NYSE Dow Jones finished today at:

[bigdog]

Source: http://finance.yahoo.com

U.S. stocks rose solidly Tuesday after European markets rallied and corporate bellwether Alcoa predicted stronger demand in 2012. The Standard & Poor's 500 index closed at its highest level since July.

European markets soared after Fitch Ratings said that it will not downgrade France's credit rating this year. France's CAC-40 index closed 2.7 percent higher; Germany's DAX rose 2.4 percent.

A downgrade for France could scuttle the region's efforts to stem its debt crisis. Europe's bailout fund needs France and Germany to keep their sterling credit ratings so it can borrow at affordable rates.

Kicking off U.S. corporate earnings season, aluminum maker Alcoa said late Monday that its fourth-quarter revenue far outpaced analysts' projections. CEO Klaus Kleinfeld predicted that global aluminum demand will increase 7 percent in 2012. Aluminum demand offers clues about for broader economic trends because so many industries rely on the metal.

Many analysts had feared weaker corporate profits in the fourth quarter because of Europe's deepening economic troubles and slower growth in the developing world. The solid report from Alcoa seemed to quell those concerns and lifted traders' hopes for strong corporate earnings reports in the coming weeks.

The S&P 500 index rose 11.38 points, or 0.9 percent, to 1,292.08. All 10 of its industry groups rose. Among the biggest gainers were materials companies such as Alcoa, which benefit from rising prices for metals, energy and other commodities.

The NYSE DOW NYSE DOW closed HIGHER +69.78 +0.56% on Tuesday January 10
Sym .......Last .......Change..........
Dow 12,462.47 +69.78 +0.56%
Nasdaq 2,702.50 +25.94 +0.97%
S&P 500 1,292.08 +11.38 +0.89%
30-yr Bond 3.0300 % -0.0020

NYSE Volume 4,200,991,500
Nasdaq Volume 1,844,486,875

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,696.70 +84.44 +1.50%
DAX 6,162.98 +105.06 +1.73%
CAC 40 3,210.79 +83.10 +2.66%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,206.60 +45.10 +1.08%
Shanghai Comp 2,285.74 +59.85 +2.69%
Taiwan Wei... 7,178.87 +85.83
Nikkei 225 8,422.26 +31.91 +0.38%
Hang Seng 19,004.28 +138.56 +0.73%
Straits Times 2,719.83 +28.55 +1.06%

http://finance.yahoo.com/news/stocks-close-higher-hopes-earnings-211841035.html

Stocks close higher on hopes for earnings, Europe

Stock rise on hopes for strong US corporate earnings season; Europe fears recede, for now

By Daniel Wagner, AP Business Writer

U.S. stocks rose solidly Tuesday after European markets rallied and corporate bellwether Alcoa predicted stronger demand in 2012. The Standard & Poor's 500 index closed at its highest level since July.

European markets soared after Fitch Ratings said that it will not downgrade France's credit rating this year. France's CAC-40 index closed 2.7 percent higher; Germany's DAX rose 2.4 percent.

A downgrade for France could scuttle the region's efforts to stem its debt crisis. Europe's bailout fund needs France and Germany to keep their sterling credit ratings so it can borrow at affordable rates.

Kicking off U.S. corporate earnings season, aluminum maker Alcoa said late Monday that its fourth-quarter revenue far outpaced analysts' projections. CEO Klaus Kleinfeld predicted that global aluminum demand will increase 7 percent in 2012. Aluminum demand offers clues about for broader economic trends because so many industries rely on the metal.

Many analysts had feared weaker corporate profits in the fourth quarter because of Europe's deepening economic troubles and slower growth in the developing world. The solid report from Alcoa seemed to quell those concerns and lifted traders' hopes for strong corporate earnings reports in the coming weeks.

The S&P 500 index rose 11.38 points, or 0.9 percent, to 1,292.08. All 10 of its industry groups rose. Among the biggest gainers were materials companies such as Alcoa, which benefit from rising prices for metals, energy and other commodities.

Food commodities mostly edged lower, but orange juice futures shot up 11 percent. The Food and Drug Administration said it would increase testing for a fungicide that was found in low levels in orange juice.

Tiffany & Co. plunged 10 percent, the most in the S&P 500 index. The jewelry retailer cut its forecast for full-year profit and said sales grew slowly in the U.S. and Europe during the holiday season.

The Dow Jones industrial average rose 69.78 points, or 0.6 percent, to 12,462.47. The Nasdaq composite index gained 25.94, or 1 percent, to 2,702.50.

Hedge fund manager Peter Tchir said recent market swings exaggerate the importance of minor news such as Alcoa's guidance and the Fitch announcement. The indexes are vulnerable to steep swings because relatively few shares are changing hands, he said.

Tchir is focused squarely on Europe's fundamental problem, which remains unresolved: Sky-high borrowing costs for indebted nations such as Italy and Spain. A default by one of them could upend the global economy. Italy's benchmark 10-year bond yield remains dangerously high at 7.10 percent.

Despite Europe's troubles, the U.S. economy appears to have strengthened in recent weeks. A series of positive reports on hiring, manufacturing and consumer sentiment eased fears that Europe will drag the U.S. into another recession.

Traders hope the brighter economic outlook will mean U.S. corporate earnings results, which will be announced over the next few weeks. Improvements in the job market and more spending by consumers would increase companies' sales. Household spending is the main engine of economic growth.

Corporate news in Europe reflected the region's descent into near-inevitable recession. Dutch electronics giant Royal Philips Electronics NV kicked off the European earnings season by announcing that its fourth-quarter profits will be worse than expected as a result of Europe's economic weakness.

Among the companies making big moves:

”” Yoga apparel chain Lululemon Athletica Inc. surged 12 percent after the company raised its fiscal fourth-quarter earnings and revenue forecast, citing better-than-expected sales of its athletic wear.

”” WebMD Health Corp. plunged 29 percent. The healthcare information website said it has given up looking for a buyer, its CEO has resigned, and it expects earnings to drop this year. WebMD provides health and benefits information to employees at 121 companies and health plans.

”” Cirrus Logic Inc., which supplies audio chips to Apple and other electronics companies, jumped 16 percent. The company said it expects to report fourth-quarter revenue that is well above its previous forecast and analysts' expectations.

 

[bigdog]

Source: http://finance.yahoo.com

The Dow edges lower on new Europe worries

US stocks end mixed with worries about slowing German economy; Urban Outfitters plunges.

The Dow Jones industrial average crept lower Wednesday as Europe edged closer to a recession that would hurt corporate profits in the U.S. The first earnings reports from American companies didn't add much encouragement.

Germany reported that its economy, the largest in Europe, shrank slightly at the end of last year. And the European Union revised its figures for economic growth in the third quarter to 0.1 percent, its slowest pace in more than two years.

"Europe is still the main risk," said Jeffrey Kleintop, chief market strategist at LPL Financial. "Yes, they've been making progress on their budgets, but they clearly have growth problems."

The Dow dropped 13.02 points, or 0.1 percent, to close at 12,449.45 in another day of light trading.

The European Commission also said Hungary has taken "no effective action" to contain its budget deficit. Stock markets in Germany and France fell slightly, and the euro dropped half a penny against the dollar, to $1.27.

The United States depends on Europe to buy about 20 percent of its exports, and concerns about Europe have led analysts to lower their profit estimates for U.S. companies.

Profits at S&P 500 companies are expected to rise 7.2 percent for the last three months of 2011, according to Standard & Poor's Capital IQ. That's much lower than the 17.6 percent growth reported in the third quarter.

Judging by the S&P 500 index, investors seem to think earnings could fall much further, Kleintop said. The index is trading at about 13 times the past year's earnings of its companies ”” close to what it was at the end of 1990, when the economy was in recession. Earnings fell 20 percent during that downturn.

The S&P 500 gained 0.4 of a point on Wednesday to 1,292.48. The Nasdaq composite index rose 8.26, or 0.3 percent, to 2,710.76. The Nasdaq has gained 4 percent this year, the most of the major indexes. The Dow is up 1.9 percent, the S&P 2.8 percent.

The NYSE DOW NYSE DOW closed LOWER -13.02 -0.10% on Wednesday January 11
Sym .......Last .......Change..........
Dow 12,449.45 -13.02 -0.10%
Nasdaq 2,710.76 +8.26 +0.31%
S&P 500 1,292.48 +0.40 +0.03%
30-yr Bond 2.9600 % -0.0680

NYSE Volume 3,968,473,750
Nasdaq Volume 1,735,745,250

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,670.82 -25.88 -0.45%
DAX 6,152.34 -10.64 -0.17%
CAC 40 3,204.83 -5.96 -0.19%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,242.90 +36.30 +0.86%
Shanghai Comp 2,276.05 -9.70 -0.42%
Taiwan Wei... 7,188.21 +9.34 +0.13%
Nikkei 225 8,447.88 +25.62 +0.30%
Hang Seng 19,151.94 +147.66 +0.78%
Straits Times 2,747.13 +27.30 +1.00%

http://finance.yahoo.com/news/The-Dow-edges-lower-new-apf-1206960138.html?x=0

The Dow edges lower on new Europe worries

US stocks end mixed with worries about slowing German economy; Urban Outfitters plunges

By Matthew Craft, AP Business Writer

NEW YORK (AP) -- The Dow Jones industrial average crept lower Wednesday as Europe edged closer to a recession that would hurt corporate profits in the U.S. The first earnings reports from American companies didn't add much encouragement.

Germany reported that its economy, the largest in Europe, shrank slightly at the end of last year. And the European Union revised its figures for economic growth in the third quarter to 0.1 percent, its slowest pace in more than two years.

"Europe is still the main risk," said Jeffrey Kleintop, chief market strategist at LPL Financial. "Yes, they've been making progress on their budgets, but they clearly have growth problems."

The Dow dropped 13.02 points, or 0.1 percent, to close at 12,449.45 in another day of light trading.

The European Commission also said Hungary has taken "no effective action" to contain its budget deficit. Stock markets in Germany and France fell slightly, and the euro dropped half a penny against the dollar, to $1.27.

The United States depends on Europe to buy about 20 percent of its exports, and concerns about Europe have led analysts to lower their profit estimates for U.S. companies.

Profits at S&P 500 companies are expected to rise 7.2 percent for the last three months of 2011, according to Standard & Poor's Capital IQ. That's much lower than the 17.6 percent growth reported in the third quarter.

Judging by the S&P 500 index, investors seem to think earnings could fall much further, Kleintop said. The index is trading at about 13 times the past year's earnings of its companies ”” close to what it was at the end of 1990, when the economy was in recession. Earnings fell 20 percent during that downturn.

The S&P 500 gained 0.4 of a point on Wednesday to 1,292.48. The Nasdaq composite index rose 8.26, or 0.3 percent, to 2,710.76. The Nasdaq has gained 4 percent this year, the most of the major indexes. The Dow is up 1.9 percent, the S&P 2.8 percent.

Supervalu, a grocery store operator, plunged after reporting a wider-than-expected quarterly loss because of high food prices and costs related to a turnaround plan. Its stock lost 12 percent.

Orange juice prices settled lower Wednesday. They hit their highest levels since 2007 on Tuesday when the U.S. government said that a potentially harmful fungicide had been found in Brazilian imports.

The futures contract for orange juice fell to $1.88 from $2.08 the day before. Futures have been rising since December, largely over concerns that cold weather in Florida could damage the crop there.

Even with Wednesday's decline, OJ is up 14 percent from its recent low of $1.65 on Dec. 21.

The recent jump in orange juice futures hit Coca-Cola, owner of Minute Maid, and PepsiCo, which has Tropicana. Coca-Cola sank 1.8 percent. PepsiCo fell 1 percent.

Among other large companies making moves:

”” Urban Outfitters Inc. dropped 18 percent, the steepest fall of any stock in the S&P 500, following the abrupt resignation of its CEO, Glen Senk. The company, which also runs the Anthropologie and Free People stores, said last week that tough competition and a drive to reduce inventory led to more markdowns than expected during the holiday shopping season.

”” Commercial Metals Co. fell 6 percent to $13.88 after investor Carl Icahn said he would end his hostile takeover attempt of the company. Only 23 percent of Commercial Metals' shareholders supported Icahn's $15-per-share offer, far short of Icahn's goal of 40.1 percent.

”” Lennar Corp. rose 7.2 percent. Sales rose as the builder delivered more houses. Lennar reported a drop in quarterly earnings but said the housing market is starting to stabilize with the help of lower home prices and low interest rates.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks finish higher after late-day recovery

Late recovery leaves stock indexes with small gains; Italy and Spain have strong bond auctions

A drop in oil prices and strong bond auctions in Europe drove stocks to a slightly higher close Thursday. The Standard & Poor's 500 index rose for the fourth straight day.

The Dow Jones industrial average gained 21.57 points, or 0.2 percent, to end at 12,471.02 It was down most of the day, losing 64 points in the first hour of trading, following a spike in unemployment claims and a weak report on December retail sales.

Materials and industrial companies led the afternoon recovery. Caterpillar and Alcoa rose the most in the Dow. The S&P 500 finished up 3.02 points, or 0.2 percent, at 1,295.50. The Nasdaq composite rose 13.94 points, 0.5 percent, to 2,724.70

Stocks drove higher in the last hour and a half of trading after oil prices dropped below $100 per barrel for the first time this year. Oil fell on rumors that Europe will delay an embargo on Iran. Crude plunged $2 a barrel in just eight minutes, ending at $99.

Also pushing stocks were strong bond auctions in Italy and Spain. European markets ended mostly higher rose after Italy and Spain held highly successful bond auctions, easing worries about Europe's debt crisis. Italy's benchmark stock index rose 2.1 percent.

The NYSE DOW NYSE DOW closed HIGHER +21.57 +0.17% on Thursday January 12
Sym .......Last .......Change..........
Dow 12,471.02 +21.57 +0.17%
Nasdaq 2,724.70 +13.94 +0.51%
S&P 500 1,295.50 +3.02 +0.23%
30-yr Bond 2.98 % +0.0210

NYSE Volume 3,942,435.00
Nasdaq Volume 1,698,902.50

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,662.42 -8.40 -0.15%
DAX 6,179.21 +26.87 +0.44%
CAC 40 3,199.98 -4.85 -0.15%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,238.40 -4.50 -0.11%
Shanghai Comp 2,275.01 -10.73 -0.47%
Taiwan Wei... 7,186.58 -1.63 -0.02%
Nikkei 225 8,385.59 -62.29 -0.74%
Hang Seng 19,095.38 -56.56 -0.30%
Straits Times 2,743.66 -3.47 -0.13%

http://finance.yahoo.com/news/stocks-finish-higher-day-recovery-211341639.html

Stocks finish higher after late-day recovery

Late recovery leaves stock indexes with small gains; Italy and Spain have strong bond auctions

By Samantha Bomkamp, AP Business Writer



NEW YORK (AP) -- A drop in oil prices and strong bond auctions in Europe drove stocks to a slightly higher close Thursday. The Standard & Poor's 500 index rose for the fourth straight day.

