Jake
07-18-2013, 04:25 PM
Stocks climbed further into record territory after a strong reading on jobless claims and as investors took a bright view of quarterly results from a handful of blue chips.
The Dow Jones Industrial Average rose 108 points, or 0.7%, to 15579 in late-morning trade. The Standard & Poor's 500-stock index tacked on 11 points, or 0.7%, to 1692. The Nasdaq Composite Index climbed 13 points, or 0.4%, to 3623. The Dow industrials and S&P 500 hit fresh intraday record highs.
The bulk of the Dow's price-weighted gain was attributable to strong gains in UnitedHealth Group UNH +5.28% and International Business Machines IBM +2.60% . Managed-care provider UnitedHealth jumped after beating earnings estimates and affirming its revenue outlook for the year.
IBM advanced after the technology giant topped second-quarter earnings estimates and raised its full-year outlook.
Investors said that second-quarter earnings season has highlighted the ability for companies to drive earnings even in the face of lower sales.
"The top line is missing, and revenues are down even at a company like IBM, which is seeing a big gain today," said Paul Nolte, managing partner at registered investment advisor Dearhorn Partners. "Companies are still able to do a fair amount of cost cutting."
Mr. Nolte said he takes a bright view of small U.S. companies that do more business domestically, and are shielded from weaker economic growth overseas.
Morgan Stanley MS +5.08% jumped after exceeding earnings and revenue forecasts.
Traders said there has been a flurry of activity in financial stocks, the year and month's best-performing sector.
"People seem to be looking at financials as a place to store cash," said Rick Fier, director of equity trading at Conifer Securities. "You can't discount the momentum."
On the downside, Intel INTC -3.52% declined after the semiconductor maker matched earnings forecasts, but lowered its full-year revenue outlook on the grounds of a slump in personal-computer sales.
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American Express AXP -2.29% fell after the credit-card company topped earnings estimates but came up a bit short on revenue.
EBay EBAY -6.51% slumped after the online retailer matched earnings forecasts, but provided a third-quarter outlook that was below current projections.
Federal Reserve Chairman Ben Bernanke returned to Capitol Hill for testimony to the Senate Banking Committee. Stocks rose on Wednesday after Mr. Bernanke stressed that decisions for the Fed to trim stimulus efforts will hinge on U.S. economic growth. Investors said the focus will be on a question-and-answer session for any potential new market-moving comments.
On the economic front, initial claims for jobless benefits fell 24,000 to 334,000 in the latest week, more than expected. Elsewhere, business conditions for mid-Atlantic manufacturers unexpectedly advanced this month to its highest reading since March 2011, while an index of leading economic indicators was flat in June.
European markets gained ground, with the Stoxx Europe 600 up 1%, as better-than-expected U.K. retail sales data for June lent support.
In Asia, Japan's Nikkei Stock Average climbed 1.3% to post a fifth-straight gain, with the dollar's rise against the yen to above the ¥100 level helping boost exporter shares. Meanwhile, China's Shanghai Composite fell 1.1% amid concerns over slowing economic growth.
August crude-oil futures gained 1.3% to $107.87 a barrel, while July gold futures rose 0.5% to $1,284 a troy ounce. The dollar gained against both the yen and the euro.
http://online.wsj.com/article/SB10001424127887323993804578613350309766768.html?m od=WSJ_hp_LEFTWhatsNewsCollection
The Dow Jones Industrial Average rose 108 points, or 0.7%, to 15579 in late-morning trade. The Standard & Poor's 500-stock index tacked on 11 points, or 0.7%, to 1692. The Nasdaq Composite Index climbed 13 points, or 0.4%, to 3623. The Dow industrials and S&P 500 hit fresh intraday record highs.
The bulk of the Dow's price-weighted gain was attributable to strong gains in UnitedHealth Group UNH +5.28% and International Business Machines IBM +2.60% . Managed-care provider UnitedHealth jumped after beating earnings estimates and affirming its revenue outlook for the year.
IBM advanced after the technology giant topped second-quarter earnings estimates and raised its full-year outlook.
Investors said that second-quarter earnings season has highlighted the ability for companies to drive earnings even in the face of lower sales.
"The top line is missing, and revenues are down even at a company like IBM, which is seeing a big gain today," said Paul Nolte, managing partner at registered investment advisor Dearhorn Partners. "Companies are still able to do a fair amount of cost cutting."
Mr. Nolte said he takes a bright view of small U.S. companies that do more business domestically, and are shielded from weaker economic growth overseas.
Morgan Stanley MS +5.08% jumped after exceeding earnings and revenue forecasts.
Traders said there has been a flurry of activity in financial stocks, the year and month's best-performing sector.
"People seem to be looking at financials as a place to store cash," said Rick Fier, director of equity trading at Conifer Securities. "You can't discount the momentum."
On the downside, Intel INTC -3.52% declined after the semiconductor maker matched earnings forecasts, but lowered its full-year revenue outlook on the grounds of a slump in personal-computer sales.
Related Articles
MoneyBeat: Stocks to Watch
American Express AXP -2.29% fell after the credit-card company topped earnings estimates but came up a bit short on revenue.
EBay EBAY -6.51% slumped after the online retailer matched earnings forecasts, but provided a third-quarter outlook that was below current projections.
Federal Reserve Chairman Ben Bernanke returned to Capitol Hill for testimony to the Senate Banking Committee. Stocks rose on Wednesday after Mr. Bernanke stressed that decisions for the Fed to trim stimulus efforts will hinge on U.S. economic growth. Investors said the focus will be on a question-and-answer session for any potential new market-moving comments.
On the economic front, initial claims for jobless benefits fell 24,000 to 334,000 in the latest week, more than expected. Elsewhere, business conditions for mid-Atlantic manufacturers unexpectedly advanced this month to its highest reading since March 2011, while an index of leading economic indicators was flat in June.
European markets gained ground, with the Stoxx Europe 600 up 1%, as better-than-expected U.K. retail sales data for June lent support.
In Asia, Japan's Nikkei Stock Average climbed 1.3% to post a fifth-straight gain, with the dollar's rise against the yen to above the ¥100 level helping boost exporter shares. Meanwhile, China's Shanghai Composite fell 1.1% amid concerns over slowing economic growth.
August crude-oil futures gained 1.3% to $107.87 a barrel, while July gold futures rose 0.5% to $1,284 a troy ounce. The dollar gained against both the yen and the euro.
http://online.wsj.com/article/SB10001424127887323993804578613350309766768.html?m od=WSJ_hp_LEFTWhatsNewsCollection