Portfolio Crafter
02-02-2007, 07:53 PM
End of Day Market Summary Thursday, February 1, 2007
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Stocks closed higher sending the Dow Jones Industrial Average to a record close, as optimism about a cooler-than-expected reading on inflation, together with falling crude oil prices, offset disappointing earnings from a few companies. The market's advance was slightly dented by news that the manufacturing sector contracted in January. However, the primary overhang in the market recently has been concerns over faster-than-expected economic growth leading to inflation and putting upwards pressure on interest rates.
Today, the Dow Jones Industrial average closed up 51.99 or 0.41% to 12,673.68, at a record high, taking out its previous record from a week ago. The broader S&P 500 closed up 7.70 or 0.54% to 1,445.94, at its highest point since November 2000. The tech-heavy Nasdaq composite closed up 4.45 or 0.18% to 2,468.38.
Market breadth was positive. On the New York Stock Exchange, winners topped losers by more than 3 to 2 on volume of 1.68 billion shares. On the Nasdaq, advancers topped decliners by a similar margin on volume of 2.22 billion shares.
Stocks rose as investors focused on Dell's management shakeup and some of the economic news. The decision by the Feds to keep the key short-term interest rate steady at 5.25% and the statement that the economy is holding firm, while core inflation is moderating assisted the markets. Personal income and spending rose in December, and the core PCE deflator, rose just 0.1%. The year-over-year change in the core PCE deflator is 2.2%, just above what most economists believe is the Federal Reserve's comfort zone of a 1 to 2%. Additionally, there has been a bigger than expected decline in the number of Americans filing new claims for unemployment. However, the January ISM index, showed a bigger than expected decline, falling to 49.3. A level below 50 is seen as meaning contraction in the sector.
Shares of Dell closed down $0.42 to $23.80, after the company announced that chairman and founder Michael Dell would retake the helm of the company, replacing its CEO, who abruptly resigned. The company also warned that fiscal fourth-quarter sales and earnings would miss estimates.
Shares of Google closed down $19.75 to $481.75, as investors took a "sell the news" approach in response to its earnings. The Internet search leader reported higher quarterly and full-year financial results that topped analysts' estimates. It reported a net income surge of 177% to $1 billion. The company reported a profit of $3.18 after backing out tax adjustments, stock compensation cost and other items. Revenue jumped 67% to $3.21 billion.
Shares of Exxon Mobil closed up $0.98 to $75.08, after reporting the highest annual profit in U.S. history, although fourth-quarter net income slipped from a year earlier. For the year, Exxon Mobil earned $39.5 billion, up from its previous record $36.1 billion in 2005. Net income in the fourth quarter slipped to $10.25 billion, from $10.71 billion a year earlier. Revenue in the quarter fell 9.4% to $90.03 billion.
U.S. light crude oil for March delivery fell 84 cents to settle at $57.30 a barrel on the New York Mercantile Exchange. The price of oil has surged over the last week, after slumping through the first part of the year.
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by Portfolio Crafter (http://www.portfoliocrafter.com?a_aid=fiasco)
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Stocks closed higher sending the Dow Jones Industrial Average to a record close, as optimism about a cooler-than-expected reading on inflation, together with falling crude oil prices, offset disappointing earnings from a few companies. The market's advance was slightly dented by news that the manufacturing sector contracted in January. However, the primary overhang in the market recently has been concerns over faster-than-expected economic growth leading to inflation and putting upwards pressure on interest rates.
Today, the Dow Jones Industrial average closed up 51.99 or 0.41% to 12,673.68, at a record high, taking out its previous record from a week ago. The broader S&P 500 closed up 7.70 or 0.54% to 1,445.94, at its highest point since November 2000. The tech-heavy Nasdaq composite closed up 4.45 or 0.18% to 2,468.38.
Market breadth was positive. On the New York Stock Exchange, winners topped losers by more than 3 to 2 on volume of 1.68 billion shares. On the Nasdaq, advancers topped decliners by a similar margin on volume of 2.22 billion shares.
Stocks rose as investors focused on Dell's management shakeup and some of the economic news. The decision by the Feds to keep the key short-term interest rate steady at 5.25% and the statement that the economy is holding firm, while core inflation is moderating assisted the markets. Personal income and spending rose in December, and the core PCE deflator, rose just 0.1%. The year-over-year change in the core PCE deflator is 2.2%, just above what most economists believe is the Federal Reserve's comfort zone of a 1 to 2%. Additionally, there has been a bigger than expected decline in the number of Americans filing new claims for unemployment. However, the January ISM index, showed a bigger than expected decline, falling to 49.3. A level below 50 is seen as meaning contraction in the sector.
Shares of Dell closed down $0.42 to $23.80, after the company announced that chairman and founder Michael Dell would retake the helm of the company, replacing its CEO, who abruptly resigned. The company also warned that fiscal fourth-quarter sales and earnings would miss estimates.
Shares of Google closed down $19.75 to $481.75, as investors took a "sell the news" approach in response to its earnings. The Internet search leader reported higher quarterly and full-year financial results that topped analysts' estimates. It reported a net income surge of 177% to $1 billion. The company reported a profit of $3.18 after backing out tax adjustments, stock compensation cost and other items. Revenue jumped 67% to $3.21 billion.
Shares of Exxon Mobil closed up $0.98 to $75.08, after reporting the highest annual profit in U.S. history, although fourth-quarter net income slipped from a year earlier. For the year, Exxon Mobil earned $39.5 billion, up from its previous record $36.1 billion in 2005. Net income in the fourth quarter slipped to $10.25 billion, from $10.71 billion a year earlier. Revenue in the quarter fell 9.4% to $90.03 billion.
U.S. light crude oil for March delivery fell 84 cents to settle at $57.30 a barrel on the New York Mercantile Exchange. The price of oil has surged over the last week, after slumping through the first part of the year.
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