaq composite index advanced 23.35, or 0.92 percent, to 2,547.89, after hitting a six-year high of 2,551.39.

And the Russell 2000 index, which reflects the performance of smaller companies, inched past a record close set earlier this month, rising 5.71, or 0.69 percent, to 832.07.

It took the Dow just 129 trading days, since Oct. 18, to make the trek from 12,000 to 13,000, far less than the 7 1/2 years the blue chips took to go from 11,000 to 12,000. The swiftness of this latest trip does recall the days of the dot-com boom when the major indexes were soaring and it took the Dow a mere 24 days to barrel from 10,000 to 11,000.

The Dow climbed to a record this time as many of the country's biggest companies surpassed analysts' first-quarter earnings projections. Among those beating forecasts and advancing Wednesday: soft-drink maker PepsiCo Inc., materials manufacturer Corning Inc. and Dow component Boeing Co.

Wall Street got an additional lift from the Commerce Department's report of an increase in durable goods orders, which reassured investors that demand for U.S. products remains strong. The department also reported that sales of new homes rebounded slightly in March.

About two-thirds of U.S. companies so far have reported earnings that were in line with or higher than analyst expectations, said Jim Herrick, director of equity trading at Baird & Co.

"We've had pockets of companies report better earnings, and in light of the Fed not appearing to raise rates anytime soon, that bodes well for the market," said Herrick, referring to the Federal Reserve. "Going forward, the market's going to be data-driven. The market's going to focus on economic data to get a hint about what the Fed will do in the latter half of the year."

Wednesday's advance gained even more momentum from the Fed's assessment that economic growth seemed moderate in much of the country. Inflation appeared tame, according to the Fed's Beige Book, which describes economic conditions in regions around the country and arrives two weeks before the central bank's next meeting.

Investors have been encouraged by stable earnings growth, which shows U.S. companies are faring well despite a slow economy. A large reason why corporate growth has held up is strength in international sales; PepsiCo Inc., for one, said Wednesday its overall profit rose 16 percent, despite a drop in operating profit at its North America unit.

Also giving exporters an advantage, the dollar is trading near historical lows versus the euro. The 13-nation currency rose as high as $1.3664 Wednesday.

"International sales are a huge part of S&P 500 revenues, and this lower dollar makes these companies more competitive," said Scott Wren, equity strategist for A.G. Edwards & Sons. He said analysts estimate 30 percent to 40 percent of sales at S&P 500 companies come from outside the United States.

The biggest gainer among the 30 Dow industrials was Alcoa Inc. The aluminum producer said Wednesday it is considering selling its packaging and consumer businesses, which account for about 10 percent of annual revenue. Alcoa rose $1.81, or 5.3 percent, to $35.76.

3M Corp., the sole decliner in the Dow, slipped 3 cents to $76.97 ahead of its earnings report Thursday.

The technology-dominated Nasdaq was lifted by Amazon.com, which reported late Tuesday that its first-quarter profit more than doubled, besting analyst estimates. The Web retailer also boosted its revenue forecast for the year, reassuring investors that technology companies have the potential to keep posting profits. Amazon rose $12.06, or 27 percent, to $56.81.

The nearly 111-year-old Dow was the first of the major indexes to recover from the stock market's prolonged slump in the early part of the decade. The S&P 500 has yet to reach its closing peak of 1,527.46, set in March 2000, and no one expects the Nasdaq to equal its record of 5,048.62, also reached in March 2000, anytime soon.

Wednesday's run-up helped buoy the major indexes gains for the year, sending the Dow, S&P and Nasdaq each up about 5 percent.

The Dow's latest achievement did not come without setbacks and volatility -- the index lost 416 points in a single session on Feb. 27 amid fears that the U.S. economy would fall into recession and that China's economy would slow as well. Wall Street has since had periodic shudders over signs that inflation might be getting out of hand -- a trend that would lead the Fed to resume interest rate hikes -- and over data showing weakness in the housing market.

Just two weeks ago, the Dow fell nearly 90 points after minutes from the last Fed meeting showed the central bank's level of concern about inflation.

Inflation could re-emerge as an obstacle to the stock market's uptrend if energy costs keep surging. On Wednesday, crude oil futures settled up $1.26 to $65.64 per barrel and gasoline futures rose to 8 1/2 month highs on the New York Mercantile Exchange, after the Energy Department reported a decline in U.S. gasoline inventories.

Bonds fell after the positive economic data and amid the advance in stocks. The yield on the benchmark 10-year Treasury note rose to 4.65 percent from 4.62 percent late Tuesday.

Gold prices rose.

Advancing issues outnumbered decliners by more than 2 to 1 on the New York Stock Exchange, where consolidated volume came to 3.17 billion shares, just ahead of Tuesday's 3.11 billion shares.

Overseas, Japan's Nikkei stock average fell 1.24 percent. Britain's FTSE 100 closed up 0.50 percent, Germany's DAX index gained 1.00 percent, and France's CAC-40 added 1.04 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

The NYSE DOW closed Higher by 15 points on Thursday 26:

Symbol ----- Last --- Change
Dow 13,105.50 +15.61 (0.12%)
Nasdaq 2,554.46 +6.57 (0.26%)
S&P 500 1,494.25 +1.17 (0.08%)
10-Yr Bond 4.6840% -0.0380
NYSE Volume 3,211,796,000
Nasdaq Volume 2,511,744,000

http://biz.yahoo.com/ap/070426/wall_street.html?.v=44
Stocks End Flat As Dow Sets New Record
Thursday April 26, 5:39 pm ET
By Tim Paradis, AP Business Writer
Stocks Finish Flat After Earnings Reports Fail to Galvanize the Market After Dow Cracks 13,000

NEW YORK (AP) -- Wall Street paused Thursday, with stocks little changed as strong profit reports from names like Apple Inc. and 3M Corp. failed to galvanize the market a day after the Dow Jones industrials crossed 13,000. Still, a modest advance in the Dow gave the blue chips another record close.

Investors often tread water and reassess valuations after stocks push through technical or psychological barriers such as the Dow's ascent past 13,000 Wednesday. Beyond the Dow's move, investors were also keeping watch over the Standard & Poor's 500 index, which has in recent sessions crept closer to its high of 1,527.46, reached in March 2000.

Better-than-expected profit news, which helped vault the Dow into record territory Wednesday and to a new trading high Thursday, continued but with less effect than in the previous session.

Apple said its fiscal second-quarter profit rose 88 percent amid robust sales of iPods and Macintosh computers. Reports from Dow component 3M and automaker Ford Motor Co. also pleased investors.

"Once you go through what people consider a milestone you are often going to have a little rest," said Ron Kiddoo, chief investment officer at Cozad Asset Management. "Earnings are lending support to the market. Obviously, there are some disappointments, but they're much above what people were expecting."

The Dow rose 15.61, or 0.12 percent, to 13,105.50 after hitting a fresh trading high of 13,132.80. Thursday marked the Dow's 18th rise in the past 20 sessions and its 36th record close since the start of October. The gains Wednesday and Thursday left the Dow up more than 5 percent for the year.

Broader indexes ended mixed Thursday. The Standard & Poor's 500 index slipped 1.17, or 0.08 percent, to 1,494.25, while the Nasdaq composite index rose 6.57, or 0.26 percent, to 2,554.46.

Bonds fell amid the continuation of strong earnings reports. The yield on the 10-year note rose to 4.69 percent from 4.65 percent late Wednesday.

The Dow swept past its latest milestone Wednesday amid better-than-expected earnings and economic data. But the question on investors' minds is whether upcoming data will prove the market's recent rally was justified, or overdone.

While the economic calendar is busier next week, Kiddoo contends earnings will continue to drive stocks until midweek or so when investors begin to focus on the governments employment report, due to arrive May 4.

So far, 22 of the 30 Dow components have reported earnings, with 16 of those reports topping expectations. Dow component Exxon Mobile Corp. released better-than-expected earnings Thursday; it rose 63 cents to $80.55. Microsoft Corp.'s fiscal third-quarter results, which the company announced after the closing bell Thursday, also came in ahead of expectations. Microsoft finished up 11 cents at $29.10 and rose in after-hours electronic trading.

In other corporate news, Apple's profit report beat analysts' estimates, and the stock at times surpassed $100 a share. Apple closed up $3.49, or 3.7 percent, at $98.84.

3M, whose products include Scotch tape and coatings for flat-panel televisions, reported a stronger profit than Wall Street predicted, sending the stock up $3.48, or 4.5 percent, to $80.45. Ford, meanwhile, reported a narrower-than-expected loss for the first quarter. Ford rose 32 cents, or 4.1 percent, to $8.20.

Wendy's International Inc. said late Wednesday it is considering a possible sale of the company, among other options. The burger chain rose $5.31, or 16.3 percent, to $37.99.

Covansys Corp. rose $6.49, or 24.2 percent, to $33.29 after the provider of information-technology services agreed to be acquired by Computer Sciences Corp. for $1.3 billion. As is typical of companies announcing acquisitions, Computer Sciences slipped 14 cents to $55.83.

Harman International Industries Inc., which makes audio equipment, agreed to be taken private in an $8 billion deal. The company, which also said its fiscal third-quarter profit rose 11 percent, jumped $19.94, or 19.4 percent, to $122.50.

A light flow of economic news Thursday didn't appear to hold much sway over stocks. Among the reports, the Labor Department said applications for jobless benefits fell last week by 20,000, the biggest decrease in nearly two months.

Federal Reserve banks in Chicago and Kansas City said manufacturing activity rose in their respective regions.

Friday will bring more weighty data for investors, who are particularly interested in the Commerce Department's initial estimate of first-quarter gross domestic product.

Gold fell on Thursday, while the dollar was mixed against other major currencies.

Light sweet crude settled down 78 cents at $65.06 per barrel on the New York Mercantile Exchange.

Declining issues outpaced advancers by about 9 to 7 on the New York Stock Exchange, where consolidated volume totaled 3.14 billion shares, compared with 3.17 billion traded Wednesday.

Overseas, Japan's Nikkei stock average rose 1.12 percent. Britain's FTSE 100 closed up 0.12 percent, Germany's DAX index rose 0.60 percent, and France's CAC-40 ended down 0.05 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

The NYSE DOW closed Higher by 15 points on Friday 27:

Symbol ----- Last --- Change
Dow 13,120.94 +15.44 (0.12%)
Nasdaq 2,557.21 +2.75 (0.11%)
S&P 500 1,494.07 -0.18 (0.01%)
10-Yr Bond 4.6980% +0.0140
NYSE Volume 2,757,250,000
Nasdaq Volume 2,148,650,000

http://biz.yahoo.com/ap/070427/wall_street.html?.v=34
Dow Sets Record; Wider Market Flat
Friday April 27, 6:29 pm ET
By Tim Paradis, AP Business Writer
Dow Hits Record Close, but Broader Market Ends Flat Amid Weak Economy Reading

NEW YORK (AP) -- Stocks finished a strong week mostly flat Friday as investors tried to reconcile a weaker-than-expected estimate of first-quarter economic growth with fresh evidence that corporate profits remain robust. A modest advance in the Dow Jones industrials sent the blue chips to their third record close in as many days.

A Commerce Department report that the U.S. gross domestic product grew at an annual rate of 1.3 percent in the first quarter -- its slowest pace in four years -- unnerved some investors Friday and seemed to run counter to a parade of strong earnings reports that sent major indexes sharply higher during the week. The economy's growth was below economists' expectations and down sharply from 2.5 percent in the previous quarter.

The government data also showed that pricing pressures were rising -- stirring concern that U.S. consumers might curb spending.

The GDP data helped push the euro to a high against the dollar; the 13-nation currency rose as high as $1.3682.

