Stock Market News for April 16, 2010 - Market News
Stocks advanced for a sixth straight session but the rally was unimpressive as fears of further monetary tightening measures from China and Google’s not-so-sound results dampened enthusiasm.
Although Alcoa (NYSE:AA) kicked off the earning season on a disappointing note, giving markets some initial hiccups, better-than-expected results from CSX (NYSE:CSX), technology bellwether Intel (NYSE:INTC) and banking giants JP Morgan (NYSE:JPM) helped send risk sentiments higher. Meanwhile, positive economic data continued to pour in even as investors looked forward to another round of corporate earnings results with renewed enthusiasm.
However, those expecting things to continue on a bright note did not found Google’s (NASDAQ:GOOG) results too enthusiastic. After closing up 1%, the stock traded down 5% in afterhours trading. Google shares weakened following its CEO's decision to no longer participate in the company's conference calls, and a weaker-than-expected growth in ad revenue.
The DJIA held above 11,000 again on Thursday, up 21 points or 0.2% to 11,145. The S&P gained 0.1% to 1212, ending above 1200 for the second straight session. The tech-heavy NASDAQ climbed 0.4% to finish at 2516. Volume on the NYSE rose to a two-month high of 1.203 billon.
Technology shares were the leading gainers among the S&P500 industry groups. Technology shares jumped 0.5%, helped by the 3.0% rise in Intel (NASDAQ:INTC) after its promising earnings results and assessment of strong PC sales. Industrials jumped 0.8% on news of strong regional manufacturing. Consumer service sector shares rose 0.1%, oil and gas 0.1%, consumer goods 0.02%, as losses mounted in financials (-0.6%), basic materials (-0.3%), telecommunications (-0.3%), health care (-0.2%), and utilities (-0.1%).
Fed-member speeches meanwhile indicated any hike in interest rates remains a ways off as economic growth stays modest. According to Atlanta Fed President Lockhart, US interest rates should be held low to inject "strong medicine" to the economy. Dallas Fed President Fisher and St Louis Fed President Bullard both addressed financial regulation, with Fisher calling for an international accord, which would break up financial firms whose failures could cause financial tumult.
About 125 S&P500 firms are due to report results next week. General Electric (NYSE:GE) and Bank of America (NYSE:BAC) reported quarterly results before this morning's open. Advanced Micro (NYSE:AMD), which reported yesterday after the close, witnessed weakness even as the firm reported a surprising profit in the first quarter and revenues grew 34%. Bank of America (NYSE:BAC) comfortably beat market expectations and General Electric (NYSE:GE) also reported estimate-beating numbers and provided upside full-year guidance. The firm resorted to continued cost-cutting measures and witnessed growth in equipment orders.
Among Fed speakers are Janet Yellen, Kevin Warsh and Thomas Hoenig.
The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
