Dow hits 13,000 on economic data, stimulus hopes
The blue-chip index reaches a milestone not seen in almost 3 months as reports on GDP growth and consumer confidence come in better than expected. Facebook plunges on lackluster earnings and lack of guidance.
By Andrea Tse and wire reports
Stocks rallied Friday after reports on second-quarter U.S. growth and July consumer confidence came in not as weak as expected and as traders worldwide continued to hope for greater central bank intervention in the eurozone.
The Dow Jones Industrial Average ($INDU) was up 118 points at 13,006, reaching the millennial milestone for the first time since May 8. The S&P 500 ($INX) was up 16 points at 1,376. The Nasdaq Composite ($COMPX) was up 42 points at 2,935.
The Commerce Department reported that the U.S. economy grew by an annual rate of 1.5% in the second quarter after an upwardly revised 2% increase in the first quarter. The advance estimate was in line with expectations.
The report said growth in the U.S. economy reflected positive contributions from personal consumption expenditures, exports, nonresidential fixed investment, private inventory investment and residential fixed investment. Those were partly offset by less state and local government spending.
U.S. stocks soared Thursday, with investors seizing on a promise by European Central Bank President Mario Draghi to pull out all stops to keep the eurozone intact. The ECB will do "whatever it takes to preserve the euro," he said. The rally also drew confidence from favorable U.S. economic data, including a fall in weekly initial jobless claims and an increase in durable goods orders.
On the corporate front, shares of Facebook (FB) were plunging by double digits after the company on Thursday posted an in-line quarterly profit that failed to impress Wall Street. Facebook reported non-GAAP earnings of $295 million, or 12 cents a share, on revenue of $1.18 billion. Analysts were expecting profit of 12 cents a share in the June-ended period on revenue of $1.15 billion.
Amazon.com (AMZN) delivered mixed second-quarter results Thursday, reporting a profit of $7 million, or 1 cent a share, on revenue of $12.83 billion. The latest results included a net loss of $65 million related to the acquisition and integration of Kiva Systems. Analysts were expecting 2 cents a share on revenue of $12.88 billion. For the third quarter ending in September, Amazon forecast an operating loss of between $50 million and $350 million and revenue ranging from $12.9 billion to $14.3 billion. Wall Street's current consensus estimate is for earnings of 14 cents a share in the current quarter on revenue of $14.09 billion.
Drugmaker Merck (MRK) reported second-quarter earnings excluding items of $1.05 a share, surpassing the Wall Street's target of $1.01 a share.
Barclays (BCS) said Friday that the U.K.'s financial regulator has started a probe of four current and former senior employees, including the bank's finance chief. The issue involves the "sufficiency of disclosure" in relation to fees paid when Barclays conducted an emergency 7.3 billion-euro capital increase with Middle Eastern investors in 2008, according to The Wall Street Journal. The U.K. bank last month reached a settlement with U.K. and U.S. regulators after it admitted to trying to manipulate the London interbank offered rate. Barclays on Friday announced first-half profit that exceeded forecasts.
a very good summary - could be an ad tag line
>>>The Administration had two years with a senate and congress fully capable of enacting changes in outsourcing and importing promissed when running and nothing, zero, zilch was done. A democrat who ran on hope and change and did nothing as millions of Americans lost their hope and change.<<<
2012 Democratic National Convention Schedule -- Charlotte , N.C.
4:00 PM – Opening Flag Burning Ceremony – sponsored by CNN
4:05 PM – Singing of "God Damn America " led by Rev. Jeremiah Wright
4:10 PM – Pledge of Allegiance to Obama
4:15 PM – Ceremonial 'I hate America' led by Michelle Obama
4:30 PM – Tips on “How to keep your man trustworthy and true to you while you travel the world” – Hillary Clinton
5:00 PM – “Great Vacations I’ve Taken on the Taxpayer’s Dime Travel Log” - Michelle Obama
5:30 PM – Eliot Spitzer Speaks on "Family Values" via Satellite
5:45 PM – Tribute to All 57 States
6:00 PM – Sen. Harry Reid - 90-minute speech expressing the Democrat’s appreciation of the Occupy
Wall Street movement, and George Soros for sparing no expense, for all that they have
accomplished to unify the country, improve employment and to boost the economy.
