Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

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

02/22/2013 | 02:08pm US/Eastern

--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

React to this article
Latest news
Date Title
07:29a RWE : German RWE says UK'S decision won't stop DEA divestment
07:23a EATON : MILITARY $50,928 Federal Contract Awarded to Eaton
07:23a MOOG : MILITARY $66,801 Federal Contract Awarded to Moog Components Group
07:23a PARKER HANNIFIN : MILITARY $524,135 Federal Contract Awarded to Parker-Hannifin
07:23a HANWA : MILITARY $77,080 Federal Contract Awarded to Hanwa
07:19a SAMSUNG ELECTRONICS : HTC and Sony stepping up their smartphone game at Mobile World Congress
07:19a MAPFRE : Psychological boost in Azzam's second placing
07:19a INTERSERVE : Student champions of native flora
07:18a HILTON WORLDWIDE : plans to break ground this year on Saadiyat Island resort
07:18a Schaeuble expects Germany to boost spending on defense, security
Latest news
Advertisement
Hot News 
ALPHATEC : posts 4Q loss
GIGA TRONICS : Entry into a Material Definitive Agreement, Unregistered Sale of Equity Securities, Financial Statements and Exhibits (form 8-K)
TCPI : is Evaluating Claims Filed on February 26th, 2015
OPTOS : Shares Surge Higher On Recommended Takeover Bid From Nikon
Weight Watchers Loses Money, Members -- 2nd Update
Most Read News
02/28 PAPA JOHN INT'L : Derby Festival tickets go on sale Monday
02/28DJBRITISH AMERICAN TOBACCO : Settles Flintkote Litigation
02/28 CISCO SYSTEMS : CSCO) Hits a New 52-Week High of $29.99
02/28 OLIMPIA REAL ESTATE : *A doctor on a mission*
02/28 TREMOR VIDEO : To Present at the Deutsche Bank Media, Internet & Telecom Conference
Most recommended articles
07:18a Schaeuble expects Germany to boost spending on defense, security
06:03aDJMARKET SNAPSHOT : Jobs Report Key For Investors In Week Ahead
05:07a Despite Greece, euro zone is turning the corner
04:15a ECB braces for QE as others shift rates
03:37a China central bank steps up easing tempo as factory activity shrinks
Dynamic quotes  
ON
| OFF