Stock Market News for February 3, 2010 - Market News
Stocks started on a sluggish note but ended the session sharply higher as better-than-expected earnings reports and upbeat economic data helped calm lingering worries about the economy. Nevertheless, broader concerns regarding Obama's spending plans and banking reform intentions, Beijing's move to cool economic growth, and Greece's deficit woes remained intact.
The DJIA witnessed another triple-digit rally on Tuesday, rising 111 points, or 1.1%, to 10,297. The S&P500 advanced 1.3% to above 1100 and remained there till the end. The Nasdaq composite rallied 19 points, or 0.9%. All the ten S&P500 industry sectors closed up, with seven of them advancing at least 1%. On the NYSE, advancing issues were ahead of those that declined in price by about four to one as a modest 1.168 billion shares exchanged hands. The CBOE Vix, "fear factor index," fell 4.9% to 21.48.
This morning U.S. Stock index futures were in the negative territory, after a brief stay in the green zone, as the ADP national employment report showed the private sector cut fewer jobs than expected in January.
Gains in the S&P500 were led by health care (+1.9%), industrials (+1.8%), consumer goods (+1.7%), oil and gas (+1.5%), telecommunications (+1.2%), and financials (+1.0%). Technology and utility sector shares rose 0.8% and basic material shares edged up 0.5%.
Of the thirty DJIA components, only two ended the day in the red, with 3M (NYSE:MMM) slipping a negligible 0.01%, and DuPont (NYSE:DD) registering a 0.1% decline. Those leading the list of gainers included General Electric (NYSE:GE), up 3.7%, after a number of industrial companies reported favorable numbers. Better-than-estimated earnings from Emerson (NYSE:EMR) and Cummins (NYSE:CUM) intensified hopes for a sustainable recovery, as the two major industrial firms noted strength in the sector amid recovering demand. Emerson provided upbeat guidance for the year. Whirlpool (NYSE:WHR) also came out with better-than-estimated guidance, after reporting numbers that were nearly twice prior year levels. A 3.8% jump in crude prices to $77.23 sent oil and gas shares up 1.5%. Home Depot (NYSE:HD) shares gained 2.3% on improved housing data and recovery expectations. D.R. Horton (NYSE:DHI) also reported better-than-expected earnings, reporting its first profit since 2007.
Meanwhile, the chairman of the Senate Banking Committee warned against an over-reaching Volcker rules proposal, and EU's Barroso said the European Union will back Greece's new deficit-cutting moves.
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