Portfolio Crafter
01-24-2007, 10:42 PM
End of Day Market Summary Wednesday, January 24, 2007
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Stocks rallied and lifted the Dow Jones Industrial Average to a new record and its best day of the year as the technology sector charged higher on the back of positive news from Yahoo Inc. and Sun Microsystems Inc. These earnings tempered worries about technology sector earnings.
Today, the Dow Jones Industrial average closed up 87.97 or 0.70% to 12,621.77, closing at a record high, taking out the previous record from a week ago. The broader S&P 500 closed up 12.14 or 0.85% to 1,440.13, and the Nasdaq closed up 34.87 or 1.43% to 2,466.28.
Market breadth was positive. On the New York Stock Exchange, winners topped losers 23 to 10 on volume of 1.58 billion shares. On the Nasdaq, advancers beat decliners 20 to 9 on volume of 2.24 billion shares.
Worries about slower earnings growth and a run up in oil prices were tempered by a slew of improved quarterly results. The President's State of the Union address also helped recharge the rally, he said. The underlying tone for the market continues to be positive, so even when there is weakness, it seems to be more technical than fundamental in nature.
Additionally, the market also needed to consolidate its strong gains of the past six months and determine whether the outlook for earnings justify further gains in stock prices. It needed to take a breather and assess earnings guidance and economic conditions. While worries about a slowdown of the U.S. economy have receded amid a raft of stronger than expected data in recent weeks, investors will still pay attention to key reports on housing and orders for durable goods over the next two days.
Shares of Yahoo closed up $1.98 to $28.94, after reporting fourth-quarter sales and earnings that rose from a year ago and topped estimates. Yahoo also announced an early launch for "Project Panama," its enhanced search engine that is expected to boost ad revenue. While the forecast first-quarter and full-year 2007 profit is short of forecasts, investors focused on the positive news and sent shares higher.
Stock of Sun Microsystems closed up $0.49 or 8.6% to $6.15, owing to higher sales of its computer servers. Additionally, Kohlberg Kravis Roberts said it will invest $700 million into the group. The company earned a net income of $126 million, compared to a loss of $223 million in the year-ago period. Revenue climbed 7%, to $3.57 billion from $3.34 billion.
Shares of AT&T Inc. rose over 4% after the company's wireless unit Cingular reported better-than-expected earnings. Its fourth-quarter profit more than tripled as the company added an industry record 2.4 million net subscribers. Its net income jumped to $782 million from $204 million a year earlier. Revenue rose 10.2% to $9.8 billion from $8.85 billion.
Shares of McDonald's Corp closed down $0.69 to $44.16, after reporting fourth-quarter results that surged from a year earlier and met analysts' EPS forecast. Income was helped by brisk sales of breakfast items and its new Snack Wrap in the U.S., along with steady demand across all geographic regions.
U.S. light crude oil for March delivery rose 33 cents to settle at $55.37 a barrel on the New York Mercantile Exchange. The price rose despite the increase of distillates in the weekly oil inventories report released today.
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by Portfolio Crafter (http://www.portfoliocrafter.com?a_aid=fiasco)
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Stocks rallied and lifted the Dow Jones Industrial Average to a new record and its best day of the year as the technology sector charged higher on the back of positive news from Yahoo Inc. and Sun Microsystems Inc. These earnings tempered worries about technology sector earnings.
Today, the Dow Jones Industrial average closed up 87.97 or 0.70% to 12,621.77, closing at a record high, taking out the previous record from a week ago. The broader S&P 500 closed up 12.14 or 0.85% to 1,440.13, and the Nasdaq closed up 34.87 or 1.43% to 2,466.28.
Market breadth was positive. On the New York Stock Exchange, winners topped losers 23 to 10 on volume of 1.58 billion shares. On the Nasdaq, advancers beat decliners 20 to 9 on volume of 2.24 billion shares.
Worries about slower earnings growth and a run up in oil prices were tempered by a slew of improved quarterly results. The President's State of the Union address also helped recharge the rally, he said. The underlying tone for the market continues to be positive, so even when there is weakness, it seems to be more technical than fundamental in nature.
Additionally, the market also needed to consolidate its strong gains of the past six months and determine whether the outlook for earnings justify further gains in stock prices. It needed to take a breather and assess earnings guidance and economic conditions. While worries about a slowdown of the U.S. economy have receded amid a raft of stronger than expected data in recent weeks, investors will still pay attention to key reports on housing and orders for durable goods over the next two days.
Shares of Yahoo closed up $1.98 to $28.94, after reporting fourth-quarter sales and earnings that rose from a year ago and topped estimates. Yahoo also announced an early launch for "Project Panama," its enhanced search engine that is expected to boost ad revenue. While the forecast first-quarter and full-year 2007 profit is short of forecasts, investors focused on the positive news and sent shares higher.
Stock of Sun Microsystems closed up $0.49 or 8.6% to $6.15, owing to higher sales of its computer servers. Additionally, Kohlberg Kravis Roberts said it will invest $700 million into the group. The company earned a net income of $126 million, compared to a loss of $223 million in the year-ago period. Revenue climbed 7%, to $3.57 billion from $3.34 billion.
Shares of AT&T Inc. rose over 4% after the company's wireless unit Cingular reported better-than-expected earnings. Its fourth-quarter profit more than tripled as the company added an industry record 2.4 million net subscribers. Its net income jumped to $782 million from $204 million a year earlier. Revenue rose 10.2% to $9.8 billion from $8.85 billion.
Shares of McDonald's Corp closed down $0.69 to $44.16, after reporting fourth-quarter results that surged from a year earlier and met analysts' EPS forecast. Income was helped by brisk sales of breakfast items and its new Snack Wrap in the U.S., along with steady demand across all geographic regions.
U.S. light crude oil for March delivery rose 33 cents to settle at $55.37 a barrel on the New York Mercantile Exchange. The price rose despite the increase of distillates in the weekly oil inventories report released today.
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