Portfolio Crafter
01-31-2007, 08:28 PM
End of Day Market Summary Wednesday, January 31, 2007
by Portfolio Crafter (http://www.portfoliocrafter.com?a_aid=fiasco)
30-day risk-free trial (http://www.portfoliocrafter.com?a_aid=fiasco)
Stocks leaped with the Dow Jones Industrial Average posting its best day of the year after the Federal Reserve left interest rates unchanged and indicated that inflation remains under control, easing concerns the central bank might have to raise interest rates. Interpretation that inflation is moderating, while there's a pick up in the economy, should all be good for equities.
Today, the Dow Jones Industrial average closed up 98.38 or 0.79% to 12,621.69, the broader S&P 500 closed up 9.42 or 0.66% to 1,438.24, and the tech-heavy Nasdaq composite closed up 15.29 or 0.62% to 2,463.93.
Market breadth was positive. On the New York Stock Exchange, winners beat losers by 11 to 5 on volume of 1.721 billion shares. On the Nasdaq, advancers topped decliners by 16 to 13 on volume of 2.258 billion shares.
Policy-makers opted to hold a key short-term interest rate steady at 5.25%, for the fifth meeting in a row. In the closely watched statement, they acknowledged the recent signs of strength in the economy and said that growth should expand at a moderate pace over the next few quarters. On inflation, they said core pricing pressure had improved but that wage inflation remained an issue. The statement represents a substantial upgrade to the Fed's growth outlook, suggesting that despite the housing slow down, things are moving along. Additionally, the statement didn't add to bets that the Fed is likely to raise rates imminently, something investors have been concerned about recently.
The GDP grew at a 3.5% annual rate in the fourth quarter, up from a 2% gain in the third quarter and a faster pace than the 3% forecast by economists. This is a surprisingly strong showing given the ongoing slump in the housing market. A separate report, the Chicago PMI, showed a bigger than expected decline in manufacturing growth in the Midwest region in January.
Shares of Altria closed down $0.15 to $87.39, after reporting higher fourth-quarter profit. Additionally, the company said it would spin off its majority stake in Kraft foods. Its profit was $2.96 billion, compared with $2.29 billion, a year earlier. Its 89% stake in Kraft Foods will be distributed March 30 to shareholders on record as of March 16.
Stock of SanDisk closed down $2.65 or 6% to $40.18, after saying that it swung to a quarterly loss from a profit a year ago. The maker of flash memory chips for cell phones and digital cameras have been declining swiftly and that the price outlook for 2007 is unclear.
Delta Air Lines rejected a hostile takeover bid from US Airways Group. Shares of US Airways closed up $2.88 to $55.98. US Air announced that the creditors' committee, whose approval Delta needs to emerge from bankruptcy, would not give its support to the nearly $10 billion cash-and-stock offer.
U.S. light crude oil for March delivery rose $1.17 to $58.05 a barrel on the New York Mercantile Exchange.
Try Portfolio Crafter risk-free for 30 days. (http://www.portfoliocrafter.com?a_aid=fiasco)
http://www.stock-monkey.com/ads/portfoliocrafter/portfoliocrafter468x60.gif (http://www.portfoliocrafter.com?a_aid=fiasco)
by Portfolio Crafter (http://www.portfoliocrafter.com?a_aid=fiasco)
30-day risk-free trial (http://www.portfoliocrafter.com?a_aid=fiasco)
Stocks leaped with the Dow Jones Industrial Average posting its best day of the year after the Federal Reserve left interest rates unchanged and indicated that inflation remains under control, easing concerns the central bank might have to raise interest rates. Interpretation that inflation is moderating, while there's a pick up in the economy, should all be good for equities.
Today, the Dow Jones Industrial average closed up 98.38 or 0.79% to 12,621.69, the broader S&P 500 closed up 9.42 or 0.66% to 1,438.24, and the tech-heavy Nasdaq composite closed up 15.29 or 0.62% to 2,463.93.
Market breadth was positive. On the New York Stock Exchange, winners beat losers by 11 to 5 on volume of 1.721 billion shares. On the Nasdaq, advancers topped decliners by 16 to 13 on volume of 2.258 billion shares.
Policy-makers opted to hold a key short-term interest rate steady at 5.25%, for the fifth meeting in a row. In the closely watched statement, they acknowledged the recent signs of strength in the economy and said that growth should expand at a moderate pace over the next few quarters. On inflation, they said core pricing pressure had improved but that wage inflation remained an issue. The statement represents a substantial upgrade to the Fed's growth outlook, suggesting that despite the housing slow down, things are moving along. Additionally, the statement didn't add to bets that the Fed is likely to raise rates imminently, something investors have been concerned about recently.
The GDP grew at a 3.5% annual rate in the fourth quarter, up from a 2% gain in the third quarter and a faster pace than the 3% forecast by economists. This is a surprisingly strong showing given the ongoing slump in the housing market. A separate report, the Chicago PMI, showed a bigger than expected decline in manufacturing growth in the Midwest region in January.
Shares of Altria closed down $0.15 to $87.39, after reporting higher fourth-quarter profit. Additionally, the company said it would spin off its majority stake in Kraft foods. Its profit was $2.96 billion, compared with $2.29 billion, a year earlier. Its 89% stake in Kraft Foods will be distributed March 30 to shareholders on record as of March 16.
Stock of SanDisk closed down $2.65 or 6% to $40.18, after saying that it swung to a quarterly loss from a profit a year ago. The maker of flash memory chips for cell phones and digital cameras have been declining swiftly and that the price outlook for 2007 is unclear.
Delta Air Lines rejected a hostile takeover bid from US Airways Group. Shares of US Airways closed up $2.88 to $55.98. US Air announced that the creditors' committee, whose approval Delta needs to emerge from bankruptcy, would not give its support to the nearly $10 billion cash-and-stock offer.
U.S. light crude oil for March delivery rose $1.17 to $58.05 a barrel on the New York Mercantile Exchange.
Try Portfolio Crafter risk-free for 30 days. (http://www.portfoliocrafter.com?a_aid=fiasco)
http://www.stock-monkey.com/ads/portfoliocrafter/portfoliocrafter468x60.gif (http://www.portfoliocrafter.com?a_aid=fiasco)