Keeping stocks afloat, however, was another round of robust earnings news -- notably from Microsoft Corp., one of the 30 companies that make up the Dow. So far, 22 of the 30 Dow components have reported earnings, and 16 have exceeded expectations.

"I think the reason the market appears to be doing better than the economy right now is the decent job managers are doing at incorporating improvements in productivity," said Rob Lutts, chief investment officer at Cabot Money Management. "Corporations are making gains on the bottom line without making gains on the top line," he said, referring to earnings and revenue.

The Dow Jones industrial average rose 15.44, or 0.12 percent, to 13,120.94. The Dow set a trading high of 13,148.00 Friday after surpassing 13,000 for the first time Wednesday. The Dow's gain Friday marked the 37th record close for the index since October. For the week, the Dow rose 1.2 percent.

Broader indexes finished mixed Friday. The Standard & Poor's 500 index slipped 0.18, or 0.01 percent, to 1,494.07, while the technology-dominated Nasdaq composite index rose 2.75, or 0.11 percent, to 2,557.21.

For the week, the S&P rose 0.7 percent, while the Nasdaq gained 1.2 percent.

The S&P 500 is about 2 percent below its high of 1,527.46, reached in March 2000. Wall Street has been eyeing the index, waiting for it to move back above 1,500; the S&P 500 hasn't closed above that level since September 2000.

The Nasdaq, meanwhile, is slightly above the halfway point to its high, which also came in March 2000.

The bevy of profit reports and economic figures has left Wall Street grappling with at times seemingly disparate signals about the direction of stocks. Slowing economic growth could prompt the Federal Reserve to lower short-term interest rates, giving a boost to stocks, but rising inflation could prevent the central bank from making a cut. Meanwhile, a weak dollar helps exporters, but hurts importers.

"As long as our economy doesn't really slow down and go into big negative mode, then profits can continue to grow and the markets will probably do OK," Lutts said, noting that while the economy slowed in the first quarter, it did not contract.

Though the U.S. economy has been cooling, investors have been buying stocks in part because corporate profits are still rising. U.S. companies that also operate abroad have drawn sizable profits from countries with stronger economies and currencies.

"Every company has a little bit different story, but those that are being well-managed and having good growth are producing good results. Generally we're seeing pretty good numbers," he said.

Microsoft was among the latest companies to lend support to investor sentiment. The software maker jumped $1.02, or 3.5 percent, to $30.12, after reporting a 65 percent surge in its fiscal third-quarter earnings amid strong sales of its new Windows Vista operating system and Office 2007 software suite.

General Electric Co. was the second-best performer in the Dow Friday behind Microsoft, rising $1, or 2.8 percent, to $36.84 after Citigroup Inc. analysts said the conglomerate could benefit by selling its entertainment, real estate and financial businesses.

Goodyear Tire & Rubber Co. reported a loss for the first quarter compared with a profit a year earlier but pleased Wall Street with word it would dig deeper to trim costs and that a recovery from a strike was proving less onerous than expected. Goodyear rose $1.91, or 5.9 percent, to $34.41.

Airline stocks fell, however, after JPMorgan Chase lowered its rating on several carriers, seeing little cause for the stocks to move higher. American Airlines parent AMR Corp. fell $1.34, or 4.8 percent, to $26.35, while Continental Airlines Inc. dropped $2.53, or 6.5 percent, to $36.25.

Along with profit news, corporate takeover activity continued to buoy the mood on Wall Street. On Friday, Citigroup said it successfully took over Japanese brokerage Nikko Cordial Corp. for $7.7 billion. The acquisition was the largest ever by a foreign company in Japan. As is typical of an acquiring company, Citigroup fell, slipping 19 cents to $53.37.

In addition to the GDP data, investors examined the Reuters/University of Michigan consumer sentiment index, which rose to 87.1 in April from a preliminary reading of 85.3 but fell from 88.4 in March.

Bonds were little changed; the 10-year yield was flat at 4.70 percent from late Thursday.

Light, sweet crude settled up $1.40 at $66.46 per barrel on the New York Mercantile Exchange, rising late in the session after Saudi Arabia arrested 172 militants, some of whom it said planned to attack oil fields.

Gold prices rose.

Declining issues outnumbered advancers by about 3 to 2 on the New York Stock Exchange, where consolidated volume came to 2.7 billion shares, down from the heavy 3.14 billion shares traded Thursday.

The Russell 2000 index of smaller companies fell 4.10, or 0.49 percent, to 829.70.

Stock markets overseas fell. Japan's Nikkei stock average slipped 0.16 percent, while Britain's FTSE 100 ended down 0.78 percent, Germany's DAX index lost 0.12 percent, and France's CAC-40 declined 0.23 percent.

The Dow Jones industrial average ended the week up 158.96, or 1.23 percent, at 13,120.94. The Standard & Poor's 500 index finished up 9.72, or 0.65 percent, at 1,494.07. The Nasdaq composite index ended up 30.82, or 1.22 percent, at 2,557.21.

The Russell 2000 index finished the week up 0.84, or 0.10 percent, at 829.70.

The Dow Jones Wilshire 5000 Composite Index -- a free-float weighted index that measures 5,000 U.S. based companies -- ended Friday at 15,092.75, up 82.84 points for the week. A year ago, the index was at 13,268.97.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

The NYSE DOW closed LOWER by 58 points on Monday April 30:

Symbol ----- Last --- Change
Dow 13,062.91 -58.03 (0.44%)
Nasdaq 2,525.09 -32.12 (1.26%)
S&P 500 1,482.37 -11.70 (0.78%)
10-Yr Bond 4.6300% -0.0680
NYSE Volume 3,093,415,000
Nasdaq Volume 2,210,038,000

The Dow surged 5.7 percent in April, the biggest percentage gain since December 2003,

http://biz.yahoo.com/ap/070430/wall_street.html?.v=40
Stocks Fall As Traders Eye Economic Data
Monday April 30, 5:44 pm ET
By Madlen Read, AP Business Writer
Stocks Retreat As Investors Take Profits, Chew on Inflation and Spending Data

NEW YORK (AP) -- Wall Street retreated Monday as investors, casting a wary eye toward upcoming economic data, cashed in some profits on the last trading day of April -- the Dow Jones industrial average's best month in more than three years.

Investors did manage to send the Dow to a new trading high before pulling money out of the market ahead of Tuesday's manufacturing data from the Institute for Supply Management. On Monday the report's precursor, the Chicago Purchasing Managers' index of manufacturing activity in the Midwest, came in weaker than expected.

The Dow surged 5.7 percent in April, the biggest percentage gain since December 2003, thanks in large part to first-quarter earnings that were stronger than analysts predicted. Quarterly profits released Monday by companies such as Verizon Communications, Wm. Wrigley Jr. Co., Kellogg Co. and RadioShack Corp. extended that trend.

Economic data on Monday was mixed. Investors were pleased by the Commerce Department's report that core inflation, as measured by personal consumption spending, was up 2.1 percent for the past 12 months ending in March -- lower than the 2.4 percent rise in the 12 months ending in February. If inflation eases, the Federal Reserve is more likely to cut interest rates.

But the data also showed personal spending increased only 0.3 percent. That, along with a slim gain in construction spending and the weak reading on Midwest manufacturing, caused some restraint among investors who are concerned about the economy slowing too quickly -- which could eventually hurt corporate profits.

"What the market is always going to ask is, what have you done for me lately?" said Alan Gayle, senior investment strategist at Trusco Capital Management. "The good earnings news has at least to some degree been reflected in stock market prices -- companies are going to have to continue generating these good numbers to see the market go higher."

The Dow fell 58.03, or 0.44 percent, to 13,062.91 after reaching a new trading high of 13,162.06. The Dow on Friday hit its 37th record close for the index since October. It is now up 4.8 percent on the year.

Broader stock indicators fell further Monday, as investors avoided smaller, less established companies due to signs of a cooling economy.

The Standard & Poor's 500 index fell 11.70, or 0.78 percent, to 1,482.37, while the Nasdaq composite index dropped 32.12, or 1.26 percent, to 2,525.09.

Bonds jumped on the data showing tame inflation and slow growth, which lower the chance of a rate hike. The yield on the benchmark 10-year Treasury note fell to 4.62 percent from 4.70 percent late Friday.

Gold prices rose. The dollar recovered slightly from Friday's decline, but still hovered around an all-time low against the euro.

Fueling the end-of-month selloff, the National Association of Purchasing Management-Chicago said its index of manufacturing activity was 52.9 in April, below the average estimate and down from a reading of 61.7 in March -- its highest level in two years. A reading above 50 in the index indicates growth in Midwest manufacturing, while a reading below 50 suggests contraction.

Caution ahead of this week's economic data ended up overshadowing strong earnings data Monday.

Verizon, one of the 30 Dow stocks, reported that its first-quarter profit fell 8.4 percent, but revenue rose 17 percent and the results beat predictions. Verizon rose 29 cents to $38.18.

RadioShack Corp. and Wm. Wrigley Jr. Co. also posted strong first-quarter profits. RadioShack rose $1.35, or 4.9 percent, to $29.07, while Wrigley jumped $3.83, or 7 percent, to $58.88.

Corporate growth has been better than expected but is in the single digits, slower than in recent quarters. That has allowed price-to-earnings ratios to rise, noted Jeffrey Kleintop, chief market strategist at LPL Financial Services, indicating stocks have potential to rise further.

In other corporate news, German stock exchange operator Deutsche Boerse AG confirmed it has agreed to buy the U.S. options exchange International Securities Exchange Holdings for $2.8 billion in cash. ISE surged $20.97, or 45.9 percent, to $66.69.

Light, sweet crude fell 75 cents to settle at $65.71 per barrel on the New York Mercantile Exchange.

The Russell 2000 index of smaller companies fell 15.13, or 1.82 percent, to 814.57.

Declining issues outnumbered advancers by nearly 3 to 1 on the New York Stock Exchange, where consolidated volume came to 2.99 billion shares, up from 2.7 billion shares Friday.

Overseas, Japanese markets were closed for a holiday, while Chinese markets hit record highs, driven by strong corporate earnings. But most other Asian markets fell as investors worried China may ramp up efforts to slow its booming economy after announcing new credit tightening measures.

Britain's FTSE 100 rose 0.48 percent, Germany's DAX index rose 0.42 percent and France's CAC-40 rose 0.49 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

The NYSE DOW closed HIGHER by 73 points on Tuesday May 1:

Symbol ----- Last --- Change
Dow 13,136.14 +73.23 (0.56%)
Nasdaq 2,531.53 +6.44 (0.26%)
S&P 500 1,486.30 +3.93 (0.27%)
10-Yr Bond 4.64% +0.01
NYSE Volume 3,410,898,000
Nasdaq Volume 2,458,919,000

http://biz.yahoo.com/ap/070501/wall_street.html?.v=45
Stocks Up on Murdoch Bid for Dow Jones
Tuesday May 1, 6:25 pm ET
By Madlen Read, AP Business Writer
Stocks Rise After Murdoch Bid for Dow Jones Reignites Takeover Excitement


NEW YORK (AP) -- Investors resumed their buying spree on Wall Street Tuesday, driving stocks higher after a bid for media company Dow Jones & Co. revived enthusiasm about takeover activity.

The Dow Jones industrial average reached another record close, its 38th since last October, as big company stocks benefited from the turnaround.

Earlier in the session, stocks wavered on mixed economic data that showed strength in manufacturing but a wilting housing market and weak car sales. After April's big advance, investors were wary that the current economy wouldn't justify another move higher on Wall Street.

But the caution dissipated after Dow Jones, which publishes The Wall Street Journal, confirmed that it received an unsolicited bid from Rupert Murdoch's News Corp. to buy the company for $5 billion, or $60 a share.