The Dow Jones industrial average gained 21.57 points, or 0.2 percent, to end at 12,471.02 It was down most of the day, losing 64 points in the first hour of trading, following a spike in unemployment claims and a weak report on December retail sales.

Materials and industrial companies led the afternoon recovery. Caterpillar and Alcoa rose the most in the Dow. The S&P 500 finished up 3.02 points, or 0.2 percent, at 1,295.50. The Nasdaq composite rose 13.94 points, 0.5 percent, to 2,724.70

Stocks drove higher in the last hour and a half of trading after oil prices dropped below $100 per barrel for the first time this year. Oil fell on rumors that Europe will delay an embargo on Iran. Crude plunged $2 a barrel in just eight minutes, ending at $99.

Also pushing stocks were strong bond auctions in Italy and Spain. European markets ended mostly higher rose after Italy and Spain held highly successful bond auctions, easing worries about Europe's debt crisis. Italy's benchmark stock index rose 2.1 percent.

In Italy's first bond auction of the new year, the country was able to sell one-year bonds at a rate of just 2.735 percent, less than half the 5.95 percent rate it had to pay last month. That's a signal that investors are becoming more confident in Italy's ability to pay its debts.

Spain was able to raise double the amount of money it had sought to raise in its own bond sale as demand for its debt was strong. Both auctions were seen as important tests of investor sentiment.

Investors have been worried that Italy and Spain, the third- and fourth-largest countries in the euro area, might get dragged into the region's debt crisis. Greece, Ireland and Portugal have been forced to get relief from their lenders after their borrowing costs spiked to levels the countries could no longer afford.

The euro rose nearly a penny against the dollar, to $1.28, as worries eased about Europe's financial woes. The currency, which is shared by 17 European countries, fell to a 16-month low against the dollar the day before.

In other trading, corn futures plunged 6.1 percent to $6.12 per bushel after the government reported that supplies of the grain were higher than traders had expected. Wheat also fell 5.6 percent. An auction of 30-year Treasury bonds drew meager interest from investors as cash flowed back into European debt.

It was the latest day of quiet trading in the stock market. There have been six consecutive days with moves of less than 1 percent in the S&P 500, the quietest stretch since May.

Ralph Fogel, investment strategist and partner at Fogel Neale Partners in New York, said the moderate moves were an encouraging sign following the steep rises and sudden declines that were typical of last summer. "This is a much healthier market than we've seen."

Unemployment benefits spiked last week to the highest level in six weeks, mostly because companies let go of thousands of holiday hires, the government reported. Retail sales barely rose in December and were lower than analysts were expecting.

Despite the mixed news on the economy, investors are starting to focus on the U.S. corporate earnings season, which got under way this week with Alcoa Inc. The aluminum maker predicted stronger demand for its products this year and surprised the market with revenue that was higher than analysts were expecting.

"There's a fair amount of pessimism out there but I also think that investors are slowly becoming immune to the bad news," said Jack Ablin, chief investment officer at Harris Private Bank in Chicago. "As long as the stuff you can sink your teeth into, like corporate profit, is improving, I think it bodes well for the markets this year."

Among stocks making big moves:

”” Chevron fell 2.6 percent after the world's second-largest publicly traded oil company said its income will be "significantly" below its fourth-quarter results in the prior quarter because of narrower margins on refining and selling fuels.

”” CA Inc. jumped 4.3 percent. The hedge fund Taconic Capital disclosed in a regulatory filing that it has taken a 5.1 percent stake in the business software and technology company and is pressing CA to return more cash to shareholders and increase its profit margins.

”” Casino operator Wynn Resorts Ltd. fell 2 percent. The company disclosed in a regulatory filing that its vice chairman has filed a lawsuit against the company. Kazuo Okada claims that Wynn has refused to give him access to records relating to a $135 million donation the company made to the University of Macau and other matters.

 

[bigdog]

Source: http://finance.yahoo.com

JPMorgan disappoints; banks lead stocks lower

Banks lead stock market lower as JPMorgan surprises Wall Street with disappointing earnings

A rare disappointing earnings report from JPMorgan Chase battered bank stocks on Friday and helped push the rest of the market lower. Rumors of imminent downgrades for the credit ratings of European governments drove the euro down and sent investors streaming into U.S. debt.

The Dow Jones industrial average fell 48.96 points to close at 12,422.06, a drop of 0.4 percent. Markets were little changed late in the day after France's finance minister confirmed that Standard & Poor's had stripped the country of its AAA credit rating.

Before the market opened, JPMorgan said quarterly profit declined 23 percent from a year earlier, slightly worse than what analysts expected. The bank's stock lost 2 percent, and other large banks followed. Morgan Stanley fell 3 percent and Goldman Sachs 2 percent.

It was the first time JPMorgan missed Wall Street expectations since the final quarter of 2007, a period that includes the financial crisis of 2008 and 2009. JPMorgan is widely considered one of the best-managed big banks. Traders figured that if JPMorgan had trouble as 2011 came to a close, the rest of the industry probably did, too.

"JPMorgan is the gold standard," said Phil Orlando, chief equity strategist at Federated Investors. "So what happens to the banks that aren't quite as strong and aren't quite as well-managed?"

On trading desks, it's called the "cockroach theory," Orlando said. "You never see just one cockroach. If you see one, you know there's bound to be a lot more."

The euro slipped to its lowest level in 17 months after reports surfaced that S&P would downgrade European governments. After the markets closed in New York, S&P announced cuts for France, Austria, Italy and Spain.

The euro dropped 1.1 percent against the dollar to $1.27. Borrowing costs jumped for France, Italy and Spain, countries at the center of the region's debt crisis.

The dollar and U.S. Treasury prices rose as investors moved money into lower-risk assets. The yield on the 10-year U.S. Treasury note fell to 1.86 percent from 1.93 percent late Thursday.

S&P warned Dec. 5 that 15 countries that use the euro were at risk of downgrades, citing higher borrowing costs for top-rated governments and disagreements among European leaders.

The NYSE DOW NYSE DOW closed LOWER 48.96 -0.39% on Friday January 13
Sym .......Last .......Change..........
Dow 12,422.06 -48.96 -0.39%
Nasdaq 2,710.67 -14.03 -0.51%
S&P 500 1,289.09 -6.41 -0.49%
30-yr Bond 2.9000 % -0.0760

NYSE Volume 3,692,377,750
Nasdaq Volume 1,686,001,750

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,636.64 -25.78 -0.46%
DAX 6,143.08 -36.13 -0.58%
CAC 40 3,196.49 -3.49 -0.11%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,255.40 +17.00 +0.40%
Shanghai Comp 2,244.58 -30.43 -1.34%
Taiwan Wei... 7,181.54 -5.04 -0.07
Nikkei 225 8,500.02 +114.43 +1.36%
Hang Seng 19,204.42 +109.04 +0.57%
Straits Times 2,791.54 +47.88 +1.75%

http://finance.yahoo.com/news/JPMorgan-disappoints-banks-apf-3753764980.html?x=0

JPMorgan disappoints; banks lead stocks lower

Banks lead stock market lower as JPMorgan surprises Wall Street with disappointing earnings

By Matthew Craft, AP Business Writer

NEW YORK (AP) -- A rare disappointing earnings report from JPMorgan Chase battered bank stocks on Friday and helped push the rest of the market lower. Rumors of imminent downgrades for the credit ratings of European governments drove the euro down and sent investors streaming into U.S. debt.

The Dow Jones industrial average fell 48.96 points to close at 12,422.06, a drop of 0.4 percent. Markets were little changed late in the day after France's finance minister confirmed that Standard & Poor's had stripped the country of its AAA credit rating.

Before the market opened, JPMorgan said quarterly profit declined 23 percent from a year earlier, slightly worse than what analysts expected. The bank's stock lost 2 percent, and other large banks followed. Morgan Stanley fell 3 percent and Goldman Sachs 2 percent.

It was the first time JPMorgan missed Wall Street expectations since the final quarter of 2007, a period that includes the financial crisis of 2008 and 2009. JPMorgan is widely considered one of the best-managed big banks. Traders figured that if JPMorgan had trouble as 2011 came to a close, the rest of the industry probably did, too.

"JPMorgan is the gold standard," said Phil Orlando, chief equity strategist at Federated Investors. "So what happens to the banks that aren't quite as strong and aren't quite as well-managed?"

On trading desks, it's called the "cockroach theory," Orlando said. "You never see just one cockroach. If you see one, you know there's bound to be a lot more."

The euro slipped to its lowest level in 17 months after reports surfaced that S&P would downgrade European governments. After the markets closed in New York, S&P announced cuts for France, Austria, Italy and Spain.

The euro dropped 1.1 percent against the dollar to $1.27. Borrowing costs jumped for France, Italy and Spain, countries at the center of the region's debt crisis.

The dollar and U.S. Treasury prices rose as investors moved money into lower-risk assets. The yield on the 10-year U.S. Treasury note fell to 1.86 percent from 1.93 percent late Thursday.

S&P warned Dec. 5 that 15 countries that use the euro were at risk of downgrades, citing higher borrowing costs for top-rated governments and disagreements among European leaders.

A cut to France's credit rating may fail to push rates up for France because bond traders were prepared for it, said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott.

The danger is to the European rescue fund. France is the second-largest contributor to the fund behind Germany. Bond traders could respond to the French downgrade by raising borrowing costs for the rescue fund, in the expectation that its rating will be cut next.

"The knock-on effects are far more significant than the impact on France itself," LeBas said.

JPMorgan's results opened the earnings season for banks on a sour note. Though an increasing pace of earnings reports may help steer the markets over the coming days, Europe's debt crisis is likely to remain the focus.

In other trading, the S&P 500 index fell 6.41, or 0.5 percent to 1,289.09. The Nasdaq composite index fell 14.03, or 0.5 percent, to 2,710.67. Even with Friday's fall, all three indexes posted gains for the second straight week. The S&P 500 index is up 2.5 percent to start the year.

Among stocks making larger moves than the overall market Friday:

— Diamond Foods Inc., which makes Emerald Nuts, plunged 10 percent after The Wall Street Journal reported that federal prosecutors had opened a criminal inquiry into its financial practices. The Journal also reported that two large shareholders had dumped most of their stakes in the company.

— Safeway Inc., the grocery store chain, rose 1.8 percent. An analyst at Jefferies placed a "buy" rating on the stock on the expectation that the company will benefit from an improving job market, especially in California.

— Alpha Natural Resources fell 10 percent, the largest loss in the S&P 500. The coal company bought Massey Energy last year, and the Justice Department is considering whether to prosecute the people who ran Massey when its Big Branch mine exploded in 2010.

4545

 

[bigdog]

Source: http://finance.yahoo.com


The U.S. markets are closed Monday for Martin Luther King Jr. Day January 16
Sym .......Last .......Change..........
Dow 12,422.06
Nasdaq 2,710.67
S&P 500 1,289.09
30-yr Bond 2.9000

NYSE Volume 3,761,121,750
Nasdaq Volume 1,689,729,125

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,657.44 +20.80 +0.37%
DAX 6,220.01 +76.93 +1.25%
CAC 40 3,225.00 +28.51 +0.89%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,208.90 -46.50 -1.09%
Shanghai Comp 2,206.19 -38.39 -1.71%
Taiwan Wei... 7,103.62 -77.92 -1.09
Nikkei 225 8,378.36 -121.66 -1.43%
Straits Times 2,756.49 -35.05 -1.26%
Hang Seng 19,012.20 -192.22 -1.00%

http://finance.yahoo.com/news/share...BzdGNhdANuZXdzBHB0A3NlY3Rpb25zBHRlc3QD;_ylv=3

European shares stabilize, economic data eyed
By Richard Hubbard

LONDON (Reuters) - European shares and the euro gradually recovered on Monday from early losses triggered by the mass downgrade of euro zone sovereign ratings last week, but they still looked vulnerable amid rising fears of a disorderly Greek debt default.

Markets had already reacted to the downgrades on Friday, and European assets steadied by Monday afternoon, but activity was limited with U.S. markets closed and the problems in the region's debt markets continued to weigh on sentiment.

The European Central Bank more than tripled its bond purchases in the week to January 13 to calm market fears and halt the rise in yields, spending 3.77 billion euros compared with 1.1 billion the previous week, data showed on Monday.

However, the glimmer of hope which had emerged after solid bond auctions by Italy and Spain last week, and a view that the S&P move on ratings had been well telegraphed, helped steady market nerves though confidence could quickly ebb.

"If we were to see the start of a downward spiral, and any further loss of confidence in the euro zone started to materialize, that would have a broader negative impact for the euro and riskier currencies in general," said Lee Hardman, currency economist at Bank of Tokyo-Mitsubishi UFJ.

The euro was up 0.3 percent against the dollar at $1.2673 in late European trade in thin trading but was still seen vulnerable to a test of Friday's 17-month low of $1.2624.

The FTSEurofirst 300 .FTEU3) index of top European shares ended up about 0.8 percent at 1,025.64 points in low volume while the main euro zone bank stock index .SX7E) reversed some heavy early losses on fears the sector could be the next target for rating cuts to end up 0.3 percent.

World shares overall recovered from losses seen in Asian trade to be just 0.1 percent higher.

DEBT FEARS REMAIN

Growing nervousness saw Europe's commercial banks park almost half a trillion euros at the European Central Bank, the highest on record, as the mix of debt crisis worries and a recent giant injection of ECB cash left banks awash with money but too scared to lend it.

Market attention was likely to switch on Tuesday to the state of the euro zone's economy with the latest ZEW survey on the health of the giant German economy due.

Germany's economy contracted by about 0.25 percent in the fourth quarter as growth slowed in the second half of last year, according to an estimate by the statistics office.

Berlin will cut its forecast for 2012 economic growth to just 0.75 percent yet expects the jobless rate to decline further to 6.8 percent on an annual basis a German newspaper, Ruhr Nachrichten, reported on Monday.

Investors also await Chinese GDP data to gauge the outlook for growth in the world's second-largest economy with forecasts calling for a fourth successive quarterly slowdown in growth to around 8.7 percent from 9.1 percent previously.

Debt markets are focused on Greece with senior officials from the government due in Washington for meetings with the International Monetary Fund to try to break a deadlock in debt swap talks that has prompted the fears of an unruly default.

The cost of insuring Italian, Spanish and other euro zone government debt against default rose on the S&P ratings cuts, while shorter-dated UK government bond yields fell. Safe-haven German government bonds retraced gains seen on Friday after reports first emerged of the S&P action.

The ECB was also reported by traders to be active in buying Italian government bonds to keep a lid on rising yields.

Italian five-year bond yields, which had been around 6 percent in early trade, dropped to around 5.77 percent on the reports of ECB buying.

The cost of insuring five-year Italian bonds rose to around 515 basis points from under 500 basis points on Friday, meaning it costs 515,000 euros to protect 10 million euros of exposure to Italian debt.

German Bund futures were slightly lower at 139.91, having hit a record high of 140.23 on Friday. Ten-year cash yields were little changed at 1.772 percent.

