Dow up 72 as better jobs picture boosts stocks
The blue chips break a 4-day losing streak as jobless claims fall. Gold and oil jump on Netanyahu's Iran warnings. Tech stocks rebound from Wednesday's losses. Research In Motion soars on earnings beat; Nike falls back as earnings slip.
Stocks enjoyed a solid rally today, the first of the week, as U.S. jobless claims showed a surprisingly large decline and investors cheered Spain's budgetary plans.
While jobless claims fell, the Labor Department also reported that job gains for the year ended in March were larger than thought. But the government also reported a decline in durable-goods orders that was made worse by a big decline in commercial aircraft orders. In addition, a new measure of second-quarter growth showed the big 2012 drought was already weighing on the economy.
Homebuilding, energy and technology stocks were among the market leaders today, a day after all had pulled back. Gold (-GC) and crude oil (-CL) moved higher in part because of worries about an Iranian-Israeli war and as the dollar fell against the euro and the British pound. Energy stocks were higher.
After the close, Research In Motion (RIMM) shares jumped $1.56, or nearly 22%, to $8.70 after reporting one-time charges of 27 cents a share. Wall Street was looking for 19 cents. Revenue was $2.9 billion, up 2% from a year ago. Nike (NKE) shares were off $2.09 to $93.91 after hours. The company reported a 12% profit decline, although revenue was up 10% to $6.67 billion. Worldwide future orders were up 6% from a year ago, but Nike's gross profit margin fell to 43.5% from 44.3% a year ago.
The Dow Jones industrials ($INDU) closed up 72 points to 13,486; the blue chips had been up as many as 109 points. The Standard & Poor's 500 Index ($INX) gained 14 points to 1,447, and the Nasdaq Composite Index ($COMPX) gained 43 points to 3,137. The Nasdaq-100 Index ($NDX) had risen 40 points to 2,822.
Article continues below.Apple (AAPL), the biggest influence on the Nasdaq-100, climbed $16.14 to $681.32, gaining back all it had lost on Wednesday. Amazon.com (AMZN) gained $6.92 to $256.59, and Google (GOOG) was up $3.04 to $756.50.
Today's gains left the major averages poised to finish September with decent gains, although the market looks to end the week lower.
The gains for the Dow and S&P 500 were their largest since Sept. 13. The Nasdaq's gain was its largest since Sept. 6.
The Dow heads into Friday, the last trading day of the month, up 3.1% for September. The S&P 500 is up 2.9%, while the Nasdaq is up 2.3%.
If the Dow ends September with a gain, it will be the 11th for the blue chips in the last 12 months, something not seen since March 1958 through February 1959.
Personal income, Chicago PMI, Michigan consumer confidence reports due
Friday offers a full plate of economic reports, including reports on personal income and spending, the Chicago Purchasing Managers Index and the University of Michigan Consumer Sentiment Index.
Earnings are due from American Greetings (AM) and pharmacy retailer Walgreen (WAG).
American Greetings shares were up 34 cents to $17.01 after an investment group led by CEO Zev Weiss and his family on Wednesday offered $17.18 a share for the company, a 20% premium over Tuesday's close.
Futures trading suggests a modestly higher open for stocks on Friday.
Natanyahu speech boosts gold, energy prices
Precious metals and energy prices were higher today, in part because of the United Nations speech of Israeli Prime Minister Benjamin Netanyahu., who said Iran could have enough enriched uranium for a nuclear weapon by next summer.
The possibility of Iran’s possession of a nuclear weapon was a threat not only to Israel but to the entire world, Netanyahu said, and added that the failure to establish "red lines" for Tehran could lead to war. Netanyahu has been arguing for months that Iran must be stopped.
Thanks to his speech, gold settled up $26.90 to $1,780.50 an ounce.
Crude oil in New York settled up $1.87 to $91.85 a barrel, and futures of heating oil, natural gas and wholesale gasoline jumped as well. Brent crude, the benchmark North Sea oil that tends to move global oil prices, was up $2.19 to $112.36 a barrel.
The national average retail price of gasoline was down a penny to $3.795 a gallon, according to AAA's Daily Fuel Gauge Report.
|Energy prices -- New York close|
|Thur.||Wed.||Month chg.||YTD chg.|
|Crude oil (-CL)||$91.85||$89.98||-4.79%||-7.06%|
|Heating oil (-HO)||$3.1508||$3.1025||-0.92%||8.12%|
|Natural gas (-NG)||$3.2970||$3.2150||17.79%||10.30%|
|(per mil. BTU)|
|Unleaded gasoline (-RB)||$2.8972||$2.8738||-2.54%||9.02%|
|(per gallon; AAA)|
More spending cuts for Spain
The Spanish government proposed significant spending cuts that would trim budgets for each of its ministries by an average 8.9%. The overall effect would be to trim Spain's budget deficit to 4.5% of gross domestic product, down from 9% in 2011, The Wall Street Journal said.
