Stock Market News for January 28, 2010 - Market News
U.S. stocks staged a late-session advance, paring earlier losses, after the Federal Reserve decided to keep interest rates near historic lows for an “extended period" and Apple launched its new iPad tablet computer. While the decision to leave interest rates near zero packed few surprises, the bank’s upbeat reading on the economy helped counter negatives of weak new home sales, ongoing sovereign debt worries, and a number of soft guidance reports.
The blue-chip Dow Jones industrial average added 42 points, or 0.4%, to its prior day’s tally to end the day at 10,236. S&P500 shares, helped by a 2.1% advance in financial shares, rose 0.5% to close at 1098. The tech-heavy Nasdaq, boosted by Apple's (NASDAQ:AAPL) introduction of its iPad device, rose 0.8% to close at 2221. On the NYSE, a modest 1.3 billion shares exchanged hands, with falling shares narrowly ahead of those that advanced in price. Meanwhile, the CBOE Vix eased 5.7% to 23.14.
The US dollar continued to strengthen even as the FOMC policy report promised low rates for an "extended period." Edgy investors sent the greenback up 0.3% to 78.69 against a basket of currencies. The dollar’s advance sent basic material shares 0.7% lower on the S&P500. Gold prices fell $13.80 to $$1085 and crude prices closed down 1.4% at $73.64 even as reports showed an unexpected buildup in weekly stockpiles. Alcoa (NYSE:AA) shares fell 1.8% and Freeport-McMoRan (NYSE:FCX) dropped 1%.
However, Kansas City Fed President Thomas Hoeing, a known hawk, disagreed with the broader assessment and viewed the “extended period" language was no longer warranted and the economy was growing at a pace sufficient to warrant a rate hike a little sooner.
Nevertheless, weak guidance from big names continued to weigh on sentiments. Caterpillar (NYSE:CAT) led the decliners on the DJIA, down 4.3%, as its better-than-anticipated earnings were offset by its weak 2010 guidance. United Technologies’ (NYSE:UTX), which noted domestic commercial construction remains weak, shares fell 1.3%. After the close, Qualcomm (NASDAQ:QCOM) reported estimate-topping numbers for the first quarter, but slashed its full-year guidance; its shares fell 9.3% in premarket trading. Boeing (NYSE:BA) shares, despite the company’s cautious 2010 guidance, jumped 7.3% to lead the DJIA higher as it promised production of the first 787 Dreamliner by year end.
Today sees a number of big names reporting their numbers, including Amazon.com (NASDAQ:AMZN), AT&T (NYSE:T), Bristol-Myers-Squibb (NYSE:BMY), Ford (NYSE:F), Procter & Gamble (NYSE:PG), Motorola (NYSE:MOT), and SanDisk (NASDAQ:SNDK).
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