Italy takes a break from debt sales this week, but France plans to sell up to 8 billion euros of debt on Thursday and Spain comes to the market with sales of 2016, 2019 and 2022 bonds..

Yields on French treasury bills eased marginally on Monday in the first test of investor appetite for the country's debt since it was stripped of its coveted triple-A credit rating on Friday.

Concerns that European financial troubles will drag down global growth and sap appetite for commodities weighed on industrial metals such as copper, while spot gold held steady at around $1,645 an ounce.

However, oil futures rose on Monday on growing tension between Saudi Arabia and Iran, after the Islamic state told its Gulf Arab neighbors not to make up any shortfall caused by an embargo on its crude oil exports.

The latest threat comes as leaders of top Asian buyers of Iranian oil - China, Japan and South Korea - tour alternative Middle East suppliers while the United States pressures nations to stop importing oil from the Islamic Republic.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks close up on Europe debt sales, China growth

Stocks close higher after downgrades fail to squelch demand for European debt

Slight improvements in Europe's troubled debt markets and China's economy were enough to lift stocks on Tuesday. The Dow Jones industrial average rose as many as 151 points in the morning before fading to a 60-point gain at the close.

Debt auctions by Spain, Greece and Europe's bailout fund drew solid interest from investors, easing fears that recent credit-rating downgrades would prevent them from obtaining funds. The downgrades had threatened to increase borrowing costs and intensify the region's debt crisis.

The Chinese government said earlier that its economy slowed less dramatically in the fourth quarter than analysts had expected.

There's so much money sitting in short-term accounts and earning zero return that even a shred of good news can jolt the market higher, said David Kelly, chief market strategist with J.P. Morgan Funds.

"The stock market is cheap, but cash and Treasurys are extremely expensive," Kelly said. "That's why even though people are busy taking money out of stocks and putting it into bond funds, they really should be doing the opposite."

The Dow rose 60.01 points, or 0.5 percent, to close at 12,482.07. It was the Dow's highest close since July 26, before the European debt crisis set off months of wrenching volatility. The Dow is up 264 points in the first 10 days of the year, the best start to a year since 2003.

The Standard & Poor's 500 index gained 4.58 points, or 0.4 percent, to 1,293.67. The S&P 500 had risen earlier to 1,303.02; it hasn't traded above 1,300 since Aug. 1.

The Nasdaq composite index added 17.41 points, or 0.6 percent, to 2,728.08.

The market was closed Monday for the Martin Luther King Jr. Day holiday.

The NYSE DOW NYSE DOW closed HIGHER +60.01 +0.48% on Tuesday January 17
Sym .......Last .......Change..........
Dow 12,482.07 +60.01 +0.48%
Nasdaq 2,728.08 +17.41 +0.64%
S&P 500 1,293.67 +4.58 +0.36%
30-yr Bond 2.8900% -0.0130

NYSE Volume 3,883,753,750
Nasdaq Volume 1,819,276,375

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,693.95 +36.51 +0.65%
DAX 6,332.93 +112.92 +1.82%
CAC 40 3,269.99 +44.99 +1.40%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,277.70 +68.80 +1.63%
Shanghai Comp 2,298.38 +92.18 +4.18%
Taiwa We... 7,221.08 +117.46 +1.65%
Nikkei 225 8,466.40 +88.04 +1.05%
Hang eng 19,627.75 +615.55 +3.24%
Straits Times 2,815.85 +59.36 +2.15%

http://finance.yahoo.com/news/stocks-close-europe-debt-sales-210931589.html

Stocks close up on Europe debt sales, China growth

Stocks close higher after downgrades fail to squelch demand for European debt

By Daniel Wagner, AP Business Writer

Slight improvements in Europe's troubled debt markets and China's economy were enough to lift stocks on Tuesday. The Dow Jones industrial average rose as many as 151 points in the morning before fading to a 60-point gain at the close.

Debt auctions by Spain, Greece and Europe's bailout fund drew solid interest from investors, easing fears that recent credit-rating downgrades would prevent them from obtaining funds. The downgrades had threatened to increase borrowing costs and intensify the region's debt crisis.

The Chinese government said earlier that its economy slowed less dramatically in the fourth quarter than analysts had expected.

There's so much money sitting in short-term accounts and earning zero return that even a shred of good news can jolt the market higher, said David Kelly, chief market strategist with J.P. Morgan Funds.

"The stock market is cheap, but cash and Treasurys are extremely expensive," Kelly said. "That's why even though people are busy taking money out of stocks and putting it into bond funds, they really should be doing the opposite."

The Dow rose 60.01 points, or 0.5 percent, to close at 12,482.07. It was the Dow's highest close since July 26, before the European debt crisis set off months of wrenching volatility. The Dow is up 264 points in the first 10 days of the year, the best start to a year since 2003.

The Standard & Poor's 500 index gained 4.58 points, or 0.4 percent, to 1,293.67. The S&P 500 had risen earlier to 1,303.02; it hasn't traded above 1,300 since Aug. 1.

The Nasdaq composite index added 17.41 points, or 0.6 percent, to 2,728.08.

The market was closed Monday for the Martin Luther King Jr. Day holiday.

Bank stocks were uneven after a mixed batch of earnings reports. Wells Fargo & Co. rose 0.7 percent after strength in its lending business helped it beat Wall Street's fourth-quarter earnings estimates. Citigroup Inc. fell 8.2 percent and M&T Bank Corp. fell 1.6 percent after their earnings fell short of estimates.

Carnival Corp. plunged 13.7 percent after a cruise ship owned by one of its brands capsized off the coast of Italy, killing 11 passengers. Italian prosecutors are charging the captain with manslaughter, causing a shipwreck and abandoning his ship before all passengers were evacuated.

Royal Caribbean Cruises Ltd. Co. fell 6.2 percent as analysts predicted ripple effects through the industry.

Overseas markets rose earlier Tuesday after Spain auctioned off billions in short-term debt at sharply lower interest rates, indicating strong demand for the nation's bonds. Spain's borrowing costs had spiked in recent weeks on fears it would be engulfed by the crisis and default on its debts.

Standard & Poor's downgraded Spain's credit rating on Friday. The strong auction suggested that investors took the downgrade in stride.

Greece also auctioned off short-term debt on Tuesday at a lower rate than it had been paying. The fund to bail out Greece and other troubled nations also raised money, despite a downgrade on Monday.

The bailout fund's credit rating is based on the ratings of the nations that contribute to it. It was downgraded because S&P had cut ratings for most of the nations that use the euro and back the fund.

Earlier, the Chinese government said its economic growth slowed to 8.9 percent in the fourth quarter. That was the lowest in two and a half years, but still better than the 8.7 percent predicted by analysts.

Chinese growth must stay strong to keep the global economy moving as Europe tips toward recession, said Brian Levitt, an economist with Oppenheimer Funds.

"Many emerging markets are more linked via exports to the Chinese market than to the European economy, so China becomes sort of the lynchpin economic activity across much of the world," he said.

Asian and European markets closed higher. France's CAC 40 rose 1.4 percent, Germany's DAX added 1.8 percent.

Among the other U.S. companies making big moves Tuesday:

”” Lions Gate Entertainment Corp. rose 4 percent after it agreed Friday to buy Summit Entertainment, owner of the blockbuster "Twilight" franchise, for $412.5 million in cash and stock.

”” R. R. Donnelley & Sons Co. lost 15.8 percent, the most in the S&P 500, after the printing company said its 2011 profit margin will be narrower than it had forecast earlier.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks at highest since July after word of stronger housing market and heftier bailout

A surprisingly strong report on the housing market and the prospect of more cash for the International Monetary Fund to fight off a financial crisis powered stocks Wednesday to their highest close since last summer.

The Standard & Poor's 500 index closed above 1,300 for the first time since July 28, and the Dow Jones industrial average finished at its highest since July 25. That was just before the bitter fight in Washington over the federal debt limit.

It was also the first time since Jan. 3, the first trading day of the year, that the S&P 500 moved more than 1 percent. The market has made a quiet ascent since then. The S&P is up 4 percent for the year, the Dow 3 percent.

"We think things are setting up to be better than last year," said Brad Sorensen, director of market research at Charles Schwab. "The worst-case scenario is off the table."

The National Association of Home Builders index, a measure of sentiment among builders, rose to its highest level since June 2007 as sales jumped. Analysts said it could be a sign the housing market has bottomed out.

The index is rising because builders are seeing a rise in people shopping for a home, not because they are seeing more sales, at least not yet. Those in a position to buy are benefiting from lower prices and mortgage rates.

Stocks of home construction companies jumped. PulteGroup Inc. rose 6 percent, Toll Brothers Inc. rose 5 percent, and KB Home rose 8 percent.

In another encouraging sign, the Federal Reserve said manufacturing rose 0.9 percent from November to December, the biggest gain since December 2010.

Christine Lagarde, managing director of the IMF, said the fund wanted to raise $500 billion more to lend to countries. The IMF has put up roughly a third of the rescue loans to debt-hobbled European countries over the past two years.

Investors are eager for signs that the world can contain Europe's debt problem. Besides an already likely recession in Europe, a messy default by Greece or another country could lead to a financial crisis around the globe.

The NYSE DOW NYSE DOW closed HIGHER +96.88 +0.78% on Wednesday January 18
Sym .......Last .......Change..........
Dow 12,578.95 +96.88 +0.78%
Nasdaq 2,769.71 +41.63 +1.53%
S&P 500 1,308.04 +14.37 +1.11%
30-yr Bond 2.9500 % +0.0630

NYSE Volume 4,083,191,000
Nasdaq Volume 2,026,670,750

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,702.37 +8.42 +0.15%
DAX 6,354.57 +21.64 +0.34%
CAC 40 3,264.93 -5.06 -0.15%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,280.60 +2.90 +0.07%
Shanghai Comp 2,266.38 -31.99 -1.39%
Taiwan Wei... 7,233.69 +12.61 +0.17%
Nikkei 225 8,550.58 +84.18 +0.99%
Hang Seng 19,686.92 +59.17 +0.30%
Straits Times 2,795.40 -20.45 -0.73%

http://finance.yahoo.com/news/Dow-S-P-500-close-highest-apf-4278921364.html?x=0

Dow, S&P 500 close at their highest since July

Stocks at highest since July after word of stronger housing market and heftier bailout fund

By Matthew Craft, AP Business Writer

NEW YORK (AP) -- A surprisingly strong report on the housing market and the prospect of more cash for the International Monetary Fund to fight off a financial crisis powered stocks Wednesday to their highest close since last summer.

The Standard & Poor's 500 index closed above 1,300 for the first time since July 28, and the Dow Jones industrial average finished at its highest since July 25. That was just before the bitter fight in Washington over the federal debt limit.

It was also the first time since Jan. 3, the first trading day of the year, that the S&P 500 moved more than 1 percent. The market has made a quiet ascent since then. The S&P is up 4 percent for the year, the Dow 3 percent.

"We think things are setting up to be better than last year," said Brad Sorensen, director of market research at Charles Schwab. "The worst-case scenario is off the table."

The National Association of Home Builders index, a measure of sentiment among builders, rose to its highest level since June 2007 as sales jumped. Analysts said it could be a sign the housing market has bottomed out.

The index is rising because builders are seeing a rise in people shopping for a home, not because they are seeing more sales, at least not yet. Those in a position to buy are benefiting from lower prices and mortgage rates.

Stocks of home construction companies jumped. PulteGroup Inc. rose 6 percent, Toll Brothers Inc. rose 5 percent, and KB Home rose 8 percent.

In another encouraging sign, the Federal Reserve said manufacturing rose 0.9 percent from November to December, the biggest gain since December 2010.

Christine Lagarde, managing director of the IMF, said the fund wanted to raise $500 billion more to lend to countries. The IMF has put up roughly a third of the rescue loans to debt-hobbled European countries over the past two years.

Investors are eager for signs that the world can contain Europe's debt problem. Besides an already likely recession in Europe, a messy default by Greece or another country could lead to a financial crisis around the globe.

In other trading, Goldman Sachs stock added almost 7 percent after its quarterly profit beat Wall Street expectations. Net income still fell 58 percent in the last three months of 2011, a result of choppy financial markets.

Some bank stocks followed Goldman higher. Morgan Stanley, another investment bank, rose 6.8 percent. Bank of America rose 4.9 percent, JPMorgan Chase 4.7 percent and Citigroup 2.9 percent.

Other financial stocks sank after disappointing earnings reports. State Street Corp. plunged 6.6 percent, the largest fall in the S&P 500. PNC Financial Services Group Inc. fell 2.6 percent, and Northern Trust Corp. slipped 2 percent.

The Dow finished up 96.88, or 0.8 percent, at 12,578.95. The S&P rose 14.37, or 1.1 percent, to 1,308.04. The Nasdaq composite index, which has outperformed the other two this year, rose 41.63 points, or 1.5 percent, to 2,769.71.

Among other stocks making large moves Wednesday:

”” Yahoo climbed 3 percent on news that co-founder Jerry Yang is leaving the struggling Internet pioneer. The departure clears the way for newly hired CEO Scott Thompson to take more radical action to shake up the company.

”” Amphenol Corp., which makes fiber-optic cables, soared 11 percent. Its earnings that beat analysts' expectations, and the company said strong orders should push next year's earnings above Wall Street forecasts.

”” Linear Technology Corp., which makes circuits, jumped 11 percent, most in the S&P 500. It expects quarterly revenue to rise 4 to 8 percent following strong demand in December and January. It also raised its dividend by a penny to 25 cents a share.

”” Cash America International Inc., a payday lender and operator of pawnshops, sank 6 percent after cutting its earnings forecast.

 

[bigdog]

Source: http://finance.yahoo.com

The Dow's gain for the day amounted to 0.4 percent. The S&P's came to 0.5 percent. The Nasdaq added 18.62 points, or 18.62 points, to close at 2,788.33.

Strong corporate earnings reports and the lowest unemployment claims in almost four years gave investors more reasons Thursday to take risks on stocks, and the market continued its quiet but solid January climb.

The Dow Jones industrial average gained 45.03 points to close at 12,623.98. The Standard & Poor's 500 index added 6.46 points to close at 1,314.50. Both averages are at their highest since July.

Volume was slightly above average. The market has been subdued this year: The S&P has moved up or down 1 percent or more only twice, and the Dow has moved 100 points only once, a 179-point gain on opening day, Jan. 3.

But the gains have been steady. The S&P has closed higher 12 of 14 days, and all three major averages have recorded healthy advances for the young year — 3.3 percent for the Dow, 4.4 percent for the S&P and 7 percent for the Nasdaq composite index.

Investors appear ready to believe that the economic recovery is for real and getting stronger.

"The market is screaming loud and clear," said Doug Cote, chief market strategist with ING Investment Management. "Prices have lagged fundamentals, and now they're catching up."

After the market closed, Google stock plunged more than 10 percent after its earnings per share badly missed Wall Street expectations. Intel and Microsoft rose slightly in after-hours trading after more encouraging reports.