Not only would the central government's spending be controlled, the government is proposing to control provincial spending more tightly as well. The moves would be made so Spain can apply for and win a financial bailout from the European Union, the European Central Bank and the International Monetary Fund.
The budget announcement came after several days of protests that were often violent. While bond investors were cheered, it's not clear the Spanish people are. The country already has Europe's highest unemployment rate, and it will probably go higher.
Tempur-Pedic will buy Sealy
The day featured a deal: Tempur-Pedic International (TPX) has agreed to acquire mattress company Sealy (ZZ) in a deal valued at $229 million. Sealy shareholders will receive $2.20 a share, a premium of 2.8% to Wednesday's close. Including debt assumption, the deal is valued at about $1.3 billion.
Wall Street likes the move. Tempur-Pedic was up $3.86 to $30.64. Sealy added 5 cents to $2.19.
A bias to the upside
Twenty-four of the 30 Dow stocks were higher, led by General Electric (GE), Intel (INTC) and Bank of America (BAC). Wal-Mart Stores (WMT) and AT&T (T) were the laggards.
Meanwhile, 408 S&P 500 stocks were higher. First Solar (FSLR), Discover Financial Services (DFS) and MetroPCS Communications (PCS) were the leaders. Printer R.R. Donnelly (RRD) and spice-maker McCormick & Co. (MKC) were the laggards.
Ninety Nasdaq-100 stocks were higher, led by Green Mountain Coffee Roasters (GMCR) and Avago Technologies (AVGO). Game-maker Activision Blizzard (ATVI) and Costco Wholesale (COST) were the laggards.
Jobless claims falls; drought hits GDP
The jobless-claims report was the day's cheery news. Claims fell 26,000 to a seasonally adjusted 359,000, the lowest level since mid-July. The four-week moving average dropped to 374,000 from 378,500. The moving average smooths out week-to-week changes.
At the same time, the Labor Department now reckons the American economy created 386,000 more jobs -- or 0.3% -- in the 12 months to March than previously thought. White House economic adviser Alan Krueger said the revision indicated that the United States had added nearly 5.1 million private-sector jobs, on a net basis, over the past 30 months.
The new estimate is something the Labor Department does annually. The revision has averaged 0.3% since 2000, according to the Liscio Report, which tracks government spending patterns.
Meanwhile, the final read on second-quarter gross domestic product showed growth of 1.3%, weaker than an expected 1.7%. Analysts said the impact of the drought was the biggest factor in the downward revision.
At the same time, August durable-goods orders tumbled 13.2%, much more than the 5% drop expected. A decline in orders at Boeing (BA) were the big driver for the decline, but other sectors showed weakness as well.
|Short hits from the markets -- New York close|
|Thur.||Wed.||Month chg.||YTD chg.|
|13-week Treasury bill||0.0900%||0.100%||0.00%||800.00%|
|5-year Treasury note||0.638%||0.612%||7.05%||-23.13%|
|10-year Treasury note||1.640%||1.618%||4.99%||-12.35%|
|30-year Treasury bond||3.032%||3.032%||12.97%||4.95%|
|U.S. Dollar Index||79.592||79.948||-2.00%||-1.15%|
|(in U.S. $)|
|U.S. $ in pounds||£0.616||£0.618||-2.16%||-4.32%|
|Euro in dollars||$1.29||$1.29||2.54%||-0.31%|
|(in U.S. $)|
|U.S. $ in euros||€ 0.774||€ 0.777||-2.48%||0.31%|
|U.S. $ in yen||77.76||77.74||-0.93%||0.86%|
|U.S. $ in Chinese||6.32||6.30||-0.63%||-0.03%|
|(in U.S. $)|
|(in Canadian $)|
|(per troy ounce)|
|(per troy ounce)|
|Crude oil (-CL)||$91.85||$89.98||-4.79%||-7.06%|
The numbers are misleading. There are thousands of people that are no longer eligible for unemployment, that don't even show up on the radar. If everyone that was out of work and looking for employment were counted, the unemployment rate would be over 20%.
Truly sad how the government and the liberal media can spin lies to tell us what they want us to hear...
Wake up SHEEPLE.
Jobless news is good????????? New claims at 360,000?????? What in the hell is wrong with that picture??????
Incredible how bad news for 4 years (regardless of the occupant in the White House) has become ok news. My Lord.....how this country is so screwed up.
