Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  News


Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

U.S. Stocks Push Higher in Late Trading, Helped by Energy

share with twitter share with LinkedIn share with facebook
share via e-mail
02/14/2013 | 09:58pm CEST

--S&P 500 grinds higher in late trading, led by energy shares

--DJIA mostly flat after European economic weakness weighs

--Raft of deals helps bolster investor sentiment

  By Alexandra Scaggs 

NEW YORK--Energy shares helped pull the Standard & Poor's 500-stock index higher, as optimism surrounding the sector outweighed worries about European economic weakness in a deal-heavy day.

The Dow Jones Industrial Average edged up four points, less than 0.1%, to 13987. The Standard & Poor's 500-stock index gained two points, or 0.2%, to 1523, and the Nasdaq Composite Index tacked on four points, or 0.1%, to 3201.

Energy shares led the S&P 500, adding 0.7%, as drilling and oil-services companies including Halliburton and Nabors Industries jumped 6.4% and 4.4%, respectively. Goldman Sachs Group told clients in a note Thursday that January marked "a turnaround" in profitability for the group. Elsewhere in energy stocks, coal company Alpha Natural Resources jumped 14% after its latest results beat Wall Street expectations. Meanwhile, Peabody Energy, another coal company, advanced 4.6%.

In deals news, H.J. Heinz soared 20% after the company agreed to be acquired by an investment group including Warren Buffett's Berkshire Hathaway and private-equity firm 3G Capital in a deal valued at $28 billion, including debt. Berkshire's Class B shares edged up 1.2%.

Fellow food companies Kraft Foods Group, General Mills and Campbell Soup also rose, gaining 1%, 2.1% and 1.7%, respectively.

US Airways Group fell 7.3% after the air carrier and AMR, the parent of American Airlines, formally announced merger plans, which are expected to be completed by the third quarter. Its shares had been rising in recent weeks.

Hank Smith, chief investment officer of Radnor, Pa.-based Haverford Trust, was heartened by news of the deals. "There is so much cash [available] ... With the lack of fear-inducing headlines, some confidence is starting to emerge" that deals won't fall flat, said Mr. Smith, whose firm oversees $6.5 billion in assets.

In other deals news, Constellation Brands surged 36% after agreeing with rival Anheuser-Busch InBev on revised terms of A-B InBev's divestiture of Grupo Modelo's U.S. assets in which Constellation will be granted perpetual rights for the Corona and Modelo beer brands in the U.S. Constellation will also buy the rest of Crown Imports it doesn't already own. Anheuser-Busch InBev shares climbed 5.9%.

Artio Global Investors jumped 34% after agreeing to be acquired by the U.K.'s Aberdeen Asset Management for $175 million.

In the economic arena, initial claims for U.S. jobless benefits were better than expected, falling more than expected during the latest week from the previous week.

European markets were broadly lower, with the Stoxx Europe 600 falling 0.2%, after euro-zone gross domestic product contracted more than expected in the fourth quarter. The bloc's two largest economies, Germany and France, also shrank by more than expected. Germany's DAX index dropped 1% and France's CAC-40 shed 0.8%.

European economic weakness "continues to be worrisome," said Mark Luschini, chief investment strategist with Janney Montgomery Scott, which oversees $2.6 billion in its asset-management arm. "I think it put pressure on equity markets here in the U.S."

Asian markets generally rose as the Bank of Japan left its monetary policy unchanged and said the economy appeared to have stopped weakening. That helped offset data showing Japan's GDP contracted slightly in the fourth quarter, versus expectations of a slight increase.

Japan's Nikkei Stock Average gained 0.5%, and Hong Kong's Hang Seng Index, which reopened after an extended holiday weekend, rose 0.9%. Mainland Chinese markets remained closed for the Lunar New Year holiday.

Crude-oil futures for March delivery rose 0.3% to settle at $97.31 a barrel, while gold futures for February delivery pulled back 0.6%, to settle at $1,634.70 a troy ounce. The dollar advanced against the euro and edged lower against the yen. The yield on the 10-year Treasury note fell to settle at 2.000% as prices rose.

In other corporate news, Dow component Cisco Systems fell 1.1% after the networking company reported better-than-expected second-quarter earnings but provided a somewhat downbeat outlook amid continued economic weakness in Europe and uncertainty surrounding government spending.

General Motors declined 2.9% after the car maker's earnings fell just short of analyst expectations.

PepsiCo gained 1% after the beverage and snack company reported better-than-expected fourth-quarter earnings and revenue and announced an increase in its quarterly dividend.

Angie's List surged 25% after the reviews-based website reported a surprise fourth-quarter profit and provided a first-quarter revenue outlook that was above projections.

Stamps.com slumped 14% after the Web-based postage-services company's fourth-quarter earnings topped estimates but revenue and its 2013 outlook missed forecasts.

Zillow leapt 8.4% after the real-estate website reported a fourth-quarter profit versus expectations of a break-even quarter, along with better-than-expected revenue.

-Write to Alexandra Scaggs at alexandra.scaggs@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news
Date Title
04:32aDJGeneral Electric Pursues Deal With Baker Hughes -- Update
04:31a AUSDRILL : Chairman's Address to Shareholders
04:31a PRESCIENT THERAPEUTICS : September 2016 Appendix 4C – Quarterly
04:31a ROYALCO RESOURCES : Target's Statement
04:26a TSH TAKSON : Announcements and Notices -
04:26a TESLA MOTORS : Gaining Momentum with Tesla Powerpack
04:26a CHINA METALLURGICAL : MCC Signs Strategic Cooperation Agreement with Yunshang Private Equity Fund
04:26a GWA : Results-of-Annual-General-Meeting
04:26a CIMIC : Appointment of Managing Director Appointment of Managing Director(PDF File 158.1 KB)
04:21a AT&T : plans to boost internet service in rural areas of Yuba-Sutter
Latest news
Hot News 
5.24%CENTURYLINK : in Advanced Talks to Merge With Level 3 Communications -- Update
-6.59%Brexit dents Swiss engineer ABB's orders and outlook
-5.17%PUBLIC STORAGE : Posts Higher Funds From Operations, Boosts Dividend
-9.69%ARCADIS : CEO of engineering firm Arcadis quits after profit fall
-20.43%AMEC FOSTER WHEELER : unnerves investors as it postpones capital markets day
Most Read News
06:10p Apple adds touch screen keys to MacBook Pro, price jump startles some
08:14p BAKER HUGHES INCORPORATED : GE in discussion with Baker Hughes on potential partnerships
06:19p Heritage Commerce Corp Reports Strong Third Quarter 2016 Earnings of $6.8 Million
06:19p INNOVIVA : posts 3Q profit
08:16p HYUNDAI MOTOR : Announces 2016 3Q Business Results
Most recommended articles
10/26DJS&P 500, Nasdaq Futures -- Technical Analysis
10/25 DEUTSCHE BANK : Schaeuble says monetary policy has reached its limits
10/25 APPLE : Gadgets in decline as R&D shifts to software and services - study
10/24DJGold Prices Turn Lower Amid Strong Economic Data