In a sign of a bigger appetite for risk, investors moved money out of U.S. debt, a haven during the stock market's volatile second half of 2011. The yield on the 10-year U.S. Treasury note increased to 1.98 percent from 1.90 percent Wednesday.

The market was led by industries that tend to perform best when the economy is getting stronger — consumer discretionary stocks, financials and industrial companies.

Of the 10 categories of stocks in the S&P 500, the only one that lost considerable ground was utilities — a safe play for investors during turbulent times and the best-performing category last year.

The NYSE DOW NYSE DOW closed HIGHER +46.24 +0.37% on Thursday January 19
Sym .......Last .......Change..........
Dow 12,625.19 +46.24 +0.37%
Nasdaq 2,788.33 +18.62 +0.67%
S&P 500 1,314.50 +6.46 +0.49%
30-yr Bond 3.0400 % +0.0850

NYSE Volume 4,465,896,000
Nasdaq Volume 2,020,639,125

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,741.15 +38.78 +0.68%
DAX 6,416.26 +61.69 +0.97%
CAC 40 3,328.94 +64.01 +1.96%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,278.60 -2.00 -0.05%
Shanghai Comp 2,296.08 +29.69 +1.31%
Taiwan Wei... 7,233.69 closed
Nikkei 225 8,639.68 +89.10 +1.04%
Hang Seng 19,942.95 +256.03 +1.30%
Straits Times 2,811.20 +15.80 +0.57%

http://finance.yahoo.com/news/stocks-add-steady-climb-dow-213120686.html

Stocks add to steady climb; Dow gains 45

Dow adds 45 and S&P gains for 12th day in 14 as market continues strong start to 2012

By Samantha Bomkamp, AP Business Writer

NEW YORK (AP) -- Strong corporate earnings reports and the lowest unemployment claims in almost four years gave investors more reasons Thursday to take risks on stocks, and the market continued its quiet but solid January climb.

The Dow Jones industrial average gained 45.03 points to close at 12,623.98. The Standard & Poor's 500 index added 6.46 points to close at 1,314.50. Both averages are at their highest since July.

Volume was slightly above average. The market has been subdued this year: The S&P has moved up or down 1 percent or more only twice, and the Dow has moved 100 points only once, a 179-point gain on opening day, Jan. 3.

But the gains have been steady. The S&P has closed higher 12 of 14 days, and all three major averages have recorded healthy advances for the young year — 3.3 percent for the Dow, 4.4 percent for the S&P and 7 percent for the Nasdaq composite index.

Investors appear ready to believe that the economic recovery is for real and getting stronger.

"The market is screaming loud and clear," said Doug Cote, chief market strategist with ING Investment Management. "Prices have lagged fundamentals, and now they're catching up."

After the market closed, Google stock plunged more than 10 percent after its earnings per share badly missed Wall Street expectations. Intel and Microsoft rose slightly in after-hours trading after more encouraging reports.

In a sign of a bigger appetite for risk, investors moved money out of U.S. debt, a haven during the stock market's volatile second half of 2011. The yield on the 10-year U.S. Treasury note increased to 1.98 percent from 1.90 percent Wednesday.

The market was led by industries that tend to perform best when the economy is getting stronger — consumer discretionary stocks, financials and industrial companies.

Of the 10 categories of stocks in the S&P 500, the only one that lost considerable ground was utilities — a safe play for investors during turbulent times and the best-performing category last year.

Cote said the market's gains could accelerate as investors begin to focus more on economic fundamentals in the United States instead of worries about their exposure to risk.

And the economic news Thursday was good: The number of people seeking unemployment benefits plummeted last week to 352,000, the fewest since April 2008. The decline added to evidence that the job market is strengthening.

U.S. consumer prices were unchanged last month, a signal inflation is under control. In the housing market, a third straight increase in single-family home building in December was offset by a drop in apartment construction.

France and Spain also held successful bond auctions, easing concerns about the debt crisis in Europe. As global risk factors subside, Cote predicts that markets will see "a strong snap-back rally."

Bank of America rose 2 percent and Morgan Stanley rose 5 percent after reporting encouraging financial results. Bank of America returned to a profit in the last three months of 2011, while Morgan Stanley's loss was much less than forecast.

Renewable Energy Group Inc., the nation's largest producer of biodiesel, edged up 10 cents to $10.10 on its first day of trading. It was the first initial public offering of stock this year.

Trading was halted in shares of Eastman Kodak, the iconic photography company, after it filed for Chapter 11 bankruptcy protection. Kodak could not find a buyer for its trove of 1,100 digital imaging patents.

The Dow's gain for the day amounted to 0.4 percent. The S&P's came to 0.5 percent. The Nasdaq added 18.62 points, or 18.62 points, to close at 2,788.33.

Among other stocks in the news:

— eBay Inc., the online auction company, rose 3.9 percent after it beat Wall Street earnings forecasts and gave a healthy outlook for the year.

— Southwest Airlines Co. rose 3.1 percent after it said its fourth-quarter net income and revenue jumped. Southwest said it expects strong revenue in the first quarter too, based on passenger-booking trends.

— Johnson Controls Inc., an auto parts and building equipment maker based in Milwaukee, fell 8.8 percent. Its profit and revenue fell short of Wall Street forecasts. It also cut its forecasts, blaming weaker auto production in Europe, a lower euro and poor demand for batteries.

 

[bigdog]

Source: http://finance.yahoo.com

IBM and Microsoft drove the Dow Jones industrial average higher Friday after the tech giants reported stronger earnings than analysts expected.

Microsoft said sales of Xbox games and Office software helped push revenue up in the last quarter of 2011. IBM credited better sales of software and services and raised its earnings outlook for the year. Microsoft rose 6 percent and IBM rose 4 percent.

The Dow rose 96.50 points to close at 12,720.48. That's a gain of 0.8 percent. Without the huge gains in IBM and Microsoft, the Dow would have risen just 24 points.

The S&P 500 index inched up 0.88 to 1,315.38. Both the Dow and S&P ended the week with gains of more than 2 percent.

Plenty of things are going right, said Frank Fantozzi, CEO of Planned Financial Services, an independent wealth manager in Cleveland. Applications for unemployment benefits dropped last week to the lowest level in nearly four years. Housing sales are steadily rising. And most companies are reporting better profits.

"Overall, we're moving in the right direction and it's bolstered the market," Fantozzi said. "The S&P getting over 1,300 this week is a nice sign."

Google lost 8.4 percent after its earnings per share fell a dollar short of analysts' estimates. The misfire stemmed from an 8 percent drop in prices that the Internet search giant charges advertisers for each click.

Google's drop tugged the Nasdaq composite index lower. It fell 1.63 points to 2,786.70.

The NYSE DOW NYSE DOW closed HIGHER +96.50 +0.76% on Friday January 20
Sym .......Last .......Change..........
Dow 12,720.48 +96.50 +0.76%
Nasdaq 2,786.70 -1.63 -0.06%
S&P 500 1,315.38 +0.88 +0.07%
30-yr Bond 3.1000 % +0.0620

NYSE Volume 3,956,980,500
Nasdaq Volume 1,985,132,000

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,728.55 -12.60 -0.22%
DAX 6,404.39 -11.87 -0.18%
CAC 40 3,321.50 -7.44 -0.22%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,303.00 +24.40 +0.57%
Shanghai Comp 2,319.12 +23.04 +1.00%
Taiwan Wei... 7,233.69 closed
Nikkei 225 8,766.36 +126.68 +1.47%
Hang Seng 20,110.37 +167.42 +0.84%
Straits Times 2,849.38 +38.18 +1.36%

http://finance.yahoo.com/news/Microsoft-IBM-push-Dow-Google-apf-2670645496.html?x=0

Microsoft and IBM push Dow up, Google falls

Tech earnings drive Dow up, while Google takes a plunge; Stock indexes end the week higher

By Matthew Craft, AP Business Writer

NEW YORK (AP) -- IBM and Microsoft drove the Dow Jones industrial average higher Friday after the tech giants reported stronger earnings than analysts expected.

Microsoft said sales of Xbox games and Office software helped push revenue up in the last quarter of 2011. IBM credited better sales of software and services and raised its earnings outlook for the year. Microsoft rose 6 percent and IBM rose 4 percent.

The Dow rose 96.50 points to close at 12,720.48. That's a gain of 0.8 percent. Without the huge gains in IBM and Microsoft, the Dow would have risen just 24 points.

The S&P 500 index inched up 0.88 to 1,315.38. Both the Dow and S&P ended the week with gains of more than 2 percent.

Plenty of things are going right, said Frank Fantozzi, CEO of Planned Financial Services, an independent wealth manager in Cleveland. Applications for unemployment benefits dropped last week to the lowest level in nearly four years. Housing sales are steadily rising. And most companies are reporting better profits.

"Overall, we're moving in the right direction and it's bolstered the market," Fantozzi said. "The S&P getting over 1,300 this week is a nice sign."

Google lost 8.4 percent after its earnings per share fell a dollar short of analysts' estimates. The misfire stemmed from an 8 percent drop in prices that the Internet search giant charges advertisers for each click.

Google's drop tugged the Nasdaq composite index lower. It fell 1.63 points to 2,786.70.

Even though high-profile companies such as Google and JPMorgan Chase have posted disappointing earnings results in the past week, the trend is moving in the opposite direction. Of the 60 companies in the S&P index that have reported earnings so far, 62 percent have beaten estimates, according to John Butters, senior earnings analyst at FactSet Research.

In another sign that traders were becoming more willing to take on risk, the yield on the 10-year Treasury note crossed above 2 percent for the first time in two weeks. The yield, a widely used benchmark for corporate and consumer borrowing, had inched lower since early December as traders parked money in the safest of assets.

The National Association of Realtors said that home sales rose 5 percent in December, the third straight monthly increase.

Among other companies in the news:

— Capital One Financial lost 5.6 percent. The bank and credit-card company's earnings sank 41 percent as expenses for marketing, salaries and legal fees jumped compared with the year before.

— Schlumberger rose 1.3 percent. The oil-field services company's quarterly profit surged 36 percent, helped by exploration work in the Middle East and Africa. The company also raised its quarterly dividend to 27.5 cents.

- Intel rose 2.9 percent. The world's largest chip maker reported stronger profits after the market closed Thursday. Intel's results got a boost from sales to China and other developing countries, where many people are buying PCs for the first time.

Stocks have been on a slow and steady climb to start 2012. The S&P 500 has closed higher on 11 of 13 days and is now up 4.6 percent for the year.

5323

 

[bigdog]

Source: http://finance.yahoo.com

The S&P 500 index eked out a tiny gain Monday while traders kept an eye on talks in Europe to cut Greece's crushing debt load and prevent a global financial crisis. Other indexes ended slightly lower.

The S&P added 0.62 of a point to close at 1,316 on Monday. The broad market measure has now closed higher on 12 of 14 days this year.

European stocks and the euro rose after the continent's finance ministers put pressure on banks that hold Greek government bonds to accept new ones that are worth half as much and carry a lower interest rate.

The Greek stock market gained 5 percent, and indexes in Germany, France, Spain and Britain all advanced less than 1 percent. The euro rose more than a penny to $1.302, close to its highest level against the dollar this year.

Negotiators are trying to prevent a disorderly default by Greece in March. The worst-case scenarios include a credit crisis similar to what happened after the Lehman Brothers investment bank fell in 2008.

The Dow Jones industrial average fell 11.66 points to 12,708.82. That's a loss of 0.1 percent.

The Nasdaq composite index fell 2.53 points, or 0.1 percent, to 2,784.17.

Stocks are still off to a strong start in 2012. Investors' biggest fears have slowly faded. Stronger than expected job growth in the U.S. and falling borrowing costs for European governments have helped send the S&P 500 index up 4.6 percent for the year.

The NYSE DOW closed LOWER -11.66 -0.09% on Monday January 23
Sym .......Last .......Change..........
Dow 12,708.82 -11.66 -0.09%
Nasdaq 2,784.17 -2.53 -0.09%
S&P 500 1,316.00 +0.62 +0.05%
30-yr Bond 3.1500 % +0.0450

NYSE Volume 3,770,907,750
Nasdaq Volume 1,700,273,000

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,782.56 +54.01 +0.94%
DAX 6,436.62 +32.23 +0.50%
CAC 40 3,338.42 +16.92 +0.51%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,287.60 -15.40 -0.36%
Shanghai Comp 2,319.12 closed
Taiwan Wei... 7,233.69 closed
Nikkei 225 8,765.90 -0.46 -0.01%
Hang Seng 20,110.37 closed
Straits Times 2,849.38 closed

http://finance.yahoo.com/news/stocks-end-mixed-greece-negotiates-211707091.html

Stocks end mixed as Greece negotiates to cut debt

US stocks swing between gains and losses as investors await resolution of Greek debt talks

NEW YORK (AP) -- The S&P 500 index eked out a tiny gain Monday while traders kept an eye on talks in Europe to cut Greece's crushing debt load and prevent a global financial crisis. Other indexes ended slightly lower.

The S&P added 0.62 of a point to close at 1,316 on Monday. The broad market measure has now closed higher on 12 of 14 days this year.

European stocks and the euro rose after the continent's finance ministers put pressure on banks that hold Greek government bonds to accept new ones that are worth half as much and carry a lower interest rate.

The Greek stock market gained 5 percent, and indexes in Germany, France, Spain and Britain all advanced less than 1 percent. The euro rose more than a penny to $1.302, close to its highest level against the dollar this year.

Negotiators are trying to prevent a disorderly default by Greece in March. The worst-case scenarios include a credit crisis similar to what happened after the Lehman Brothers investment bank fell in 2008.

The Dow Jones industrial average fell 11.66 points to 12,708.82. That's a loss of 0.1 percent.

The Nasdaq composite index fell 2.53 points, or 0.1 percent, to 2,784.17.

Stocks are still off to a strong start in 2012. Investors' biggest fears have slowly faded. Stronger than expected job growth in the U.S. and falling borrowing costs for European governments have helped send the S&P 500 index up 4.6 percent for the year.

Maybe the biggest boon to markets this year is the lack of scary headlines, said Jeff Lancaster, a principal at the investment firm Bingham, Osborn & Scarborough.

"When everybody is feeling distressed, anxious and worried as they were at the end of last year, it doesn't take a lot of good news for the mood to change," he said. "It just takes a diminishing quantity of bad news."

Many energy stocks jumped along with prices for natural gas and crude oil. Chesapeake Energy Corp., the No. 2 producer of natural gas in the United States, gained 6 percent after it said it plans to cut production, a response to the recent slump in natural gas prices.

Natural gas futures rose 7.9 percent to $2.60 per 1,000 cubic feet. Gas futures were trading above $4 just six months ago.

Stocks of other gas producers shot higher. Southwestern Energy Co. jumped 10 percent, the biggest gain in the S&P 500. Cabot Oil & Gas Corp. was close behind, rising 6.5 percent.

Apache Corp., a producer of oil and gas, rose 1.6 percent after saying said it plans to buy Cordillera Energy Partners in a $2.85 billion deal. It's the largest merger announced in the U.S. this year.