When all of the benefits begin to be adjusted or plain 'run out' because of lack of funds, take a good look in the mirror America. The image that you see is the one that all of the blame should be directed at.
You know, I did not vote for President Obama....didn't care for him then and still don't.....but I supported him as my President when he was elected and hey "if he can turn things around, wonderful"....."I'm all for that," I said.
I didn't realize that he is nothing but a 'thug' and a 'liar'......and a good liar at that.
He demonized and demorialized Mrs. Clinton in the Democratic Primaries in 2008. He is a politician, no more, no less. He has failed us as our President.
I am amused when I see all of the support for our 'Golden Boy' Bill Clinton.....he allowed his wife to be attacked and humiliated during that campaign and now he 'stumps' for the President....Most amusing is that the Morons in America support and love him.
Incredible.....I am ashamed at times to be an American. We are quickly becoming a 'third world country'....again, take a look in the mirror.
Lies, Lies, Lies and more lies.............Lot's of people falling off of unemployment and no jobs to be found anywhere..........not even temp jobs! Went to the temp agency yesterday and the place was jam packed!
GDP has been revised down again, china's central bank is pumping money into their system now, Riots in Greece, Spain, Portugal and reports of people eating out of trash bins. Massive reports of thousands being layed off of their high paying jobs at good companies but not to worry, Walmart, Kohls, and Target are hiring up to 150,000 part-time, temporary, minimum wage workers for the holiday season. And, last but not least, the fiscal cliff is looming dead ahead.
Let's not forget folks, THE GOVERNMENT WANTS ALL TO WORK UNTIL WE REACH THE RIPE OLD AGE OF 70-80'S OLD!
How do you expect a person that has never held a private sector job to actually create one?
PLEASE GIVE US THE TRUTH !!!!!!! Do not give what either party doles out ! Just plain old truth !
It might choke things up but I was taught it is better to tell the truth than to keep lying, because sooner or later the truth will come out anyway !!!! tired of all the lies an half truths we hear from our leaders , time for it to end!
Just checking to see if there truly is intelligent life left in this country. People actually believe that "Hope and Change" has happened. First let me point out I am not racist, just a realist. Every working person in this country has a goal, retirement. It is unrealistic to hope that social security will be there intact as it is now for all of us.
We were warned two decades ago that we would need to find other ways to secure our individual futures, that is why employers started offering 401K and other retirement supplements. Investing in the markets will be the only way to secure a decent retirement. This president and his administration appear to be against individuals or business' succeeding. We need someone on our side. Obama certainly is not that man. Everyone in this country should see the movie 2016 to get a full picture. The "mainstream media" as it were, never even advertised this movie or even talked about it during news broadcasts so we the people (sheep, lemmings or whatever they want to treat us as) could make are own informed decision as to what is truth or fantasy in this movie. Romney may not be the new messiah but he is a business man with the knowledge and connections to get this stagnated economy moving again which will help all of us trying save for our future security. The fact of the matter is Romney can convince the banks, the wealthy investors and so on to loosen their purse strings getting people back to work, by letting up on regulations and repealing Obamacare. This may sound selfish but the utopian dreams that Obama has is just that - a dream. The only Utopia we will ever have is upon our deaths. This is the real world with winners and losers, what would be the point of life if we did not strive to better ourselves. (Yes Timmy, team did lose the T-Ball game.) We need to remember the "Golden Rule - Those who have the Gold Make the Rules" and money does flow from the top down. Our president seems to believe that it should flow from the middle out. It has never happened that way and never will. Again Utopia?
You have to remember the people doing these polls only count the people who are seeking unemployment benefits. They do not count the people out of work who have ran out of benefits or the people who have given up on seeking a job. Look at all the large corporations, small corporations that are laying off. People young and old had better wake up! You haven't seen bad yet, but its coming if the election goes democratic!
There is no unemployment but there is nobody working.
Use your welfare money to buy the iphone5.
Where are they getting these jobs they claim to have? The reason the claims have gone down is the unemployment has ran out and it shows that the jobless is down, when in actuality it is just the opposite. Ask someone on the street looking for a job to try to feed their family if the jobless is getting better.!!!!!!
Give it a thumbs down and then show us where the jobs are!
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[BRIEFING.COM] The S&P 500 settled lower by 0.8% after early strength turned into afternoon weakness.
Today's headline event came in the form of Ben Bernanke's testimony before the Joint Economic Committee. During his remarks, Chairman Bernanke said premature tightening of monetary policy could stall the pace of recovery. This followed weeks of conflicting remarks from FOMC members, which sparked speculation regarding possible changes to the Fed's policy course.
However, ... More
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