Profit reports drive Dow closer to 12,000
Profit reports drive Dow closer to 12,000
Market index in record territory; earnings offset economic worry
The Associated Press
Updated: 11:44 a.m. ET Oct. 12, 2006
NEW YORK - Stocks surged Thursday, with the Dow Jones industrial average crossing 11,900 for the first time ever, after big consumer names like McDonald’s Corp. gave investors hope that earnings would be strong despite a slowing economy.
The widely followed Dow index rose as high as 11,909.92 Thursday, topping a previous intraday high of 11,872.94. On Tuesday, the Dow closed at 11,867.17, its fourth record close in two weeks. Also Thursday, the Standard & Poor’s 500-stock index reached a 52-week intraday high.
The markets were more upbeat than on Wednesday, which saw a lackluster start to earnings season, though there was still concern about the economy’s health.
In Friday’s economic news, the Commerce Department reported that the country’s trade deficit rose to a record high in August. A separate report showed that the number of newly laid off workers seeking unemployment benefits grew by 4,000 last week to a seasonally adjusted total of 308,000. Unemployment remains low, however.
Investors were also awaiting the release, set for later Thursday, of the Federal Reserve’s Beige Book, which summarizes regional economic activity.
The Dow Jones industrial average was lately up 79.88 points, or 0.67 percent, while the broader Standard & Poor’s 500-stock index was up 8.46 points, or 0.63 percent. The Nasdaq composite index, full of technology stocks, rose 17.92 points, or 0.78 percent.
Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.76 percent from 4.78 percent late Wednesday. The dollar was mixed against other major currencies, while gold prices rose.
The price of a barrel of crude oil was trading near a low for the year on the New York Mercantile Exchange. Doubts remained about whether OPEC’s members will be able to agree on an immediate production cut.
McDonald’s rose $1.17, or 2.84 percent, to $42.42, after saying systemwide same-store sales, or sales at stores open at least a year, rose 9.8 percent in September. The world’s largest fast-food chain also said its third-quarter profit would top Wall Street’s expectations.
PepsiCo Inc., the snack food maker and No. 2 soft drink company, said its third-quarter profit jumped 71 percent, reflecting a 9.4 percent increase in sales and comparison with results that were depressed by a tax charge a year ago. Its share price rose $1, or 1.57 percent, to $62.86.
Warehouse chain Costco Wholesale Corp., advanced $2.22, or 4.43 percent, to $52.29 after reporting its fiscal fourth-quarter profit rose 1 percent.
Overseas, Japan’s Nikkei stock average closed down 0.19 percent. In Europe, Britain’s FTSE 100 was up 0.50 percent, Germany’s DAX index added 0.49 percent and France’s CAC-40 was 0.67 percent higher.
© 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
URL: http://www.msnbc.msn.com/id/3683270/
© 2006 MSNBC.com
Market index in record territory; earnings offset economic worry
The Associated Press
Updated: 11:44 a.m. ET Oct. 12, 2006
NEW YORK - Stocks surged Thursday, with the Dow Jones industrial average crossing 11,900 for the first time ever, after big consumer names like McDonald’s Corp. gave investors hope that earnings would be strong despite a slowing economy.
The widely followed Dow index rose as high as 11,909.92 Thursday, topping a previous intraday high of 11,872.94. On Tuesday, the Dow closed at 11,867.17, its fourth record close in two weeks. Also Thursday, the Standard & Poor’s 500-stock index reached a 52-week intraday high.
The markets were more upbeat than on Wednesday, which saw a lackluster start to earnings season, though there was still concern about the economy’s health.
In Friday’s economic news, the Commerce Department reported that the country’s trade deficit rose to a record high in August. A separate report showed that the number of newly laid off workers seeking unemployment benefits grew by 4,000 last week to a seasonally adjusted total of 308,000. Unemployment remains low, however.
Investors were also awaiting the release, set for later Thursday, of the Federal Reserve’s Beige Book, which summarizes regional economic activity.
The Dow Jones industrial average was lately up 79.88 points, or 0.67 percent, while the broader Standard & Poor’s 500-stock index was up 8.46 points, or 0.63 percent. The Nasdaq composite index, full of technology stocks, rose 17.92 points, or 0.78 percent.
Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.76 percent from 4.78 percent late Wednesday. The dollar was mixed against other major currencies, while gold prices rose.
The price of a barrel of crude oil was trading near a low for the year on the New York Mercantile Exchange. Doubts remained about whether OPEC’s members will be able to agree on an immediate production cut.
McDonald’s rose $1.17, or 2.84 percent, to $42.42, after saying systemwide same-store sales, or sales at stores open at least a year, rose 9.8 percent in September. The world’s largest fast-food chain also said its third-quarter profit would top Wall Street’s expectations.
PepsiCo Inc., the snack food maker and No. 2 soft drink company, said its third-quarter profit jumped 71 percent, reflecting a 9.4 percent increase in sales and comparison with results that were depressed by a tax charge a year ago. Its share price rose $1, or 1.57 percent, to $62.86.
Warehouse chain Costco Wholesale Corp., advanced $2.22, or 4.43 percent, to $52.29 after reporting its fiscal fourth-quarter profit rose 1 percent.
Overseas, Japan’s Nikkei stock average closed down 0.19 percent. In Europe, Britain’s FTSE 100 was up 0.50 percent, Germany’s DAX index added 0.49 percent and France’s CAC-40 was 0.67 percent higher.
© 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
URL: http://www.msnbc.msn.com/id/3683270/
© 2006 MSNBC.com