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Earnings Optimism Propels U.S. Stocks Toward Record Highs

Published 07/09/2013, 04:23 PM
Updated 07/09/2023, 06:31 AM
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U.S. stocks ended Tuesday higher, the S&P 500 in record-setting territory as investors cheered the kick-off of the latest earnings season.

Better-than-expected earnings from Alcoa (AA) after the close on Monday ushered in a strong overnight session as European and Asian bourses all closed on the plus side. Gains in Europe were underpinned by an EU/ECB/IMF bailout package of $3.86 billion for Greece, which stalled a potential economic collapse in the beleaguered EU member until at least after the German elections in September.

U.S. Data
In economic news, the Small Business Optimism index fell slightly in June to 93.5 from 94.4 as wages, sales and earnings were all lower from the month prior. Goldman Sachs reported that same store sales for the week ended 7/6 rose 3% from +0.6% the week prior, but the strength in the number was primarily a result of the long July-4 holiday weekend. Finally, Redbook same store sales followed the lead from Goldman sales by increasing a strong 3.6% for the same time period versus a 2.9% increase in sales the week prior. Job openings climbed to 3.83 million in May, little changed from April, according to the U.S. Labor Department.

In commodities, natural gas was the big loser, tumbling 2.57% after the U.S. Energy Information Administration (EIA) released its 2013 natural gas price forecast. According to the EIA, the average Henry Hub spot price will be $3.76 per million British thermal units this year, down from June's $3.92 forecast. Oil futures tacked on only 0.4% to touch $103.53 a barrel, but that was enough to propel them to a 14-month high. Gold futures added 0.9%.

Here's Where The Markets Stood At Day's End

U.S. MARKETS
  • Dow Jones Industrial Index up 75.65 (+0.50%) to 15,300.34
  • S&P 500 up 11.86 (+0.72%) to 1,652.32
  • Nasdaq Composite Index up 19.43 (+0.56%) to 3,504.26
GLOBAL SENTIMENT
  • FTSE 100 (UK:UKX) was up 57.84 (+0.90%) to 6,507.94
  • DAX (DX:DAX) was up 85.82 (+1.08%) to 8,055.77
  • CAC 40 (FR:PX1) was up 19.06 (+0.50%) to 3,842.56
  • Nikkei 225 (TYO: JP:100000018) was up 363..56 (+2.58%) to 14,472.90
  • Hang Seng Index (HSI: HK:HSI) was up 100.82 (+0.49%) to 20,683.01
  • Shanghai China Composite Index (SHA: CN:000001) was up 7.18 (+0.37%) to 1,965.45
UPSIDE MOVERS
  • (+) KR, Kroger buys Harris Teeter (HTSI) supermarkets for $2.5 billion.
  • (+) DM, Sold the assets of its NDeX for $17.5 million.
  • (+) BKS, CEO William Lynch resigns effective immediately; company is reviewing its current strategic plan.
  • (+) FDX, Speculation hedge fund manager Bill Ackman may be looking at buying a stake in the shipping company.
DOWNSIDE MOVERS
  • (-) IBM, Stock lowered to Neutral from Buy by Goldman Sachs, PT lowered to $200 from $220
  • (-) ISRG, Company revised its Q2 earnings to $575 million, below analyst's estimates of $629.6 million.
  • (-) XXIA, Cut Q2 revenue to $114 million to $116 million from the initial forecast of $119 million to $122 million. Stock is downgraded to Hold by Stifel Nicholaus.

After Hours Stock News From Midnight Trader.

Copyright © 2013 MT Newswires, a Division of MidnightTrader, Inc.

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