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
2m ago EMMIS COMMUNICATIONS : Regulation FD Disclosure (form 8-K)
3m ago MACERICH : Regulation FD Disclosure, Financial Statements and Exhibits (form 8-K)
4m ago GLOBAL DEFENSE & NATIONAL SCRTY SYS : & NATIONAL SECURITY SYSTEMS, INC. : Change in Directors or Principal Officers, Regulation FD Disclosure, Financial Statements and Exhibits (form 8-K)
6m agoDJComcast, TWC in Talks to Sell $20 Billion in Assets to Charter
8m ago HMN FINANCIAL : Results of Operations and Financial Condition, Financial Statements and Exhibits (form 8-K)
9m ago APPLE : 5 features an Amazon phone might offer
10m ago Egyptsat-2 a Step Towards Egyptian Space Agency
10m ago ROCKWELL COLLINS : CEO and President to Address RBC Capital Markets' Aerospace and Defense Investor Day on May 15
11m ago HMN Financial, Inc. Announces First Quarter Results
12m ago FBR : KP assembly demands granting of tax exemption
Latest news
Advertisement
Hot News 
HAVELOCK EUROPA : Preliminary Results to 31 December 2013
LDK SOLAR : Provides Additional Information on its Request for Review of NYSE Regulation's Decision to Suspend Trading and Commence Delisting Procedures
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
Most Read News
1d ago WALT DISNEY : Disney sees operating income growth at cable networks
11h ago SLINGSBY H C : Company Events - 7 Days Ahead Events
1d ago LULULEMON ATHLETICA : CEO looks beyond yoga wear for growth
1d ago CHINA SOUTHERN AIRLINES : 30pc cancellations by China tourists
5h ago NOKIA : Viber targets 30 million users in india by year end
Most recommended articles
1d ago U.S. shares seen opening lower as tech giants stumble
1d ago Financials bolster FTSE after reassuring U.S. earnings
1d ago BLACKSTONE : earnings rise 30 percent, boosted by private equity gains
6m agoDJComcast, TWC in Talks to Sell $20 Billion in Assets to Charter
26m ago TELUS : in new agreement to buy Canadian startup Mobilicity
Dynamic quotes  
ON
| OFF