jump to navigation

US Stocks Advance As Fed Helps DJIA Near Record January 31, 2007

Posted by notapundit in Economic News.
trackback

NEW YORK (Dow Jones)–Stocks wrapped up the first month of the year with a Federal Reserve-induced rally, as Boeing helped the Dow Jones Industrial Average close within an eyelash of a new record high, while Estee Lauder and C.H. Robinson Worldwide saw surges of their own.

But there were downsiders, with Juniper Networks, Silicon Laboratories and Allstate all sliding during the session.

The Dow Jones Industrial Average rose 98.38, or 0.79%, to 12621.69, as 24 of 30 members advanced. The Dow ended just 0.09 points away from a new record closing peak, but did make an intraday all-time high, of 12657.02. For the month, the Dow gained 1.3%, now up seven months in a row.

The Nasdaq Composite advanced 15.29, or 0.62%, to 2463.93, up six of the last seven sessions. For January, the Nasdaq gained 2% and is now up five of the last six months.

The Standard & Poor’s 500 Index advanced 9.42, or 0.66%, to 1438.24 and rose 1.4% in January, now having risen eight months in a row and 12 of the last 13 months.

The New York Stock Exchange Composite Index rose 48.34, or 0.53%, to 9254.73. For the month, the index rose 1.3%.

“A lid on this market has been that interest rates would rise and the economy would falter, and the Fed’s remarks (about the economy and inflation) reassured investors that positive existing trends will continue,” said Art Nunes, chief market strategist at IMS Capital Management. “I think 2007 and 2008 are going to be booming years for the stock market, because of just the kind of conditions the Fed talked about.”

Boeing rose $3.56, or 4.1%, to $89.56, the best Dow industrial advancer. Fourth-quarter net income more than doubled, on a 26% revenue gain. On the wings of a record year for commercial aircraft orders, the aerospace giant boosted its 2007 earnings forecast, reflecting the booming worldwide aviation market.

Sentiment about a solid economy helped spur Dow industrial component United Technologies to a gain of 1.07, or 1.6%, to 68.02, a record closing high.

Estee Lauder gained 6.17, or 15%, to 47.50, number three among the Big Board’s percentage advancers. The maker of Aveda and Clinique cosmetics said its quarterly profit more than doubled, helped by strong international sales growth, and boosted its full-year outlook.

C.H. Robinson Worldwide jumped 9.44, or 22%, to 53.20, the Nasdaq’s third-best percentage gainer. The trucking and transport company’s fourth-quarter net income of $71.8 million, or 41 cents a share, beat Wall Street’s projection for 39 cents, as revenue rose to $1.64 billion from $1.58 billion.

Volume on the New York Stock Exchange was 1.72 billion shares. Up volume beat down by 1.24 billion to 471 million, and stocks that rose in value exceeded those that fell, 2,272 to 1,080.

Juniper Networks (Nasdaq) fell 1.70, or 8.6%, to 18.12. Fourth-quarter revenue rose 4% to $595.8 million, but the networking equipment maker didn’t report its earnings. Juniper has now delayed filing a number of quarterly reports, pending the completion of an internal review into its past stock options accounting practices.

Silicon Laboratories (Nasdaq) dropped 3.17, or 9%, to 32.11. The circuit provider’s fourth-quarter earnings fell to $5.22 million, or 9 cents a share, from $15.3 million, or 27 cents a share a year earlier, hurt in part by increased costs.

Allstate lost 3.84, or 6%, to 60.16. Sharply reduced catastrophe losses along with higher revenue helped the insurer post a 17% increase in net income in the fourth quarter, though operating results fell short of Wall Street expectations.

Google (Nasdaq) gained 7.18, or 1.5%, to 501.50, back over 500 ahead of reporting results after the closing bell.

Dow industrial Altria Group slipped to a loss of 15 cents to 87.39. The consumer products company plans to spin off its Kraft Foods subsidiary at the end of March, finalizing a long-awaited move that separates its food and tobacco operations and opens the door for a further restructuring of the parent company. Kraft added 9 cents to 34.92.

NutriSystem (Nasdaq) fell 8, or 15%, to 44.05. The weight loss product marketer provided a first-quarter earnings outlook of 82 cents a share to 86 cents, below analysts’ average projection for 94 cents. Shares’ decline followed a 10% loss on Tuesday after a Thomas Weisel Partners downgrade.

Apple (Nasdaq) eked out a gain of 18 cents to 85.73, capping an eventful month. Shares fell eight of the last 11 sessions in the aftermath of the stock’s record close on Jan. 16. The stock ended with a 1% advance for the month after being up as much as 15.3% in January. Investors’ interest appeared to wane following enthusiasm surrounding the company’s unveiling of its iPhone communications device and as it posted strong financial results.

By Karen Talley, Dow Jones Newswires

Comments»

No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: