Dow up 95 on retail sales, Citigroup results
Investors are cheered that September retail sales are stronger than expected. Apple's iPhone sales help. Citigroup's core business is getting stronger. Speculators bet Clearwire will be part of the Sprint-Softbank deal.
Stocks surged today with a solid and broad rally that saw the Dow Jones industrials ($INDU) enjoy their best day in a month.
The rally was built on a decent report on September retail sales, better-than-expected quarterly results from Citigroup (C) and, finally, Softbank's (SFTBY) deal to buy 70% of Sprint Nextel (S).
Adding some extra cheer to the market: Gains in health care stocks triggered in part by an Eli Lilly (LLY) report that a new gastric-cancer drug has produced good results and an analyst upgrade. In addition, inflation and trade data from China made investors more optimistic about the world's second-largest economy.
Manufacturing in New York contracted more than economists expected in September, according to the Federal Reserve Bank of New York's Empire State Manufacturing Survey.
The Dow closed up 95 points to 13,424; the blue chips had been up as many as 109 points just before the close. The Standard & Poor's 500 Index ($INX) gained 12 points to 1,440, and the Nasdaq Composite Index ($COMPX) rose 20 points to 3,064. The Dow's gain was its largest since a 207-point surge on Sept. 13. The gains for the S&P 500 and Nasdaq were their best since Sept. 27.
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The Nasdaq-100 Index ($NDX), which tracks the largest Nasdaq stocks, jumped 20 points to 2,740. Apple (AAPL), the biggest weight in the index, had a volatile day but was up $5.05 to $634.76.
After the close, shares of WD-40 (WDFC) were off $4.79 to $46.55 after hours as the company's fiscal-fourth-quarter earnings of 56 cents a share missed the Street estimate of 70 cents. Revenue was down 6% to $89.9 million. It also cut guidance for its fiscal 2013 year.
Also lower after hours was financial information service Bankrate (RATE), whose shares fell more than 25% after hours to $10.85. The company announced preliminary third-quarter results with revenue expected at $115.5 million to $117.5 million. The consensus estmate was $132.7 million. The company projected earnings of 11 to 13 cents a share. The Street was looking for 20 cents.
Crude oil makes a comeback; gold slips
Crude oil (-CL) in New York recovered from early selling, settling down a penny to $91.85 a barrel. It briefly dropped below $90 a barrel in morning trading and was trading slightly lower in electronic markets.
Brent crude, the benchmark North Sea crude that's a key driver of U.S. retail gasoline prices, was up $1.13 to $115.73 a barrel.
The national average retail price for unleaded gasoline was $3.787 today, according to AAA's Daily Fuel Gauge Report. That's off from Sunday's $3.794 and down 3.1 cents from a near-term high of $3.818.
Gold (-GC) settled down $22.10 to $1,737.60 an ounce. Silver (-SI) was off 92.6 cents to $32.743 an ounce. Gold has shed 2.1% this month; silver is down 5.3%. Gold is still up 10.3% for the year; silver is up 17.3%.
|Energy prices -- New York close|
|Mon.||Fri.||Month chg.||YTD chg.|
|Crude oil (-CL)||$91.85||$91.86||-0.37%||-7.06%|
|Heating oil (-HO)||$3.2091||$3.2239||1.58%||10.12%|
|Natural gas (-NG)||$3.486||$3.6110||5.08%||16.63%|
|(per mil. BTU)|
|Unleaded gasoline (-RB)||$2.8503||$2.8928||-2.39%||7.26%|
|(per gallon; AAA)|
Citigroup shares rose $1.91 to $36.66 after posting adjusted earnings that surged from the prior year and beat expectations. The growth came as mortgage lending increased and capital markets results rebounded. The performance was tops among S&P 500 stocks.
The earnings report led to gains for many financial stocks. Goldman Sachs (GS), which reports third-quarter results on Tuesday, was up $4.30 to $124.50. Bank of America (BAC), which reports Wednesday, added 32 cents to $9.44, tops among the 30 Dow stocks.
