Stock Market News for Feb 02, 2011 - Market News

Markets rose to fresh new highs as positive economic data and strong earnings results from energy stocks led the rally.

 

The Dow closed above the 12,000 mark for the first time since June 2008 thanks to strong gains by Exxon Mobil XOM, Alcoa AA  and Pfizer PFE. The blue-chip index surged 148.23 points or 1.25% to close at 12,040.16. The S&P 500 gained 1.7% or 21.47 points before closing at 1,307.59. The index closed at its highest point since August 28, 2008. The tech-laden Nasdaq jumped 1.89% and closed at 2,751.19. On the New York Stock Exchange, market breadth was on the positive side and about five stocks rose for every single stock that fell.

 

Coming to economic news, The Institute for Supply Management's manufacturing data for January came in better than expected. The ISM index increased to 60.8% from 58.5% in December, recording the fastest growth since May 2004. Domestic auto sales also increased after a surge in buying of automobiles. All major automobile companies reported a double digit rise in their sales figures from a year ago. On the other hand the Commerce Department said construction spending for December fell 2.5%.

 

On the international front, Egypt witnessed a massive protest against President Hosni Mubarak when several hundred thousand demonstrators gathered to voice their anger against the President.  The President later said on television that he would not seek re-election in September, bringing some respite to citizens. Meanwhile, Jordan's King Abdullah II dismissed his government after Jordanians started protests calling for political reforms.

 

On to news of earnings and estimates, shares of British oil giants BP BP jumped 1% to $47.98 after the company reported a 30% increase in its fourth quarter net profits. The company announced plans to pay a dividend of $0.42 per ADR. BP BP also has plans to sell its Texas City and Carson refineries. Share prices of Anadarko Petroleum APC jumped 1.9% after the company reported an increased fourth quarter profit beating the Street's expectations. The share price of the company closed at $78.54 after the company reported fourth quarter profits at $0.29 cents, ahead of the Street's target of $0.17. Reacting to these earnings results, S&P has upgraded the stock from hold to buy rating. Oppenheimer upgraded Valero Energy Corp VLO from perform to outperform, helping the share prices of the company to jump 2.8% to close at $26.06. Shares of Pfizer PFE rocketed up 5.5% to $19.22 after the company reported better than expected results beating Street's estimates. The company reported sales figures of $17.6 billion ahead of the Street's expectations of $16.96 billion. The world's biggest package delivery company, United Parcel Service Inc UPS reported better than expected results and projected an improved outlook for 2011. The share price of the company increased 4.15% to close at $74.59. Printer company Lexmark LKX also reported a 46% surge in earnings helping the company gain 13.23% before closing at $39.45.

 

On a sectoral basis, technology and energy stocks led the rally. Stocks such as Cisco Systems Inc CSCO, Oracle Corp ORCL and Google Inc GOOG gained 0.33%, 0.60% and 1.78% respectively. Novellus Systems Inc NVLS reported more than double growth in its fourth quarter profits. Share prices of the company increased 5.7% to $38.14. Oil and energy companies also joined the rally. Shares of Consol Energy CNX reported an increase of 3.24% to close at $51.31. Chesapeake Energy CHK and Cabot Oil & Gas COG increased by 2.37% and 0.29% to close at $30.23 and $41.75 respectively.

 
ALCOA INC (AA): Free Stock Analysis Report
 
ANADARKO PETROL (APC): Free Stock Analysis Report
 
BP PLC (BP): Free Stock Analysis Report
 
CHESAPEAKE ENGY (CHK): Free Stock Analysis Report
 
CONSOL ENERGY (CNX): Free Stock Analysis Report
 
CABOT OIL & GAS (COG): Free Stock Analysis Report
 
CISCO SYSTEMS (CSCO): Free Stock Analysis Report
 
GOOGLE INC-CL A (GOOG): Free Stock Analysis Report
 
NOVELLUS SYS (NVLS): Free Stock Analysis Report
 
ORACLE CORP (ORCL): Free Stock Analysis Report
 
PFIZER INC (PFE): Free Stock Analysis Report
 
UTD PARCEL SRVC (UPS): Free Stock Analysis Report
 
VALERO ENERGY (VLO): Free Stock Analysis Report
 
EXXON MOBIL CRP (XOM): Free Stock Analysis Report
 
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