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
Recommend:
0

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

Recommend :
0
React to this article
Latest news
Date Title
<1m ago CORIO NV CORIO : announces resolutions of AGM of 17 April 2014 (Corio NV )
<1m ago Fitch Upgrades Wachovia 2006-WHALE 7
1m ago GENERAL MOTORS : U.S. judge declines to order 'park it now' notices for GM cars
1m ago THURSDAY'S ETF MOVERS : Fcg, itb
1m ago COMMSCOPE : to Release First Quarter 2014 Financial Results April 30
1m ago MORGAN STANLEY : Council of Urban Professionals Hosts 7th Annual Leadership Gala Honoring Diverse Leaders in Business
1m ago LEAR : Revises First Quarter 2014 Earnings Conference Call Time to 8:00 a.m. EDT on April 25, 2014
2m ago GM to shift global Cadillac chief back to Washington policy job-source
2m ago Sunny J. Barkats Will Be a Panelist on Regulation A at the Growth Capital Expo in Las Vegas
2m ago ARGENTUS CAPITAL MANAGEMENT : Renames Tactically-Blended ACM Adaptive Portfolios
Latest news
Advertisement
Hot News 
INDEPENDENT BANK : Entry into a Material Definitive Agreement, Completion of Acquisition or Disposition of Assets, Change in Directors or Principal Officers (form 8-K)
HAYNES PUBLISHING : Third Quarter Hit By Us Inventory Returns, Weak UK
SPACEANDPEOPLE : Shares Slide As It Lowers 2014 Forecast
BLUR : Shares In Blur Group Plummet Due To Delayed Revenue Recognition
LDK SOLAR : Provides Additional Information on its Request for Review of NYSE Regulation's Decision to Suspend Trading and Commence Delisting Procedures
Most Read News
10h ago Google, IBM cast shadow
10h ago Nokia sale of unit to Microsoft approved
12h agoDJLLOYDS BANKING : ECN Retail Tender Offer Results
1d ago BANK OF AMERICA : financial crisis costs become a recurring nightmare
1d ago Google misses revenue target, ad prices slide
Most recommended articles
7h ago U.S. shares seen opening lower as tech giants stumble
3h ago Financials bolster FTSE after reassuring U.S. earnings
6h ago BLACKSTONE : earnings rise 30 percent, boosted by private equity gains
04/10DJCarrefour Sales Grow at Fastest Pace in Two Years
1m ago GM to shift global Cadillac chief back to Washington policy job-source
Dynamic quotes  
ON
| OFF