Portfolio Crafter
10-13-2007, 02:25 AM
End of Day Market Summary - Friday, October 12, 2007
by Portfolio Crafter (http://www.wealthpire.com/cmd.php?Clk=1838416)
Stocks closed the week with modest weekly gains across the major indexes, with investors heartened by positive economic data that included healthy retail sales in September and in-line results from industrial bellwether General Electric Co. However, investors do realize that there are inflationary pressures in the economy and wondered how strong economic news will impact interest-rate policy. Technology shares jumped on a potential merger in the software industry.
The Dow Jones industrial average closed up 77.96 or 0.56% to 14,093.08, the broader S&P 500 closed up 7.39 or 0.48% to 1,561.80, and the tech-fueled Nasdaq composite closed up 33.48 or 1.21% to 2,805.68. For the week, the Dow closed up 0.2%, the S&P closed up 0.5%, and the Nasdaq closed up 0.09%. Market breadth was positive. On the New York Stock Exchange, winners topped losers 5 to 3 on volume of 1.0 billion shares. On the Nasdaq, advancers beat decliners 9 to 5 as 2.0 billion shares changed hands.
Oracle's bid for BEA, McDonald's improved earnings forecast and GE's strong quarterly results highlighted the days positive corporate news. Investors also embraced a strong read on retail sales and a mild reading on inflation. Although these reports may have also dampened hopes that the Federal Reserve will cut interest rates at its next policy meeting, as was evident by rising Treasury bond yields. However, concerns that the economy might be at risk of perking up too much were tempered by weaker-than-expected reports on business inventories and consumer sentiment. The reports seemed to further hopes that the economy is in the sweet spot between growth that is strong, but not inflationary. If that proves to be true, that would put the economy in a place not so different from where it was before the housing market slump and credit crisis raised fears of recession.
In economic news, retail sales jumped 0.6% in September, double what they rose in the previous month and above forecasts. This is against the expected rise of 0.3%. The Producer Price Index rose 1.1% after falling 1.4% in the previous month. The core PPI rose 0.1%, short of forecasts. Inventories rose 0.1% in August after rising 0.5% in July.
Shares of Oracle closed down $0.02 or 0.09% to $22.44, after it made a $6.7 billion bid for software maker BEA Systems. The all-cash offer would represent a 25% premium over BEA's closing price Thursday. However, BEA said that it had rejected the offer, which undervalues the company, a move that could set up a bidding war between Oracle and rival SAP. Shares of BEA closed up $5.20 or 38.18% to $18.82.
Stock of General Electric closed down $0.57 or 1.37% to $41.03, despite reporting higher quarterly earnings that met estimates. However, investors took a "sell the news" approach and sent the shares South.
Shares of McDonald's closed up $0.77 or 1.37% to $57.02, after stating that third-quarter earnings will top forecasts. It also reported a 5.9% rise in September sales. U.S. reported a sales growth of 3.5% for Sep, Europe reported 5.7%, Asia/Pacific, Middle East and Africa reported 12%. The company said total system wide sales rose 11.5% for the month and 11.8% for the quarter.
U.S. light crude oil for November closed at an all-time high of $83.69 a barrel, according to early tallies. Oil briefly hit a record trading high of $84.05 a barrel during the session before pulling back.
Join PortfolioCrafter.com (http://www.wealthpire.com/cmd.php?Clk=1838416)
Join FirstHourTrading.com (http://www.wealthpire.com/cmd.php?Clk=1841176)
by Portfolio Crafter (http://www.wealthpire.com/cmd.php?Clk=1838416)
Stocks closed the week with modest weekly gains across the major indexes, with investors heartened by positive economic data that included healthy retail sales in September and in-line results from industrial bellwether General Electric Co. However, investors do realize that there are inflationary pressures in the economy and wondered how strong economic news will impact interest-rate policy. Technology shares jumped on a potential merger in the software industry.
The Dow Jones industrial average closed up 77.96 or 0.56% to 14,093.08, the broader S&P 500 closed up 7.39 or 0.48% to 1,561.80, and the tech-fueled Nasdaq composite closed up 33.48 or 1.21% to 2,805.68. For the week, the Dow closed up 0.2%, the S&P closed up 0.5%, and the Nasdaq closed up 0.09%. Market breadth was positive. On the New York Stock Exchange, winners topped losers 5 to 3 on volume of 1.0 billion shares. On the Nasdaq, advancers beat decliners 9 to 5 as 2.0 billion shares changed hands.
Oracle's bid for BEA, McDonald's improved earnings forecast and GE's strong quarterly results highlighted the days positive corporate news. Investors also embraced a strong read on retail sales and a mild reading on inflation. Although these reports may have also dampened hopes that the Federal Reserve will cut interest rates at its next policy meeting, as was evident by rising Treasury bond yields. However, concerns that the economy might be at risk of perking up too much were tempered by weaker-than-expected reports on business inventories and consumer sentiment. The reports seemed to further hopes that the economy is in the sweet spot between growth that is strong, but not inflationary. If that proves to be true, that would put the economy in a place not so different from where it was before the housing market slump and credit crisis raised fears of recession.
In economic news, retail sales jumped 0.6% in September, double what they rose in the previous month and above forecasts. This is against the expected rise of 0.3%. The Producer Price Index rose 1.1% after falling 1.4% in the previous month. The core PPI rose 0.1%, short of forecasts. Inventories rose 0.1% in August after rising 0.5% in July.
Shares of Oracle closed down $0.02 or 0.09% to $22.44, after it made a $6.7 billion bid for software maker BEA Systems. The all-cash offer would represent a 25% premium over BEA's closing price Thursday. However, BEA said that it had rejected the offer, which undervalues the company, a move that could set up a bidding war between Oracle and rival SAP. Shares of BEA closed up $5.20 or 38.18% to $18.82.
Stock of General Electric closed down $0.57 or 1.37% to $41.03, despite reporting higher quarterly earnings that met estimates. However, investors took a "sell the news" approach and sent the shares South.
Shares of McDonald's closed up $0.77 or 1.37% to $57.02, after stating that third-quarter earnings will top forecasts. It also reported a 5.9% rise in September sales. U.S. reported a sales growth of 3.5% for Sep, Europe reported 5.7%, Asia/Pacific, Middle East and Africa reported 12%. The company said total system wide sales rose 11.5% for the month and 11.8% for the quarter.
U.S. light crude oil for November closed at an all-time high of $83.69 a barrel, according to early tallies. Oil briefly hit a record trading high of $84.05 a barrel during the session before pulling back.
Join PortfolioCrafter.com (http://www.wealthpire.com/cmd.php?Clk=1838416)
Join FirstHourTrading.com (http://www.wealthpire.com/cmd.php?Clk=1841176)