Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

US STOCKS-Banks, tech boost Wall St after solid earnings

Published 10/21/2009, 12:28 PM
Updated 10/21/2009, 12:30 PM
BA
-
CVX
-
GOOGL
-
SNDK
-
AABA
-
WFC
-
MS
-

* Morgan Stanley, Wells Fargo post solid results

* Apple hits intraday high

* Dow up 0.3 pct, S&P 500 up 0.3 pct, Nasdaq up 0.4 pct (Updates to midday)

By Leah Schnurr

NEW YORK, Oct 21 (Reuters) - U.S. stocks gained on Wednesday as results from banks, including Morgan Stanley, topped expectations, and on increased optimism about the technology sector's profit outlook.

The energy sector also supported the market as the price of oil rose above $80 a barrel after data showed a smaller-than-expected rise in U.S. crude stockpiles. Chevron gained 1.1 percent to $77.89.

Among tech shares, SanDisk Corp surged 9.9 percent to $23.60 as it said it was seeing strong demand in the mobile phone market, while Yahoo Inc climbed 3.7 percent to $17.83, noting advertising showed signs of life last quarter.

"The tech arena has been the stalwart, earnings-wise," said Alan Lancz, president of Alan B. Lancz & Associates Inc in Toledo, Ohio.

"The product cycle has been pretty interesting because ... that's one area where the consumer has not backed off."

Morgan Stanley jumped 6 percent to $34.46 after it posted a profit after three quarters of losses on strong fixed-income sales and trading revenues.

Wells Fargo & Co and U.S. Bancorp results were boosted by revenue from underwriting mortgages, but the windfall could moderate as applications fall. U.S. Bancorp gained 6.6 percent to $25.36, while Wells retreated from earlier gains to slip 1.1 percent to $30.10. The KBW banks index rose 0.3 percent.

The Dow Jones industrial average gained 24.79 points, or 0.25 percent, to 10,066.27. The Standard & Poor's 500 Indexrose 3.68 points, or 0.34 percent, to 1,094.74. The Nasdaq Composite Index was up 8.29 points, or 0.38 percent, at 2,171.76.

Although the banks' robust results cheered the market, analysts raised concerns over how sustainable these types of profits would be in the long term.

The Dow's gains were limited as Boeing Co shed nearly 1 percent to $51.42 after the airplane maker and U.S. defense contractor posted a net loss on charges related to its long-delayed 787 plane and the 747 program.

Apple Inc rose along with technology shares to hit a record intraday high of $206.20 on Nasdaq; the stock was last up 3.2 percent at $205.14. Google Inc was up 1 percent at $557.29. (Editing by Jan Paschal)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.