"The market kind of just took off from there," said Todd Leone, managing director of equity trading at Cowen & Co. News of the bid boosted media companies and publishers in particular, but also encouraged buying in other sectors, too, as it reaffirmed the ongoing trend of surging takeover activity in corporate America despite an economic slowdown. "It's money pouring into the market," Leone said.

The Dow industrials rose 73.23, or 0.56 percent, to 13,136.14, after dropping to 13,041.30 in earlier trading.

Broader stock indicators also pared early losses and turned higher. The Standard & Poor's 500 index rose 3.93, or 0.27 percent, to 1,486.30, and the Nasdaq composite index rose 6.44, or 0.26 percent, to 2,531.53.

Bond prices dropped after the manufacturing data made lower rates look less likely, and the yield on the benchmark 10-year Treasury note rose to 4.64 percent, up from 4.62 percent late Monday.

After investors heard Dow Jones was a takeover target, the company's stock surged $19.87, or 54.7 percent, to $56.20. News Corp., which owns the Fox broadcast network among many other media properties, fell $1.01, or 4.2 percent, to $22.99.

Other media stocks rose as well. New York Times Co. rose $1.18, or 5 percent, to $24.58; Journal Register Co. jumped 42 cents, or 7.3 percent, to $6.29; and Reuters Group PLC's U.S. shares climbed $2.19, or 3.8 percent, to $59.43.

Adding to the takeover buzz was a report that Microsoft Corp. is considering buying online advertising company 24/7 Real Media. 24/7 Real Media rose $2.02, or 20 percent, to $11.97, while Microsoft rose 25 cents to $30.19.

Though takeover fervor boosted stocks Tuesday, investors will be watching upcoming economic data, especially Friday's jobs data, to decide whether to tread further into record terrain or restrain their buying. April saw the biggest percentage gain in the Dow since December 2003.

"I would expect we spend some time in May digesting that move," said Arthur Hogan, chief market analyst at Jefferies & Co.

A stronger-than-expected reading on the Institute for Supply Management's April manufacturing index failed to spark buying. Robust manufacturing activity is good for many U.S. companies, but it reduces the chance that the Federal Reserve will cut interest rates to boost spending -- especially amid rising costs, which the ISM's report described.

Other data Tuesday evinced weakness in the housing and auto sectors. The National Association of Realtors said pending sales of existing homes fell 4.9 percent in March to their lowest level in four years, while Ford Motor Co., Toyota Motor Corp. and General Motors Corp. reported declines in U.S. sales for April. DaimlerChrysler reported a slim rise.

Ford rose a penny to $8.05; DaimlerChrysler rose 40 cents to $80.91; Toyota's U.S. shares rose 11 cents to $121.53; and GM rose 7 cents to $31.30.

But the auto sales overall weren't as bad as many were expecting, and the tepid housing market is nothing new, so investors reacted little to the data.

"Unless you've been living underneath a rock, you know residential real estate is hitting a soft patch here," Hogan said.

Earnings reports were mixed Tuesday.

Procter & Gamble Co., one of the 30 Dow components and maker of Crest toothpaste and Pampers diapers, said profit in the most recent quarter rose 14 percent, but the figure failed to top expectations. Procter & Gamble fell $1.55, or more than 2 percent, to $62.96.

Archer Daniels Midland Co.'s fiscal third-quarter earnings fell short of Street forecasts, with the country's largest ethanol producer citing higher corn costs. ADM fell $2.10, or 5.4 percent, to $36.60.

Circuit City Stores Inc. said it expects to report steep first-quarter losses. The electronics retailer dropped 93 cents, or 5.3 percent, to $16.52.

The Russell 2000 index of smaller companies rose 1.68, or 0.21 percent, at 816.25.

Advancing issues outnumbered decliners by 6 to 5 on the New York Stock Exchange, where consolidated volume came to 3.29 billion shares, up from 2.99 billion Monday.

Crude oil prices fell $1.31 to settle at $64.40 on the New York Mercantile Exchange ahead of the U.S. government's weekly inventory report Wednesday.

Overseas, Japan's Nikkei stock average fell 0.72 percent. Britain's FTSE 100 was down 0.46 percent, Germany's DAX index was up 0.42 percent, and France's CAC-40 was up 0.49 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

The NYSE DOW closed HIGHER by 75 points on Wednesday May 2:

Symbol ----- Last --- Change
Dow 13,211.88 +75.74 (0.58%)
Nasdaq 2,557.84 +26.31 (1.04%)
S&P 500 1,495.92 +9.62 (0.65%)
10-Yr Bond 4.6460% +0.0040
NYSE Volume 3,189,801,000
Nasdaq Volume 2,188,071,000

http://biz.yahoo.com/ap/070502/wall_street.html?.v=44
Wall Street Jumps, Dow at Record Close
Wednesday May 2, 5:38 pm ET
By Tim Paradis, AP Business Writer
Stocks Surge on Factory Orders Spike; Dow Up More Than 75 Points and Passes 13,200

NEW YORK (AP) -- Stocks jumped Wednesday, sending the Dow Jones industrials past 13,200 for the first time after a strong reading on U.S. factory orders stoked investor optimism about the economy. The Dow gained more than 75 points and secured its second straight record close.

The Commerce Department said orders to U.S. factories rose 3.1 percent in March -- the largest increase in a year -- amid strong demand for commercial aircraft and a sharp rise in an indicator of how much companies are investing in their business. The increase easily outpaced the 2 percent rise analysts had been expecting.

As investors begin to look toward Friday's Labor Department reports on March job creation and unemployment, they are also keeping watch over corporate profits as they try to determine how quickly the economy might be slowing and whether the stronger-than-expected earnings might continue to give stocks a lift.

Time Warner Inc. and Yum Brands Inc., parent of fast-food chains KFC, Taco Bell and Pizza Hut, each reported robust quarterly results.

"The stronger-than-anticipated earnings releases have definitely been the catalysts for pries to move higher and the merger deals continue to reduce shares in the market and put fresh cash back in investors' hands," said Tim Hartzell, chief investment officer at Kanaly Trust Co.

The Dow rose 75.74, or 0.58 percent, to 13,211.88. The blue chip index hit a fresh trading high of 13,256.33 after reaching 13,184.14 Tuesday. The Dow has set 16 record closes this year and 39 since the beginning of October; the latest closing high came Tuesday.

Broader stock indicators also rose Wednesday. The Standard & Poor's 500 index advanced 9.62, or 0.65 percent, to 1,495.92. Wall Street has been eyeing the index, waiting for it to move back above 1,500; the S&P 500 hasn't closed above that level since September 2000.

The Nasdaq composite index rose 26.31, or 1.04 percent, to 2,557.84.

Bonds fell following release of the factory order data. The yield on the benchmark 10-year Treasury note rose to 4.65 from 4.64 percent late Tuesday. The dollar was mixed against other major currencies, while gold prices fell.

Light, sweet crude fell 77 cents to $63.66 per barrel on the New York Mercantile Exchange after weekly government figures showed larger-than-expected domestic supplies.

In what some investors perhaps regarded as an early read on Friday's jobs numbers, an employment indicator published by ADP and Macroeconomic Advisers reported an increase of 64,000 in private jobs in April. A healthy job market is important because worries about jobs could push consumers to curb their spending.

On Tuesday, a takeover bid launched by News Corp. for Wall Street Journal parent Dow Jones & Co. buoyed investor sentiment and sent stocks higher. While it remains unclear whether the family that controls Dow Jones will acquiesce and agree to a sale, Dow Jones fell 20 cents to $56 Wednesday after jumping 55 percent Tuesday. News Corp. on Wednesday advanced 44 cents, or 1.9 percent, $23.43.

In other corporate news, Time Warner said its first-quarter earnings fell 18 percent. The media conglomerate's results topped Wall Street's expectations, however, as growth in the company's cable business boosted revenue. Time Warner rose 35 cents to $20.94.

Yum Brands rose $3.61, or 5.7 percent, to $66.73 after its earnings report showed its international operations turned in a tidy profit, helping overall results.

Cablevision Systems Corp. jumped $3.23, or 9.9 percent, to $35.90 after the cable TV provider and owner of New York's Madison Square Garden said it struck a $10.3 billion deal to be taken by its controlling shareholders, the Dolan family. The family had tried three other times to take the company private.

Not all quarterly reports pleased investors. Blockbuster Inc. fell 81 cents, or 13 percent, to $5.40 after the company said its first-quarter loss widened amid a weak market for movie rentals and heavy spending on its online rental program.

Advancing issues outnumbered decliners by more than 3 to 1 on the New York Stock Exchange, where consolidated volume came to 3.14 billion shares, down from 3.29 billion shares on Tuesday.

The Russell 2000 index of smaller companies rose 12.21, or 1.50 percent, to 828.46.

Overseas, Japan's Nikkei stock average closed up 0.69 percent. Britain's FTSE 100 finished up 1.01 percent, Germany's DAX index advanced 0.64 percent, and France's CAC-40 rose 0.50 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

The NYSE DOW closed HIGHER by 29 points on Thursday May 3:

Symbol ----- Last --- Change
Dow 13,241.38 +29.50 (0.22%)
Nasdaq 2,565.46 +7.62 (0.30%)
S&P 500 1,502.39 +6.47 (0.43%)
10-Yr Bond 4.6740% +0.0280
NYSE Volume 3,007,970,000
Nasdaq Volume 2,236,499,000

http://biz.yahoo.com/ap/070503/wall_street.html?.v=59
Stocks Rise; S&P 500 Passes 1,500 Mark
Thursday May 3, 5:49 pm ET
By Tim Paradis, AP Business Writer
Stocks Rise; S&P 500 Closes Above 1,500 for the First Time Since September 2000


NEW YORK (AP) -- Wall Street extended its advance Thursday amid a burst of enthusiasm about the economy that gave the Standard & Poor's 500 index its first close above 1,500 since September 2000.

The S&P 500, the index most closely watched by market professionals, made its first foray past 1,500 shortly after trading began and rose as high as 1,503.34 just over a week after the Dow Jones industrial average passed 13,000 for the first time. The index closed at 1,502.39, up 6.47, or 0.43 percent, and is now within striking distance of its closing high of 1,527.46, set March 24, 2000, just as the dot-com bubble began to burst and Wall Street began a three-year-long decline.

The Dow, meanwhile, had its third straight record high close.

Stocks have soared in recent weeks as first-quarter earnings beat reduced expectations, and upbeat economic news added to the gains. With the Dow having piled on more than 700 points in April alone, there are concerns that investors may be getting a little too enthusiastic given the uncertainty in the housing market and other sectors of the economy.

On Thursday, the good news was about inflation: The Labor Department said wages, as measured by unit labor costs, rose at a tepid 0.6 percent rate in the first quarter. The news fed Wall Street's hopes for an interest rate cut later this year.

Perhaps giving the S&P 500 its final push, the Institute for Supply Management said its index of non-manufacturing business rose to 56.0 in April from 52.4.

"You're seeing some vertigo out there, the fear we're getting ahead of ourselves," said Arthur Hogan, chief market analyst at Jefferies & Co. "There's going to be natural trepidation at new levels, but you rationalize these levels in knowing that we haven't overextended ourselves like we were in 1999."

The Dow Jones rose 29.50, or 0.22 percent, to 13,241.38. The blue chip index has now hit 18 record closes since the start of the year and 40 since the beginning of October. The Dow's climb in 22 of the past 25 sessions marks the blue chip average's longest advance since 1955.

The Nasdaq composite index rose 7.62, or 0.30 percent, to 2,565.46.

The S&P's achievement marked another milestone in Wall Street's recovery from a prolonged slump at the start of the decade. The slide began with the end of the dot-com boom, then accelerated as the economy fell into recession and after the Sept. 11, 2001, terror attacks. Corporate scandals including the collapse of Enron Corp. and Worldcom took a further toll on the market.