8:30 PM – Airing of Grievances by the Clintons
9:00 PM – “Bias in Media – How we can make it work for you” Tutorial – sponsored by CBS, NBC, ABC,
and the Washington Post and the New York Times
9:15 PM – Tribute Film to Brave Freedom Fighters incarcerated at GITMO – Michael Moore
9:45 PM – Personal Finance Seminar - Charlie Rangle
10:00 PM – Denunciation of Bitter Gun Owners and Bible readers
10:30 PM – Ceremonial Waving of White Flag for IRAQ , & Afghanistan
11:00 PM – Obama Energy Plan Symposium / Tire Gauge Demonstration / You too can get rich with Green
11:15 PM – Free Gov. Blagovich rally
11:30 PM – Obama Accepts Oscar, Tony and Latin Grammy Awards
11:45 PM – Feeding of the Delegates with 5 Loaves and 2 Fish – Obama Presiding
12:00 AM – Official Nomination of Obama by Bill Maher and Chris “He sends a thrill up my leg” Matthews
12:01 AM – Obama Accepts Nomination as Lord and Savior
12:05 AM – Celestial Choirs Sing
3:00 AM – Biden Delivers Acceptance Speech
The U.S. economy grew at the slowest pace in almost a year between April and June as consumers and businesses succumbed to a raft of worries about jobs, wages, Washington and Europe.
The Commerce Department reported that Gross Domestic Product expanded at a 1.5 percent annual rate in the second quarter, after rising at an upwardly revised 2.0 percent pace from January to March. Output for the fourth quarter was raised to a 4.1 percent rate from 3.0 percent.
The second quarter's growth rate, which was in line with economists' expectations, was the slowest since the third quarter of 2011.
And the DOW is UP???????? Really? So nowdays all it takes to raise the markets is either a PROMISE from Europe, no action justa PROMISE, or slow growth but better than expected, still slow as hell, but better than thought...........
What a JOKE!!!!! America used to be known for its drive and initiative, now we are know for our incompetence, and ineptness! We celebrate mediocrity and bail out failures and punish success!
The first quarter GDP was based on Operation Twister stimulus by Bendover Bernanke, strip that away and we would be at 1% or less. yesterdays durable good s reort was hailed as great until you strip out defense spending and aircraft then you go negative. Auto dealers have been using factory inventory received to pad their numbers and even that didn't help.
There is so much spin put on the data to distract the sheeple away from the fact that our economy is in the tank that you get dizzy reading the reports. 3rd Qtr will probably be either less than 1% or even negative.
So the market no longer matters, it's all about stimulus or should we call it manipulation.
I feel like we're on the Titanic, it sank because it didn't need more water. Our economy looks like it's going to sink because it doesn't need more manipulation. Give us a solid foundation to move the economy forward.
you know the confident consumer is hard to find. they should place bill board ads around. there must be a few somewhere
>>>>If you are "well to do" and a confident consumer the government would like to add you to the list of people they poll for their "Consumer Confidence" reports.<<<<
If "stimulus" is all we need for more jobs, economic growth and prosperity why stop at $1 Trillion, $2 Trillion or $100 Trillion? -- The problem is solved-- Just print, print and print and GDP, jobs and prosperity will abound. Instead of everybody gets a car, we can play everybody gets a million dollars...
My mama always told me that stupid is what stupid does.
Couldn't terminal unemployment be considered the same as outsourcing. Worse I would think.
It is absolutely amazing to me that the United States of America, my country, is being run and destroyed by the biggest bunch of shameless liars and propagandists that have ever walked the face of the earth.
The country is dying. Stick that in your GDP Wall Street.
The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies.
Over the past 5 years, our federal debt has increased by $3.5 trillion to $8.6 trillion.That is “trillion” with a “T.” That is money that we have borrowed from the Social Security trust fund, borrowed from China and Japan, borrowed from American taxpayers. And over the next 5 years, between now and 2011, the President’s budget will increase the debt by almost another $3.5 trillion.
Numbers that large are sometimes hard to understand. Some people may wonder why they matter. Here is why: This year, the Federal Government will spend $220 billion on interest. That is more money to pay interest on our national debt than we’ll spend on Medicaid and the State Children’s Health Insurance Program. That is more money to pay interest on our debt this year than we will spend on education, homeland security, transportation, and veterans benefits combined. It is more money in one year than we are likely to spend to rebuild the devastated gulf coast in a way that honors the best of America.
And the cost of our debt is one of the fastest growing expenses in the Federal budget. This rising debt is a hidden domestic enemy, robbing our cities and States of critical investments in infrastructure like bridges, ports, and levees; robbing our families and our children of critical investments in education and health care reform; robbing our seniors of the retirement and health security they have counted on.
Every dollar we pay in interest is a dollar that is not going to investment in America’s priorities.
Senator Barack Obama
Senate Floor Speech on Public Debt
March 16, 2006
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