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.

By Charley Blaine Oct 15, 2012 1:10PM
Charley BlaineUpdated: 5:50 p.m. ET

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.

Article continues below.
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%
(per barrel)











Heating oil (-HO)

$3.2091

$3.2239

1.58%

10.12%
(per gallon)











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)











Brent crude 

$115.80

$114.62

1.03%

7.78%
(per barrel)











Retail gasoline

$3.7870

$3.7940

0.00%

15.60%
(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.
Hasbro (HAS) shares were down $1.55 to $37.75 after Goldman Sachs cut its rating on the stock to "sell" from "neutral" due to accelerating industry declines, secular declines in games and puzzles, and slowing growth in boys' toys. The target is moved to $32 from $34.

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.
Treasury yields











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%
Currencies











U.S. Dollar Index

79.806

79.740

-0.27%

-0.89%
British pound

1.6080

1.6088

-0.50%

3.49%
(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%
yuan











Canada dollar

$1.021

$1.022

0.45%

4.10%
(in U.S. $)

 








U.S. dollar 

$0.980

$0.978

-0.37%

-3.94%
(in Canadian $)

 








Commodities

 

 

 

 
Gold (-GC)

$1,737.60

$1,759.700

-2.05%

10.90%
(per troy ounce)

 








Copper (-HG)

$3.7015

$3.703

-1.50%

7.73%
(per pound)

 








Silver (-SI)

$32.7430

$33.669

-5.30%

17.30%
(per troy ounce)

 








Wheat (-ZW)

$8.4825

$8.568

-6.01%

29.95%
(per bushel)

 








Corn (-ZC)

$7.3725

$7.528

-2.51%

14.04%
(per bushel)

 








Cotton 

$0.7234

$0.714

2.39%

-21.10%
(per pound)

 








Coffee

$1.6085

$1.617

-7.29%

-29.96%
(per pound)

 








Crude oil (-CL)

$91.85

$91.860

-0.37%

-7.06%
(per barrel)










 

389Comments
Oct 15, 2012 6:23PM
avatar

 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
Oct 15, 2012 6:21PM
avatar
psychedout said:  Soon the US will be clinging to their old outdated weapon systems while the rest of the world will pass us by.  Like bows and arrows against guns.

You are absolutely right Sir!   The Educated Youth of our so-called enemies will make are traditional weapon system obsolete....They will attack the U.S.A. using Cyber war, economically  and other technologies of the future....How many weapons of mass destruction do we need...that in reality are already outdated in fighting the real war..
My daughter has two degrees and is entering Med School next year...Ironically she WAS a school teacher for 3 years and went back to school and obtained a degree in Bio-Medical Engineering... All said and done she will have well over 200,000 dollars in Student Loans after getting out of Med School.......She tells me about all the foreign students many from the Middle East like Saudi Arabia, Asia, South American,  that attend colleges in the U.S.A. ....  She had a party at my home this summer and had many students from Saudi Arabia over here...Talking with them I found they get FREE COLLEGE education,  all Expenses are paid for and get money to live off of while going to school in the U.S.A.......This happens throughout the world.......This is what other countries deem as a VALUABLE TO THEIR NATIONAL GROWTH AND NATIONAL SECURITY......and FUTURE.......
Oct 15, 2012 6:20PM
avatar

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
Oct 15, 2012 6:15PM
avatar
Tumbleweed ... Why don't you "google " Barney Frank yelling at John McCain in front of congress because McCain was advising that all these inflated loans by Freddie Mac and Fannie May where Barneys lover ran the damn thing was way out of line. Barney stated that these were the two most respected companies in the U.S.. THIS WAS THE FAILURE !!!! This caused the housing collapse and you blame it on the GOP when it was the democratic controlled Congress that initiated this and pushed it thru. I will be the first to say ... Not a Bush fan .... I hate Karl Rove ... I to this day feel Bush raided Iraq instead of Pakistan so he could finish daddy's war ... I will not back him ... But it was a democratic controlled congress that caused the housing collapse. I also find it funny that Obama has stated that the republicans need to work with him when Harry Reid has not allowed one bill on the senate floor. I find it funny that Obama is the ONLY president to not set a budget. I don't speak this way about Billy Boy ... I would love to hear what confidentially Hillary has to say about Biden and Obama leaving her out to dry on the Libya assasination. They hate Obama but for the good of the democratic party will remain silent until after the election. Then I would lay money that she does not remain on as the Secratary of State. I guess my real point is all of them seem like crooks... I feel the Tea Party who wants to stop all this ridiculous spending are the only ones on the right track.
Oct 15, 2012 6:15PM
avatar
I agree with that WIT...But it dearly needs to be enforced at the STATE and Local level.
Oct 15, 2012 6:15PM
avatar

 It really is reprehensible for Fox News to make Politics out of Libya
Oct 15, 2012 6:11PM
avatar

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."

Oct 15, 2012 6:08PM
avatar
These forums prove DAILY the Need for STRONG INVESTMENT IN THE EDUCATION SYSTEM....
Oct 15, 2012 6:05PM
avatar
Brutus said TWIT - Education is a local and state issue, not a federal issue.  The federal gov has no business involving itself in the education of our children.

