Portfolio Crafter
01-14-2007, 04:15 PM
End of Day Market Summary Friday, January 12, 2007
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Stocks closed higher with the Dow Jones Industrial Average at a record and the Nasdaq Composite at a 6-year high, as energy shares rose and tech shares remained favored by investors, even after a profit-warning from Advanced Micro Devices Inc. Stronger-than-expected December retail sales also helped fuel gains.
Today, the Dow Jones Industrial Average closed up 41.10 or 0.33% to 12,556.08, closing at an all-time high for the second session in a row. The S&P 500 closed up 6.91 or 0.49% to 1,430.73, closing at its highest point since Nov. 2000. The Nasdaq closed up 17.97 or 0.72% to 2,502.82, closing at its highest point since Feb. 2001. The major indices all posted gains for the week, with the tech-heavy Nasdaq the top performer with a 2.8% gain.
Market breadth was positive. On the New York Stock Exchange, winners topped losers 21 to 10 on volume of almost 1.53 billion shares. On the Nasdaq, advancers beat decliners 18 to 11 on volume of nearly 2.16 billion shares.
Stocks made gains on a report showing surprisingly strong retail sales in December. This caused the market to believe that the fourth quarter will prove to have been healthier than had been thought. This is encouraging for stock investors and had been giving bond investors some indigestion. December retail sales rose 0.9% against the forecast of 0.7%.
The report confirmed the strength in other recent readings, serving to reassure investors that while the economy is slowing it may not be headed for recession, as had been feared in recent months. Yet, signs of a strong economy would seem to diminish the likelihood of the Fed cutting interest rates anytime soon, something investors had been hoping for. Growth that is too strong could increase the risk that the Fed will raise rates again before it can cut.
Shares of AMD closed down $1.92 or 9.5% to $18.26, after warning that fourth-quarter revenue would fall well short of analysts' estimates, citing lower average prices for its chips. It said that it now expects revenue in the holiday-sales-fueled fourth quarter to rise about 3% from the third quarter, implying revenue of about $1.37 billion. This is against the analyst expected revenue of $1.84 billion.
Shares of SAP shares fell in Germany after the company said software-license sales, a key indicator of future growth, rose 7% to $1.26 billion euros ($1.6 billion) in the fourth quarter, missing consensus estimates by about 100 million euros.
Stock of Apple closed down $1.18 to $94.62, on a news report that federal authorities are probing a falsely dated stock option grant awarded to CEO Steve Jobs. The false dating increased the value of the grant of 7.5 million options to Jobs, and Apple said it had to take a $20 million charge as a result. Apple shares had rallied more than 12% this week after the company unveiled its new iPhone, a cell phone that allows users to play music and surf the web.
Shares of Sirius Satellite Radio Inc. rallied over 5%, amid rumors of a possible merger with XM Satellite Radio. This appears to be a shortsighted muse, as the Federal Communications Commission won't likely allow a merger between the satellite radio media companies. However, the deal makes sense for investors and would save an estimated $7 billion in costs between the two aspirants for satellite radio domination.
U.S. light crude oil for February delivery gained $1.11 to settle at $52.99 a barrel on the New York Mercantile Exchange. Oil prices have been sliding in response to warm Northeast weather and decreased worries about a supply shortage.
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by Portfolio Crafter (http://www.portfoliocrafter.com?a_aid=fiasco)
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Stocks closed higher with the Dow Jones Industrial Average at a record and the Nasdaq Composite at a 6-year high, as energy shares rose and tech shares remained favored by investors, even after a profit-warning from Advanced Micro Devices Inc. Stronger-than-expected December retail sales also helped fuel gains.
Today, the Dow Jones Industrial Average closed up 41.10 or 0.33% to 12,556.08, closing at an all-time high for the second session in a row. The S&P 500 closed up 6.91 or 0.49% to 1,430.73, closing at its highest point since Nov. 2000. The Nasdaq closed up 17.97 or 0.72% to 2,502.82, closing at its highest point since Feb. 2001. The major indices all posted gains for the week, with the tech-heavy Nasdaq the top performer with a 2.8% gain.
Market breadth was positive. On the New York Stock Exchange, winners topped losers 21 to 10 on volume of almost 1.53 billion shares. On the Nasdaq, advancers beat decliners 18 to 11 on volume of nearly 2.16 billion shares.
Stocks made gains on a report showing surprisingly strong retail sales in December. This caused the market to believe that the fourth quarter will prove to have been healthier than had been thought. This is encouraging for stock investors and had been giving bond investors some indigestion. December retail sales rose 0.9% against the forecast of 0.7%.
The report confirmed the strength in other recent readings, serving to reassure investors that while the economy is slowing it may not be headed for recession, as had been feared in recent months. Yet, signs of a strong economy would seem to diminish the likelihood of the Fed cutting interest rates anytime soon, something investors had been hoping for. Growth that is too strong could increase the risk that the Fed will raise rates again before it can cut.
Shares of AMD closed down $1.92 or 9.5% to $18.26, after warning that fourth-quarter revenue would fall well short of analysts' estimates, citing lower average prices for its chips. It said that it now expects revenue in the holiday-sales-fueled fourth quarter to rise about 3% from the third quarter, implying revenue of about $1.37 billion. This is against the analyst expected revenue of $1.84 billion.
Shares of SAP shares fell in Germany after the company said software-license sales, a key indicator of future growth, rose 7% to $1.26 billion euros ($1.6 billion) in the fourth quarter, missing consensus estimates by about 100 million euros.
Stock of Apple closed down $1.18 to $94.62, on a news report that federal authorities are probing a falsely dated stock option grant awarded to CEO Steve Jobs. The false dating increased the value of the grant of 7.5 million options to Jobs, and Apple said it had to take a $20 million charge as a result. Apple shares had rallied more than 12% this week after the company unveiled its new iPhone, a cell phone that allows users to play music and surf the web.
Shares of Sirius Satellite Radio Inc. rallied over 5%, amid rumors of a possible merger with XM Satellite Radio. This appears to be a shortsighted muse, as the Federal Communications Commission won't likely allow a merger between the satellite radio media companies. However, the deal makes sense for investors and would save an estimated $7 billion in costs between the two aspirants for satellite radio domination.
U.S. light crude oil for February delivery gained $1.11 to settle at $52.99 a barrel on the New York Mercantile Exchange. Oil prices have been sliding in response to warm Northeast weather and decreased worries about a supply shortage.
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