The price of oil rose 1.3 percent to $99.58 per barrel. The European Union tightened sanctions against Iran by banning the purchase of Iranian oil. Iran threatened to block shipping through the Strait of Hormuz, the passageway for one-sixth of the world's oil exports.

Research In Motion Ltd., maker of the BlackBerry, sank 8.5 percent after its new chief executive said no drastic changes are needed. The company's founders announced they were stepping down as co-CEOs late Sunday.

 

[bigdog]

Source: http://finance.yahoo.com

Stocks fell Tuesday on concerns that a deal to prevent a default by Greece might fall through.

A slew of U.S. corporate earnings Tuesday also did little to bolster investors' confidence.

The Dow Jones industrial average closed down 33 points at 12,676. It has risen or fallen less than 100 points in 13 trading sessions, the longest calm stretch since March and April of last year.

The Standard & Poor's 500 lost a point to close at 1,315. It's only the third time the S&P has ended lower this year ”” all those declines have been less than 7 points. So far this year, it's up about 4.5 percent.

The Nasdaq added 2 points Tuesday to close at 2,787 after a day of wavering between small gains and losses. Tech stocks could be in for a strong day Wednesday after Apple Inc. reported sharply higher earnings after the market closed Tuesday, trouncing analysts' estimates.

Rising stocks slightly outnumbered falling ones on the New York Stock Exchange. Trading volume was lighter than average at 3.7 billion shares.

Treasury prices rose Tuesday from their lowest levels this year on uncertainty about whether Greece will reach a deal with its creditors. That drew money back into safer investments.

In Europe, Greece's stock market index fell 5.5 percent. Stocks fell less than 1 percent in Germany, France and Spain and ended slightly higher in Italy.

A deal between the Greek government and the banks that hold Greek national bonds is considered crucial to the stability of the European financial system. Investors fear that if Greece can't pay its debt, it could trigger a panic.

"There's a lot of apprehension about the unknowns," said Brian Gendreau, market strategist for El Segundo, Calif.-based Cetera Financial Group. "It's not what people think they know about Europe. It's what they worry they don't know."

Greece is trying to get its creditors to swap Greek government bonds for new ones that have half the face value. But agreeing on a new interest rate has been a stumbling block. Greece faces an important bond repayment deadline in March.

The NYSE DOW closed LOWER -33.07 -0.26% on Tuesday January 24
Sym .......Last .......Change..........
Dow 12,675.75 -33.07 -0.26%
Nasdaq 2,786.64 +2.47 +0.09%
S&P 500 1,314.65 -1.35 -0.10%
30-yr Bond 3.1600 % +0.0110

NYSE Volume 3,693,557,500
Nasdaq Volume 1,680,270,125

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,751.90 -30.66 -0.53%
DAX 6,419.22 -17.40 -0.27%
CAC 40 3,322.65 -15.77 -0.47%

Asia Pacific
Symbol...... .....Last ....Change.......
Asx all ord 4,286.40 -1.20 -0.03%
Shanghao comp 2,319.12 closed
Taiwan Wei... 7,233.69 closed
Nikkei 225 8,785.33 +19.43 +0.22%
Hang Seng 20,110.37 closed
Straits Times 2,849.38 closed

http://finance.yahoo.com/news/stocks-end-lower-greek-talks-211447372.html

Stocks end lower on Greek talks worries, earnings

Dow, S&P end lower as investors worry about uncertain Greece debt deal, US corporate earnings

By Samantha Bomkamp, AP Business Writer

NEW YORK (AP) -- Stocks fell Tuesday on concerns that a deal to prevent a default by Greece might fall through.

A slew of U.S. corporate earnings Tuesday also did little to bolster investors' confidence.

The Dow Jones industrial average closed down 33 points at 12,676. It has risen or fallen less than 100 points in 13 trading sessions, the longest calm stretch since March and April of last year.

The Standard & Poor's 500 lost a point to close at 1,315. It's only the third time the S&P has ended lower this year ”” all those declines have been less than 7 points. So far this year, it's up about 4.5 percent.

The Nasdaq added 2 points Tuesday to close at 2,787 after a day of wavering between small gains and losses. Tech stocks could be in for a strong day Wednesday after Apple Inc. reported sharply higher earnings after the market closed Tuesday, trouncing analysts' estimates.

Rising stocks slightly outnumbered falling ones on the New York Stock Exchange. Trading volume was lighter than average at 3.7 billion shares.

Treasury prices rose Tuesday from their lowest levels this year on uncertainty about whether Greece will reach a deal with its creditors. That drew money back into safer investments.

In Europe, Greece's stock market index fell 5.5 percent. Stocks fell less than 1 percent in Germany, France and Spain and ended slightly higher in Italy.

A deal between the Greek government and the banks that hold Greek national bonds is considered crucial to the stability of the European financial system. Investors fear that if Greece can't pay its debt, it could trigger a panic.

"There's a lot of apprehension about the unknowns," said Brian Gendreau, market strategist for El Segundo, Calif.-based Cetera Financial Group. "It's not what people think they know about Europe. It's what they worry they don't know."

Greece is trying to get its creditors to swap Greek government bonds for new ones that have half the face value. But agreeing on a new interest rate has been a stumbling block. Greece faces an important bond repayment deadline in March.

In U.S. news, a number of lower-than-expected earnings also added to investors' concerns.

Kimberly-Clark Corp., which makes Kleenex tissues, Huggies diapers and a number of other household goods, said rising costs pushed its net income down 19 percent in the fourth quarter. The stock fell 1.5 percent.

Chemical maker DuPont Co. said its fourth-quarter net income dipped as lower sales and higher costs overshadowed higher prices. The results still beat analysts' expectations and the stock was flat.

Coal producer Peabody Energy Corp. fell 2 percent after its forecast for the first quarter fell well short of expectations. The stock fell 4 percent.

Leading the pack of companies trading higher after reporting earnings, bag and accessories maker Coach Inc. gained 5.8 percent after quarterly net income rose almost 15 percent because of stronger holiday sales.

Among other stocks making large moves:

”” Zions Bancorporation fell 7.5 percent, the most of any stock in the S&P 500, after the Salt Lake City bank reported income that fell far short of Wall Street's expectations. At least one analyst downgraded the stock.

”” Hard disk drive maker Western Digital Corp. was one of the top gainers in the S&P after reporting that its results handily beat Wall Street's expectations. The stock jumped 6.3 percent.

 

[bigdog]

Source: http://finance.yahoo.com

The stock market bounced to its highest close since last spring Wednesday after the Federal Reserve pledged to keep interest rates near zero for almost three more years.

Bond yields dropped sharply, then climbed back later in the day when investors began looking more closely into the Fed's deliberations. The yield on the five-year Treasury note touched an all-time low.

The big moves in both markets came at 12:30 p.m. EST, when the Fed's monetary policy committee said it was unlikely to raise interest rates before late 2014. It had previously promised to keep rates low into the middle of 2013.

The Fed cut rates to near zero in December 2008, during the financial crisis, and has held them there ever since. The announcement was a sign that the Fed expects the economy, which is improving, to need significant help for three more years.

The Dow Jones industrial average was down as much as 95 points in the morning and about 60 points before the Fed announcement. It shot to a gain of 103 points during the afternoon.

The Dow closed up 83.10 points, or 0.7 percent, at 12,758.85. That's the highest close since May. The Dow peaked for last year in April at 12,810. Before that, it had not been so high since May 2008.

In the bond market, the yield on the 10-year Treasury note was at 2.05 percent an hour before the announcement and quickly fell to 1.92, a significant move. It rose to 1.99 percent two hours later.

The bounce-back happened at about 2 p.m., when the Fed released details of how the committee voted. Six of its 17 members had favored an interest rate increase this year or next — well before late 2014 in either case.

The yield on the five-year Treasury note hit 0.76 percent, an all-time low. Bond yields fall when their prices rise.

The Fed's extension of low rates signaled that it expects inflation to stay low. Low inflation makes Treasurys more attractive by helping to maintain the value of bond owners' fixed returns. Rising prices would eat into those returns.


The NYSE DOW closed HIGHER +81.21 +0.64% on Wednesday January 25
Sym .......Last .......Change..........
Dow 12,756.96 +81.21 +0.64%
Nasdaq 2,818.31 +31.67 +1.14%
S&P 500 1,326.06 +11.41 +0.87%
30-yr Bond 3.1500 % -0.0080

NYSE Volume 4,457,060,500
Nasdaq Volume 1,970,176,375

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,723.00 -28.90 -0.50%
DAX 6,421.85 +2.63 +0.04%
CAC 40 3,312.48 -10.17 -0.31%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,329.10 +42.70 +1.00%
Shanghai Comp 2,319.12 closed
Taiwan Wei... 7,233.69 0.00 closed
Nikkei 225 8,883.69 +98.36 +1.12%
Hang Seng 20,110.37 closed
Straits Times 2,891.64 +42.26 +1.48%

http://finance.yahoo.com/news/stocks-close-higher-fed-promise-210539332.html

Stocks close higher on Fed promise of low rates

Stocks erase losses and bond yields fall after Fed says it will keep rates low into 2014

By Daniel Wagner, AP Business Writer

The stock market bounced to its highest close since last spring Wednesday after the Federal Reserve pledged to keep interest rates near zero for almost three more years.

Bond yields dropped sharply, then climbed back later in the day when investors began looking more closely into the Fed's deliberations. The yield on the five-year Treasury note touched an all-time low.

The big moves in both markets came at 12:30 p.m. EST, when the Fed's monetary policy committee said it was unlikely to raise interest rates before late 2014. It had previously promised to keep rates low into the middle of 2013.

The Fed cut rates to near zero in December 2008, during the financial crisis, and has held them there ever since. The announcement was a sign that the Fed expects the economy, which is improving, to need significant help for three more years.

The Dow Jones industrial average was down as much as 95 points in the morning and about 60 points before the Fed announcement. It shot to a gain of 103 points during the afternoon.

The Dow closed up 83.10 points, or 0.7 percent, at 12,758.85. That's the highest close since May. The Dow peaked for last year in April at 12,810. Before that, it had not been so high since May 2008.

In the bond market, the yield on the 10-year Treasury note was at 2.05 percent an hour before the announcement and quickly fell to 1.92, a significant move. It rose to 1.99 percent two hours later.

The bounce-back happened at about 2 p.m., when the Fed released details of how the committee voted. Six of its 17 members had favored an interest rate increase this year or next — well before late 2014 in either case.

The yield on the five-year Treasury note hit 0.76 percent, an all-time low. Bond yields fall when their prices rise.

The Fed's extension of low rates signaled that it expects inflation to stay low. Low inflation makes Treasurys more attractive by helping to maintain the value of bond owners' fixed returns. Rising prices would eat into those returns.

The announcement guaranteed that short-term loans will remain cheap, making it easier for investors to finance longer-term purchases, such as 10- and 30-year Treasurys, said John Canally, investment strategist and economist for LPL Financial.

Monetary decisions by the Fed can change the market's momentum in the short term but rarely have a longer-term impact, Canally warned.

The market changed directions after 22 of the past 24 Fed policy announcements, he said, yet the change evaporates quickly. The market essentially has an equal chance of rising or falling in the five days after Fed meetings, he said.

"It's a coin flip, really," Canally said.

Keeping rates ultra-low for a longer period increases the likelihood that the Fed will engage in more bond-buying programs to help the economy, a policy known as quantitative easing, said Anthony Chan, chief economist with JPMorgan Private Wealth Management. Those tend to boost bond prices by increasing the overall demand in the market.

Chan called the Fed's move insurance against the European debt crisis and a recession across the Atlantic Ocean. Stock buyers, he said, were happy about the prospect of low inflation and a Fed leaning toward promoting economic growth.

The promise of lower rates pushed the dollar lower against other major currencies. Low interest rates make the dollar less attractive because they reduce the returns traders get on U.S. debt and other bonds priced in dollars.

Markets had opened mostly lower on fears about Greece's slow progress in talks with bondholders aimed at reducing that nation's crushing debt load.

Technology stocks rose all morning, bucking the wider market, after Apple reported its best quarter and blew away analyst estimates because of strong holiday sales of the iPhone and iPad.

Apple once again passed Exxon Mobil as the company with the biggest market value. Wall Street was watching the results closely because they were for the company's first quarter since the death of founder Steve Jobs.

Apple stock jumped 6.3 percent, helping lift the Nasdaq composite index by 31.67 points, or 1.1 percent, to close at 2,818.31. The Nasdaq is up 8.2 percent this year, nearly twice the gain for the Dow Jones industrial average.

Netflix Inc., the DVD-by-mail and video streaming provider, jumped 13 percent in after-hours trading after reporting earnings that far exceeded Wall Street's expectations.

The Standard & Poor's 500 index rose 11.41 points, or 0.9 percent, to 1,326.06. The S&P is up 5.4 percent for the year and more than 14 percent from its Nov. 25 low.

As fears recede about Europe, big-time investors such as hedge funds will be drawn back into the market, fueling more gains, said Joe Bell, senior Equity Strategist at Schaeffer's Investment Research.

After such a strong rally, there might be a slight decline, but "overall we're bullish," Bell said.

European markets mostly closed lower. Greece wants the investors, mostly banks and hedge funds, to voluntarily write off about half their debt. Otherwise, Greece will be unable to obtain bailout cash and won't be able to pay its bills. That could set off a financial crisis similar to what happened when Lehman Brothers investment bank failed in 2008.

Adding to the gloom was a report that Britain's economy shrank by 0.2 percent in the fourth quarter.

Among the other companies making big moves after announcing earnings:

— US Airways Group Inc. jumped 17.3 percent and Delta Air Lines Inc. rose 6.2 percent. Both airlines reported profits far better than Wall Street analysts expected. The airlines raised fares during the fourth quarter while keeping costs under control. Delta also cut the number of flights it makes to keep pace with demand.

— WellPoint Inc., the nation's largest health insurance company based on enrollment, fell 4.8 percent. Its quarterly profit dropped 39 percent, far more than analysts had expected. Its full-year forecast also fell short of forecasts. Medical claims, its largest expense, rose nearly 10 percent in the quarter.

— Guidewire Software Inc. soared 37 percent on its first day of trading. The company, which makes software for the insurance industry, rose to $17.80 after selling initially at $13. The 11-year-old company raised $115 million in its debut — or about $27 million less than the profit Apple turned in an average day last quarter.

 

[bigdog]

Source: http://finance.yahoo.com

A brief morning rally pushed the Dow Jones industrial average above its highest closing price since the financial crisis Thursday, but stocks closed lower after mixed economic data tempered traders' optimism.

Solid news on factory orders and strong earnings from U.S. manufacturers highlighted one of the economy's bright spots before the market opened. The Dow and broader indexes turned negative after weaker reports on home sales and future economic growth were released in the late morning.

The Dow and other indexes are still up sharply for the year, and the Dow is near its highest level since May 2008. Traders appear less afraid of spillover damage from the European debt crisis, and data on jobs and manufacturing have been consistently strong.

