US stocks higher as investors eye Intel
January 14, 2010
Wall Street edged higher again, hitting fresh 15-month highs Thursday, as investors turn to Intel’s quarterly earnings report, due out after the bell. Banks made ground despite the Obama administration proposed tax aimed at capping the large bonuses being paid out to investors just one year after government funds to stay afloat.
In economic news, retail sales fell 0.3% in November though the news barely registered with investors.
Employment news was also downbeat, with seasonal workers laid-off after the Christmas shopping rush leading to a larger-than-expected rise in new unemployment claims.
The Dow Jones rose 29.78 points, or 0.28%, to 10,710.55, the S&P 500 picked up 2.78 points, or 0.24%, to 1,148.46 and the NASDAQ gained 8.84 points, or 0.38%, to 2316.74.
Major banking stocks all rose, with Citigroup up just 0.3%. Bank of America and Wells Fargo added 1.2% and 1.4% respectively.
On the investment side of banking, Goldman Sachs and Morgan Stanley gave up 0.3% and 0.2% respectively.
Chipmaker Intel added 2.3% over the day. After the bell the company reported a 1000% profit jump from a year ago to $2.3 billion, smashing analysts predictions with earnings at 40c per share. Meanwhile Microsoft was 2% in the good.
Google added 0.5% as its battle with the Chinese ramps up, while Apple dipped 0.6%.
It was a mixed day for the retailers in response to the December sales figures. Wal-Mart shed 1.5%, while Target gained the same amount.
Macy’s and JC Penney both tacked on 0.4%.
COMEX gold for February delivery rose US$6.20 to settle at US$1,143 an ounce.
NYMEX light crude oil for February delivery fell US26c to settle at US$79.39 a barrel.
Most oil stocks were little changed over the day.
European Markets
European stocks made modest gains Thursday. Muted comments about the pace of the recovery from the European Central Bank president led investors to conclude the stimulus packages won’t be withdrawn in the near future and helped the market, while defensive pharmaceutical stocks also rose.
The UK benchmark FTSE 100 climbed 24.72, or 0.45% 5,498.20, while the French CAC40 put on 14.91, or 0.37% to 4,015.77. The German DAX tacked on 25.74, or 0.43% to 5,988.88.
Barclays and Royal Bank of Scotland climbed 1.6% and 1.1% respectively.
Deutsche Bank was virtually unchanged. Societe Generale rose 0.4%.
It was a good day for the pharmaceutical companies, with GlaxoSmithKline and Swiss giants Novartis and Roche rising 0.6%, 1.2% and 2.2% respectively.
Cadbury tacked on 1.2% after making it clear that a bid from Hershey’s would be more welcome than the currently hostile takeover offer from Kraft.
Rio Tinto added 2.2% as the Aussie miner reported record iron ore sales. BHP Billiton added 1.2%.
Vedanta Resources was 2% dearer, while Xstrata surged 4%.
Among the auto stocks, Peugeot and Renault climbed 2% and 0.2% respectively. Daimler Chrysler was up 2.5%.
Japanese Markets
The Nikkei hit fresh 15-month highs Thursday. The last surge was led by consumer electronics manufacturers on optimism over the US economy, while banks surged.
The Nikkei 225 added 172.65, or 1.61% to 10,907.68.
The banks were led higher by the country’s third largest, Mizuho, which jumped 5.7% after it said it was considering a rights issue.
Number one bank, Mitsubishi UFJ added 2.1%. Sumitomo Mitsui put on 3.3%.
Panasonic surged 6.1%. Sony put on 2.6%.
Canon rose a more muted 0.3%.
Japan Airlines, which lost 81% of its value on Wednesday alone, swung back to a positive with a 14% jump as speculative investors bet the airline would avoid bankruptcy.
The shippers were muscular again. Mitsui OSK added 7.2%, its biggest gain in 8 months.
Nippon Yusen rallied over 5%, while Kawasaki Kisen surged 7.4% as the Baltic Dry Index rose for the third straight day.
Hong Kong Markets
Hong Kong stocks ended a volatile days trade lower. Banks led the slide on concerns of lending restrictions.
The Hang Seng lost 31.65, or 0.15% to 21,716.95.
China Construction Bank and Bank of China shed 1% each, while ICBC fell 1.5%.
China Merchants Bank dropped 2.9%. HSBC, which makes up one-sixth of the Hang Seng index, put on 0.7%.
