Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

Dow, S&P 500 end at five-year highs on early earnings beats

01/18/2013 | 04:40pm US/Eastern

The Dow and S&P 500 closed at five-year highs on Friday as the market registered a third straight week of gains on a solid start to the quarterly earnings season.

Morgan Stanley (>> Morgan Stanley) was the latest Wall Street bank to report strong results. Its better-than-expected earnings followed similar report cards from Goldman Sachs (>> Goldman Sachs Group, Inc.) and JP Morgan Chase (>> JPMorgan Chase & Co.) earlier in the week.

Shares of Morgan Stanley shot up 7.9 percent to $22.38. It reported a fourth-quarter profit after a year-earlier loss, helped by higher revenue at the bank's institutional securities business.

But Friday's rise was held back by shares of Intel Corp (>> Intel Corporation), which slumped 6.3 percent to $21.25 a day after it forecast quarterly revenue below analysts' estimates and announced plans for increased capital spending amid slow demand for personal computers.

Another factor that has been weighing on the market before a three-day weekend is uncertainty about the federal debt limit and spending cuts that could hamper U.S. growth. U.S. markets will be closed on Monday for the Martin Luther King Jr. holiday.

There were signs on Friday that the question of raising the U.S. debt limit would be put off for a while. House Republican leaders said they would seek to pass a three-month extension of federal borrowing authority next week to buy time for the Democratic-controlled Senate to pass a budget that shrinks deficits.

"It could be a big positive for the markets if we come up wih a plan of spending cuts that isn't too awfully hard on the economy," said Bryant Evans, investment adviser and portfolio manager at Cozad Asset Management, in Champaign, Illinois.

The Dow Jones industrial average <.DJI> was up 53.68 points, or 0.39 percent, at 13,649.70. The Standard & Poor's 500 Index <.SPX> was up 5.04 points, or 0.34 percent, at 1,485.98. The Nasdaq Composite Index <.IXIC> was down 1.30 points, or 0.04 percent, at 3,134.71.

The Dow and S&P 500 ended at their highest levels since December 2007. For the week, the Dow ended up 1.2 percent, the S&P 500 ended up 0.9 percent and the Nasdaq ended up 0.3 percent.

The CBOE Volatility index <.VIX>, Wall Street's so-called fear gauge, fell 8.2 percent. The VIX usually moves inversely to the S&P 500 as it is used as a hedge against further market decline.

Also reporting stronger-than-expected earnings on Friday was General Electric (>> General Electric Company), whose shares rose 3.5 percent to $22.04.

Overall, S&P 500 fourth-quarter earnings are forecast to have risen 2.5 percent, according to Thomson Reuters data. [ID:nL1E9CI581] That estimate is above the 1.9 percent forecast from a week ago but well below the 9.9 percent fourth-quarter earnings forecast from October 1, the data showed.

Economic data from China also provided some support to the market, though the focus remained on U.S. corporate earnings. China's economy grew at a modestly faster-than-expected 7.9 percent in the fourth quarter, the latest sign the world's second-biggest economy was pulling out of a post-global financial crisis slowdown which saw it grow in 2012 at its weakest pace since 1999.

Despite the gains by Morgan Stanley, financial stocks sagged as Capital One Financial (>> Capital One Financial Corp.) reported disappointing profit. Capital One slumped 7.5 percent to $56.99, while the KBW bank index <.BKX> slipped 0.3 percent.

Volume was roughly 6.6 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion.

Advancers outpaced decliners on the NYSE by nearly 2 to 1 and on the Nasdaq by about 13 to 11.

(Additional reporting by Angela Moon; Editing by Bernadette Baum, Kenneth Barry and Nick Zieminski)

By Caroline Valetkevitch

React to this article
Latest news
Date Title
12m ago NEW GLOBAL ENERGY : Announces the Addition of Drs. John and Susan Woods of Cellulose Systems, Inc. to Advisory Board
27m ago PUBLIX SUPER MARKETS : BRIEF: $10 off Visa gift cards
30m ago North Korea denies hacking Sony, U.S. stands by its assertion
33m ago REPUBLIC SERVICES : Federal Contracts Awarded by Federal Agencies in Arkansas (Dec. 20)
33m ago REPUBLIC SERVICES : Federal Contracts Awarded to Companies in Arkansas (Dec. 20)
33m ago BOEING : Federal Contracts Awarded to Companies in Missouri (Dec. 20)
33m ago ZODIAC AEROSPACE : Federal Contracts Awarded to Companies in New Jersey (Dec. 20)
34m ago ZODIAC AEROSPACE : Federal Contracts Awarded by Federal Agencies in Pennsylvania (Dec. 20)
34m ago REPUBLIC SERVICES : offers grant
40m ago ECB'S COENE SUPPORTS GOVERNMENT BOND PURCHASES : newspaper
Latest news
Advertisement
Hot News 
DENDREON : Entry into a Material Definitive Agreement, Change in Directors or Principal Officers, Other Events, Financial Statements and Exhibits (form 8-K)
DIXONS CARPHONE : *exane bnp raises dixons carphone price target to 510 (450) pence - 'outperform'
BERKELEY MINERAL RESOURCES : Obsidian IR
NATURE : Warns 2014 Results To Be "Materially" Below Market View
FINISH LINE : Reports Third Quarter Fiscal Year 2015 Results
Most Read News
1d ago SYSCO : Poised to Complete US Foods Deal (Report)
6h agoDJDEUTSCHE TELEKOM : in Talks to Sell T-Online to Springer - Report
1d ago U.S. labor agency files complaints against McDonald's
1d ago SIEMENS : surpasses 100,000 milestone for energy-efficient industrial motors
5h agoDJSiemens CEO Eyes Health-Care Expansion - Report
Most recommended articles
30m ago North Korea denies hacking Sony, U.S. stands by its assertion
40m ago ECB'S COENE SUPPORTS GOVERNMENT BOND PURCHASES : newspaper
46m ago U.S. STANDS BY ASSERTION THAT NORTH KOREA BEHIND SONY ATTACK : NSC spokesman
1h ago COMCAST : DISH, Comcast SportsNet reach deal in regional dispute
2h agoDJPETROLEO BRASILEIRO PETROBRAS : Former Petrobras Executive Gives Computer Data to Prosecutors
Dynamic quotes  
ON
| OFF