"With global risk off center stage and attention going back to the fundamentals, this market was ready to explode, which is exactly what it is doing," said Doug Cote, chief market strategist with ING Investment Management.

The government reported early Thursday orders to factories for long-lasting manufactured goods increased in December for the second straight month, and a key measure of business investment rose solidly.

That strong demand was apparent in quarterly earnings reports from U.S. manufacturers. 3M stock closed 1.3 percent higher after its fourth-quarter profit beat Wall Street's estimates.

Caterpillar, the world's biggest heavy equipment maker, rose 2.1 percent, the most of the 30 companies in the Dow, after beating analysts' estimates last quarter. The company expects to do the same this year as global demand remains high.

Stocks traded broadly higher until mid-morning, when the government reported an unexpected drop in new home sales in December, capping the worst year for home sales on records dating to 1963. The decline underscored the housing market's continued drag on the economy.

A private gauge of future economic activity also grew more slowly than expected.

The Dow closed down 22.33 points, or 0.2 percent, at 12,734.63. It had traded up as much as 84.99 points early Thursday. 3M and Caterpillar led the gains.

AT&T dragged the Dow lower, falling 2.5 percent after its earnings missed Wall Street's forecasts. The company remains heavily dependent on Apple's iPhone, which it pays to subsidize, but recently lost its exclusive rights to sell the phone in the U.S.

The Dow is within reach of its post-financial crisis high of 12,810.54, reached in April 2011. The last time it closed higher than that was on May 20, 2008, when it settled at 12,828.68. The Dow's post-crisis high during the trading day was 12,928.45, reached on May 2, 2011.

The Dow is up 4.2 percent so far this year. The Standard & Poor's 500 index and Nasdaq composite average have gained even more.

The Dow would need to rise another 11 percent to get to its record high close of 14,164.53, reached on Oct. 9, 2007.

The NYSE DOW closed LOWER -22.33 -0.18% on Thursday January 26
Sym .......Last .......Change..........
Dow 12,734.63 -22.33 -0.18%
Nasdaq 2,805.28 -13.03 -0.46%
S&P 500 1,318.43 -7.62 -0.57%
30-yr Bond 3.0900 % -0.0590

NYSE Volume 4,683,370,500
Nasdaq Volume 2,096,895,875

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,793.10 +70.10 +1.22%
DAX 6,539.85 +118.00 +1.84%
CAC 40 3,322.65 -15.77 -0.47%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,329.10 closed
Shanghai Comp 2,319.12 closed
Taiwan Wei... 7,233.69 closed
Nikkei 225 8,849.47 -34.22 -0.39%
Hang Seng 20,439.14 +328.77 +1.63%
Straits Times 2,894.43 +2.79 +0.10%

http://finance.yahoo.com/news/stocks-close-lower-dow-near-210950863.html

Stocks close lower; Dow near post-crisis peak

Stocks fall after mixed economic reports; Dow neared a post-crisis peak before rally faded

By Daniel Wagner, AP Business Writer

A brief morning rally pushed the Dow Jones industrial average above its highest closing price since the financial crisis Thursday, but stocks closed lower after mixed economic data tempered traders' optimism.

Solid news on factory orders and strong earnings from U.S. manufacturers highlighted one of the economy's bright spots before the market opened. The Dow and broader indexes turned negative after weaker reports on home sales and future economic growth were released in the late morning.

The Dow and other indexes are still up sharply for the year, and the Dow is near its highest level since May 2008. Traders appear less afraid of spillover damage from the European debt crisis, and data on jobs and manufacturing have been consistently strong.

"With global risk off center stage and attention going back to the fundamentals, this market was ready to explode, which is exactly what it is doing," said Doug Cote, chief market strategist with ING Investment Management.

The government reported early Thursday orders to factories for long-lasting manufactured goods increased in December for the second straight month, and a key measure of business investment rose solidly.

That strong demand was apparent in quarterly earnings reports from U.S. manufacturers. 3M stock closed 1.3 percent higher after its fourth-quarter profit beat Wall Street's estimates.

Caterpillar, the world's biggest heavy equipment maker, rose 2.1 percent, the most of the 30 companies in the Dow, after beating analysts' estimates last quarter. The company expects to do the same this year as global demand remains high.

Stocks traded broadly higher until mid-morning, when the government reported an unexpected drop in new home sales in December, capping the worst year for home sales on records dating to 1963. The decline underscored the housing market's continued drag on the economy.

A private gauge of future economic activity also grew more slowly than expected.

The Dow closed down 22.33 points, or 0.2 percent, at 12,734.63. It had traded up as much as 84.99 points early Thursday. 3M and Caterpillar led the gains.

AT&T dragged the Dow lower, falling 2.5 percent after its earnings missed Wall Street's forecasts. The company remains heavily dependent on Apple's iPhone, which it pays to subsidize, but recently lost its exclusive rights to sell the phone in the U.S.

The Dow is within reach of its post-financial crisis high of 12,810.54, reached in April 2011. The last time it closed higher than that was on May 20, 2008, when it settled at 12,828.68. The Dow's post-crisis high during the trading day was 12,928.45, reached on May 2, 2011.

The Dow is up 4.2 percent so far this year. The Standard & Poor's 500 index and Nasdaq composite average have gained even more.

The Dow would need to rise another 11 percent to get to its record high close of 14,164.53, reached on Oct. 9, 2007.

The S&P 500 closed down 7.63 points, or 0.6 percent, at 1,318.43. It was dragged lower by volatile financial companies and telecommunications firms including AT&T. The Nasdaq shed 13.03 points, or 0.5 percent, to close at 2,805.28.

Stocks had their highest close in eight months Wednesday after the Federal Reserve said it plans to keep interest rates extremely low until late 2014 to encourage lending and investment and support the economic recovery.

The yield on the 10-year Treasury note fell to 1.93 percent from 1.99 percent late Wednesday. The prospect of more bond-buying by the Fed helped make Treasurys more attractive. A bond's yield falls as demand for it increases.

Among the other U.S. companies making big moves after reporting quarterly earnings:

”” Time Warner Cable Inc. rose 7.8 percent after the company reported earnings that were far above analysts' estimates. The national cable TV provider also raised its dividend 17 percent to 56 cents per share and announced plans to buy back more of its own stock.

”” United Continental Holdings, the parent company of United and Continental airlines, surged 6.3 percent. The company's fourth-quarter loss narrowed, its adjusted earnings were more than double what analysts had expected and the cost of integrating the two companies fell.

”” Netflix soared 22.1 percent, the most of any stock in the S&P 500, after the video streaming and DVD-by-mail company reported a huge gain in customers and a bigger fourth-quarter profit than analysts had expected.

”” Colgate-Palmolive rose 1.9 percent after saying it will raise prices in the U.S. for the first time in years to cover higher costs for materials. The company's profit declined last quarter, but core sales in emerging markets were much stronger.

 

[bigdog]

Source: http://finance.yahoo.com

The stock market closed mostly lower Friday, sending the Dow Jones industrial average to its first losing week of 2012, after the government reported that economic growth was slower at the end of last year than economists expected.

The Dow spent the whole day in the red. It ended down 74 points, or 0.6 percent, at 12,660.46. The loss snapped a three-week winning streak for the Dow, which fell 60 points for the week but is still up 3.6 percent for the year.

The Standard & Poor's 500 struggled above even with an hour to go in trading, but it lost the gains and finished down 2.10 points at 1,316.33. The S&P finished the week up a sliver — 0.95 points.

The Nasdaq composite, which has more than doubled the Dow's gain for the year, edged up 11.27 to 2,816.55. It rose about 30 points this week.

Economic growth for October through December came in at an annual rate of 2.8 percent. That was the fastest of 2011 but lower than the 3 percent that economists were looking for.

Utility companies led the way down with a fall of 1.3 percent. Most of the other nine industries in the S&P also fell, but only slightly, continuing a curious trading pattern this year: Trading has been calm in the past four weeks, a big change from the violent moves up and down that marked much of 2011.

Friday was the 17th day in a row of moves of less than 100 points up or down for the Dow. The last time the index had a longer period of such small moves was a 34-day stretch that started Dec. 3, 2010.

Despite the drift lower, investors displayed some bullishness.

The NYSE DOW closed LOWER -74.17 -0.58% on Friday January 27
Sym .......Last .......Change..........
Dow 12,660.46 -74.17 -0.58%
Nasdaq 2,816.55 +11.27 +0.40%
S&P 500 1,316.33 -2.10 -0.16%
30-yr Bond 3.0600 % -0.0260

NYSE Volume 4,007,382,250
Nasdaq Volume 1,794,883,250

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,733.45 61.75 -1.07%
DAX 6,511.98 -27.87 -0.43%
CAC 40 3,318.76 -44.47 -1.32%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,348.50 +19.40 +0.45%
Shanghai Comp 2,319.12 closed
Taiwan Wei... 7,233.69 closed
Nikkei 225 8,841.22 -8.25 -0.09%
Hang Seng 20,501.67 +62.53 +0.31%
Straits Times 2,916.26 +21.83 +0.75%

http://finance.yahoo.com/news/dow-s...Q5MzUtMTFlMS1iZjY2LTBhMjEzZTgyN2U4Yg--;_ylv=3

Dow slips to first losing week of 2012

Stocks slip after US economic growth comes in below expectations; first down week of 2012

By Bernard Condon, AP Business Writer

NEW YORK (AP) -- The stock market closed mostly lower Friday, sending the Dow Jones industrial average to its first losing week of 2012, after the government reported that economic growth was slower at the end of last year than economists expected.

The Dow spent the whole day in the red. It ended down 74 points, or 0.6 percent, at 12,660.46. The loss snapped a three-week winning streak for the Dow, which fell 60 points for the week but is still up 3.6 percent for the year.

The Standard & Poor's 500 struggled above even with an hour to go in trading, but it lost the gains and finished down 2.10 points at 1,316.33. The S&P finished the week up a sliver — 0.95 points.

The Nasdaq composite, which has more than doubled the Dow's gain for the year, edged up 11.27 to 2,816.55. It rose about 30 points this week.

Economic growth for October through December came in at an annual rate of 2.8 percent. That was the fastest of 2011 but lower than the 3 percent that economists were looking for.

Utility companies led the way down with a fall of 1.3 percent. Most of the other nine industries in the S&P also fell, but only slightly, continuing a curious trading pattern this year: Trading has been calm in the past four weeks, a big change from the violent moves up and down that marked much of 2011.

Friday was the 17th day in a row of moves of less than 100 points up or down for the Dow. The last time the index had a longer period of such small moves was a 34-day stretch that started Dec. 3, 2010.

Despite the drift lower, investors displayed some bullishness.

Roughly two stocks rose for every one that fell on the New York Stock Exchange. And the Russell 2000 index of smaller stocks rose nearly 2 percent for the week. Investors tend to sell stocks in the Russell when they're worried, not buy them, because smaller firms often don't have much cash and other resources when times get tough.

"Risk-taking is picking up," says Jeff Schwarte, a portfolio manager at Principal Global Equities. He says his firm has been buying small firms since late last year. "We're still finding attractive stocks."

Next week, investors will turn their attention to Facebook, the powerhouse social network, which appears headed for the most anticipated initial public offering of stock in years.

The Wall Street Journal, citing people familiar with the matter, said Friday that Facebook could raise as much as $10 billion in an offering that would value the company at $75 billion to $100 billion.

That would vault Facebook into the largest public companies in the world, on par with the likes of McDonald's, Amazon.com and Visa. The Journal said Facebook could file IPO papers as early as Wednesday.

Investors earlier in the week had plenty of reason to hope the indexes would keep moving higher.

On Wednesday, the Federal Reserve announced it would likely keep benchmark interest rates near zero through late 2014, more than a year longer than it previously indicated. That helped send the Dow to its highest close since May.

Also lifting spirits: Apple had its best quarter for profits, trouncing expectations.

On Thursday, the Dow kept rising, briefly passing its highest close since the financial crisis three years ago. But the rally faded after news that new home sales in December had dropped, capping a year that ranked the worst for home sales since record-keeping began in 1963.

Among stocks making big moves Friday:

— Chevron fell more than 2 percent, the most of the 30 stocks in the Dow average, after its quarterly profit and revenue came in well below what analysts were expecting. Oil and natural gas production declined.

— Ford fell 4 percent after reporting disappointing earnings because of weak sales in Europe. The company said its results were also hurt by problems at parts suppliers in Thailand because of flooding there.

— Starbucks fell 1 percent after reporting late Thursday that that full-year results were likely to come in less than expectations.

— Procter & Gamble, which makes Tide, Crest and other consumer products, fell less than 1 percent after cutting its earnings outlook.

— Legg Mason dropped 5 percent after the investment management company's earnings fell by half as clients pulled money out. Legg Mason posted earnings of 20 cents per share. Analysts expected 25 cents, according to FactSet.

6061

 

[bigdog]

Source: http://finance.yahoo.com

The wait for an expected deal between Greece and its creditors rattled financial markets around the world Monday. Yields for ultra-safe U.S. government debt hit their lowest this year, the euro dropped against the dollar, and European stocks took a fall.

But U.S. stocks dropped only slightly. The Dow Jones industrial average fell 6.74 points to close at 12,653.72, for a drop of 0.1 percent. The Dow lost as much as 131 points in morning trading then slowly recovered in the afternoon.

Borrowing costs for European countries with the heaviest debt burdens shot higher. The two-year interest rate for Portugal's government debt jumped to 21 percent after trading around 14 percent last week.

Greece and the investors who bought its government bonds were said to be close to an agreement over the weekend. A tentative deal would replace bonds held by investment funds and banks with new ones at half the face value.

The plan is aimed at cutting Greece's debt by roughly €100 billion ($132 billion). Greece needs it to secure a crucial installment of bailout loans and make an upcoming bond payment. But a deal has been in the works for weeks and could still fall apart.

The focus on Greece has shifted attention away from what's going well in the U.S., said Jack Ablin, chief investment officer at Harris Private Bank. Companies have reported stronger quarterly earnings, and hiring has picked up.

"Our collective breath has been held for so many months," he said.

At this point, a good or even a bad resolution of Greece's debt crisis could lead to a stronger U.S. stock market, Ablin said.

"If it finally happens and the world doesn't fall apart, maybe we'll have a reason to take risk again," he said. "Once you pull off the Band-Aid, it feels better."

The NYSE DOW closed LOWER -6.74 -0.05% on Monday January 30
Sym .......Last .......Change..........
Dow 12,653.72 -6.74 -0.05%
Nasdaq 2,811.94 -4.61 -0.16%
S&P 500 1,313.01 -3.32 -0.25%
30-yr Bond 2.9800% -0.0810

NYSE Volume 3,522,553,750
Nasdaq Volume 1,678,885,125

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,671.09 -62.36 -1.09%
DAX 6,444.45 -67.53 -1.04%
CAC 40 3,265.64 -53.12 -1.60%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,334.40 -14.10 -0.32%
Shanghai Comp 2,285.04 -34.08 -1.47%
Taiwan Wei... 7,407.41 +173.72 +2.40%
Nikkei 225 8,793.05 -48.17 -0.54%
Hang Seng 20,160.41 -341.26 -1.66%
Straits Times 2,888.29 -27.97 -0.96%

http://finance.yahoo.com/news/stocks-bond-yields-drop-europe-194931644.html

Stocks and bond yields drop on Europe worries

US stock indexes dip and Treasury yields sink as markets wait for Greek debt deal

By Matthew Craft, AP Business Writer

NEW YORK (AP) -- The wait for an expected deal between Greece and its creditors rattled financial markets around the world Monday. Yields for ultra-safe U.S. government debt hit their lowest this year, the euro dropped against the dollar, and European stocks took a fall.

