Portfolio Crafter
11-08-2006, 03:09 AM
End of Day Market Summary Tuesday 11/7/2006
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Stocks ended higher as investors awaited the outcome of mid-term congressional elections. Investors welcomed falling Treasury yields, lower oil prices, and Boeing Co. surged more than 5% after the aerospace giant won an important aircraft order.
Today, the Dow Jones industrial average closed up 51.22 or 0.42% to 12,156.77, the broader S&P 500 index closed up 3.06 or 0.22% to 1,382.84, and the tech-fueled Nasdaq composite index closed up 9.93 or 0.42% to 2,375.88.
Market breadth was positive. On the New York Stock Exchange, winners topped losers nine to seven on volume of 1.6 billion shares. On the Nasdaq, advancers topped decliners by eight to seven on volume of 2.13 billion shares.
Traditionally, market tends to get nervous the week before any big event and then rally once it's over. Money appears to be pouring in this week in anticipation of the elections today. The general impression is that the election results won't sway things. As a result, investors are focusing on the positives that have fed the recent rally: strong corporate earnings, a belief the economy is headed for a "soft landing" and a Federal Reserve that's on hold for now - and possibly cutting rates later next year.
While the Democrats are likely to take control of the House from the Republicans, it is not clear as to which party is likely to control the Senate. Should the Democrats take both chambers of Congress, that might upset traditionally Republican Wall Street in the short term. Alternately, should the Republicans keep both houses, that might initially spark a rally. However, in the long term, stocks are likely to continue rising.
Shares of Boeing closed up $4.37 or 5.4% to $84.85, after FedEx announced that it would buy 15 of the company's 777 Freighter aircraft and had cancelled its order for 10 Airbus aircraft due to delays in delivery. Stock of FedEx closed up $1.09 to $115.03
Shares of General Motors closed down 0.2% at $34.62. The auto maker said in a SEC filing that it's revised its third-quarter net loss to $91 million, down $24 million from what it previously reported, due to additional loan sales that had not been previously reported by its financial arm.
Stock of Altera closed up $0.88 to $19.32, after the chipmaker reported third-quarter earnings and revenue that rose from a year earlier and topped forecasts. The company also said fourth quarter sales would fall from the third quarter, but investors focused on the strong earnings.
Shares of RealNetworks closed up 9.8% to $11.91, after the digital entertainment provider reported a surge in third quarter profit based on strong demand for its games. Its quarterly profit nearly quadrupled, reaching $42.2 million, from $11.2 million last year. Sales grew 14% to $93.7 million, exceeding the $92.7 million average forecast by analysts.
Shares of Toll Brothers Inc. closed down $0.01 to $28.04, after the company warned that its revenue in the fiscal fourth quarter would fall more than expected and also said a recovery for the housing sector is not yet in sight. Beazer Homes USA Inc. climbed 0.3% to $42.07, despite reporting a 44% drop in fourth-quarter net income. Shares of WCI Communities Inc. closed down 6.5% to $16.26 after reporting a 73% plunge in third-quarter profit as revenue fell by nearly a third.
Shares of Nortel Networks closed down $0.26 or 11% to $2.13, after the company reported a narrower quarterly loss that was nonetheless short of analysts' estimates on higher sales. The telecom gear maker also issued a mixed fourth quarter outlook. Additionally, its board has approved a 1 for 10 reverse stock split to boost the nominal value of its shares.
U.S. light crude oil for December delivery fell $1.09 to settle at $58.93 a barrel on the New York Stock Exchange. The contract traded lower on expectations that domestic supply data for the latest week will show a buildup in crude inventories, but hints that more production cuts from the OPEC may be in the offing.
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by Portfolio Crafter (http://www.portfoliocrafter.com?a_aid=fiasco)
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Stocks ended higher as investors awaited the outcome of mid-term congressional elections. Investors welcomed falling Treasury yields, lower oil prices, and Boeing Co. surged more than 5% after the aerospace giant won an important aircraft order.
Today, the Dow Jones industrial average closed up 51.22 or 0.42% to 12,156.77, the broader S&P 500 index closed up 3.06 or 0.22% to 1,382.84, and the tech-fueled Nasdaq composite index closed up 9.93 or 0.42% to 2,375.88.
Market breadth was positive. On the New York Stock Exchange, winners topped losers nine to seven on volume of 1.6 billion shares. On the Nasdaq, advancers topped decliners by eight to seven on volume of 2.13 billion shares.
Traditionally, market tends to get nervous the week before any big event and then rally once it's over. Money appears to be pouring in this week in anticipation of the elections today. The general impression is that the election results won't sway things. As a result, investors are focusing on the positives that have fed the recent rally: strong corporate earnings, a belief the economy is headed for a "soft landing" and a Federal Reserve that's on hold for now - and possibly cutting rates later next year.
While the Democrats are likely to take control of the House from the Republicans, it is not clear as to which party is likely to control the Senate. Should the Democrats take both chambers of Congress, that might upset traditionally Republican Wall Street in the short term. Alternately, should the Republicans keep both houses, that might initially spark a rally. However, in the long term, stocks are likely to continue rising.
Shares of Boeing closed up $4.37 or 5.4% to $84.85, after FedEx announced that it would buy 15 of the company's 777 Freighter aircraft and had cancelled its order for 10 Airbus aircraft due to delays in delivery. Stock of FedEx closed up $1.09 to $115.03
Shares of General Motors closed down 0.2% at $34.62. The auto maker said in a SEC filing that it's revised its third-quarter net loss to $91 million, down $24 million from what it previously reported, due to additional loan sales that had not been previously reported by its financial arm.
Stock of Altera closed up $0.88 to $19.32, after the chipmaker reported third-quarter earnings and revenue that rose from a year earlier and topped forecasts. The company also said fourth quarter sales would fall from the third quarter, but investors focused on the strong earnings.
Shares of RealNetworks closed up 9.8% to $11.91, after the digital entertainment provider reported a surge in third quarter profit based on strong demand for its games. Its quarterly profit nearly quadrupled, reaching $42.2 million, from $11.2 million last year. Sales grew 14% to $93.7 million, exceeding the $92.7 million average forecast by analysts.
Shares of Toll Brothers Inc. closed down $0.01 to $28.04, after the company warned that its revenue in the fiscal fourth quarter would fall more than expected and also said a recovery for the housing sector is not yet in sight. Beazer Homes USA Inc. climbed 0.3% to $42.07, despite reporting a 44% drop in fourth-quarter net income. Shares of WCI Communities Inc. closed down 6.5% to $16.26 after reporting a 73% plunge in third-quarter profit as revenue fell by nearly a third.
Shares of Nortel Networks closed down $0.26 or 11% to $2.13, after the company reported a narrower quarterly loss that was nonetheless short of analysts' estimates on higher sales. The telecom gear maker also issued a mixed fourth quarter outlook. Additionally, its board has approved a 1 for 10 reverse stock split to boost the nominal value of its shares.
U.S. light crude oil for December delivery fell $1.09 to settle at $58.93 a barrel on the New York Stock Exchange. The contract traded lower on expectations that domestic supply data for the latest week will show a buildup in crude inventories, but hints that more production cuts from the OPEC may be in the offing.
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