Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

U.S. Stocks Rebound as H-P, AIG Rally; DJIA Little Changed on Week

02/22/2013 | 03:57pm 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 
 

Stocks rebounded from their biggest two-day slump 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 92 points, or 0.7%, to 13973 in late-afternoon trading Friday, reversing much of a 155-point slide from the prior two days.

The Standard & Poor's 500-stock index tacked on 10 points, or 0.7%, to 1512. The Nasdaq Composite Index rose 23 points, or 0.7%, to 3154.

"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 led the Dow higher, jumping 13% after the technology company late Thursday reported a quarterly profit that topped analysts' expectations and gave a better-than-expected earnings forecast.

AIG rose 2.6% after saying late Thursday that it swung to a loss, but operating profit--which excludes certain items--exceeded analyst expectations.

The Dow was set to finish the week little changed, while the S&P 500 was on pace 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 were concerned about the consequences of low-interest-rate policies meant to help revive the economy. That sparked U.S. stocks' biggest two-day selloff of the year, as such policies have been a boon to equities. 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, whose 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 settle at $1,572.40 a troy ounce. 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 10% after the natural-gas producer's earnings climbed 55% on higher production.

Texas Instruments advanced 4.8% 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 5.6% 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 2.9% 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 26% 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
1h ago NEW CENTURY HONG KONG : (Revised) Monthly Returns - Monthly Return of Equity Issuer on Movements in Securities for the Month Ended 30 September 2014
1h ago Southern California Woman Wins $774,468 Progressive Jackpot at Barona Resort & Casino
1h ago Jeremy Geffen Los Angeles Health and Wellness Openining Location in Hollywood California
1h ago BMP MEDIA INVESTORS : holding iversity concludes additional round of financing
1h ago VERSARIEN : Exercise of Share Options
1h ago VERSARIEN : Award of Share Options to Directors
1h ago VERSARIEN : Holding(s) in Company
1h ago GALAP ENERGIA : Start of commercial production at Iracema South, in the pre-salt Santos basin
1h agoDJHow to Find a Missing Tax Refund
1h ago NORTHERN PETROLEUM : Price Monitoring Extension
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
EDREAMS ODIGEO : Statement responding to BA and Iberia statement
4IMPRINT : Full Year Expectations Underpinned By Strong Third Quarter
ATLANTIS RESOURCES : Raises GBP5.0 Million In Discounted Placing (ALLISS)
MERIT MEDICAL SYSTEMS : posts 3Q profit
Most Read News
2h ago CHINA MOBILE : Alibaba to form JV for messaging platform
3h ago TESCO : Half Yearly Report
2h ago MEREDITH : Fiscal 2015 First Quarter Earnings Grow Over 20 Percent
2h ago AVALONBAY COMMUNITIES : Construction underway for North Station apartments
3h ago TENARIS : niversity receives Steelie Award for Excellence in Education and Training
Most recommended articles
1h agoDJHow to Find a Missing Tax Refund
5h agoDJFinal Polls Before Brazil Presidential Election Give Edge to Rousseff
9h ago Deutsche Bank lawyer found dead by suicide in New York
13h agoDJTHYSSENKRUPP : Denies in Talks to Sell Marine Systems to Rheinmetall
15h ago Russian government approves law to clamp down on offshore tax sheltering
Dynamic quotes  
ON
| OFF