On Thursday, markets registered modest upward movement. The blue chip index was led slightly lower primarily due to a weak forecast from DuPont DD, but the S&P 500 closed at its two year high, while Nasdaq moved to its highest level since December 2007.
The major benchmark indices swayed on the back of forecasts and reports. DuPont's DD forecast of earnings for 2011 was below the Street estimates, and this somewhat led to the slight fall in the DJIA. The stock fell 1.14%. But the other key indices modestly advanced primarily based on reports that instilled optimism about the economy. The government's count of weekly initial jobless claims was downsized to 421,000, and it bettered analysts' expectation of 425,000. Investors took a positive stance, somewhat banking on this positive report from the labor department. Moreover, bullishness among investors negated any negative effects from news that some prominent Democrats squabbled against the tentative agreement of extending the Bush era tax cuts.
Investors approached the market on a cautious note and there was hardly any significant news to trigger a meaningful movement in the market. The Dow Jones Industrial Average slipped 0.02% to 11,370.06. The S&P 500 added 0.38% to close at 1,223. The tech-heavy Nasdaq Composite Index increased 0.29% to 2,616.67. The CBOE Volatility Index (VIX) dropped more than 2% to close at 17.25, reflecting the return of some confidence among investors. On the New York Stock Exchange, volumes were on the lighter side with 1,673 stocks advanced while 1,336 stocks ended up in red.
On a sectoral basis, the financial sector emerged as the winner in Thursday's trade. Boosted by speculation that banks may be able to pay higher dividends investors flocked to buy financial stocks. As a result, key financial stocks such as Wells Fargo WFC, Bank of America BAC, U.S. Bancorp USB ended in the green. However, HDFC Bank Limited HDB fell $19.14 to close at $160.78.
Some of the individual shares that outperformed the market were insurance giant American International Group AIG which surged 13% on the announcement of the US government agreeing to sell its stake in the company. Further, Fairholme Capital, the largest private shareholder in AIG, reported that it had increased its stake in AIG. Arbitron ARB jumped 19% after the company provided solid 2011 revenue guidance and entered into a multiyear, multi market deal with Clear Channel Radio. Dean Foods DF ended 13% higher after an announcement of an agreement to settle an antitrust lawsuit and plans to repay other borrowings by selling of $400 million of notes.
AMER INTL GRP (AIG): Free Stock Analysis Report
ARBITRON INC (ARB): Free Stock Analysis Report
BANK OF AMER CP (BAC): Free Stock Analysis Report
DU PONT (EI) DE (DD): Free Stock Analysis Report
DEAN FOODS CO (DF): Free Stock Analysis Report
HDFC BANK LTD (HDB): Free Stock Analysis Report
US BANCORP (USB): Free Stock Analysis Report
WELLS FARGO-NEW (WFC): Free Stock Analysis Report
Zacks Investment Research
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