But U.S. stocks dropped only slightly. The Dow Jones industrial average fell 6.74 points to close at 12,653.72, for a drop of 0.1 percent. The Dow lost as much as 131 points in morning trading then slowly recovered in the afternoon.

Borrowing costs for European countries with the heaviest debt burdens shot higher. The two-year interest rate for Portugal's government debt jumped to 21 percent after trading around 14 percent last week.

Greece and the investors who bought its government bonds were said to be close to an agreement over the weekend. A tentative deal would replace bonds held by investment funds and banks with new ones at half the face value.

The plan is aimed at cutting Greece's debt by roughly €100 billion ($132 billion). Greece needs it to secure a crucial installment of bailout loans and make an upcoming bond payment. But a deal has been in the works for weeks and could still fall apart.

The focus on Greece has shifted attention away from what's going well in the U.S., said Jack Ablin, chief investment officer at Harris Private Bank. Companies have reported stronger quarterly earnings, and hiring has picked up.

"Our collective breath has been held for so many months," he said.

At this point, a good or even a bad resolution of Greece's debt crisis could lead to a stronger U.S. stock market, Ablin said.

"If it finally happens and the world doesn't fall apart, maybe we'll have a reason to take risk again," he said. "Once you pull off the Band-Aid, it feels better."

U.S. Treasury yields sank to their lowest level this year as traders parked cash in the safest assets. The yield on the 10-year Treasury sank to 1.85 percent. It was trading above 2 percent last Wednesday.

The yield on the five-year Treasury note hit a record low of 0.71 percent early Monday. It finished Monday at 0.74 percent, from 0.75 percent late Friday.

An agreement between Greece and its creditors could serve as a blueprint for other European countries with heavy debt burdens. Dan Greenhaus, chief global strategist at BTIG, pointed to Portugal's soaring bond yields in a note to clients.

"At this rate, Portugal is going to move from the back to front burner in very, very short order," he said.

European leaders also gathered in Brussels, focusing on how to stimulate economic growth when huge government spending cuts threaten to push many countries back into recession. The latest data showed Spain's economy shrank in the last three months of 2011.

In other trading, the Standard & Poor's 500 index fell 3.32 points, or 0.3 percent, to 1,313.01. The Nasdaq composite lost 4.6 points, or 0.2 percent, to 2,811.94.

The euro dropped 0.5 percent against the dollar, to $1.3124 in late trading Monday from $1.3208 late Friday. It was worth almost $1.50 in May.

European stocks sank. French and Spanish stock markets closed down 1.6 percent. Italian stocks closed down 1.2 percent and German stocks 1 percent.

Among stocks making big moves Friday:

”” The fast food chain Wendy's fell 3.8 percent. The Wendy's Co. said a key measure of earnings dropped 30 percent in the fourth quarter. Charges from selling Arby's offset the effects of a jump in sales.

”” PharMerica Corp. plunged 11 percent. The Federal Trade Commission said it was suing to block rival pharmacy company Omnicare Inc. from completing its $457 million takeover of PharMerica. The agency said a merger of the country's two largest long-term care pharmacies would raise the cost of Medicare prescription plans covering drugs for nursing home residents. Stock in Omnicare Inc. fell less than 1 percent.

”” Thomas & Betts Corp. soared 23 percent on news that Swiss engineering group ABB Ltd. agreed to buy the maker of power lines and other electrical products for $3.9 billion in cash.

 

[bigdog]

Source: http://finance.yahoo.com

It's the best start for stocks in 15 years.

In what was mostly a slow and steady climb, the Dow Jones industrial average rose 3.4 percent in January and the Standard & Poor's 500 gained 4.4 percent, the best performances for both indexes to open a year since 1997.

Investors were encouraged by modest but welcome improvement in the U.S. economy, including an 8.5 percent unemployment rate, the lowest in almost three years. Corporate profits didn't wow anyone — except Apple's — but they were good enough.

"I don't see anything really glamorous or tremendous about the economy or earnings," said Jerry Harris, chief investment strategist at the brokerage Sterne Agee. "But I think they're very acceptable, and things are grinding along."

An unexpected drop in consumer confidence dragged stocks down on the final day of the month. The Dow Jones industrial average finished down 20.81 points, or 0.2 percent, at 12,632.91.

The broader market fared better. The S&P barely finished in the red, declining 0.60 point to 1,312.41. The Nasdaq composite index rose 1.90 points to close at 2,813.84. The Nasdaq gained 8 percent for the month, its best January since 2001.

In January 1997, the last time stocks had such a fast start, the S&P gained 6.1 percent. Bill Clinton was inaugurated for his second term. An Asian financial crisis and "Titanic" lay ahead. Later that year, the Dow crossed 7,000 and 8,000 for the first time.

This January, analysts said, investors had such low expectations for the economy that it was easy for things to turn out better than expected.

"There are no big surprises," said Kim Caughey Forrest, a senior equity analyst at money manager Fort Capital Group. "That's the kind of ho-hum economy that we are in right now."

The Dow closed at 12,217.56 at the end of last year, then started this year with a pop — a gain of 179.82 points on opening day. It was the kind of big swing investors became accustomed to in 2011.

Since then, it's been a quiet ascent: 19 days in a row of moves of less than 100 points. The last time the Dow had such a placid stretch was a 34-day run that started Dec. 3, 2010.

The NYSE DOW closed LOWER -20.81 -0.16% on Tuesday January 31
Sym .......Last .......Change..........
Dow 12,632.91 -20.81 -0.16%
Nasdaq 2,813.84 +1.90 +0.07%
S&P 500 1,312.41 -0.60 -0.05%
30-yr Bond 2.9300 % -0.0490

NYSE Volume 4,235,550,000
Nasdaq Volume 1,802,705,000

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,681.61 +10.52 +0.19%
DAX 6,458.91 +14.46 +0.22%
CAC 40 3,298.55 +32.91 +1.01%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,325.70 -8.70 -0.20%
Shanghai Comp 2,292.61 +7.57 +0.33%
Taiwan Wei... 7,517.08 +109.67 +1.48%
Nikkei 225 8,802.51 +9.46 +0.11%
Hang Seng 20,390.49 +230.08 +1.14%
Straits Times 2,906.69 +18.40 +0.64%

http://finance.yahoo.com/news/hot-start-dow-p-best-212950263.html

Dow and S&P have best January since '97

A slow, steady climb leads Dow and S&P to their best January since 1997

By Pallavi Gogoi, AP Business Writer

NEW YORK (AP) -- It's the best start for stocks in 15 years.

In what was mostly a slow and steady climb, the Dow Jones industrial average rose 3.4 percent in January and the Standard & Poor's 500 gained 4.4 percent, the best performances for both indexes to open a year since 1997.

Investors were encouraged by modest but welcome improvement in the U.S. economy, including an 8.5 percent unemployment rate, the lowest in almost three years. Corporate profits didn't wow anyone — except Apple's — but they were good enough.

"I don't see anything really glamorous or tremendous about the economy or earnings," said Jerry Harris, chief investment strategist at the brokerage Sterne Agee. "But I think they're very acceptable, and things are grinding along."

An unexpected drop in consumer confidence dragged stocks down on the final day of the month. The Dow Jones industrial average finished down 20.81 points, or 0.2 percent, at 12,632.91.

The broader market fared better. The S&P barely finished in the red, declining 0.60 point to 1,312.41. The Nasdaq composite index rose 1.90 points to close at 2,813.84. The Nasdaq gained 8 percent for the month, its best January since 2001.

In January 1997, the last time stocks had such a fast start, the S&P gained 6.1 percent. Bill Clinton was inaugurated for his second term. An Asian financial crisis and "Titanic" lay ahead. Later that year, the Dow crossed 7,000 and 8,000 for the first time.

This January, analysts said, investors had such low expectations for the economy that it was easy for things to turn out better than expected.

"There are no big surprises," said Kim Caughey Forrest, a senior equity analyst at money manager Fort Capital Group. "That's the kind of ho-hum economy that we are in right now."

The Dow closed at 12,217.56 at the end of last year, then started this year with a pop — a gain of 179.82 points on opening day. It was the kind of big swing investors became accustomed to in 2011.

Since then, it's been a quiet ascent: 19 days in a row of moves of less than 100 points. The last time the Dow had such a placid stretch was a 34-day run that started Dec. 3, 2010.

Scottrade, the online brokerage, said stock buyers outpaced sellers among its clients for the first 14 trading days of the year, Jan. 3 to Jan. 23. It also said volume was 16 percent higher than December's average.

On Tuesday, the Dow started up 66 points after encouraging signs from Europe that Greece might finally complete a deal to cut its crushing debt, a step toward securing a critical €130 billion bailout payment.

Greece is negotiating with investors who bought its government bonds. They are expected to swap their bonds for new ones with half the face value, plus a lower interest rate and longer term of maturity.

Investors are increasingly worried that Portugal may need a similar deal with its private creditors. European leaders insist the Greek reduction is a one-time event. Portugal's borrowing costs have risen to record highs.

The Dow lost its gains after consumer confidence fell to 61.1 in January, down from 64.8 in December. Economists had expected 68. The Conference Board said Americans are more worried about their incomes, gas prices and business conditions.

There were also signs that the housing market continues to struggle. Home prices fell in November for a third straight month in in 19 of the 20 cities tracked by the S&P/Case-Shiller index. The biggest declines were in Atlanta, Chicago and Detroit.

In the commodities market, investors worried that the confidence figure was a sign of weaker demand to come, and they sold industrial metals that have prices closely tied to the economy.

Copper for March delivery dropped 3.65 cents to $3.79 per pound, and March palladium ended down $2.15 at $686.35 per ounce. April platinum fell $28.20 to $1,588.10 an ounce.

The metals ended the day down after wild swings. Traders bid up prices in morning trading, encouraged by news that European officials were making progress to contain the financial crisis there, then sold hard on the confidence number.

"This is a day that every trader takes Tums," said George Gero, vice president at RBC Global Futures.

Precious metal prices ended the day mixed. The price of gold rose, as it often does when it looks like the economy might shrink or the dollar might lose its value. Gold for April delivery gained $6 to finish at $1,740.40 an ounce.

In the bond market, the weak U.S. economic data and uncertainty about Greece lit up demand for safe investments. The benchmark 10-year Treasury yield dipped to 1.795 percent, its lowest close in almost four months.

The yield on the five-year Treasury note hit a record low for the second straight day, falling to 0.70 percent.

Treasury yields have been falling since last week, when the Federal Reserve said it expected to hold interest rates near zero into late 2014, more than a year longer than its last estimate, because the economic recovery will need help.

In corporate news:

— RadioShack Corp. stock plummeted 30 percent after the company said its profit fell sharply — 11 cents to 13 cents per share for the quarter that ended in December, down from 51 cents a year earlier and less than half what Wall Street was expecting.

— Best Buy Co. Inc., one of RadioShack's competitors, responded by falling 5.6 percent, worst in the S&P. Both companies sell and service cellphones, but demand has softened at their stores.

— Avery Dennison Corp., which makes labels and packaging materials, fell 5.6 percent after it said earnings plunged 81 percent on nearly flat sales. Its 2012 outlook was well below Wall Street expectations.

— Mattel Inc. soared 5 percent because of strong demand for Barbie and Monster High dolls during the holidays. That boosted Mattel's fourth-quarter profit by a better-than-expected 14 percent. The company also raised its dividend.

— U.S. Steel Corp. gained 5 percent after it reported strong demand for pipes from the oil industry from October through December. The company was also optimistic about this quarter.

— Agriculture conglomerate Archer Daniels Midland declined 3.6 percent after it reported an 89 percent drop in quarterly net income. The company said its results were weighed down by weakness in oilseeds, corn processing and agricultural services.

 

[bigdog]

Source: http://finance.yahoo.com

U.S. stocks had a big January, and they're starting February strong, too.

Stocks climbed Wednesday after strong manufacturing data and encouraging reports about the Greek debt crisis. The Dow Jones industrial average closed within 100 points of its post-2008 financial crisis peak.

Factories raised output in January by the most in seven months, according to the Institute for Supply Management's manufacturing index. And the Commerce Department said construction spending rose 1.5 percent in December, the fifth straight monthly gain.

"This is a market that is hungry for good news, and when it gets it, it responds very positively," said Alan Gayle, senior investment strategist for RidgeWorth Investments.

The Dow Jones industrial average rose 83.55 points, or 0.7 percent, to close at 12,716.46. Earlier in the day, the Dow was up 151 points. But it moved less than 100 points for the day for the 20th consecutive trading session.

The Dow's highest close since 2008 is 12,810, in April 2011.

The broader Standard & Poor's 500 index rose 11.68 points, or 0.9 percent, to close at 1,324.09. All 10 categories in the S&P 500 rose. The biggest gainer was financial stocks, up 1.6 percent.

The Nasdaq rose 34.43 points, or 1.2 percent, to 2,848.27.

On Tuesday, stocks wrapped up their best January in 15 years. The Dow gained 4.1 percent. Investors are less worried about the European debt crisis, and earnings at American companies are generally meeting expectations.

The NYSE DOW closed HIGHER +83.55 +0.66% on Wednesday February 1
Sym .......Last .......Change..........
Dow 12,716.46 +83.55 +0.66%
Nasdaq 2,848.27 +34.43 +1.22%
S&P 500 1,324.09 +11.68 +0.89%
30-yr Bond 3.0200% +0.0810

NYSE Volume 4,448,566,500
Nasdaq Volume 2,127,951,500

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,790.72 +109.11 +1.92%
DAX 6,616.64 +157.73 +2.44%
CAC 40 3,367.46 +68.91 +2.09%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,291.00 -34.70 -0.80%
Shanghai Comp 2,268.08 -24.53 -1.07%
Taiwan Wei... 7,549.21 +32.13 +0.43%
Nikkei 225 8,809.79 +7.28 +0.08%
Hang Seng 20,333.37 -57.12 -0.28%
Straits Times 2,904.76 -1.93 -0.07%

http://finance.yahoo.com/news/stocks-rise-manufacturing-data-153748751.html

Stocks rise on manufacturing data

By JOSHUA FREED | Associated Press

U.S. stocks had a big January, and they're starting February strong, too.

Stocks climbed Wednesday after strong manufacturing data and encouraging reports about the Greek debt crisis. The Dow Jones industrial average closed within 100 points of its post-2008 financial crisis peak.