September retail sales rose 1.1%, the Commerce Department said. That was above the 0.8% growth that had been anticipated. Moreover, the report revised higher its estimates for August retail sales.
One driver to the report was big sales of Apple's iPhone 5, but IHS Global Insight noted that the gains were quite broad and included auto sales, electronics sales (read: iPhone 5) and
gasoline service stations. That wasn't a surprise because retail pump prices were above $3.80 a gallon for nearly all of September.
Sprint is flat on Softbank deal, but Clearwire jumps
Sprint-Nextel was off 4 cents to $5.69 after Japanese mobile operator Softbank said it would buy up to 70% of the company for $20.1 billion. The price was expected.
You saw the excitement in the deal from Clearwire (CLWR), up 37 cents to $2.69. Wall Street is speculating that Clearwire, which builds and operates cellphone towers, will be part of the combination.
Along with that speculation, shares of American Tower (AMT), a Clearwire rival, were up $3.18 to $75.35.
Sprint competitor AT&T (T) lost 42 cents to $35.21 and was the biggest drag on the Dow, while Verizon Communications (VZ) was off 12 cents to $44.50. Telecom was the worst-performing sector in the S&P 500.
- Jim Cramer calls the Sprint-Softbank combine "one wacky deal."
Microsoft (MSFT) shares were up 31 cents to $29.51. The company unveiled its new Xbox music service that will include a music store, free music streaming on the Xbox and the ability to download individual tracks or listen to songs without advertising. It will be available Oct. 26 on Windows 8 phones. (Microsoft publishes MSN Money.)
While the obvious competitive rival is Apple, the service also is a competitive threat to Internet music service Pandora (P), whose shares were down 29 cents to $9.11.
Will Amazon.com buy TI's mobile chip business?
If you want audacious in your deal, look no further than the report that Amazon.com (AMZN) is in talks to buy Texas Instruments' (TXN) mobile chip business.
Investors took the idea seriously. TI rose 94 cents to $28.22. Amazon was up $1.82 to $244.18.
The Israeli newspaper Calcalist reported that Amazon.com is in advanced talks to buy TI's smartphone business. A deal would be a clear signal of the company's ambitions in the smartphone sector.
The report said a deal would probably be worth billions of dollars and could make Amazon, led by founder and CEO Jeff Bezos, a direct rival to Apple and Samsung Electronics, which also design their own chips.
A big week for earnings
This is one of the biggest weeks for earnings, with some 84 companies in the S&P 500 releasing results. They include IBM (IBM), Intel (INTC), Goldman Sachs, Coca-Cola (KO), Microsoft and General Electric (GE).
Of the 38 companies in the S&P 500 that have reported earnings for the third quarter, 57.9% have reported earnings above analyst expectations, 21.1% reported earnings in line with analyst expectations and 21.1% reported earnings below analyst expectations, according to Thomson Reuters.
Since 1994, 62% of companies beat estimates, 17% match and 21% miss estimates. Over the past four quarters, 67% of companies beat estimates, 10% matched and 24% missed estimates.
|Short hits from the markets -- New York close|
|Mon.||Fri.||Month chg.||YTD chg.|
|13-week Treasury bill||0.1000%||0.100%||11.11%||900.00%|
|5-year Treasury note||0.660%||0.663%||4.76%||-20.48%|
|10-year Treasury note||1.663%||1.663%||1.59%||-11.12%|
|30-year Treasury bond||2.843%||2.835%||-6.23%||-1.59%|
|U.S. Dollar Index||79.806||79.740||-0.27%||-0.89%|
|(in U.S. $)|
|U.S. $ in pounds||£0.622||£0.622||0.50%||-3.37%|
|Euro in dollars||$1.30||$1.30||0.83%||0.03%|
|(in U.S. $)|
|U.S. $ in euros||€ 0.772||€ 0.772||-0.82%||-0.03%|
|U.S. $ in yen||78.80||78.43||1.07%||2.21%|
|U.S. $ in Chinese||6.29||6.27||0.15%||-0.56%|
|(in U.S. $)|
|(in Canadian $)|
|(per troy ounce)|
|(per troy ounce)|
|Crude oil (-CL)||$91.85||$91.860||-0.37%||-7.06%|
We've thrown billions at education over the last several decades and our kids have not benefited from the expenditures. I'll let you decide on who has benefited from these expenditures?