NOT ONLY IS EDUCATION A NATIONAL ISSUE,  IT'S A NATIONAL SECURITY ISSUE !!!!!!!!

Much more valuable and more needed then the Next Weapons System....
Oct 15, 2012 6:02PM
avatar
TWIT - Education is a local and state issue, not a federal issue.  The federal gov has no business involving itself in the education of our children.

"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.

Oct 15, 2012 5:59PM
avatar
This Is What I Think ..... Education is VERY important .... 50% of college graduates can't find a job !!! Does the education system teach them how to start a business ? It should .... This is where the difference comes... Education does nothing without a place to apply it. Maybe we need to teach them to create something... which is exactly what free enterprise does. We have for 100's of years been the innovators due to freedom. No socialistic country comes close. China educates heavily .. yet their income comes from almost slave labor and disreguarding our patents and copying them. This goes on constantly and does not stop. Government in control of business simply does not work. Social Security and all government programs have been nothing but a drain. Less government is tn my opinion the path to prosperity ... not the government being mommy & daddy still holding our hand.
Oct 15, 2012 5:59PM
avatar

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?

Oct 15, 2012 5:58PM
avatar

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...

Oct 15, 2012 5:58PM
avatar
The American people have been Brainwashed.!!!.....The days of fighting traditional battles are over.....All civilized Nations have enough Weapons to destroy the Earth several times over....
WWIII is happening right now,   it's the REAL WAR.!!.... THE ECONOMIC WAR...... and the WEAPONS SYSTEMS ARE HIGHLY EDUCATED YOUTH, CITIZENS......While the U.S has invested Trillions in Defense spending, other countries are INVESTING in EDUCATION.   The U.S ranks well down the list World Wide....in Education.......Asia invests heavily in Education,  Teachers are revered and highly regarded.....not chastised......like in the U.S.A.......We are losing this WAR to dozens of other countries....Korea is number one in higher Education !!!!!!!   Yes Korea !!!   This is the Investments we need to make EDUCATION.....This is the WEAPONS SYSTEM that needs to have an OPEN CHECK BOOK!!     THIS IS NOT FREEBIE'S, IT'S AN INVESTMENT IN THE ECONOMIC FUTURE  AND SECURITY OF THE U.S.A......FIGHTING THE REAL WAR...!!!!

Oct 15, 2012 5:53PM
avatar

"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.

Oct 15, 2012 5:51PM
avatar
Emptyhead said:
"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."
 
"Wow!! Mister didn't know you were a security expert."

"You BUFFOON! You don't need much more than some common sense to figure that out.
Oh, I guess you're out then. Never mind..........................."
 
 
So tell me mr freaking know it all when you say "we don't need a whole lot of security around our Embassies in France, or Canada, etc." what are you saying. You sure are assuming a lot.
 
So you support Ryan's decision to reduce the security funds for our embassies
Oct 15, 2012 5:47PM
avatar
Good to be making money. Us employed folk have 47% counting on us.
Oct 15, 2012 5:47PM
avatar

 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
 I guess you could say old BARNEY had his way with them, huh. I wonder if he made them squeal like the pigs they are
Oct 15, 2012 5:45PM
avatar
Pete ... Stock market soaring republicans give up ..... You trust these traders your going to get burned. I am by far not rich and yes silver dropped and yet I will buy more... As I stated I am not rich but 2 ounces is $60 here , $60 there... I see no big hiring ... and the motherload is in manufacturing which is not happening in the U.S. as the debt gets deeper inflation will hit. Rome left the gold standard because they were " to big .. to great .. for anything to happen... this cycle has happened before and my faith in this is where I will stay. The #1 company to follow is ALCOA... aluminum is really the most basic staple in almost everything... even canned food .... As sales diminish it is happening in every type of market.... except everyone with their stupid IPHONE..... guess being almost 50 I can't see the infatuation with obtaining the most modern phone ...
Oct 15, 2012 5:41PM
avatar
MisterKyte,
Grow Up.....Open your Eyes......You could have benefited from a stronger Education, your post's reflect that daily....

I believe in INVESTING IN THE FUTURE OF THIS COUNTRY.......Investment just does not come in the FORM of Weapons of Mass Destruction !!!!!!!!!!!!!!!   Which we pay for FREELY, year after year after year with an OPEN CHECK BOOK !!!!!!

The Youth of this Nation are The Future of the United States of America........A WORTHY AND ESSENTIAL INVESTMENT.........and at this time THE NUMBER A ONE PRIORITY ......

Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

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.

RECENT QUOTES

WATCHLIST

Symbol
Last
Change
Shares
Quotes delayed at least 15 min
Sponsored by:

MARKET UPDATE

NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
Market index data delayed by 15 minutes

[BRIEFING.COM] The major averages punctuated a solid week with a subdued Friday session. The S&P 500 shed 0.2% to narrow its weekly gain to 1.7%, while the Nasdaq Composite (+0.1%) displayed relative strength. The tech-heavy index finished the week in line with the benchmark average.

Market participants went into today's session expecting to hear some new insight from Fed Chair Janet Yellen, who delivered the keynote address at this year's Jackson Hole Symposium. Unfortunately, the ... More


Currencies

NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
Sponsored by:

VIDEO ON MSN MONEY