The S&P 500 fell to a low of 776.76 on Oct. 9, 2002, before starting its recovery. But while it and the Dow have made the long trip back, the Nasdaq, despite its own signs of vigor, is not expected to reach its closing high of 5,048.62, set March 24, 2000, anytime soon. The tech-dominated index was arguably overinflated by the rush to join the Internet boom.

"People are watching the momentum moving the market higher and in some cases they're participating, maybe grudgingly, but they're missing out otherwise," said Bill Schultz, chief investment officer, at McQueen, Ball & Associates. "There are a lot of people that are looking for a dip to buy and we haven't seen it. At some point you have to say, 'The dip isn't coming but I want to participate.'"

Thursday's advance came as investors grew optimistic about inflation. Although Wall Street has surged higher over the past month, concerns about inflation, including that of wages, still dog the market as investors try to determine whether an inflation-wary Federal Reserve will become comfortable enough later in the year to lower short-term interest rates. The Fed has left rates unchanged at recent meetings, in part because of concerns about inflation.

Other economic data helped shape investor sentiment Thursday. The government reported that the number of Americans seeking unemployment benefits fell by 21,000 last week to 305,000, the lowest level since mid-January. The decline was broader than expected and was the third straight decrease in weekly claims.

The economic figures came a day ahead of other Labor Department reports on nonfarm payrolls and unemployment.

Besides economic data, the parade of earnings reports continued Thursday with General Motors Corp. turning in lower first-quarter earnings. GM's profit fell 90 percent from a year earlier, which benefited from a gain. The company also suffered losses in the residential mortgage business of GMAC Financial Services. GM, one of the 30 stocks that makes up the Dow industrials, fell $1.75, or 5.4 percent, to $30.69.

Bonds fell Thursday following the economic data; the yield on the benchmark 10-year Treasury note rose to 4.67 percent from 4.65 percent late Thursday.

Light, sweet crude fell 49 cents to $63.19 per barrel on the New York Mercantile Exchange.

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

Advancing issues outnumbered decliners 3 to 2 on the New York Stock Exchange, where consolidated volume came to 2.89 billion shares, down from 3.14 billion Wednesday.

The Russell 2000 index of smaller companies rose 0.41, or 0.05 percent, to 828.87.

Overseas, markets in Japan were closed for a holiday. At the close, Britain's FTSE 100 rose 0.82 percent, Germany's DAX index gained 0.28 percent, and France's CAC-40 rose 0.24 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

The NYSE DOW closed HIGHER by 23 points on Friday May 4:

Symbol ----- Last --- Change
Dow 13,264.62 +23.24 (0.18%)
Nasdaq 2,572.15 +6.69 (0.26%)
S&P 500 1,505.62 +3.23 (0.21%)
10-Yr Bond 4.6400% -0.0340
NYSE Volume 2,762,165,000
Nasdaq Volume 2,307,702,000

http://biz.yahoo.com/ap/070504/wall_street.html?.v=44
Stocks Rise for Fourth-Straight Session
Friday May 4, 6:14 pm ET
By Tim Paradis, AP Business Writer
Wall Street Advances on Fresh Round of Takeover News, Jobs Report


NEW YORK (AP) -- Wall Street rose moderately Friday, carving out its fourth straight weekly gain amid a fresh round of corporate takeover news and employment figures that largely met expectations.

Reports that Microsoft Corp. renewed talks to acquire or invest in Yahoo Inc. helped buoy investor sentiment Friday as did word that Reuters Group PLC received a preliminary takeover offer. There is speculation that Thomson Corp., the financial data provider, is the likely suitor for the British news and information company.

Beyond the buyout news, which has figured prominently in shaping Wall Street's largely upbeat mood in recent months, economic figures offered some nuggets for both bullish and bearish investors. The Labor Department said Friday the nation's jobless rate rose to 4.5 percent in April as expected; in the prior month, the rate stood at a five-year low of 4.4 percent.

"The economic data suggest that the economy is not tanking and inflation is not accelerating and that the Fed is not going to upset the apple cart," said Alan Levenson, chief economist at T. Rowe Price, referring to the Federal Reserve.

The Dow Jones industrial average rose 23.24, or 0.18 percent, to 13,264.62, its fourth straight record close. The Dow also reached a new trading high of 13,284.53.

The blue chip index has set 19 record closes since the start of the year and 41 since the beginning of October.

Broader stock indicators also moved higher Friday. The Standard & Poor's 500 index advanced 3.23, or 0.21 percent, to 1,505.62. On Thursday, the S&P 500 moved above the 1,500 mark for the first time in nearly seven years, and it rose as high as 1,510.34 Friday. The return to 1,500 puts the closing high of 1,527.46 -- reached March 24, 2000 -- within investors' sights.

The Nasdaq composite index rose 6.69, or 0.26 percent, to 2,572.15; while the Nasdaq has risen alongside the Dow and the S&P in recent sessions, it remains about halfway toward its March 2000 high.

Friday's advance marked another week of prodigious gains. The Dow is up 1.10 percent for the week after crossing 13,200 for the first time Wednesday. It gained 7.7 percent in the previous 25 sessions. The S&P 500 is up 0.77 percent for the week, while the Nasdaq rose 0.58 percent.

Driving bond investors was government data that showed employers added the fewest new jobs in more than two years. While Wall Street doesn't want consumers to feel less secure in their jobs and perhaps curb their spending, a spike in wages amid a tight labor market could stir concerns about inflation -- and that could force the Federal Reserve to be more aggressive about interest rates.

Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.64 percent from 4.65 percent late Thursday. The dollar remained mixed against other major currencies Friday, while gold prices rose.

Light, sweet crude fell $1.26 to $61.93 per barrel on the New York Mercantile Exchange.

With acquisitive investors apparently circling media and information properties Yahoo and Reuters, interest in such companies could be growing. Word of the possible combinations comes three days after News Corp., run by billionaire Rupert Murdoch, offered to acquire Wall Street Journal publisher Dow Jones & Co. for $5 billion. Dow Jones rose 3 cents to $55.80 Friday as the likelihood of a deal remained unclear. News Corp. climbed 14 cents to $23.58.

A broader spate of merger and acquisition activity seen recently has helped push stocks higher because investors generally regard such deals as bullish bets by companies on the health of the economy.

Friday's takeover news sent the targeted companies higher. Yahoo rose $2.80, or 9.9 percent, to $30.98, while Reuters rose $15.84, or 26.9 percent, to $74.76. Investors, who tend to distance themselves from companies doing the acquiring, sent Thomson down 28 cents to $43.45 and Microsoft down 41 cents to $30.56.

Along with takeovers, earnings reports continue to draw attention on Wall Street. Better-than-expected profits have served as a catalyst for pushing stocks to record levels in recent months. Forest products company Weyerhaeuser Co. jumped $4.47, or 5.7 percent, to $82.62 after reporting it swung to a profit from a loss in the first quarter largely because of a combination of its fine-paper business with another paper maker.

Not all quarterly reports pleased investors, however. Eastman Kodak Co. fell $1.25, or 4.8 percent, to $24.72, after the company's first-quarter loss narrowed but still fell short of Wall Street's expectations. The company has been trying to move beyond a shrinking film business and further into digital products.

Advancing issues outnumbered decliners by about 3 to 2 on the New York Stock Exchange, where consolidated volume came to 2.73 billion shares, down from 2.89 billion on Thursday.

The Russell 2000 index of smaller companies rose 4.01, or 0.48 percent, to 832.88.

Overseas, stock markets in much of Asia, including Japan and Hong Kong, were closed for holidays. Britain's FTSE 100 finished up 1.01 percent, Germany's DAX index advanced 0.54 percent, and France's CAC-40 rose 1.08 percent.

The Dow Jones industrial average ended the week up 143.68, or 1.10 percent, at 13,264.62. The Standard & Poor's 500 index finished up 11.55, or 0.77 percent, at 1,505.62. The Nasdaq composite index ended up 14.94, or 0.58 percent, at 2,572.15.

The Russell 2000 index finished the week up 3.18, or 0.38 percent, at 832.88.

The Dow Jones Wilshire 5000 Composite Index -- a free-float weighted index that measures 5,000 U.S. based companies -- ended Friday at 15,194.08, up 101.33 points for the week. A year ago, the index was at 13,318.34.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

The NYSE DOW closed HIGHER by 48 points on Monday May 7:

Symbol ----- Last --- Change
Dow 13,312.97 +48.35 (0.36%)
Nasdaq 2,570.95 -1.20 (0.05%)
S&P 500 1,509.48 +3.86 (0.26%)
10-Yr Bond 4.64% 0.00
NYSE Volume 2,464,851,000
Nasdaq Volume 1,652,312,000

http://biz.yahoo.com/ap/070507/wall_street.html?.v=37
Stocks Mostly Higher; Dow Passes 13,300
Monday May 7, 4:23 pm ET
By Tim Paradis, AP Business Writer
Stocks Try to Maintain Gains After Alcoa Bid for Alcan; Dow Passes 13,300 for 1st Time

NEW YORK (AP) -- Wall Street closed mostly higher Monday, though technology stocks struggled to hold onto gains during the session, as a $27 billion bid by Alcoa Inc. for Canadian aluminum rival Alcan Inc. buoyed blue chip issues. The Dow Jones industrials passed 13,300 for the first time and had yet another record close.

The move by Alcoa, one of the 30 stocks that make up the Dow, gave much of the market a lift Monday as investors often regard merger and acquisition activity as a bullish bet by companies on corporate profit. A pullback in Yahoo Inc. depressed tech shares.

With little earnings and economic data to go on, investors will be awaiting further signals to try to determine where stocks might be headed and whether Wall Street's record rally will continue. Investors will also be awaiting the Federal Reserve's decision Wednesday on interest rates.

Monday afternoon, the Fed reported that consumers boosted their borrowing in March at the fastest pace in four months. The report showed that consumer credit increased at a brisk annual rate of 6.7 percent in March.

"We're kind of waiting for macroeconomic news to shape the outlook for the rest of the year," said Les Satlow, portfolio manager at Cabot Money Management. "I do believe the market will spend some time here trying to catch its breath or even pull back a bit. We need more macroeconomic clarity as to second half of 2007 and the direction the Fed."

According to preliminary calculations, the Dow industrials rose 48.35, or 0.36 percent, to 13,312.97. The Dow rose as high as 13,317.69 Monday, topping a previous trading high of 13,284.53 set Friday.

The blue chip index has hit 20 record closes since the start of the year and 42 since the beginning of October. The gains in 24 of the last 27 sessions marks the longest winning streak for the blue chips since 1927.

Broader stock indicators rose. The Standard & Poor's 500 index rose 3.86, or 0.26 percent, to 1,509.48. Last week, the S&P 500 moved above the 1,500 level for the first time in nearly seven years. The 1,500 level puts the closing high of 1,527.46 reached in March 24, 2000, within investors' sights.

The Nasdaq composite index fell 1.20, or 0.05 percent, to 2,570.95.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

The NYSE DOW closed LOWER by 3.9 points on Tuesday May 8:

Symbol ----- Last --- Change
Dow 13,309.07 -3.90 (0.03%)
Nasdaq 2,571.75 +0.80 (0.03%)
S&P 500 1,507.72 -1.76 (0.12%)
10-Yr Bond 4.6340% -0.0020
NYSE Volume 2,834,720,000
Nasdaq Volume 2,017,124,000

http://biz.yahoo.com/ap/070508/wall_street.html?.v=51
Wall Street Ends Flat Ahead of Fed
Tuesday May 8, 5:34 pm ET
By Joe Bel Bruno, AP Business Writer
Stocks End Flat Ahead of Fed Meeting on Interest Rates

NEW YORK (AP) -- Wall Street battled back from sharp losses Tuesday to close mostly flat as investors sought buying opportunities and adjusted their holdings ahead of the Federal Reserve's meeting on interest rates.

