Stock Market News for April 13, 2010 - Market News
Market participants appeared enthusiastic as another earnings season got underway and European Union leaders agreed to provide debt-ridden Greece with a $40 billion financial lifeline. However, the day’s highlight was the Dow average’s rise above 11,000; it had last crossed that level just after Lehman Brother’s collapse in September 2008.
Nevertheless, lingering concerns about the economy kept sentiments in check and Dow’s ascent beyond the 11,000 milestone appeared to provide only a psychological boost. Some analysts, however, averred that the level could attract investors to the market. All three indexes were in the green when the closing bell rang.
The Dow average closed up 8.62 points, or 0.1%, at 11,005.97, its first close above 11,000 since September 26, 2008. The broader S&P 500 index inched up 2.11 points, or 0.2%, to 1,196.48. The tech-heavy Nasdaq composite index rose 3.82, or 0.2%, to 2,457.87. On the New York Stock Exchange three stocks fell for every two that rose as 976 million shares exchanged hands. The Vix volatility measure fell 3.5% to pre-financial crisis levels near 16, dropping 0.56 to 15.58
However, concerns that the current valuations are lofty helped send gold and treasury prices higher. Gold prices hit a new 2010 high on Monday, rising to $1,161.60; treasuries rose in price with the 10-year gaining 12/32 in price and its yield falling to 3.838%.
Among the 10 S&P500 industry sectors, the strongest gains were posted by financials (+0.4%), utilities (+0.4%), technology (+0.3%), and consumer goods (+0.3%), shares, followed by industrials (+0.2%), oil and gas (+0.2%), with declines in consumer services (-0.03%), telecommunications (-0.1%), health care (-0.2%), and basic materials (-0.4%).
Corporate deal making was on in full swing. DynCorp (NYSE:DCP) agreed to get acquired by private equity firm Cerberus Capital Management, for about $1.5 billion including debt. China Petroleum and Chemical (NYSE:SNP) announced that it agreed to buy ConocoPhillips's (NYSE:COP) stake in Syncrude Canada for $4.65 billion. California Pizza Kitchen (NASDAQ:CPKI) said it was planning a potential sale. Palm (NASDAQ:PALM) said it was exploring strategic alternatives.
This morning Greece successfully mopped up $1.63 billion through an auction of 26- and 52-week treasury bills. The heavily oversubscribed auction however did little to support long-term financing concerns and the yield stood at an exceptionally high 4.8%, compared with 2.2% for a 52-week bill sold in January.
Last night Alcoa (NYSE:AA) kicked off the earnings season and reported a profit that matched analysts’ expectations. Excluding one-time charges, earnings of 10 cents matched estimates. Higher aluminum prices failed to offset smaller-than-anticipated shipments, resulting in revenues of $4.89 billion, which were below estimates of $5.2 billion, but were up from last year’s $4.15 billion.
Today's calendar includes earnings from tech bellwether Intel (NASDAQ:INTC), expected to demonstrate first quarter earnings of 38 cents versus 11 cents a year ago, and CSX Corp (NYSE:CSX), expected to report first quarter earnings of 69 cents versus 62 cents. Fastenal (NASDAQ:FAST), meanwhile, reported earnings that matched last year's 33 cents share and were a nickel higher than expected.
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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