Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

U.S. Stocks Rebound After Two-Day Slump; H-P, AIG Rally

02/22/2013 | 10:11am 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 and Tomi Kilgore 
 

U.S. stocks bounced back from their biggest two-day slump of the year as investors cheered strong data out of Germany and Hewlett-Packard's better-than-expected quarterly report.

The Dow Jones Industrial Average advanced 39 points, or 0.3%, to 139920 in the minutes after the opening bell, following a 155-point tumble the past two days.

The Standard & Poor's 500-stock index tacked on five points, or 0.3%, to 1507. The Nasdaq Composite Index rose 10 points, or 0.3%, to 3141.

"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 7.4%, leading the Dow, after the technology company reported a quarterly profit that topped analysts' expectations and it gave a better-than-expected earnings forecast.

Financial shares in the S&P 500 led gains across nine of the index's 10 sectors as American International Group advanced 4.3%. The insurer reported a surprise operating profit.

European markets were broadly higher, with the Stoxx Europe 600 up 1.1% to recover most of the sharp losses suffered in the previous session, after data showed German business confidence increased much more than expected in February. That helped to offset a prediction by the European Union's official economists that the euro-zone economy will contract in 2013 for the second-straight year.

The Ifo Institute's business confidence index rose to 107.4, the biggest monthly gain since July 2010, from January's 104.3 and above economist estimates of 104.7. Germany's DAX index climbed 0.8%.

Elsewhere, Italy's FTSE MIB index advanced 1.5%. The index had fallen sharply this week to close Thursday at two-month low ahead of general elections in Italy this weekend, with investors fearing a new government may not continue the country's reformist path.

Asian markets were mixed, with China's Shanghai Composite falling 0.5% to a one-month low and Hong Kong's Hang Seng shedding 0.5% to a two-month low. Investors are concerned that policy makers will implement additional tightening measures to control residential-property prices. Meanwhile, Japan's Nikkei Stock Average gained 0.7% and Australia's S&P ASX 200 added 0.8% after suffering sharp losses on Thursday.

April crude-oil futures slid 0.2% to $92.69 a barrel, while February gold futures retreated 0.3% to $1,574.40 an ounce. The dollar edged slightly higher against both the euro and the yen.

In other corporate news, Cabot Oil & Gas surged 8.3%, the biggest climb in the S&P 500, after the energy company's earnings jumped 55% on higher natural-gas and oil production.

Texas Instruments gained 3.2% after disclosing a 33% increase in its quarterly dividend and increasing its stock-repurchase authorization by $5 billion.

Abercrombie & Fitch slipped 3.9% after giving a fiscal-2013 earnings outlook that was below estimates.

Vivus dropped 4.8% after the pharmaceutical company said a European Medicines Agency committee backed an earlier decision, in which the committee recommended against approval of a Vivus weight-loss drug.

WebMD Health surged 26% after the health-information provider's adjusted fourth-quarter earnings and revenue beat analyst estimates and its 2013 earnings outlook topped forecasts.

Write to Tomi Kilgore at tomi.kilgore@dowjones.com and Matt Jarzemsky at matthew.jarzemsky@dowjones.com.

Latest news
Date Title
<1m ago EFT CANADA : Reports Annual Financial Results
1m ago PUBLICIS GROUPE : Scientists: Comet smells like rotten eggs and horse stable
1m ago ADVANCED PHOTONIX : to Webcast Fiscal 2015 Second Quarter Earnings
1m ago KeHE Takes Data Leap With IX-ONE
1m ago RESEARCH AND MARKETS : Pediatric Drugs and Vaccines - 2014 Global Strategic Business Report
1m ago GCP STUDENT LIVING : Dividend Declaration and Net Asset Valuation
1m ago CON WAY : freight business will raise rates Monday
1m ago RANGERS FOOTBALL CLUB : International FC Executive Director Philip Nash Resigns
2m ago GREEK ORG OF FOOTBALL PROGNOSTICS : Transactions Notification
2m ago DELPHI AUTOMOTIVE PLC : Results of Operations and Financial Condition (form 8-K)
Latest news
Advertisement
Hot News 
DIGITAL RIVER : Announces Agreement to be Acquired by Investor Group Led by Siris Capital Group for $26.00 per Share in Cash
4IMPRINT : Full Year Expectations Underpinned By Strong Third Quarter
MERIT MEDICAL SYSTEMS : posts 3Q profit
LAYNE CHRISTENSEN : Assigned Patent
First Niagara Reports Third Quarter 2014 Results
Most Read News
1d ago AMAZON : took $170 million charge in Q3 on phone inventory, supplier costs
1d ago JUNIPER NETWORKS : AMC Networks buys 49.9 percent stake in BBC America
1d ago LOCKHEED MARTIN : Exclusive: Lockheed, Pentagon reach $4 billion deal for more F-35 jets
10h ago PFIZER : authorises share repurchase
1d ago Microsoft sales beat Street hopes, cloud profits up
Most recommended articles
3m agoDJBP plc 3Q 2014 -- Forecast
4m agoDJBBVA SA 3Q 2014 -- Forecast
5m agoDJBG Group 3Q 2014 -- Forecast
5m agoDJTotal SA 3Q 2014 -- Forecast
6m agoDJRoyal Dutch Shell 3Q 2014 -- Forecast
Dynamic quotes  
ON
| OFF