Among the manufacturing stocks, Li & Fung was 0.2% higher. Yue Yuen, the world’s largest contracted shoe maker, rallied 1.2%
In economic news, retail sales fell 0.3% in November though the news barely registered with investors.
Employment news was also downbeat, with seasonal workers laid-off after the Christmas shopping rush leading to a larger-than-expected rise in new unemployment claims.
The Dow Jones rose 29.78 points, or 0.28%, to 10,710.55, the S&P 500 picked up 2.78 points, or 0.24%, to 1,148.46 and the NASDAQ gained 8.84 points, or 0.38%, to 2316.74.
Major banking stocks all rose, with Citigroup up just 0.3%. Bank of America and Wells Fargo added 1.2% and 1.4% respectively.
On the investment side of banking, Goldman Sachs and Morgan Stanley gave up 0.3% and 0.2% respectively.
Chipmaker Intel added 2.3% over the day. After the bell the company reported a 1000% profit jump from a year ago to $2.3 billion, smashing analysts predictions with earnings at 40c per share. Meanwhile Microsoft was 2% in the good.
Google added 0.5% as its battle with the Chinese ramps up, while Apple dipped 0.6%.
It was a mixed day for the retailers in response to the December sales figures. Wal-Mart shed 1.5%, while Target gained the same amount.
Macy’s and JC Penney both tacked on 0.4%.
COMEX gold for February delivery rose US$6.20 to settle at US$1,143 an ounce.
NYMEX light crude oil for February delivery fell US26c to settle at US$79.39 a barrel.
Most oil stocks were little changed over the day.
European Markets
European stocks made modest gains Thursday. Muted comments about the pace of the recovery from the European Central Bank president led investors to conclude the stimulus packages won’t be withdrawn in the near future and helped the market, while defensive pharmaceutical stocks also rose.
The UK benchmark FTSE 100 climbed 24.72, or 0.45% 5,498.20, while the French CAC40 put on 14.91, or 0.37% to 4,015.77. The German DAX tacked on 25.74, or 0.43% to 5,988.88.
Barclays and Royal Bank of Scotland climbed 1.6% and 1.1% respectively.
Deutsche Bank was virtually unchanged. Societe Generale rose 0.4%.
It was a good day for the pharmaceutical companies, with GlaxoSmithKline and Swiss giants Novartis and Roche rising 0.6%, 1.2% and 2.2% respectively.
Cadbury tacked on 1.2% after making it clear that a bid from Hershey’s would be more welcome than the currently hostile takeover offer from Kraft.
Rio Tinto added 2.2% as the Aussie miner reported record iron ore sales. BHP Billiton added 1.2%.
Vedanta Resources was 2% dearer, while Xstrata surged 4%.
Among the auto stocks, Peugeot and Renault climbed 2% and 0.2% respectively. Daimler Chrysler was up 2.5%.
Japanese Markets
The Nikkei hit fresh 15-month highs Thursday. The last surge was led by consumer electronics manufacturers on optimism over the US economy, while banks surged.
The Nikkei 225 added 172.65, or 1.61% to 10,907.68.
The banks were led higher by the country’s third largest, Mizuho, which jumped 5.7% after it said it was considering a rights issue.
Number one bank, Mitsubishi UFJ added 2.1%. Sumitomo Mitsui put on 3.3%.
Panasonic surged 6.1%. Sony put on 2.6%.
Canon rose a more muted 0.3%.
Japan Airlines, which lost 81% of its value on Wednesday alone, swung back to a positive with a 14% jump as speculative investors bet the airline would avoid bankruptcy.
The shippers were muscular again. Mitsui OSK added 7.2%, its biggest gain in 8 months.
Nippon Yusen rallied over 5%, while Kawasaki Kisen surged 7.4% as the Baltic Dry Index rose for the third straight day.
Hong Kong Markets
Hong Kong stocks ended a volatile days trade lower. Banks led the slide on concerns of lending restrictions.
The Hang Seng lost 31.65, or 0.15% to 21,716.95.
China Construction Bank and Bank of China shed 1% each, while ICBC fell 1.5%.
China Merchants Bank dropped 2.9%. HSBC, which makes up one-sixth of the Hang Seng index, put on 0.7%.
Among the manufacturing stocks, Li & Fung was 0.2% higher. Yue Yuen, the world’s largest contracted shoe maker, rallied 1.2%
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