Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

U.S. Stocks Rally as AIG, H-P Gain On Earnings

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/22/2013 | 08:08pm CET

--U.S. stocks gain after two-day drop

--German business confidence tops expectations

--H-P, AIG rally after reporting quarterly results

 
   By Matt Jarzemsky 
 

Blue-chip stocks flirted with their third triple-digit point gain of the year, as Hewlett-Packard and American International Group rallied on earnings and a reading on German business confidence topped expectations.

The Dow Jones Industrial Average advanced 100 points, or 0.7%, to 13977, in midafternoon Friday trading, reversing much of a 155-point slide the past two days.

The Standard & Poor's 500-stock index tacked on nine points, or 0.6%, to 1512, though it was on pace to snap a seven-week streak of weekly gains. The Nasdaq Composite Index rose 23 points, or 0.7%, to 3155.

"Any selloff we get is going to be shallow," said Scott Wren, senior equity strategist at Wells Fargo Advisors, which manages $1.2 trillion in St. Louis. "The mentality is, 'I want to wait for the market to pull back so I can buy stocks at lower levels.' The Fed's on our side, companies are making money and the growth environment is OK."

Hewlett-Packard rallied 13%, leading the Dow higher, after the technology company late Thursday reported a quarterly profit that topped analysts' expectations and gave a better-than-expected earnings forecast.

AIG rose 2.3% after saying late Thursday that it swung to a loss but operating profit in some segments exceeded analyst expectations.

European markets were broadly higher, with the Stoxx Europe 600 up 1.3% to recover most of the losses from the previous session, after data showed German business confidence increased much more than expected in February. Germany's DAX index climbed 1%.

"From the U.S. perspective, Germany is a very industrial and export-oriented economy; If they're seeing optimism on their order books, then there's reason to be optimistic globally," said Wasif Latif, vice president of equity investments at USAA Investments in San Antonio. His firm manages $54 billion.

Elsewhere, Italy's FTSE MIB index advanced 1.4%. The index had fallen this week to close Thursday at a two-month low ahead of general elections in Italy this weekend. Some investors fear a new government may not continue the country's reformist path.

In Asia, China's Shanghai Composite fell 0.5% to a one-month low and declined 4.9% on the week. Hong Kong's Hang Seng Index also shed 0.5%, dropping 2.8% for the week, to near a two-month low. Investors are concerned that policy makers will implement additional tightening measures to control residential property prices.

Japan's Nikkei Stock Average gained 0.7% and climbed 1.9% on the week. The index has risen 14 of the past 15 weeks. Australia's S&P/ASX 200 added 0.8%, rebounding from losses on Thursday, but fell 0.3% on the week, snapping a five-week winning streak.

Crude-oil prices slid 0.1% to $92.93 a barrel, while gold retreated 0.4% to $1,572.60 a troy ounce. The dollar rose against the yen and the euro. The 10-year Treasury note edged up in price to yield 1.965%.

In other corporate news, Cabot Oil & Gas jumped 9.5% after the natural-gas producer's earnings climbed 55% on higher production.

Texas Instruments advanced after the chip maker unveiled a 33% increase in its quarterly dividend late Thursday and increased its stock-repurchase authorization by $5 billion.

Abercrombie & Fitch slipped 7.7% after giving an earnings forecast that lagged behind analysts' projections and saying it expects to close 40 to 50 stores in the U.S. in 2013.

Vivus dropped 3.9% after the pharmaceutical company said Thursday that a European Medicines Agency committee backed an earlier decision, in which the panel recommended against approval of its weight-loss drug.

WebMD Health surged 27% after the health-information provider's adjusted fourth-quarter earnings and revenue beat analyst estimates late Thursday and its 2013 earnings outlook topped forecasts.

Write to Matt Jarzemsky at matthew.jarzemsky@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news
Date Title
05:04a Cleanup continues after East Toledo train derailment
05:01a Diamond Resorts Reviews - French Cultural Hospitality
05:00a QUALCOMM : Collaborates With Microsoft To Support Windows 10 Devices On Snapdragon
05:00a China top court rules in favor of Michael Jordan in trademark case
05:00a FINANCE VIDEO : Minbos Resources Merger of Cabinda Phosphate Project
04:58a Oil prices rise on U.S. crude stock decline, weaker dollar
04:58a Oil prices rise on U.S. crude stock decline, weaker dollar
04:58a Marcus Hiles - Provides Coats for the Cold Winter to Underprivileged Children
04:57a NEWFOUNDLAND AND LABRADOR BOARD OF COMMISSIONERS O : Weekly maximum fuel prices ~ effective December 8, 2016
04:56a FINANCE VIDEO : Minbos Resources (ASX:MNB) Merger of Cabinda Phosphate Project
Latest news
Advertisement
Hot News 
-13.09%VERA BRADLEY : Shares Drop as Company Slashes Outlook
14.22%SUNPOWER : CEO expects solar panel prices decline to stop next year
7.61%BLACKSTONE LP : Solvay to sell cigarette filter business Acetow to Blackstone
-3.90%CARILLION : sees slowdown in pace of new orders post-Brexit
9.45%STEINHOFF INTERNATIONAL : Poundland shifts away from one price fits all
Most Read News
09:47p HYUNDAI MOTOR : S.Korea worries about growing economic risks, amid impeachment push for President Park
06:22p MEDTRONIC : China says fines Medtronic local unit 118.5 million yuan for price fixing
06:51p Retailer Wal-Mart de Mexico to invest $1.3 billion in Mexico
08:58p TOKYO ELECTRIC POWER : Japan to increase loan to Fukushima operator Tepco to $123 billion -source
06:20p BLACKROCK : adjusts leadership team for its largest mutual fund
Most recommended articles
12/02 Platts considers first addition to Brent basket since 2007
11/30DJCash Crunch Looms Over India's Growth Spurt
10:58p Oil prices rise on U.S. crude stock decline, weaker dollar
10:05pDJMexico Collects $2.65 Billion from 2016 Oil Hedges
10:05pDJBLACKROCK : Signs Preliminary Pact to Move to Manhattan's West Side