Stocks were down for most of the session on concerns about what central bankers might say about the economy. However, the drop -- the first for the Dow Jones industrials in six sessions -- did make some prices look more attractive ahead of the Wednesday meeting.

Data released Tuesday showed the economy continues to sputter. The Commerce Department reported wholesalers' inventories grew at a slower rate in March, failing to meet projections. Meanwhile, the National Association of Realtors lowered its forecast for the housing market this year because of stricter lending standards and subprime woes.

Economic reports are expected to wield more influence on the direction of stocks as earnings announcements slow. The latest data did little to change expectations policymakers will leave rates unchanged, though Wall Street will really be looking for further direction about whether a hoped-for rate cut is in the offing.

"There's this wait-and-see pullback with regard to what the Fed might do on Wednesday," said Janna Sampson, a portfolio manager for Oakbrook Investments. "Given the run we've had, and a pretty strong start of the year, this might be a case of investors positioning their portfolios a little sooner than usual before the summer doldrums."

The Dow Jones industrial average fell 3.90, or 0.03 percent, to 13,309.07. The blue chip average had been up 24 of the last 27 sessions, and surpassed the 13,300 mark for the first time on Monday.

Broader stock indicators were narrowly mixed. The Standard & Poor's 500 index was down 1.76, or 0.12 percent, at 1,507.72, and the Nasdaq composite index rose 0.80, or 0.03 percent, to 2,571.75.

Fixed-income investors placed optimistic bets ahead of the Fed meeting, sending bonds higher. The yield of the benchmark 10-year Treasury note fell to 4.63 percent from 4.64 percent late Monday.

Meanwhile, the dollar was mixed against most major currencies, while gold prices were weaker.

Oil prices advanced amid fears of supply disruptions following the bombing of three major oil pipelines by the militants in Nigeria. A barrel of light, sweet crude rose 79 cents to $62.26 on the New York Mercantile Exchange.

This lifted major oil companies. Exxon Mobil Corp. rose 68 cents to $81.38. Chevron Corp. picked up 47 cents to $80.05, while ConocoPhillips fell 9 cents to $70.25.

Though most analysts expect stocks will continue to advance, there are rising expectations on Wall Street that a correction will be needed to sustain the bull run. Before Tuesday's breather, the S&P 500 was moving toward its all-time high of 1,527.46, reached on March 24, 2000, at the height of the dot-com boom; the Dow's recent run has been its best showing since 1927.

"If we keep marching up without a break, we will set ourselves up for another sell off," said Alan Brown, head of investment for Schroder Investment Management. "But, the fundamentals still look pretty encouraging to me provided of course that the U.S. slowdown does not turn into something much worse."

Investors were cautious ahead of the Fed meeting for several reasons, including speculation that policymakers, in their economic assessment statement Wednesday, won't give any clear hints about whether it will change its stance on rate hikes. Between June 2004 and June 2006, the Fed lifted rates 17 consecutive times to cool an overheated economy, and have left them unchanged since.

The Commerce Department said wholesale inventories increased 0.3 percent to a seasonally adjusted $393.23 billion in March. The results fell short of estimates of a 0.4 percent gain.

The National Association of Realtors projected existing home sales will fall 2.9 percent this year to 6.29 million, compared with its previous forecast for a 2.2 percent decline. The industry is facing significant headwinds as speculative buyers begin to pull back, leading to a downshift in the entire market, the group said.

In corporate news, Hewlett Packard Co. lifted its second-quarter forecast on strong results in its personal computer and server business. The stock rose $1.21, or 2.8 percent, to $45.01.

Dow Jones & Co. fell 51 cents to $55 after the Securities and Exchange Commission accused two Hong Kong residents of unlawful trading when they bought $15 million worth of the publisher's stock ahead of an announcement that News Corp. had put in a bid. News Corp. fell 20 cents to $23.65.

Warner Music Group Corp. fell 16 cents to $17.14. The company posted a wider second-quarter loss due to restructuring costs, but surpassed Wall Street's profit projections after excluding items.

Trading continued on takeover activity. AK Steel Holdings Corp. soared $2.96, or 9.2 percent, to $35.02 after a report the company was being eyed by ArcelorMittal, the world's largest steel maker.

Declining issues outpaced advancers by a 3 to 2 basis on the New York Stock Exchange, where consolidated volume came to 2.81 billion shares, up from 2.45 billion shares on Monday.

The Russell 2000 index of smaller companies was down 0.97, or 0.12 percent, at 830.90.

Overseas, Japan's Nikkei stock average closed 0.07 percent lower. Britain's FTSE 100 gave up 0.81 percent, Germany's DAX index fell 1.11 percent, and France's CAC-40 declined 0.61 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

The NYSE DOW closed HIGHER by 53.8 points on Wednesday May 9:

Symbol ----- Last --- Change
Dow 13,362.87 +53.80 (0.40%)
Nasdaq 2,576.34 +4.59 (0.18%)
S&P 500 1,512.58 +4.86 (0.32%)
10-Yr Bond 4.6680% +0.0340
NYSE Volume 2,935,508,000
Nasdaq Volume 2,192,705

http://biz.yahoo.com/ap/070509/wall_street.html?.v=49
Stocks Recover After Fed Rate Decision
Wednesday May 9, 5:42 pm ET
By Madlen Read, AP Business Writer
Stocks Resume Their Climb After Federal Reserve's Decision on Interest Rates

NEW YORK (AP) -- Wall Street wobbled, then regained its stride Wednesday after the Federal Reserve told investors what they expected to hear: that inflation is still too high for comfort, but the central bank is holding interest rates steady. The Dow Jones industrials rose to another record close.

The central bank's Open Market Committee as anticipated left interest rates unchanged at 5.25 percent, as it has done since last summer. The statement that accompanied the decision was little changed from the one the Fed released after its last meeting in March; the assessment said policy makers are keeping their inflation watch the priority despite a slower economy.

Though some investors were hoping the Fed would raise the possibility of a future rate cut, they weren't surprised by the committee's stance. Moreover, they were relieved to hear the Fed is not more inclined than it has been to raise rates, a move that would make access to capital more expensive and potentially hurt the stock market.

"The Fed said we're not going anywhere," Larry Smith, chief investment officer at Third Wave Global Investors. "They're not saying inflation is going to the moon, they're not saying it's a huge problem right now, but they're concerned that inflation won't come down to their comfort range."

Stocks drew support Wednesday from more takeover news, particularly speculation about a possible bid by mining company BHP Billiton Ltd. for rival Rio Tinto Group. Investors were also pleased about a government report that showed that after three months of declines, the nation's gasoline inventories rose last week. If they keep increasing, fuel costs for U.S. drivers are likely to ease.

The Dow Jones industrial average rose 53.80, or 0.40 percent, to 13,362.87, after reaching a new trading high of 13,369.29. It was the blue chip index's 21st record close since the beginning of the year.

The Standard & Poor's 500 index advanced 4.86, or 0.32 percent, to 1,512.58 -- a new six-and-a-half-year high. The index is near its closing record of 1,527.46, reached March 24, 2000.

The Nasdaq composite index rose 4.59, or 0.18 percent, to 2,576.34.

The stock market has reacted well to the Fed's rate stance; the Dow has hit 43 record closes since the start of October, soon after the Fed stopped raising rates.

"I think the markets can react favorably without the Fed lowering rates," said Steven Goldman, chief market strategist at Weeden & Co., noting that rates will remain stable as long as the economy keeps growing moderately, as the Fed predicts it will, and inflation doesn't accelerate too much. "We walk this tight line, and equities continue to edge higher."

Bonds, however, have struggled in recent months, and the yield on the 10-year Treasury note remains lower than that of shorter-term issues -- indicating that traders are betting on even slower economic growth going forward. Bond prices dropped after the Fed statement, pushing the 10-year yield up to 4.67 percent from 4.64 percent late Tuesday, and the 2-year yield up to 4.73 percent.

The current interest rate environment is beneficial for the overall stock market, but not for bonds or financial institutions such as banks, noted Fred Cannon, Managing Director of Research at Keefe, Bruyette & Woods. "I would say the biggest risk to the banks is if the Fed stays on hold and we start to see credit deteriorate significantly."

Though market participants are not expecting a rate hike anytime soon, they will be closely reading Friday's report on producer prices and next week's data on consumer prices to gauge whether inflation is accelerating or moderating.

All the major stock indexes advanced Tuesday, boosted in part by signs that takeover activity will continue to surge. Rio Tinto's stock jumped $31.62, or 12 percent, to $296.27, on rumors that BHP Billiton might bid for the company. BHP rose $2.51, or 4.9 percent, to $53.41.

But the technology-laden Nasdaq posted weaker gains, as Cisco Systems Inc. reported an abrupt slowdown in orders from U.S. business in its quarterly financial results. The computer network equipment maker's stock fell $1.85, or 6.5 percent, to $26.51, even though its fiscal third-quarter profit soared 34 percent.

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

Crude oil prices dropped 71 cents to $61.55 a barrel on the New York Mercantile Exchange, after the U.S. government said the nation's gasoline stockpiles increased last week. Gas prices at the pump are still, on average, above $3 a gallon for regular unleaded.

Advancing issues outnumbered decliners by about 7 to 4 on the New York Stock Exchange, where volume came to 1.56 billion shares, up from 1.50 billion Tuesday.

The Russell 2000 index of smaller companies rose 3.87, or 0.47 percent, to a new record close of 834.77.

Overseas, Japan's Nikkei stock average rose 0.52 percent. Britain's FTSE 100 slipped 0.01 percent, Germany's DAX index advanced 0.45 percent, and France's CAC-40 added 0.29 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

The NYSE DOW closed LOWER by 147 points on Thursday May 10:

Symbol ----- Last --- Change
Dow 13,215.13 -147.74 (1.11%)
Nasdaq 2,533.74 -42.60 (1.65%)
S&P 500 1,491.47 -21.11 (1.40%)
10-Yr Bond 4.6480% -0.0200
NYSE Volume 3,031,238,000
Nasdaq Volume 2,338,682,000

Overseas, Japan's Nikkei stock average fell 0.06 percent. Britain's FTSE 100 fell 0.39 percent, Germany's DAX index lost 0.81 percent, and France's CAC-40 declined 0.64 percent.

http://biz.yahoo.com/ap/070510/wall_street.html?.v=49
Stocks Fall on Retail Sales Reports
Thursday May 10, 5:55 pm ET
By Madlen Read, AP Business Writer
Stocks Decline After Disappointing Retail Reports, Widening Trade Deficit


NEW YORK (AP) -- Wall Street retreated sharply Thursday, slicing nearly 150 points off the Dow Jones industrial average after weak sales at many of the nation's major retailers heightened concerns about consumer spending.

The day's economic news, which also included a disquieting trade deficit figure, appeared to give investors the rationale they were looking for to cash in some of the market's recent gains. Analysts have been saying the surging stock market, which had pushed the Dow up more than 1,000 points since the beginning of March, was due for a pullback.

Companies including Wal-Mart Stores Inc., J.C. Penney Co. and Federated Department Stores Inc. said business fell in April, hurt by rising gasoline prices. Though many retail stocks had respectable gains Thursday, the reports raised worries that retail sales data from the Commerce Department Friday will also disappoint, and suggest that the economy is slower than previously thought.

The downturn in stocks followed a rise Wednesday that pushed the Dow to its 21st record close of the year, after the Federal Reserve left interest rates unchanged and reiterated that while the economy has slowed, inflation remains the central bank's primary concern. Thursday's sluggish retail sales and widening trade gap raised concerns that, while a rate cut may be necessary to boost the flagging economy, the central bank will be loathe to make one because of inflation.

"What the Federal Reserve said yesterday is that their principal focus is on inflation, and what retail sales said today is that their focus should be on the economy," said Hugh Johnson, chairman and chief investment officer of Johnson Illington Advisors. "Things are not good out there in economy land."