Factories raised output in January by the most in seven months, according to the Institute for Supply Management's manufacturing index. And the Commerce Department said construction spending rose 1.5 percent in December, the fifth straight monthly gain.

"This is a market that is hungry for good news, and when it gets it, it responds very positively," said Alan Gayle, senior investment strategist for RidgeWorth Investments.

The Dow Jones industrial average rose 83.55 points, or 0.7 percent, to close at 12,716.46. Earlier in the day, the Dow was up 151 points. But it moved less than 100 points for the day for the 20th consecutive trading session.

The Dow's highest close since 2008 is 12,810, in April 2011.

The broader Standard & Poor's 500 index rose 11.68 points, or 0.9 percent, to close at 1,324.09. All 10 categories in the S&P 500 rose. The biggest gainer was financial stocks, up 1.6 percent.

The Nasdaq rose 34.43 points, or 1.2 percent, to 2,848.27.

On Tuesday, stocks wrapped up their best January in 15 years. The Dow gained 4.1 percent. Investors are less worried about the European debt crisis, and earnings at American companies are generally meeting expectations.

"It doesn't take good news" to make stock prices rise, said Randy Warren, chief investment officer for Warren Financial Service. "It just takes an absence of bad news."

For U.S. and European companies, the price-to-earnings ratio, one measure of how expensive stocks are compared with profits, had been at low levels that assumed the worst about Europe.

"These are Depression-era valuations, and something has to give," Warren said.

Plenty can still go wrong. Greece faces a €14.5 billion bond payment March 20 that it can't pay without additional help. Greece and the International Monetary Fund said Wednesday that negotiations to reduce Greece's debt should wrap up within days, raising hopes that it can avoid a default.

In the United States, monthly hiring figures from private payroll agency ADP were so-so. ADP said private-sector employment rose by 170,000 in January from the previous month. That was 10,000 fewer jobs than expected by analysts surveyed by FactSet.

ADP also said December job growth was smaller than it previously reported ”” 292,000 instead 325,000. The government releases its report on January job creation Friday.

Investors also looked past a cautious outlook from temporary employee provider ManpowerGroup. Its stock jumped 14 percent after fourth-quarter profits came in much higher than expected.

But the company said that while hiring may increase this spring, the European debt crisis could slow job creation. It predicted lower profits in the current quarter than Wall Street had expected.

In other corporate news:

”” Amazon.com fell 7.7 percent after its quarterly net income fell and revenue growth was slower than Wall Street had expected.

”” Whirlpool rose 13.5 percent after higher appliance prices raised its quarterly profit, and it said it expects shipments to increase as much as 3 percent in North America this year.

”” Health insurer Aetna rose 3.1 percent after reporting a 73 percent jump in fourth-quarter profit on smaller expenses and lower usage of health care.

”” Carmakers reported strong U.S. auto sales for January, with gains at all the big companies except General Motors. Privately held Chrysler's U.S. sales surged 44 percent, and it reported its first annual profit since 1997.

In Europe, British stocks rose 1.9 percent, German stocks 2.4 percent and French stocks 2.1 percent. Earlier in Asia, stocks didn't have the same momentum. Tokyo's Nikkei 225 edged up less than 0.1 percent, and Hong Kong's Hang Seng fell 0.3 percent.

The yield on 10-year U.S. Treasury notes rose 0.029 percentage points to 1.832. The euro rose slightly to almost 1.32 against the dollar.

Oil prices fell after reports that U.S. crude supplies rose last week and energy demand remains weak. West Texas Intermediate crude fell 87 cents to end at $97.61 a barrel in New York. Brent crude rose by 58 cents to finish at $111.56 a barrel in London.

 

[bigdog]

Source: http://finance.yahoo.com

A drop in the unemployment rate to its lowest level in three years propelled the Dow Jones industrial average Friday to its highest close since May 2008, before the financial meltdown later that year. The Nasdaq composite index hit an 11-year high.

The Dow jumped 156.82 points to 12,862.23, its highest mark since May 19, 2008, about four months before Lehman Brothers investment bank collapsed. In May 2008, credit markets were tightening up, subprime mortgages were going sour and Bear Stears had already collapsed.

Before the market opened, the Labor Department said the economy added 243,000 jobs in January. It was the strongest job growth in nine months. The increase in hiring pushed the unemployment rate down to 8.3 percent, the lowest since February 2009.

The surprising data gave financial markets a morning jolt that lasted throughout the trading day. The Nasdaq index closed 45.98 points higher at 2,905.66, its highest since December 2000, during the steep decline that followed the dot-com stock bubble.

The price of ultra-safe Treasury notes dropped, sending yields higher, and the price of oil rose for the first time in a week.

"In this economy, only one variable matters right now, and that variable is employment," said Lawrence Creatura, an equity portfolio manager at Federated Investors. "This report was great news. It was beyond all expectations, literally. The number was higher than even the highest forecast."

The Standard & Poor's 500 index added 19.36 points, or 1.3 percent, to 1,344.90, its highest close since last July. The S&P 500 surged 2.2 percent for the week, its fifth straight week of gains. That's the longest weekly winning stretch since January of 2011.

The NYSE DOW closed HIGHER 156.82 points 1.23% on Friday February 3
Sym .......Last .......Change..........
Dow 12,862.23 156.82 1.23%
Nasdaq 2,905.66 45.98 1.61%
S&P 500 1,344.90 19.36 1.46%
30-yr Bond 3.151 0.14 4.65%

NYSE Volume 4,548,262,500
Nasdaq Volume 2,106,690,500

Europe
Symbol... ......Last .....Change.......
FTSE 100 5,901.07 105.00 1.81%
DAX 6,766.67 111.04 1.67%
CAC 40 3,427.92 51.26 1.52%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,320.10 -13.10 -0.30%
Shanghai Comp 2,330.40 17.85 0.77%
Taiwan Wei... 7,674.99 22.53 0.29%
Nikkei 225 8,831.93 -44.89 -0.51%
Hang Seng 20,756.98 17.53 0.08%
Straits Times 2,917.95 16.91 0.58%

http://finance.yahoo.com/news/jobs-report-lifts-dow-highest-215341258.html

Jobs report lifts Dow to highest mark since '08

Stocks jump on reports of strong January job growth; oil rises for first time in a week

By Matthew Craft, AP Business Writer



NEW YORK (AP) -- A drop in the unemployment rate to its lowest level in three years propelled the Dow Jones industrial average Friday to its highest close since May 2008, before the financial meltdown later that year. The Nasdaq composite index hit an 11-year high.

The Dow jumped 156.82 points to 12,862.23, its highest mark since May 19, 2008, about four months before Lehman Brothers investment bank collapsed. In May 2008, credit markets were tightening up, subprime mortgages were going sour and Bear Stears had already collapsed.

Before the market opened, the Labor Department said the economy added 243,000 jobs in January. It was the strongest job growth in nine months. The increase in hiring pushed the unemployment rate down to 8.3 percent, the lowest since February 2009.

The surprising data gave financial markets a morning jolt that lasted throughout the trading day. The Nasdaq index closed 45.98 points higher at 2,905.66, its highest since December 2000, during the steep decline that followed the dot-com stock bubble.

The price of ultra-safe Treasury notes dropped, sending yields higher, and the price of oil rose for the first time in a week.

"In this economy, only one variable matters right now, and that variable is employment," said Lawrence Creatura, an equity portfolio manager at Federated Investors. "This report was great news. It was beyond all expectations, literally. The number was higher than even the highest forecast."

The Standard & Poor's 500 index added 19.36 points, or 1.3 percent, to 1,344.90, its highest close since last July. The S&P 500 surged 2.2 percent for the week, its fifth straight week of gains. That's the longest weekly winning stretch since January of 2011.

James Paulsen, chief investment strategist at Wells Capital Management, said the jobs report seems to be evidence that the U.S. economy isn't as vulnerable to a shock from Europe as many had feared. If that's true, then investors should be willing to pay more for stocks.

More evidence that the economy is gaining strength followed the jobs report. A trade group said the service industry expanded at the fastest pace since last February. The government also said factory orders rose 1.1 percent in December, supported by a rebound in orders for heavy machinery.

Bank of America led the 30 stocks in the Dow, rising 5.2 percent. Only two stocks were lower: Merck and Procter & Gamble.

Treasury prices fell, lifting the yield on the 10-year note Treasury to 1.93 percent. When bond prices fall, yields rise. The benchmark 10-year rate had traded below 1.79 percent earlier this week as traders bought U.S. Treasurys on renewed concern over Europe's ongoing debt crisis.

The U.S. jobs figures helped markets in Europe rally on Friday despite further evidence that the 17-country eurozone is heading for recession. Germany's DAX closed 1.7 percent higher, and France's CAC-40 gained 1.5 percent.

Worries over Europe's debt troubles still have the potential to send markets reeling in the months ahead, Creatura said. He expects the S&P 500 to continue surging but still hit patches of turbulence from Europe in the coming months.

"It's not over yet," he said. "Even though it appears our aircraft is taking off, you should still keep your seatbelt fastened."

Among companies whose stocks made large moves:

— Genworth Financial soared 14 percent, the best gain in the S&P 500. The insurance company reported late Thursday that it swung to a profit in the most recent quarter, helped by gains in sales of life insurance.

— Weyerhaeuser gained 5.7 percent after reporting better quarterly earnings than analysts' forecasts. The timber and real estate company's earnings still sank 62 percent.

— Video game maker Take-Two Interactive Software Inc. rose 3 percent. The company reported a 65 percent drop in quarterly profits after the market closed Thursday, but Wall Street's analysts expected much worse.

6634

 

[RazzaDazzla]

New recent highs in US markets, interesting.

 

[bigdog]

Source: http://finance.yahoo.com
Stock indexes closed slightly lower Monday as talks dragged on between Greek political leaders over a fresh cost-cutting package required for the country to get more bailout loans.

President Nicolas Sarkozy of France and German Chancellor Angela Merkel warned Greek leaders that they need to push through the measures or risk letting the country go bankrupt.

Greece is hoping the European Central Bank, the International Monetary Fund and the European Commission will release a second installment of $170 billion in loans. Without that money, Greece will likely default when a bond repayment comes due March 20.

In Greece, talks between the prime minister and leaders of parties backing his coalition government were postponed for a day, even as European leaders prodded the government to push through new spending cuts, layoffs and other austerity measures.

The Dow Jones industrial average fell 17.10 points to close at 12,845.13. Travelers Cos. Inc. led the Dow lower with a 1.3 percent loss.

In other trading, the Standard & Poor's 500 index slipped 0.57 of a point to 1,344.33. The Nasdaq composite fell 3.67 points to 2,901.99.

Sam Stovall, chief equity strategist at S&P Capital IQ, thinks investors are starting to wonder if the stock market's recent stretch of calm trading is a prelude to a big drop. Trading has turned subdued compared with the wild swings of 2011. The S&P has closed up or down by more than 1 percent only three times this year. In December, that happened nine times.

The NYSE DOW closed LOWER on Monday February 6
Sym .......Last .......Change..........
Dow 12,845.13 -17.10 -0.13%
Nasdaq 2,901.99 -3.67 -0.13%
S&P 500 1,344.33 -0.57 -0.04%
30-yr Bond 3.088 -0.06 -2.00%

NYSE Volume 3,326,514
Nasdaq Volume 1,684,578


Europe
Symbol... ......Last .....Change.......
FTSE 100 5,892.20 -8.87 -0.15%
DAX 6,764.83 -1.84 -0.03%
CAC 40 3,405.27 -22.65 -0.66%

Asia Pacific
Symbol...... .....Last ....Change.......
ASX All Ord 4,364.60 44.50 1.03%
Shanghai Comp 2,331.14 0.73 0.03%
Taiwan Wei... 7,687.98 -53.26 -0.69%
Nikkei 225 8,929.20 97.27 1.10%
Hang Seng 20,709.94 -47.04 -0.23%
Straits Times 2,940.10 22.15 0.76%


http://finance.yahoo.com/news/stocks-slip-wall-street-greek-talks-drag-164328219.html

Stocks slip on Wall Street as Greek talks drag on

US stocks edge lower as talks over new Greek austerity plan drag on

By MATTHEW CRAFT | Associated Press

NEW YORK (AP) -- Stock indexes closed slightly lower Monday as talks dragged on between Greek political leaders over a fresh cost-cutting package required for the country to get more bailout loans.

President Nicolas Sarkozy of France and German Chancellor Angela Merkel warned Greek leaders that they need to push through the measures or risk letting the country go bankrupt.

Greece is hoping the European Central Bank, the International Monetary Fund and the European Commission will release a second installment of $170 billion in loans. Without that money, Greece will likely default when a bond repayment comes due March 20.

In Greece, talks between the prime minister and leaders of parties backing his coalition government were postponed for a day, even as European leaders prodded the government to push through new spending cuts, layoffs and other austerity measures.

The Dow Jones industrial average fell 17.10 points to close at 12,845.13. Travelers Cos. Inc. led the Dow lower with a 1.3 percent loss.

In other trading, the Standard & Poor's 500 index slipped 0.57 of a point to 1,344.33. The Nasdaq composite fell 3.67 points to 2,901.99.

Sam Stovall, chief equity strategist at S&P Capital IQ, thinks investors are starting to wonder if the stock market's recent stretch of calm trading is a prelude to a big drop. Trading has turned subdued compared with the wild swings of 2011. The S&P has closed up or down by more than 1 percent only three times this year. In December, that happened nine times.

"I look at it like a very-low-tide warning of an impending tsunami," Stovall said. "We're setting ourselves up for a decline, the sort of decline that would make you sit up and take notice."

A worrisome sign, Stovall said, is a drop in the number of volatile trading days in which the S&P index ends lower. There have been only five days in the last month in which the S&P index has moved by more than 1 percent and then ended with a loss. That's half of the monthly average since 2000. On April 29, the S&P 500 hit its peak for the year after an even calmer period, then lost 19 percent before hitting bottom on Oct. 3.

Large gains in the market, like the Dow's 156-point surge Friday, are often followed by relatively modest moves as traders pull some of their winnings off the table. Since 1950, whenever the S&P rose by 1 percent or more in a trading day, the index has inched up an average of just 0.1 percent the next day, according to S&P Capital IQ.

Among companies making big moves:

”” Boeing Co. fell 1.2 percent following reports that the company found a problem in its 787 Dreamliner. The aircraft maker said it was working to fix it and that there was no safety concern.

”” Micron Technology Inc. fell 2.8 percent following news that the chip maker's CEO died in a plane crash. Steve Appleton, 51, was at the helm for 18 years, leading the only company he'd ever worked for.

”” Verizon Communications and Coinstar Inc. edged up after the companies said they will launch a video-streaming service later this year, a challenge to Netflix. Coinstar is the parent of Redbox, a DVD rental company. Coinstar rose 1.8 percent and Verizon 0.8 percent.

”” Humana dropped 5.4 percent. The health insurance company reported revenue that fell short of analysts' expectations. Humana also raised its earnings outlook for 2012 but that, too, was below analysts' forecast.