Portfolio Crafter
12-15-2006, 06:13 PM
End of Day Market Summary Friday 12/15/2006
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Stocks closed higher for the day and the week as the Dow Jones Industrial Average set another record high close, after hopes of a Goldilocks economy and an interest rate cut in 2007 were revived by an unchanged reading on consumer inflation. The mild read on consumer prices have furthered bets that inflation is easing.
Today, the Dow closed up 28.76 or 0.23% to 12,445.52, ending at a record high for the 20th time since October. The broader S&P 500 closed up 1.6 or 0.11% to 1,427.09, and the tech-fueled Nasdaq closed up 3.35 or 0.14% to 2,457.2. For the week, the Dow Jones industrials gained 1.1%, the S&P 500 advanced 1.2% and the Nasdaq Composite rose 0.8%.
Market breadth was narrowly negative. On the New York Stock Exchange, losers edged winners 17 to 15 on volume of 2.105 billion shares. On the Nasdaq, decliners barely edged out advancers 15 to 14 on volume of 2.375 billion shares.
Stocks have rallied this week thanks to a spate of economic news that has supported hopes that growth is slowing at a moderate pace, and that inflationary pressures are waning. Friday's Consumer Price Index (CPI) supported these hopes. Unless the economy starts to show dramatically slower growth, even slower than in the third quarter, there's good reason to remain optimistic in the longer term.
Both overall consumer prices and core prices were unchanged in November, while economists thought both would rise 0.2%. This supports the Fed comment that the slowing economy should take the edge off pricing pressure. With core CPI "behaving well" for two months in a row, the inflation picture may actually be a little better than had been thought. Additionally, industrial production showed a surprise rise of 0.2% in November, versus economists' bets for an unchanged reading. Capacity utilization held steady, missing forecasts for a slight rise.
Shares of Apple Computer Inc. closed down 0.9% at $87.77 after saying it was unable to file its Form 10-K by the required filing date of December 14 and that the company will need to restate its historical financial statements to include charges for past stock option grants.
Stock of Adobe Systems closed up $1.99 or 5% to $42.80, after the software maker reported higher quarterly earnings and revenue. Its quarterly profit rose 16% after its acquisition of Macromedia helped boost sales of its computer programs used for design and document sharing. Its fourth-quarter net income rose to $181.9 million, from $156.3 million a year earlier. Revenue rose to $682.2 million, from $510.4 million in the year-earlier quarter. It said it is targeting revenue growth of about 15% for 2007 and an operating margin of 25 to 27% for the year.
Shares of Dell closed down $0.37 to $26.50, after declaring that it will delay filing its third-quarter financial report because of ongoing investigations into its finances. The SEC, the U.S. attorney for the Southern District of New York and the company's audit committee have raised questions about Dell's financial reporting. The company also has not yet filed second-quarter earnings with the SEC.
Stock of Ford Motor Co. closed down 0.4% to $7.08, after news of its first management reshuffling under new CEO Alan Mulally. The company will expand the role of its head of product development in the Americas to include the rest of the world. Derrick Kuzak will be in charge of global product development as it seeks to integrate its international operations and streamline the design and creation of new car models.
U.S. light crude oil for January delivery gained 92 cents to $63.43 a barrel on the New York Mercantile Exchange.
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by Portfolio Crafter (http://www.portfoliocrafter.com?a_aid=fiasco)
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Stocks closed higher for the day and the week as the Dow Jones Industrial Average set another record high close, after hopes of a Goldilocks economy and an interest rate cut in 2007 were revived by an unchanged reading on consumer inflation. The mild read on consumer prices have furthered bets that inflation is easing.
Today, the Dow closed up 28.76 or 0.23% to 12,445.52, ending at a record high for the 20th time since October. The broader S&P 500 closed up 1.6 or 0.11% to 1,427.09, and the tech-fueled Nasdaq closed up 3.35 or 0.14% to 2,457.2. For the week, the Dow Jones industrials gained 1.1%, the S&P 500 advanced 1.2% and the Nasdaq Composite rose 0.8%.
Market breadth was narrowly negative. On the New York Stock Exchange, losers edged winners 17 to 15 on volume of 2.105 billion shares. On the Nasdaq, decliners barely edged out advancers 15 to 14 on volume of 2.375 billion shares.
Stocks have rallied this week thanks to a spate of economic news that has supported hopes that growth is slowing at a moderate pace, and that inflationary pressures are waning. Friday's Consumer Price Index (CPI) supported these hopes. Unless the economy starts to show dramatically slower growth, even slower than in the third quarter, there's good reason to remain optimistic in the longer term.
Both overall consumer prices and core prices were unchanged in November, while economists thought both would rise 0.2%. This supports the Fed comment that the slowing economy should take the edge off pricing pressure. With core CPI "behaving well" for two months in a row, the inflation picture may actually be a little better than had been thought. Additionally, industrial production showed a surprise rise of 0.2% in November, versus economists' bets for an unchanged reading. Capacity utilization held steady, missing forecasts for a slight rise.
Shares of Apple Computer Inc. closed down 0.9% at $87.77 after saying it was unable to file its Form 10-K by the required filing date of December 14 and that the company will need to restate its historical financial statements to include charges for past stock option grants.
Stock of Adobe Systems closed up $1.99 or 5% to $42.80, after the software maker reported higher quarterly earnings and revenue. Its quarterly profit rose 16% after its acquisition of Macromedia helped boost sales of its computer programs used for design and document sharing. Its fourth-quarter net income rose to $181.9 million, from $156.3 million a year earlier. Revenue rose to $682.2 million, from $510.4 million in the year-earlier quarter. It said it is targeting revenue growth of about 15% for 2007 and an operating margin of 25 to 27% for the year.
Shares of Dell closed down $0.37 to $26.50, after declaring that it will delay filing its third-quarter financial report because of ongoing investigations into its finances. The SEC, the U.S. attorney for the Southern District of New York and the company's audit committee have raised questions about Dell's financial reporting. The company also has not yet filed second-quarter earnings with the SEC.
Stock of Ford Motor Co. closed down 0.4% to $7.08, after news of its first management reshuffling under new CEO Alan Mulally. The company will expand the role of its head of product development in the Americas to include the rest of the world. Derrick Kuzak will be in charge of global product development as it seeks to integrate its international operations and streamline the design and creation of new car models.
U.S. light crude oil for January delivery gained 92 cents to $63.43 a barrel on the New York Mercantile Exchange.
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