Portfolio Crafter
11-11-2006, 11:51 PM
End of Day Market Summary Friday 11/10/2006
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Stocks closed higher on the day and the week after strong financial results from American International Group and lower crude oil prices offset disappointment with Walt Disney's latest earnings report. Tech stocks rose while the broader market struggled at the end of an upbeat week on Wall Street. Investors also showed caution amid news of a new direction for Congress.
Today, the Dow Jones industrial average closed up 5.13 or 0.04% to 12,108.43, the broader S&P 500 index closed up 2.57 or 0.19% to 1,380.90, and the tech-fueled Nasdaq composite closed up 13.71 or 0.58% to 2,389.72. For the week the Dow rose 1%, the S&P 500 1.2%, and the Nasdaq Composite gained 2.5%.
Market breadth was positive. On the New York Stock Exchange, winners beat losers two to one on volume of 1.422 billion shares. On the Nasdaq, advancers topped decliners 17 to 11 on volume of 1.724 billion shares.
Investors see that the economy is continuing to grow at a respectable rate, corporations are delivering strong and better-than-expected profits, merger and acquisition are common place - all these are positives. The negative is that the market is trying to understand the implications of the Democratic win for legislation affecting the capital sector, therefore corporate profits and valuation. The overall market is essentially drifting at the moment as everyone adjusts to that new political environment, with investors taking a wait-and-see" attitude.
While the market has struggled a bit recently and may continue to do so next week, the trend should remain upward through the end of the year. Strong earnings and lower oil prices, among other factors, will help support that trend.
Shares of Boeing rose 0.6% to $85.62, after the Air Force selected it to provide the U.S. military's next generation of combat search and rescue helicopters -- an order the company said is worth up to $10 billion. Under the contract, Boeing will deliver 145 of its HH-47 helicopters, including four test aircraft, through 2019, with the first aircraft slated for deployment by 2012. The new aircraft will gradually replace the military's existing fleet of HH-60G Hawk Combat Search and Rescue helicopters.
Stock of American International Group Inc. closed up $1.59 or 2.3% to $69.63, after reporting higher quarterly earnings and revenue that topped forecasts. Third-quarter net income came in at $4.22 billion, more than double its profit of $1.75 billion for same period last year. Its general-insurance division, which sells property and casualty insurance and reinsurance, reported a third-quarter operating profit of $2.6 billion, compared with an operating loss of $208 million a year ago.
Stock of Walt Disney closed down $1.18 or 3.5% to $32.40, despite reporting quarterly earnings and revenue that topped forecasts. Its fourth-quarter net income more than doubled, powered by strong box-office results and growth in its amusement parks and media networks. However, plans for increased capital spending in fiscal 2007 put a chill on investors. Its net income leaped to $782 million, on sales of $8.78 billion. Last year the figures were $379 million, on sales of $7.73 billion.
U.S. light crude oil for December delivery sank $1.57 to settle at $59.59 a barrel on the New York Mercantile Exchange. The IEA trimmed its 2006 global growth forecast, citing lower third-quarter demand for oil from China and industrialized countries in the Pacific Rim.
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by Portfolio Crafter (http://www.portfoliocrafter.com?a_aid=fiasco)
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Stocks closed higher on the day and the week after strong financial results from American International Group and lower crude oil prices offset disappointment with Walt Disney's latest earnings report. Tech stocks rose while the broader market struggled at the end of an upbeat week on Wall Street. Investors also showed caution amid news of a new direction for Congress.
Today, the Dow Jones industrial average closed up 5.13 or 0.04% to 12,108.43, the broader S&P 500 index closed up 2.57 or 0.19% to 1,380.90, and the tech-fueled Nasdaq composite closed up 13.71 or 0.58% to 2,389.72. For the week the Dow rose 1%, the S&P 500 1.2%, and the Nasdaq Composite gained 2.5%.
Market breadth was positive. On the New York Stock Exchange, winners beat losers two to one on volume of 1.422 billion shares. On the Nasdaq, advancers topped decliners 17 to 11 on volume of 1.724 billion shares.
Investors see that the economy is continuing to grow at a respectable rate, corporations are delivering strong and better-than-expected profits, merger and acquisition are common place - all these are positives. The negative is that the market is trying to understand the implications of the Democratic win for legislation affecting the capital sector, therefore corporate profits and valuation. The overall market is essentially drifting at the moment as everyone adjusts to that new political environment, with investors taking a wait-and-see" attitude.
While the market has struggled a bit recently and may continue to do so next week, the trend should remain upward through the end of the year. Strong earnings and lower oil prices, among other factors, will help support that trend.
Shares of Boeing rose 0.6% to $85.62, after the Air Force selected it to provide the U.S. military's next generation of combat search and rescue helicopters -- an order the company said is worth up to $10 billion. Under the contract, Boeing will deliver 145 of its HH-47 helicopters, including four test aircraft, through 2019, with the first aircraft slated for deployment by 2012. The new aircraft will gradually replace the military's existing fleet of HH-60G Hawk Combat Search and Rescue helicopters.
Stock of American International Group Inc. closed up $1.59 or 2.3% to $69.63, after reporting higher quarterly earnings and revenue that topped forecasts. Third-quarter net income came in at $4.22 billion, more than double its profit of $1.75 billion for same period last year. Its general-insurance division, which sells property and casualty insurance and reinsurance, reported a third-quarter operating profit of $2.6 billion, compared with an operating loss of $208 million a year ago.
Stock of Walt Disney closed down $1.18 or 3.5% to $32.40, despite reporting quarterly earnings and revenue that topped forecasts. Its fourth-quarter net income more than doubled, powered by strong box-office results and growth in its amusement parks and media networks. However, plans for increased capital spending in fiscal 2007 put a chill on investors. Its net income leaped to $782 million, on sales of $8.78 billion. Last year the figures were $379 million, on sales of $7.73 billion.
U.S. light crude oil for December delivery sank $1.57 to settle at $59.59 a barrel on the New York Mercantile Exchange. The IEA trimmed its 2006 global growth forecast, citing lower third-quarter demand for oil from China and industrialized countries in the Pacific Rim.
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