The Dow fell 147.74, or 1.11 percent, to 13,215.13, giving back five sessions' worth of gains. It was the biggest point drop in the blue-chip index since a 242-point plunge on March 13.

Broader stock indicators also saw their largest one-day point declines since March 13. The Standard & Poor's 500 index lost 21.11, or 1.40 percent, to 1,491.47, falling back below the 1,500 mark that it surpassed last week for the first time since September 2000.

The Nasdaq composite index dipped 42.60, or 1.65 percent, to 2,533.74.

Bonds rose after the weak economic data, with the yield on the benchmark 10-year Treasury note falling to 4.65 percent from 4.67 percent late Wednesday.

After reporting declines in April sales at stores open more than a year, Federated fell $1.72, or 3.9 percent, to $42.10; Wal-Mart fell 18 cents to $47.75; and J.C. Penney fell $1.41 to $76.80. Not all the retail sales news was negative -- teen clothing retailer Aeropostale, for example, lifted its first-quarter outlook and its stock rose 6.9 percent -- but overall, the U.S. retail scene looked gloomier than anticipated.

An additional disappointment was the U.S. trade deficit, which soared more than 10 percent to $63.9 billion in March, its highest level in six months. The gap, wider than economists' forecast of $60 billion, was driven up by high crude oil imports.

"Rising import prices are, all things equal, inflationary," said Alexander Paris, economist and market analyst for Chicago-based Barrington Research.

A Labor Department report that the number of laid-off workers seeking unemployment benefits fell last week failed to cheer investors, who had been expecting the decline.

Friday will be another data-focused day that could help decide whether Wall Street resumes its advance or embarks on a larger correction. The Labor Department will release its Producer Price Index, a gauge of inflation at the wholesale level that is expected to be boosted by high energy costs.

Crude oil prices rebounded Thursday from a decline a day earlier, rising 26 cents to $61.81 a barrel on the New York Mercantile Exchange.

Some weak earnings reports added to the negative mood on Wall Street.

Whole Foods Market Inc. said slowing sales growth and rising costs hurt its fiscal second-quarter profit, which missed Wall Street's expectations. The natural and organic food retailer dropped $4.65, or 10 percent, to $41.15.

Interpublic Group of Cos. said its first-quarter loss narrowed, but analysts had forecasted better results. The advertising and marketing agency dropped 93 cents, or 7.2 percent, to $12.01.

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

Declining issues outnumbered advancers by more than 3 to 1 on the New York Stock Exchange. Consolidated volume came to 3.04 billion shares, up from 2.89 billion Wednesday.

The Russell 2000 index of smaller companies fell 16.14, or 1.93 percent, to 818.63, retreating from Wednesday's record close.

Overseas, Japan's Nikkei stock average fell 0.06 percent. Britain's FTSE 100 fell 0.39 percent, Germany's DAX index lost 0.81 percent, and France's CAC-40 declined 0.64 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

Great news today because change of direction.

The NYSE DOW closed HIGHER by 53.8 points on Wednesday May 9:

Symbol ----- Last --- Change
Dow 13,326.22 +111.09 (0.84%)
Nasdaq 2,562.22 +28.48 (1.12%)
S&P 500 1,505.85 +14.38 (0.96%)
10-Yr Bond 4.6700% +0.0220
NYSE Volume 2,683,451,000
Nasdaq Volume 1,789,728,000

Overseas, Japan's Nikkei stock average closed down 1.03 percent. Britain's FTSE 100 rose 0.64 percent, Germany's DAX index rose 0.86 percent, and France's CAC-40 rose 0.63 percent.

Stocks Soar on Inflation, Sales Data
Friday May 11, 5:13 pm ET
By Joe Bel Bruno, AP Business Writer
Wall Street Resumes Advance After Inflation, Retail Sales Reports Raise Interest Rate Hopes

NEW YORK (AP) -- Wall Street resumed its advance Friday as investors interpreted a government report of milder inflation as a signal that the Federal Reserve might consider cutting interest rates later this year. The Dow Jones industrial average soared more than 100 points, and posted its fifth straight weekly gain.

Investors were encouraged after the Labor Department's producer price index -- which measures the rate of inflation experienced by manufacturers when they purchase goods -- suggested inflation is moderating. This raised hopes on Wall Street that central bankers won't need to hike interest rates to keep the economy in check, and might even lean toward lowering them.

With corporate earnings reports slowing, the market has put more weight on economic data to help find a direction. The fresh batch of economic reports could help assure central bankers that they have navigated the economy toward a soft landing in which growth slows enough to restrain inflation.

The stronger economic news, especially about inflation, injected a new dose of confidence that central bankers can now begin to mull a rate cut. It also helped reignite a rally stopped short Thursday after retail sales reports dimmed expectations about consumer confidence.

"To some degree, the advance is in reaction to the sharp selling on Thursday," said Richard Cripps, chief market strategist for Stifel Nicolaus. "The market was due for a blowoff, and I think the data you got this morning don't get in the way of the positive trend under way. A fair amount of investors want to be in the market."

The Dow advanced 111.09, or 0.84 percent, to 13,326.22 -- the biggest point rise so far this month. The index gained back most of the nearly 150 points it lost Thursday. It had reached a record Wednesday, its 21st record close since the start of the year and 43rd since the beginning of October.

Broader stock indicators also advanced. The Standard & Poor's 500 index rose 14.38, or 0.96 percent, to 1,505.85, and the Nasdaq composite index rose 28.36, or 1.12 percent, to 2,562.10.

The Dow, which passed 13,300 for the first time Monday, rose 0.46 percent for the week. The S&P 500 gained 0.02 percent for the week, and the Nasdaq fell 0.39 percent.

Treasury investors did not appear to believe the producer price data significantly raised the possibility of a rate cut. Bond prices fell, paring earlier gains after investors shrugged off the PPI and refocused on the rising stock market -- which reduces the need for investment in safe-haven bonds. The 10-year yield rose to 4.68 percent, up from 4.64 percent late Thursday.

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

The Labor Department's producer price index rose to 0.7 percent in April, meeting Wall Street expectations and falling below the March reading of 1.0 percent. The core PPI, which excludes food and energy prices, was unchanged for the second month in a row.

"It looks like inflation is very tamed," said Kim Caughey, equity research analyst at Fort Pitt Capital Group, adding that the PPI bodes well for next week's consumer price index and makes a rate increase appear less likely.

The Federal Reserve on Wednesday left interest rates unchanged. Policy makers ended a campaign of 17-straight interest rate hikes in June.

Caughey noted, however, that although the Fed looks primarily at core inflation, rising fuel costs could still pose a problem for the stock market: "The wildcard is gasoline prices. They terribly affect consumers, and we have to remember they are 66 percent of our economy."

Crude oil futures rose 56 cents to $62.37 a barrel on the New York Mercantile Exchange. The average U.S. retail price for a gallon of gasoline Friday was $3.042, according to AAA.

Consumer spending has been looking sluggish: the Commerce Department said retail sales unexpectedly fell in April by 0.2 percent, after rising an upwardly revised 1.0 percent in March. Originally, March sales were reported up 0.7 percent.

In corporate news, American International Group Inc. reported first-quarter profit rose 29 percent, but disclosed it would take a pretax charge from its subprime loan exposure. The world's largest insurer -- and one of the 30 companies that make up the Dow -- rose 38 cents to $72.58.

Chicago Mercantile Exchange Holdings Inc. sweetened its offer for CBOT Holdings Inc. by more than 16 percent, hoping to head off a still-higher counteroffer from IntercontinentalExchange Holdings Inc.

Shares of the CBOT rose $7.35, or 3.8 percent, to $201.35, while the Chicago Merc added $38.35, or 7.7 percent, to $536.30. IntercontinentalExchange rose $5.70, or 4.2 percent, to $140.55.

Telecommunications equipment maker Alcatel-Lucent SA posted a loss of $10.8 million for the first quarter due to effects from the merger that formed the company. However, shares jumped 57 cents, or 4.4 percent, to $13.57 after it promised a strong second half.

Advancing issues led decliners by more than 3 to 1 on the New York Stock Exchange, where volume came to 1.41 billion shares, down from 1.56 billion Friday.

The Russell 2000 index of smaller companies was up 10.91, or 1.33 percent, at 829.54.

Overseas, Japan's Nikkei stock average closed down 1.03 percent. Britain's FTSE 100 rose 0.64 percent, Germany's DAX index rose 0.86 percent, and France's CAC-40 rose 0.63 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

The NYSE DOW closed HIGHER by 20.5 points on Monday May 14:

Symbol ----- Last --- Change
Dow 13,346.78 +20.56 (0.15%)
Nasdaq 2,546.44 -15.78 (0.62%)
S&P 500 1,503.15 -2.70 (0.18%)
10-Yr Bond 4.69% +0.02
NYSE Volume 2,776,131,000
Nasdaq Volume 2,081,090,000

Overseas, Japan's Nikkei stock average rose 0.71 percent. Britain's FTSE 100 lost 0.16 percent, Germany's DAX index dropped 0.26 percent, and France's CAC-40 dipped 0.40 percent.

http://biz.yahoo.com/ap/070514/wall_street.html?.v=31
Stocks Are Mixed As Investors Await CPI
Monday May 14, 6:14 pm ET
By Madlen Read, AP Business Writer
Wall Street Gives Up Early Gains, Turn Mixed Ahead of Consumer Price Index

NEW YORK (AP) -- Wall Street closed narrowly mixed Monday after investors, uneasy about the government's upcoming inflation data, cashed in some of their gains from the market's months-long rally.

Blue chip stocks managed a modest increase following DaimlerChrysler AG's announcement that it will sell 80.1 percent of money-losing Chrysler Group to Cerberus Capital Management LP, a private equity group, for $7.4 billion. The deal, which lifted stocks in the automotive sector, undoes a 1998 merger aimed at creating a global auto giant.

The news buoyed the Dow Jones industrial average briefly to a new trading high, but the overall stock market dipped, with many investors wary ahead of Tuesday's release of the Labor Department's Consumer Price Index, a key measure of inflation.

"People are waiting to get a better read on some of the pricing data," said Jack Caffrey, equities strategist at J.P. Morgan Private Bank. "It does seem like there's a bit of a holding pattern."

The market expects the April CPI to have risen 0.5 percent, slower than in March, but it anticipates the core figure -- which strips out food and energy prices -- will have risen 0.2 percent, a slightly larger jump than March's 0.1 percent increase. A report that suggests consumer costs are climbing much faster could frustrate investors hoping for an interest rate cut from the Federal Reserve later in the year.

The Dow advanced 20.56, or 0.15 percent, to 13,346.78, after rising in the morning to a trading record of 13,383.76.

Broader stock indicators fell. The Standard & Poor's 500 index declined 2.70, or 0.18 percent, to 1,503.15, and the Nasdaq composite index lost 15.78, or 0.62 percent, to 2,546.44.

Bonds fell slightly, as many investors stayed on the sidelines ahead of Tuesday's economic data, which will include the National Association of Home Builders' housing market index. The yield on the benchmark 10-year Treasury note edged up to 4.69 percent from 4.68 percent late Friday.

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

DaimlerChrysler rose $2.12, or 2.6 percent, to $84.12. Other automakers advanced as well, boosted by the Chrysler deal: General Motors, one of the 30 Dow components, rose $1.16, or 3.9 percent, to $30.62. Ford Motor Co. rose 34 cents, or 4.1 percent, to $8.71.

Other takeover news on Monday included Cardinal Health's agreement to buy Viasys Healthcare Inc. for $1.42 billion. Viasys rose $11.63, or 36.9 percent, to $43.18, and Cardinal Health rose 12 cents to $69.19.

