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
Recommend:
0

--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

Recommend :
0
React to this article
Latest news
Date Title
<1m ago REPSOL : Iran Oil & Gas 2014 Summit in Dubai to discuss Iran's substantial oil reserves
<1m ago NCQA Names New Executive VP to Lead Research, Performance Measurement and Analysis
1m ago TUPPERWARE BRANDS : Emerging markets help Tupperware beat St. view
1m ago BOEING : posts higher adjusted profit, raises 2014 forecast
2m ago Earnings shine but string of Wall St gains stalls
3m ago WINCOR NIXDORF : Tesco Names Wincor Nixdorf 2013 IT Supplier of the Year
3m ago GIELDA PAPIEROW WARTOSCIOWYCH WARSZAWIE : Communiqué
3m ago VOLKSWAGEN : are the most popular employers with young engineers
3m ago RESTOQUE COMERCIO E CONFECOS DE ROUPS : Notice to Shareholders
3m ago POZAVAROVALNICA SAVA DD : Notice on 28th General Meeting Resolutions
Latest news
Advertisement
Hot News 
IRONVELD : Shares Jump 26% As Study Confirms Viability Of Iron Project
ZOTEFOAMS : Unilever to use Zotefoams's MuCell® Extrusion technology for its Dove Body Wash Bottles in Europe
OROGEN GOLD : Full-Year Pretax Loss Widens On Impairment
IOFINA : Reduces Production Expectations On Fracking Plans
CRESTON : Trading Statement and Directorate Change
Most Read News
1d ago GENERAL MOTORS : GM seeks U.S. court protection against ignition lawsuits
1d ago MCDONALD : Yum Brands' China restaurant sales improve, shares rise
6h ago VERIZON COMMUNICATIONS : : 2014 Data Breach Investigations Report Identifies More Focused, Effective Way to Fight Cyberthreats
1d ago ETHAN ALLEN INTERIORS : Reports results for quarter ended march 31, 2014
1d ago LG HOUSEHOLD & HEALTH CARE : & Healthcare considering bid for Elizabeth Arden
Most recommended articles
3h ago Global share rally peters out, euro lifted by PMI boost
2h ago Weaker FTSE 100 gets support from ABF and AstraZeneca
1d ago Barclays joins retreat from commodities as new rules bite
6d ago BLACKSTONE : earnings rise 30 percent, boosted by private equity gains
2m ago Earnings shine but string of Wall St gains stalls
Dynamic quotes  
ON
| OFF