Stock Market News for April 30, 2010 - Market News
Stocks rose for a second straight day, led by financial shares, as investors shrugged off European debt concerns and parsed some strong earnings numbers for signs of an improving economy. A Labor Department report suggesting layoffs are beginning to slow also added to investors’ confidence and helped the blue-chip Dow average register its biggest one-day advance in more than a month.
Several solid earnings reports, including some from economic bellwethers, indicated businesses were in a strong position. Hewlett-Packard’s (NYSE:HPQ) announcement late Wednesday to acquire smartphone maker Palm Inc. (NASDAQ: PALM) indicated companies were finding it easy to use surplus cash for acquisitions.
With optimism in air, the Dow Jones industrial average gained 122 points, or 1.1%, to end at 11,167.32. The S&P 500 index, led by a rally in financial shares, added 15 points, or 1.3%, to reclaim the 1,200 level. It closed at 1,206.77. The tech-heavy Nasdaq rose 40 points, or 1.6%, to close at 2,511.92. On the New York Stock Exchange, advancing shares beat those that declined in price by almost four to one on volume of about 1.4 billion shares. The popular measure of markets’ volatility, the CBOE Vix, fell 12.5% to 18.44.
Gains were broad based Thursday, with 27 of the DJIA’s 30 components closing in the green. Leading the list of gainers on the DJIA were American Express (NYSE:AXP) up 3.3%, and Bank of America (NYSE:BAC) up 2.9%. Shares in Morgan Stanley (NYSE:MS), Citigroup (NYSE:C) and Goldman Sachs (NYSE:GS) closed up 3.2%, 2.5% and 2.1%, respectively. All ten S&P500 industry sectors closed with gains Thursday. Financials were the leaders, up 2.3%, followed by industrials (+1.9%), consumer services (+1.7%), health care (+1.6%), telecommunications (+1.1%), basic materials (+1.0%), technology (+1.0%), consumer goods (+0.7%), utilities (+0.2%), and oil and gas (+0.1%).
Reports of a pending criminal investigation, meanwhile, have sent Goldman shares down more than 4% in premarket trade. However, the reports did not say if the authorities would go ahead and press the charges. Investors would also have their eyes set on Warren Buffett when he addresses the matter at this weekend's Berkshire Hathaway (NYSE:BRK.A) annual shareholder meeting.
Crude prices gained 2.3% to $85.17 yesterday. Oil and gas shares, however, rose only 0.1% after ExxonMobil’s (NYSE:XOM) earnings came in below expectations. Shares in ExxonMobil dropped 0.9% on the day. Crude prices hit their highest settlement price since April 15, as traders grew concerned over production disruption possibilities following the Gulf of Mexico oil spill.
Meanwhile, the Greek problem appeared less dire Thursday amid reports the country had agreed to put in place further austerity measures. European officials noted the country would be able to tap about $60 billion in bailout funds. The plan would include a three-year wage freeze of public sector workers. Earlier this week, S&P’s downgrade of Greece’s credit rating to junk status had set off contagion fears and driven markets sharply lower.
Among companies reporting are: Chevron (NYSE:CVX), Coventry (NYSE:CVH), D.R. Horton (NYSE:DHI) and Newell Rubbermaid (NYSE:NWL).
The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
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