Merger-and-acquisition activity has played a big role in the stock market's surge over the past several months, as investors consider it a good sign that corporate America is faring well amid the nation's economic slowdown.

But caution ahead of Tuesday's data dampened Monday's takeover excitement. Tuesday will not only bring inflation and housing reports, but also quarterly financial results -- notably from DaimlerChrysler, and Dow components Wal-Mart Stores Inc. and Home Depot Inc.

Last week, same-store sales figures suggested that consumer spending, which accounts for two-thirds of total economic activity, is waning. Wal-Mart reported Thursday that April's U.S. sales decline was its worst monthly slide since the world's largest retailer began reporting same-store sales results in 1980.

"I think right now the deals going on in the market are helping more than the consumer," said Neil Massa, equity trader at John Hancock Funds.

The stock market is not as dependent on a strong consumer as gross domestic product is, noted Caffrey. But any negative surprises going forward could cause a selloff in stocks, considering how far they have climbed in such a short period of time. The Dow has hit 21 record closes since the beginning of the year.

"The volatility should be higher than it has been. Ultimately, we think at year-end things will be higher than they are today, but there will be bumps along the way," Caffrey said.

The average U.S. retail gasoline price climbed to a record high of $3.07 a gallon, according to AAA, surpassing levels seen after Hurricane Katrina battered the Gulf Coast.

Crude oil rose 9 cents to $62.46 a barrel on the New York Mercantile Exchange.

Declining issues outnumbered advancers by 7 to 4 on the New York Stock Exchange, where consolidated volume came to 2.65 billion shares, down from 2.68 billion Friday.

The Russell 2000 index of smaller companies fell 7.21, or 0.87 percent, to 822.33.

Overseas, Japan's Nikkei stock average rose 0.71 percent. Britain's FTSE 100 lost 0.16 percent, Germany's DAX index dropped 0.26 percent, and France's CAC-40 dipped 0.40 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

The NYSE DOW closed HIGHER by 37 points on Tuesday May 15:

Symbol ----- Last --- Change
Dow 13,383.84 +37.06 (0.28%)
Nasdaq 2,525.29 -21.15 (0.83%)
S&P 500 1,501.19 -1.96 (0.13%)
10-Yr Bond 4.71% +0.02
NYSE Volume 3,112,510,000
Nasdaq Volume 2,286,109,000

Overseas, Japan's Nikkei stock average closed down 0.93 percent. Britain's FTSE 100 gained 0.20 percent, Germany's DAX index rose 0.61 percent, and France's CAC-40 added 0.39 percent.

http://biz.yahoo.com/ap/070515/wall_street.html?.v=58
Stocks Retreat After Housing Report
Tuesday May 15, 6:04 pm ET
By Joe Bel Bruno, AP Business Writer
Stocks Mixed After Tame Inflation Data, Drop in Housing Index; Dow Briefly Crosses 13,400

NEW YORK (AP) -- Wall Street gave up a huge advance and closed mixed Tuesday after an unimpressive snapshot of the housing market unsettled investors. The Dow Jones industrials, which surpassed 13,400 early in the session, slipped back but still eked out a record close.

Investors who initially bought enthusiastically following a tame reading on inflation decided to cash in some of their gains after the National Association of Homebuilders said its housing index dropped to 30 from 33 in April, indicating a deteriorating housing outlook.

The stock market followed a months-long pattern of rising on upbeat economic data only to give back gains on the latest report of a decline in housing. The day's movement also followed the recent pattern of blue-chip stocks performing better than their smaller counterparts.

"We've got a real dichotomy going on here," said Stephen Massocca, president of Pacific Growth Equities. "Big corporate America, the staid and stodgy companies, are doing well. They're going up today. Stocks that are riskier, stocks that are smaller, stocks in the emerging market vein or technology vein, those are being sold."

The Dow had surged more than 130 points by midday trading, breezing past 13,400 after the inflation data raised hopes that the Federal Reserve might cut interest rates later this year. The Labor Department said prices paid by consumers rose less than expected in April, and indicated that inflation may be easing as the economy continues to cool. The consumer price index rose 0.4 percent after rising 0.6 percent in March, while core prices -- which exclude food and energy -- rose 0.2 percent after a 0.1 percent gain.

The Dow rose 37.06, or 0.28 percent, to 13,383.84, after rising to a new trading high of 13,481.60. The modest climb nudged the blue-chip index to its 22nd record close this year.

Broader indexes slipped. The Standard & Poor's 500 index fell 1.96, or 0.13 percent, at 1,501.19.

The technology-dominated Nasdaq composite index fell 21.15, or 0.83 percent, to 2,525.29.

"I think you've got certainly a slower economy, and companies and people aren't all that keen to spend on new technology," said Scott Wren, senior equity strategist at AG Edwards. "There's also a lot of competition in the market, so the Nasdaq is likely to lag a little."

Since the Dow broke through 12,000 for the first time in October, it has become almost routine for the blue chip index to set new records. The overall market advance has also lifted the S&P 500 near its record close of 1,527.46, reached in the spring of 2000. However, the Nasdaq still remains well off its closing high of 5,048.62, also reached during the peak of the dot-com boom; the index was overinflated by investors rushing to buy any high-tech stock.

Investors have been driven by optimism that the Fed is done with its campaign of rate hikes, and that it will soon start lowering rates. Still, when new data reminds them of the fragility of the housing markets, they tend to retrench as they did Tuesday.

Bond prices finished lower after the mixed data. The yield on the benchmark 10-year Treasury note rose to 4.71 percent from 4.69 percent late Monday. The dollar fell against other major currencies, while gold prices advanced.

A barrel of light sweet crude rose 71 cents to $63.17 on the New York Mercantile Exchange. Concerns lingered in the commodities market about refinery problems and uncertainties over whether U.S. gasoline inventories can meet summer driving demand.

Investors were mostly undeterred by disappointing first-quarter results from Dow components Home Depot Inc. and Wal-Mart Stores Inc. Both companies are considered to be barometers of consumer spending, and weaker sales were interpreted as another sign of a slowing economy that could also motivate the Fed to cut rates.

Home Depot, the nation's largest home improvement chain, posted lower quarterly profit as a sluggish U.S. housing market dented sales. Sales at stores open at least a year, an important measure of how retailers fared, slumped 7.6 percent.

Wal-Mart Stores, the world's largest retailer, missed Wall Street projections and warned second-quarter results might be disappointing. Last week, it reported April same-store sales were the weakest its history for April.

Shares of Wal-Mart fell 22 cents to $47.62, while Home Depot shed 71 cents to $38.30. Lowe's Cos., the second-largest home improvement chain, fell 10 cents to $30.89.

Reuters Group PLC agreed Tuesday to a $17.2 billion takeover by Thomson Corp. that would vault the combined entity ahead of Bloomberg to become the world's largest financial data and news provider. Shares of Reuters rose $2.72, or 3.8 percent, to $74.34; Thomson rose 16 cents to $42.16.

Declining issues outnumbered advancers by about 3 to 2 on the New York Stock Exchange, where consolidated volume came to 3.09 billion shares, up from 2.65 billion Friday.

The Russell 2000 index of smaller companies fell 8.15, or 0.99 percent, to 814.18.

Overseas, Japan's Nikkei stock average closed down 0.93 percent. Britain's FTSE 100 gained 0.20 percent, Germany's DAX index rose 0.61 percent, and France's CAC-40 added 0.39 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

The NYSE DOW closed HIGHER by 103.69 points on Wednesday May 16:

Symbol ----- Last --- Change
Dow 13,487.53 +103.69 (0.77%)
Nasdaq 2,547.42 +22.13 (0.88%)
S&P 500 1,514.14 +12.95 (0.86%)
10-Yr Bond 4.708% -0.004
NYSE Volume 2,915,354,000
Nasdaq Volume 2,172,389,000

Overseas, Japan's Nikkei stock average closed up 0.09 percent. Britain's FTSE 100 fell 0.14 percent, Germany's DAX index fell 0.32 percent, and France's CAC-40 fell 0.53 percent.

Stocks Surge to Another Record Close
http://biz.yahoo.com/ap/070516/wall_street.html?.v=51
Stocks Up Despite Mixed Housing Data
Wednesday May 16, 5:49 pm ET
By Tim Paradis, AP Business Writer
Stocks Rise Following Data on Industrial Production, Housing Starts

NEW YORK (AP) -- Wall Street shot higher Wednesday after investors shrugged off a mixed reading on the housing sector and focused on the positives: a jump in industrial output, a retreat in crude oil prices and new cash pouring into the stock market. The Dow Jones industrials rose 103 points to another closing record.

Stocks initially slipped after Commerce Department data showed applications for building permits fell by the biggest amount in 17 years during April punctured an early rally. But they gradually regained strength, finding support from a Federal Reserve report that showed industrial output rose more than expected in April, and a rebound in U.S. crude and gasoline inventories that caused crude oil prices to pull back.

News that billionaires Warren Buffett, Edward Lampert and Carl Icahn were upping equity investments also gave investors confidence that stocks have further to climb, although the Dow has risen more than 1,300 points in the past two months.

Investors seem to be choosing to take weak housing data in stride; a lackluster read on home sales on Tuesday upended a big rally in stocks that sent the Dow Jones industrials briefly above 13,400 for the first time, but the market quickly regained its footing Wednesday.

"We seem to be in a period of time where it doesn't make a difference what the news is -- the market seems to find a reason to go up," said Ron Kiddoo, chief investment officer at Cozad Asset Management. "How long will this last? It's anybody's guess."

The Dow rose 103.69, or 0.77 percent, to 13,487.53, to its 23rd record close of the year. It also hit a new trading high, 13,489.57.

Broader stock indicators advanced. The Standard & Poor's 500 index gained 12.95, or 0.86 percent, to 1,514.14, and the Nasdaq composite index rose 22.13, or 0.88 percent, to 2,547.42.

Strength in sectors such as airlines, helped by falling oil prices, gave a lift to stocks. United Airlines parent UAL Corp. advanced $1.32, or 4 percent, to $34.62; Continental Airlines Inc. rose $1.48, or 4 percent, to $37.83; and American Airlines parent AMR Corp gained $1.28, or 5 percent, to $26.66.

Bonds showed little change despite the economic readings. The yield on the benchmark 10-year Treasury note remained flat at 4.71 percent from late Tuesday. The dollar was mostly higher against other major currencies, while gold prices fell.

Light, sweet crude fell 62 cents to $62.55 per barrel on the New York Mercantile Exchange. Crude prices have risen in recent sessions amid concerns about supply disruptions, particularly in Nigeria, but Wednesday's U.S. inventory data showed domestic gasoline and crude inventories rose more than expected last week -- a development that investors hope will help pull U.S. pump prices back below $3 a gallon.

While Wall Street often has an appetite for economic data as it tries to determine where the economy is headed, it sometimes looks past good or bad economic news. In a potentially worrisome sign, requests for new construction permits fell 8.9 percent in April, the biggest drop since a 24 percent plunge in February 1990; but investors were pleased to see that construction of homes and apartments increased 2.5 percent in April from March to a seasonally adjusted annual rate of 1.528 million units.

"It seems like the market has taken a lot of the news positively this year whereas last year investors might have reacted negatively," said Paul Alan Davis, a portfolio manager at Charles Schwab Investment Management Inc.

Investors also embraced the Fed's report that industrial output rose by 0.7 percent in April. The gain was more than double the 0.3 percent gain that had been expected and in part reflected a rebound in manufacturing. In March, output fell 0.3 percent.

In corporate news, Citigroup Inc., one of the 30 stocks in the Dow industrials, rose $2.12, or 4 percent, to $54.91 after billionaire hedge fund manager Edward S. Lampert said he acquired more than 15 million shares of the financial services conglomerate.

