Stocks climb on deal, earnings
Walgreen's profit beats estimates. Endo Pharma buys a generics company for $1.2 billion. Consumer confidence falls more than expected. A key home price index increases less than forecast.
By Melinda Peer, TheStreet
Updated at 1:57 p.m. ET
At 1:57 p.m. ET, the Dow Jones Industrial Average ($INDU) was up by 53 points, or 0.5%, at 10,865. The S&P 500 ($INX) was up by 5 points, or 0.4%, at 1,147. The Nasdaq ($COMPX) was was rising 9.2 points, or 0.4%, at 2,379.
Better-than-expected quarterly earnings at Walgreen and Endo Pharmaceuticals' (ENDP) announced acquisition of a generic-drug maker helped stocks reverse earlier losses. Stocks had fallen after key gauges of consumer confidence and home prices fell short of forecasts.
The Conference Board's Consumer Confidence Index slid to 48.5 in September from a revised 53.2 in August. Economists had expected the index to fall to 53.
"Until there is meaningful improvement in labor markets and great certainty that a double-dip recession will be averted and growth will reaccelerate, it seems highly unlikely that the sullen mood of consumers will be lifted," said Jim Baird, chief investment strategist for Plante Moran Financial Advisors.
The S&P/Case-Shiller 20-city home price index grew 3.2% in July from a year earlier, falling short of expectations for a 3.3% gain, according to Briefing.com. That compares with June's year-over-year increase of 4.2%. The index declined a seasonally adjusted 0.1% in July from June.
Manufacturing activity in the mid-Atlantic area has been declining this month amid lower shipments and weak employment, according to a survey by the Federal Reserve Bank of Richmond. The bank's manufacturing index fell to minus 2 from 11 in August.
Global stocks wavered amid renewed European debt concerns, which came amid speculation that Moody's (MCO) might downgrade Spain's credit rating. On Monday, Moody's delivered a three-notch cut to its rating on Anglo Irish Bank. Ratings agencies Fitch and Standard & Poor's also warned that Ireland's credit rating is vulnerable.
The FTSE in London was falling 0.9%, while the DAX in Frankfurt was down by 1.2%. Hong Kong's Hang Seng fell 1%, and Japan's Nikkei lost 1.1%.
Walgreen (WAG) said its fiscal-fourth-quarter earnings climbed 7.7% to $470 million, or 49 cents a share, as sales rose 8% to $16.9 billion. The company beat analysts' estimates of a 44-cent profit on revenue of $16.8 billion. Walgreen shares were rising 9.1% to $33.13.
The social-network site Facebook will likely sell shares to the public after late 2012, Reuters reported, citing board member and PayPal co-founder Peter Thiel.
At 4:30 p.m. ET, the American Petroleum Institute will issue its weekly report on crude oil inventories for the week ended Sept. 24. Analysts surveyed by Platts anticipate an increase of 2.2 million barrels.
Crude oil for November delivery was shedding 66 cents at $75.86 a barrel.
The December gold contract, the most actively traded gold future, was falling by $3.40 at $1,295.20 an ounce.
The dollar was gaining value against a basket of currencies with the dollar index up by 0.2%, while the benchmark 10-year Treasury note strengthened 1/32, diluting the yield to 2.528%.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market ended the holiday-shortened week on a mixed note as the Dow Jones Industrial Average shed 0.1%, while the S&P 500 added 0.1% with seven sectors posting gains.
Equity indices faced an uphill climb from the opening bell after disappointing quarterly results from Google (GOOG 536.10, -20.44) and IBM (IBM 190.04, -6.36) weighed on the early sentiment. Google reported earnings $0.15 below the Capital IQ consensus estimate on revenue of $15.42 ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
VIDEO ON MSN MONEY
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'