U.S. blue chips climb as GE, Home Depot rally
Enviado: 11/7/2003 16:43CBS MarketWatch
U.S. blue chips climb as GE, Home Depot rally
Friday July 11, 11:03 am ET
By Julie Rannazzisi
NEW YORK (CBS.MW) -- Gains in General Electric following its quarterly results and an upgrade of Home Depot helped pull the Dow industrials to higher ground Friday while investors pondered a mixed bag of economic news.
All tech sectors traded higher while broader market gains were most pronounced in the retail, financial and biotech groups. Only oil service and airline issues headed lower.
The Dow Jones Industrial Average (CBOT^DJINews) ascended 83 points, or 0.9 percent, to 9,119. All but one of the Dow's 30 components traded higher, with Intel, GE, Home Depot and AT&T leading the charge.
The Nasdaq Composite (NasdaqSC^IXICNews) climbed 17 points, or 1 percent, to 1,733 and the Nasdaq 100 Index (NasdaqSC^NDXNews) put on 13 points, or 1.1 percent, to 1,282.
The Standard & Poor's 500 Index (CBOE^SPXNews) sprinted 0.9 percent while the Russell 2000 Index (CBOE^RUTNews) of small-capitalization stocks gained 0.9 percent.
Volume came in at 367 million on the NYSE and at 499 million on the Nasdaq Stock Market. Winners handily surpassed losers by 18 to 9 on the NYSE and by 18 to 10 on the Nasdaq.
Core PPI dips
The June producer price index climbed 0.5 percent overall but fell 0.1 percent at the core, which excludes the often-volatile food and energy components. Economists had expected a 0.3 percent rise in the overall PPI and a 0.1 percent increase in the core rate.
"The core index was weaker than consensus expectations. This confirms that businesses continue to lack pricing power and suggests that the Federal Reserve's skewed assessment of risk with respect to disinflation will remain in place for some time," maintained Jade Zelnik, chief economist at RBS Greenwich Capital.
Merrill Lynch echoed the core PPI's performance indicates that deflation concerns remain.
The U.S. trade deficit, meanwhile, widened to $41.8 billion in May, coming in a shade higher compared with expectations for a $41.2 billion gap.
GE rises after results; Home Depot lifted by upgrade
Dow component general Electric (NYSEGENews) checked in with a second-quarter profit that was in line vs. analysts' expectations, sending shares 2.2 percent higher.
In the meantime, GE narrowed its 2003 profit outlook to $1.55 to $1.70 a share, which compares to Wall Street's projection for full-year earnings of $1.60 a share. The industrial giant also told investors that the year was "turning out as planned."
Home Depot (NYSEHDNews) climbed 3 percent and was the Dow's best performer following a Banc of America Securities upgrade to a "buy" rating from a "neutral" on belief the Dow component has made "real strides" and that sales are bound to show meaningful improvements as a result.
In other earnings news, Juniper Networks (NasdaqNMJNPRNews) announced late Thursday a second-quarter profit that surpassed wall Street's expectations. Going forward, the networker said it expected to post a third-quarter profit above analysts' current estimates. Shares slipped 0.2 percent in recent trades.
Treasurys get some mixed action
Government bonds traded mixed after the release of the morning's batch of data, with the 10-year Treasury note off 1/8 to yield (CBOE^TNXNews) 3.67 percent while the 30-year government gained 2/32 to yield (CBOE^TYXNews) 4.695 percent.
In the currency sector, the U.S. dollar was mostly higher against its major trading partners, climbing 0.1 percent to 117.76 yen while the euro declined 0.8 percent to $1.1287.
U.S. blue chips climb as GE, Home Depot rally
Friday July 11, 11:03 am ET
By Julie Rannazzisi
NEW YORK (CBS.MW) -- Gains in General Electric following its quarterly results and an upgrade of Home Depot helped pull the Dow industrials to higher ground Friday while investors pondered a mixed bag of economic news.
All tech sectors traded higher while broader market gains were most pronounced in the retail, financial and biotech groups. Only oil service and airline issues headed lower.
The Dow Jones Industrial Average (CBOT^DJINews) ascended 83 points, or 0.9 percent, to 9,119. All but one of the Dow's 30 components traded higher, with Intel, GE, Home Depot and AT&T leading the charge.
The Nasdaq Composite (NasdaqSC^IXICNews) climbed 17 points, or 1 percent, to 1,733 and the Nasdaq 100 Index (NasdaqSC^NDXNews) put on 13 points, or 1.1 percent, to 1,282.
The Standard & Poor's 500 Index (CBOE^SPXNews) sprinted 0.9 percent while the Russell 2000 Index (CBOE^RUTNews) of small-capitalization stocks gained 0.9 percent.
Volume came in at 367 million on the NYSE and at 499 million on the Nasdaq Stock Market. Winners handily surpassed losers by 18 to 9 on the NYSE and by 18 to 10 on the Nasdaq.
Core PPI dips
The June producer price index climbed 0.5 percent overall but fell 0.1 percent at the core, which excludes the often-volatile food and energy components. Economists had expected a 0.3 percent rise in the overall PPI and a 0.1 percent increase in the core rate.
"The core index was weaker than consensus expectations. This confirms that businesses continue to lack pricing power and suggests that the Federal Reserve's skewed assessment of risk with respect to disinflation will remain in place for some time," maintained Jade Zelnik, chief economist at RBS Greenwich Capital.
Merrill Lynch echoed the core PPI's performance indicates that deflation concerns remain.
The U.S. trade deficit, meanwhile, widened to $41.8 billion in May, coming in a shade higher compared with expectations for a $41.2 billion gap.
GE rises after results; Home Depot lifted by upgrade
Dow component general Electric (NYSEGENews) checked in with a second-quarter profit that was in line vs. analysts' expectations, sending shares 2.2 percent higher.
In the meantime, GE narrowed its 2003 profit outlook to $1.55 to $1.70 a share, which compares to Wall Street's projection for full-year earnings of $1.60 a share. The industrial giant also told investors that the year was "turning out as planned."
Home Depot (NYSEHDNews) climbed 3 percent and was the Dow's best performer following a Banc of America Securities upgrade to a "buy" rating from a "neutral" on belief the Dow component has made "real strides" and that sales are bound to show meaningful improvements as a result.
In other earnings news, Juniper Networks (NasdaqNMJNPRNews) announced late Thursday a second-quarter profit that surpassed wall Street's expectations. Going forward, the networker said it expected to post a third-quarter profit above analysts' current estimates. Shares slipped 0.2 percent in recent trades.
Treasurys get some mixed action
Government bonds traded mixed after the release of the morning's batch of data, with the 10-year Treasury note off 1/8 to yield (CBOE^TNXNews) 3.67 percent while the 30-year government gained 2/32 to yield (CBOE^TYXNews) 4.695 percent.
In the currency sector, the U.S. dollar was mostly higher against its major trading partners, climbing 0.1 percent to 117.76 yen while the euro declined 0.8 percent to $1.1287.