Portfolio Crafter
10-26-2006, 01:15 AM
End of Day Market Summary Wednesday, 10/25/2006
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Stocks closed higher as investors found relief in the Federal Reserve's decision to leave interest rates unchanged and its assessment that the economy continues to expand at a moderate pace. Optimism over the quarterly reports from Altria and Amazon offset disappointment with numbers from Boeing and General Motors, and helped send the Dow Jones Industrials Average to yet another all-time high.
Today, the Dow Jones industrial average closed up 6.80 or 0.06% to 12,134.68, the broader S&P 500 index closed up 4.84 or 0.35% to 1,382.22, and the tech-fueled Nasdaq composite index closed up 11.75 or 0.5% to 2,356.59
Market breadth was positive. On the New York Stock Exchange, winners beat losers 22 to 11 as 1.82 billion shares changed hands. On the Nasdaq, advancers beat decliners 16 to 13 on volume of 2.2 billion shares.
The Federal Reserve decided to keep interest rates steady but left the door open for further increases if inflation does not behave. This decision seemed to please investors. The wording of the announcement from the FOMC was little changed from the September statement. The Fed also discussed the threat of sustained upward pressure on inflation, but tempered it by saying that such pressures are likely to ease over time. The committee added a forward-looking phrase and took out language suggesting that high energy and commodity prices had the potential to add to inflationary pressures. Economist think that the markets will finish the year higher from here, but we certainly aren't going to see a new Dow high everyday.
On the data front, sales of U.S. existing homes fell for the sixth month in a row in September, while median sales prices fell for the second straight month. Inventories of unsold homes fell for the second straight month, a sign that the market is correcting.
Shares of General Motors closed down $1.48 or 4.4% to $34.71, after reporting better-than-expected results from its ongoing turnaround plan. Third-quarter operating profit was nearly double of Wall Street's expectations. The company earned $529 million, compared with a loss of $1.1 billion last year. Revenue from auto sales also topped forecasts, rising to $39.5 billion from $38.4 billion a year earlier. The company said it is on track to reach $6 billion in annual cost savings from moves this year.
Stock of Boeing closed down $2.73 or 3.3% to $80.86, as its quarterly profit that fell from a year earlier. The aerospace giant said that third-quarter sales from its commercial-airplane division climbed 45%, but overall revenue was lower than expected. The company also forecast slower growth in its defense business
Shares of Colgate-Palmolive Co. finished up 2.8% at $62.17, despite reporting lower third-quarter income because of restructuring charges. Its sales and volume gains, as well as increased spending on marketing helped it to surpass Wall Street's forecast. Its profit fell to $344.1 million, from $347.2 million a year ago while the EPS remained constant. Sales for the quarter rose 8% to $3.14 billion from $2.91 billion, against the expected $3.08 billion.
Shares of Amazon.com closed up $4.05 or 12% to $37.68, on reporting quarterly earnings and revenue that rose from a year earlier and beat estimates. This prompted more than five brokerages to lift price targets on the stock.
Shares of Altria Group Inc. rose 2.9% following a raised earnings forecast and a more specific timetable for an eventual spinoff of its stake in Kraft Foods Inc. The company reported a small drop in third-quarter profit, as its market share in the domestic tobacco business increased slightly but international volume slumped. Altria earned nearly $2.88 billion, off from more than $2.88 billion in the year-ago period. Its revenue rose 3.7% to $25.9 billion.
U.S. light crude oil for December delivery rose $2.05 to settle at $61.40 a barrel on the New York Mercantile Exchange, after the report on weekly crude oil supplies showed a surprise decline.
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Stocks closed higher as investors found relief in the Federal Reserve's decision to leave interest rates unchanged and its assessment that the economy continues to expand at a moderate pace. Optimism over the quarterly reports from Altria and Amazon offset disappointment with numbers from Boeing and General Motors, and helped send the Dow Jones Industrials Average to yet another all-time high.
Today, the Dow Jones industrial average closed up 6.80 or 0.06% to 12,134.68, the broader S&P 500 index closed up 4.84 or 0.35% to 1,382.22, and the tech-fueled Nasdaq composite index closed up 11.75 or 0.5% to 2,356.59
Market breadth was positive. On the New York Stock Exchange, winners beat losers 22 to 11 as 1.82 billion shares changed hands. On the Nasdaq, advancers beat decliners 16 to 13 on volume of 2.2 billion shares.
The Federal Reserve decided to keep interest rates steady but left the door open for further increases if inflation does not behave. This decision seemed to please investors. The wording of the announcement from the FOMC was little changed from the September statement. The Fed also discussed the threat of sustained upward pressure on inflation, but tempered it by saying that such pressures are likely to ease over time. The committee added a forward-looking phrase and took out language suggesting that high energy and commodity prices had the potential to add to inflationary pressures. Economist think that the markets will finish the year higher from here, but we certainly aren't going to see a new Dow high everyday.
On the data front, sales of U.S. existing homes fell for the sixth month in a row in September, while median sales prices fell for the second straight month. Inventories of unsold homes fell for the second straight month, a sign that the market is correcting.
Shares of General Motors closed down $1.48 or 4.4% to $34.71, after reporting better-than-expected results from its ongoing turnaround plan. Third-quarter operating profit was nearly double of Wall Street's expectations. The company earned $529 million, compared with a loss of $1.1 billion last year. Revenue from auto sales also topped forecasts, rising to $39.5 billion from $38.4 billion a year earlier. The company said it is on track to reach $6 billion in annual cost savings from moves this year.
Stock of Boeing closed down $2.73 or 3.3% to $80.86, as its quarterly profit that fell from a year earlier. The aerospace giant said that third-quarter sales from its commercial-airplane division climbed 45%, but overall revenue was lower than expected. The company also forecast slower growth in its defense business
Shares of Colgate-Palmolive Co. finished up 2.8% at $62.17, despite reporting lower third-quarter income because of restructuring charges. Its sales and volume gains, as well as increased spending on marketing helped it to surpass Wall Street's forecast. Its profit fell to $344.1 million, from $347.2 million a year ago while the EPS remained constant. Sales for the quarter rose 8% to $3.14 billion from $2.91 billion, against the expected $3.08 billion.
Shares of Amazon.com closed up $4.05 or 12% to $37.68, on reporting quarterly earnings and revenue that rose from a year earlier and beat estimates. This prompted more than five brokerages to lift price targets on the stock.
Shares of Altria Group Inc. rose 2.9% following a raised earnings forecast and a more specific timetable for an eventual spinoff of its stake in Kraft Foods Inc. The company reported a small drop in third-quarter profit, as its market share in the domestic tobacco business increased slightly but international volume slumped. Altria earned nearly $2.88 billion, off from more than $2.88 billion in the year-ago period. Its revenue rose 3.7% to $25.9 billion.
U.S. light crude oil for December delivery rose $2.05 to settle at $61.40 a barrel on the New York Mercantile Exchange, after the report on weekly crude oil supplies showed a surprise decline.
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