Stock Market News for August 2, 2010 - Market News

Even as a disappointing gross domestic product report weighed on sentiments Friday, stocks managed to record their best month in a year as some strong quarterly earnings reports overshadowed concerns about economic recovery. 

Although July was volatile, the performance of markets was indeed impressive. The May-June period was characterized by lingering concerns about European finances and Beijing’s moves to control its breakneck economic growth. Mixed economic data and record high unemployment numbers further complicated the picture, but some stellar earnings numbers changed the equation in favor of markets as the quarter neared its close. During the month, the Dow industrials climbed 7.1% and the broader S&P 500 jumped 6.9%. The NASDAQ 6.9% rise during the month was its best since March this year.

Last week saw some big names, including Caterpillar CAT, Honeywell HON and FedEx FDX raising their earnings outlook. However, the prospects of the technology sector came under question as Symantec’s SYMC earnings failed to live up to the Street’s expectations and Nvidia’s NVDA outlook disappointed. With no certain words on economic recovery yet and unemployment levels near a record high, investors would parse Procter & Gamble PG and Kraft’s KFT earnings numbers for signs of consumer spending.

The Dow Jones industrial average closed at 10,466, up 0.5% on the week; the S&P500 closed at 1102, slightly above the key level of 1100, and up 0.1% on the week; however, the NASDAQ fell 0.4% on the week, closing at 2269. Year-to-date the blue-chip DJIA is up 0.4%, while the S&P500 and the NASDAQ are down 1.1% and 0.4%, respectively.

Today’s global equity markets marked impressive gains, with Asian markets closing largely higher. The Hang Seng index in Hong Kong closed up 1.8%; and the Shanghai Composite index rose 1.3%. The Nikkei, however, gained only 0.4% as another round of easing appeared likely.  

European markets jumped this morning after HSBC HBC and BNP Paribas reported estimate-topping numbers. The Dax is up 1.7% and the FTSE 2.1% after HSBC said its first-half profits more than doubled from a year ago. BNP Paribas posted a 31% profit jump to $2.7 billion in the second quarter from a year earlier despite experiencing a decline in investment banking revenues.  The French bank reported strength in retail banking and lower loan loss provisions.

U.S. stock futures are pointing to a strong August start this morning, following gains in the overseas markets. Ahead of the opening bell the S&P 500 futures gained 13.5 points.  Dow Jones industrial average futures were up 109 points, and Nasdaq 100 futures rose 19 points.

 
CATERPILLAR INC (CAT): Free Stock Analysis Report
 
FEDEX CORP (FDX): Free Stock Analysis Report
 
HSBC HOLDINGS (HBC): Free Stock Analysis Report
 
HONEYWELL INTL (HON): Free Stock Analysis Report
 
KRAFT FOODS INC (KFT): Free Stock Analysis Report
 
NVIDIA CORP (NVDA): Free Stock Analysis Report
 
PROCTER & GAMBL (PG): Free Stock Analysis Report
 
SYMANTEC CORP (SYMC): Free Stock Analysis Report
 
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