Warren Buffett's Berkshire Hathaway Inc., meanwhile, reported in a regulatory filing that it doubled its stake in Johnson & Johnson, also a Dow component. Johnson & Johnson rose $1.23, or 2 percent, to $63.05.

In another sign that liquidity is high and likely to keep buoying stocks, Carl Icahn's fund disclosed a new 3.1 million share stake in oil and gas producer Anadarko Petroleum Corp. and a new 2.7 million share stake in CSX Corp. Anadarko rose 73 cents to $47.20, and CSX Corp. rose 66 cents to $46.40.

Injecting the market with an extra dose of confidence, corporate takeover activity keeps soaring. Bausch & Lomb Inc. rose $6, or 9.8 percent, to $67.50 after private equity concern Warburg Pincus struck a deal to acquire the eye-care product maker, which has faced product recalls and accounting troubles, for about $3.67 billion.

The Russell 2000 index of smaller companies rose 6.02, or 0.74 percent, to 820.20.

Advancing issues outnumbered decliners by about 5 to 3 on the New York Stock Exchange, where consolidated volume came to 2.82 billion shares, down from 3.09 billion on Tuesday.

Overseas, Japan's Nikkei stock average closed up 0.09 percent. Britain's FTSE 100 fell 0.14 percent, Germany's DAX index fell 0.32 percent, and France's CAC-40 fell 0.53 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

The NYSE DOW closed LOWER by 10.8 points on Thursday May 17:

Symbol ----- Last --- Change
Dow 13,476.72 -10.81 (0.08%)
Nasdaq 2,539.38 -8.04 (0.32%)
S&P 500 1,512.75 -1.39 (0.09%)
10-Yr Bond 4.7560% +0.0480
NYSE Volume 2,880,804,000
Nasdaq Volume 2,016,572,000

Overseas, Japan's Nikkei stock average fell 0.17 percent.
Britain's FTSE 100 rose 0.30 percent, Germany's DAX index rose 0.24 percent, and France's CAC-40 rose 0.15 percent.

http://biz.yahoo.com/ap/070517/wall_street.html?.v=46
Stocks Retreat After Mixed Economic Data
Thursday May 17, 5:29 pm ET
By Madlen Read, AP Business Writer
Stocks Fall, Putting Big Rally on Hold After Mixed Bag of Data; Dow Briefly Passes 13,500

NEW YORK (AP) -- Wall Street retreated modestly in wobbly trading Thursday, putting its buying spree on hold to mull over mixed economic data. The Dow Jones industrial average briefly surpassed 13,500 for the first time, then pulled back.

Investors refrained from making any big moves after data Thursday showed strength in some areas of the economy, particularly employment, but weakness in others -- giving little indication about whether the Federal Reserve will lean toward an interest rate cut later in the year.

Robust economic data Thursday included the Labor Department's report that jobless claims fell last week for the fifth straight week, and the Philadelphia Fed's May manufacturing index, which showed a stronger-than-anticipated increase. But the Conference Board forecasted slower economic growth, with its April index of leading economic indicators declining more than expected.

Ultimately, it was a fairly directionless day on Wall Street, with investors uninspired by Thursday's data and more eager to hear about Friday's consumer sentiment report from the University of Michigan, said John O'Donoghue, co-head of equities at Cowen & Co.

"The market's kind of on this monotonous grind higher, and you'll have days where you have a pause in the marketplace," O'Donoghue said. "But it doesn't seem like we're going to have a correction anytime soon."

New takeover activity, which has helped bring the Dow up more than 1,200 points over the past two months, failed to fuel a rally Thursday. Alliance Data Systems Corp. agreed Thursday to a $6.43 billion takeover by Blackstone Group, right after Acxiom Corp. said late Wednesday it was being bought by two private equity firms for $2.24 billion.

The Dow fell 10.81, or 0.08 percent, to 13,476.72, after rising as high as 13,516.71. On Wednesday, the index reached its 23rd record close of the year.

Broader indexes also declined. The Standard & Poor's 500 index lost 1.39, or 0.09 percent, to 1,512.75, and the Nasdaq composite index fell 8.04, or 0.32 percent, to 2,539.38.

Bonds fell after the unemployment data, pushing up the yield on the benchmark 10-year Treasury note to 4.76 percent from 4.71 percent late Wednesday.

Crude oil prices rebounded sharply on supply fears ahead of the summer driving season. A barrel of light sweet crude rose $2.31 to $64.86 on the New York Mercantile Exchange -- a bad sign for U.S. drivers, who have been seeing gasoline prices hit new records day after day.

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

Many market watchers say stocks may eventually see a big dip as investors cash in profits, but that the long-term trend for the market is positive.

"It's not one of those you-can't-lose situations, but the odds are stacked in your favor if you're a disciplined investor. There's more room for catch-up," said Philip S. Dow, managing director of equity strategy at RBC Dain Rauscher in Minneapolis. He added that it's only a matter of time before the S&P 500 hits a new record above its closing high of 1,527.46 reached in March 2000.

One reason for optimism is the abundance of cash in the marketplace, as evinced by the recent slew of takeover deals.

After their takeover offers were announced, private-label credit card services provider Alliance Data Systems rose $15.50, or 25 percent, to $78.46, and data management company Acxiom rose $4.28, or 18 percent, to $27.95.

The best performer among the 30 Dow components was Boeing Co., which said it struck a tentative deal to avoid a machinist union strike. The aerospace manufacturer rose $1.45 to $96.79, after peaking at an all-time high of $97.18.

The worst Dow performer was Caterpillar Inc., which fell $1.11 to $74.84 after a Stifel Nicolaus analyst downgrade.

In other corporate news, Sun Microsystems Inc. late Wednesday announced its board approved a buyback of up to $3 billion in outstanding shares. Its stock rose 18 cents, or 3.5 percent, to $5.30.

J.C. Penney Co. posted a 13 percent increase in first-quarter profit that exceeded analyst expectations, and raised its profit outlook for the year. The department store chain climbed $4.02, or 5.3 percent, to $79.74.

A speech Thursday by Federal Reserve Chairman Ben Bernanke in Chicago provided investors with little incentive to buy stocks. Bernanke acknowledged the number of mortgage defaults was growing, but said the problem would not seriously hurt the economy.

Declining issues outnumbered advancers by about 5 to 3 on the New York Stock Exchange, where volume came to 1.46 billion shares, down from 1.51 billion Wednesday.

The Russell 2000 index of smaller companies fell 4.56, or 0.56 percent, to 815.64.

Overseas, Japan's Nikkei stock average fell 0.17 percent. Britain's FTSE 100 rose 0.30 percent, Germany's DAX index rose 0.24 percent, and France's CAC-40 rose 0.15 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

 

[bigdog]

The NYSE DOW closed HIGHER by 79.8 points on Friday May 18:

Symbol ----- Last --- Change
Dow 13,556.53 +79.81 (0.59%)
Nasdaq 2,558.45 +19.07 (0.75%)
S&P 500 1,522.75 +10.00 (0.66%)
10-Yr Bond 4.8040% +0.0480
NYSE Volume 2,936,809,000
Nasdaq Volume 2,062,625,000

Overseas, Japan's Nikkei stock average closed down 0.57 percent.

Britain's FTSE 100 rose 0.94 percent, Germany's DAX index closed up 1.44 percent at its highest level of the year, and France's CAC-40 rose 1.23 percent.

Dow Hits New Record High

http://biz.yahoo.com/ap/070518/wall_street.html?.v=36
Stocks Surge on Corporate Takeover News
Friday May 18, 4:22 pm ET
By Tim Paradis, AP Business Writer
Stock Rise on Takeover Deals, Stronger-Than-Expected Consumer Confidence


NEW YORK (AP) -- Stocks surged higher Friday as another round of corporate takeovers prodded investors to continue a largely uninterrupted months-long buying streak. The Dow Jones industrial average registered its 24th record close this year and the Standard & Poor's 500 index came within striking distance of its record high.

Beyond the buyout news, which has lent buoyancy to the markets for months, a stronger-than-expected reading on consumer sentiment helped investors set aside some concern that consumers unnerved by higher gas prices would pare back spending and up-end the economy's smooth slowdown.

The latest takeover news, including deals involving marquee names like General Electric Co. and Microsoft Corp., signaled that the enormous amount of liquidity that has lubricated global stock markets in recent months doesn't appear on the verge of evaporating.

"The M&A activity and earnings seem to be holding up better than expected. I think you're going to see more of this," said Bill Dwyer, Chief Investment Officer at MTB Investment Advisors, referring to merger and acquisition deals as well as surprisingly strong profits.

According to preliminary calculations, the Dow rose 79.81, or 0.59 percent, to 13,556.53. The blue chips set a new trading high of 13,558.48, having crossed 13,500 for the first time on Thursday. The Dow has been on a strong run since early April.

Broader stock indicators also advanced. The Standard & Poor's 500 index rose 10.00, or 0.66 percent, to 1,522.75, its highest level in more than six years. The index came within fewer than 5 points of its record close of 1,527.46, set in March 2000.

The Nasdaq composite index rose 19.07, or 0.75 percent, to 2,558.45.

Bonds fell as the market appeared to look past China's announcement of an interest rate increase and a widening of the range at which the yuan can trade. A rising Chinese currency would make Chinese imports less competitive in the United States. The yield on the benchmark 10-year Treasury note rose to 4.81 percent from 4.76 percent late Thursday. The dollar was mixed against other major currencies, while gold prices rose.

Light, sweet crude rose 8 cents to $64.94 per barrel on the New York Mercantile Exchange.

Investors appeared unfazed by rising oil prices, instead focusing on corporations' continued appetite for merger deals. The Wall Street Journal reported GE is near a deal to sell its plastics division to a Saudi Arabian industrial giant for $11 billion. GE rose 43 cents to $36.96.

Microsoft struck an agreement to acquire online advertising company aQuantive Inc. for about $6 billion in cash, paying a premium following a rush of major online ad deals by its competitors in the past six weeks. AQuantive soared $27.92, or 77.8 percent, to $63.79, while Microsoft slipped 15 cents to $30.83.

The buyout news came alongside favorable economic findings. The preliminary Reuters/University of Michigan index of consumer sentiment for May came in at 88.7. Wall Street had expected the reading would be unchanged from April at 87.1.

The mood of consumers remains important to the economy as consumer spending makes up two-thirds of U.S. economic activity. Perhaps giving investors further room for confidence, retailers J.C. Penney Co., Kohl's Corp. and Nordstrom Inc. on Thursday each posted earnings that topped Wall Street's expectations.

The reports came amid record gasoline prices -- which are averaging more than $3 per gallon nationwide. Higher gas prices could dent consumer spending, however, particularly at retailers such as Wal-Mart Stores Inc., whose primary customers are often sensitive to increases at the pump.

The recent rise in oil prices sent helped send shares of energy companies higher. ConocoPhillips rose $1.60, or 2.2 percent, to $74.85, while Exxon Mobil Corp. advanced $1.46 to $83.26.

In other corporate news Friday, Trump Entertainment Resorts Inc. rose $2.73, or 21 percent, to $15.80 after the casino and hotel operator said would-be suitors have shown interest in buying the company. Trump, which last year hired Merrill Lynch to explore the company's options, did not disclose the interested buyers.

Intuit Inc. jumped $3.84, or 13.9 percent, to $31.56 after the software maker said its third-quarter profit rose 23 percent. The company's fiscal 2007 profit forecast outstripped Wall Street's expectations.

Advancing issues outnumbered decliners by about 5 to 3 on the New York Stock Exchange, where volume came to 1.65 billion shares.

The Russell 2000 index of smaller companies rose 8.02, or 0.98 percent, to 823.66.

Overseas, Japan's Nikkei stock average closed down 0.57 percent. Britain's FTSE 100 rose 0.94 percent, Germany's DAX index closed up 1.44 percent at its highest level of the year, and France's CAC-40 rose 1.23 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com