I'd support almost any scheme that provides a better educated populace.
Until we think it through, I regard throwing more money at the problem an empty gesture.
Real America. The Dems did NOT control Congress until 2006, long after the deregulation cat was let out of the bag by the regulation hating GOP
Cansh*t. - my ****Ing point isNOBODY started Bashing Bush about 9/11until WMD proved he was a damned liar. And you got it right, In RETROSPECT, Boy George WAS sleeping at the wheel
It really is reprehensible for Fox News to make Politics out of Libya
Spooker.I'm also reserving judgement on Obama, but so far I consider him a so-so President.
I did not vote for him.
But the Republicans don't have anyone running,,,"Worth their salt either."
"Investing in the future of this country" is just code for more gov spending. Our budget is more than a trillion bucks in the red every freaking year and yet you think we should spend more. This is exactly the opposite of what we need. And btw, spending on medicaid/medicare/social security/welfare/food stamps/other entitlement programs is half our total budget and roughly 3 times more than we spend on defense.
If Obama had been Pres on 9/11 2001, Fox News would have been bad mouthing him on 9/12, saying he was asleep at the wheel
So I remenber lots saying it about Bush. And other saying he planed it..
What's your f... point?
Spooker almost agree with you 100%
I thought Clinton, Truman and Nixon were my better choices..
Reagan so-so until his mind was going in 2nd term. He was kind of a loose cannon in a "B" movie, with a lot of puppetmasters behind the throne...Never thought he was very bright..sorry.
I agree with the JFK assessment..
I saw qualities in Nixon that some didn't see....Truman called him a "shifty goddamn liar" and "a mean, nasty,fellow"; Somewhat true. (Truman hated him)
I liked Carter the person, BUT "said he wasn't much of a President or meant that," but he did kept us out of a lot of trouble...As a Past President, there has been "no equal."
I voted for Reagan first term,was dismayed..He, Bush1 and Bush2 were all "goddamn liars", IMO.
After my Top 3, I judge all others...
"Good to be making money. Us employed folk have 47% counting on us."
Agreed, just that folks like myself don't set around and complain about helping the elderly, military, disabled and students.
We think it's the american thing to do.
We need lots of weapons to kill our enemies stone cold dead. The only thing the Arab wackos will understand is horrible pain and death. Only then will they respect our great might and bow down to us on their knees and kiss our feet.
We must remain strong to show the world we'll kill anyone who doesn't have America's best interests at heart.
Go Mitt go, with you, we can't go wrong for you'll make sure Ameica is strong!
"World wide. It doesn't mean it can't be put where it's actually needed, when it's needed. Pretty sure we don't need a whole lot of security around our Embassies in France, or Canada, etc."
Real america --- Yep Old BARNEY was the most powerful gay old blade in history! The dude single handedly deregulated the Banks DESPITE the regulation loving protests of Tom Delay and the GOP House and the regulation loving protests of Bush and his feeble veto powers
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[BRIEFING.COM] Stocks entered the weekend on a mixed note as the S&P 500 shed 0.1% while the Dow ended with a gain of 0.1%.
The major averages began the day on a lower note as nine of ten sectors saw losses of more than 0.5%.
The consumer staples sector was the lone exception as the group spent the entire day in positive territory thanks to the relative strength of Dow component Procter & Gamble (PG 81.89, +3.19). The second-largest staple stock advanced ... More
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