Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

U.S. Stocks Rally on Earnings, German Data, After Two-Day Selloff

02/22/2013 | 05:36pm 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 
 

The Dow industrials posted their third triple-digit-point gain of the year, as Hewlett-Packard and American International Group AIG rallied on earnings and a reading on German business confidence topped expectations.

The Dow Jones Industrial Average advanced 119.95 points, or 0.9%, to 14000.57, reversing most of a 155-point slide from the prior two days.

The Standard & Poor's 500-stock index tacked on 13.18 points, or 0.9%, to 1515.60. The Nasdaq Composite Index rose 30.33 points, or 1%, to 3161.82.

"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 gained 12%, 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 3.1% after saying late Thursday that it swung to a loss, but operating profit in some segments exceeded analyst expectations.

For the week, the Dow finished with a 0.1% gain, while the S&P 500 slipped 0.3% to snap a seven-week streak of weekly gains.

Weighing on the benchmarks this week, minutes from the Federal Reserve's latest policy meeting released Wednesday showed some officials feared the consequences of low-interest-rate policies and asset-purchase programs meant to aid the economy. That sparked U.S. stocks' biggest two-day selloff of the year, as such policies have been a boon to stocks. But strategists said the pullback also set the stage for Friday's rebound.

"In my mind, the market overreacted to what the Fed minutes said," Mr. Wren said. "[Fed officials] are going to leave rates low and they're going to be buying low-risk securities for quite a while."

European markets rose, 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. The index advanced 0.4% on the week.

Germany's DAX index climbed 1% and gained 0.9% for the week. The measure is up 0.7% this year.

"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 and has climbed 9.5% this year. 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 rose 0.3% to settle at $93.13 a barrel, while gold retreated 0.4% to $1,572.40 a troy ounce, its lowest settlement price this year. The dollar rose against the yen and euro. The 10-year Treasury note edged up in price, pushing its yield down to 1.965%.

In other corporate news, Cabot Oil & Gas jumped 11% after the natural-gas producer's earnings climbed 55% on higher production.

Texas Instruments advanced 5.2% 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 4.5% after giving an earnings forecast that lagged analysts' projections and saying it expects to close 40 to 50 stores in the U.S. in 2013.

Vivus dropped 2.3% 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 25% 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

Latest news
Date Title
<1m ago MIMES ROSTELEKOM : Rostelecom : expands GPON network in Yugra, Tyumen
<1m ago PUNJAB NATIONAL BANK : PNB Locker Heist Raises Key Issues of Depositor Protection
<1m ago MEGAFON : to increase Yota capital
<1m ago VODAFONE : extends M2M deal with BMW to Brazil
<1m ago TIVO : Vudu entertainment service launches on TiVo
<1m ago KAZAKHTELEKOM AO : Kazakhtelecom 9-mth revenues up 8%
<1m ago AURORA SPINE : First surgical implant of zip ultra(tm) mis interspinous device performed in israel
1m ago GOOGLE 'C' : Spain Passes Much-Debated 'Google Tax' Intellectual Property Law
1m ago SINGAPORE AIRLINES : Not your jurisdiction: DGCA tells cops about Singapore Airlines probe
1m ago SKANSKA : Invitation to press- and telephone conference regarding Skanska’s Nine-month report on November 7
Latest news
Advertisement
Hot News 
1SPATIAL : Interim Results for the six month period ended 31 July 2014
DEUTSCHE LUFTHANSA : Lufthansa cuts 2015 forecast on global economic slowdown
ABERTIS INFRAESTRUCTURAS : Application work of protective coatings
SCHWEIZERISCHE NATIONALBANK : Interim results of the Swiss National Bank as at 30 September 2014
LONZA : Press Release
Most Read News
1d ago CHINA MENGNIU DAIRY : Mengniu and Danone Strengthen Strategic Alliance as Danone Subscribes to a Private Placement by Yashili
1d ago ENERGEN : tops Street 3Q forecasts
1d ago Hiring business drives LinkedIn's revenue beat
1d ago FLUOR NEW : ICA Fluor Awarded Fabrication Contract for Shell’s Heavy Oil Extraction Project in Canada
1h ago Starbucks Americas sales disappoint on softer traffic
Most recommended articles
3m ago RBS sets aside $639 million to settle forex probes
11m ago SuperGroup shares slide as firm warns on profit
19m agoDJCentrica's Chris Weston to Step Down Dec 31
26m agoDJHungary to Drop Internet Tax Plan for Now
26m agoDJBOJ : Not Out of Policy Ammunition
Dynamic quotes  
ON
| OFF