Stocks inch up on strong Yahoo! earnings, raised Dell revenue guidance, new Dow components.
U.S. stock markets rose Wednesday as investors found satisfaction in Yahoo!'s outstanding quarterly report, Dell's raised revenue forecast and the shrinking number of people seeking unemployment benefits.
The addition of three new members to the Dow industrials, which became effective at the start of trading, also contributed to the upbeat tone of the market.
However, geopolitical concerns remained, as fighting continued in Iraq and National Security Advisor Condoleezza Rice testified before the September 11 Commission. (For more on these news events, go to CNN.com.)
Sporting gains in two of its three new components, the Dow Jones industrial average (up 14.69 to 10494.84, Charts) was up about 0.3 percent after about 40 minutes of trading. The Standard & Poor's 500 (up 3.41 to 1143.94, Charts) index showed a similar gain, and the Nasdaq composite (up 13.33 to 2063.57, Charts), the strongest of the three, was up 0.8 percent.
Stock markets struggled for two sessions amid concerns that the first-quarter earnings reporting period might not be as bullish as had been hoped, due in part to disappointment about Alcoa's earnings and a few profit warnings from companies such as Nokia.
However, those concerns were mollified Thursday, with a slew of strong earnings and other corporate news.
After the bell Wednesday, Yahoo! (YHOO: up $6.81 to $55.16, Research, Estimates) reported a profit of 13 cents per share, up from 8 cents a year earlier and two cents more than what analysts were expecting. The company also announced a 2-for-1 stock split. The stock surged more than 13 percent.
Dell (DELL: up $0.87 to $35.69, Research, Estimates) raised its first-quarter revenue forecast late Wednesday, although it kept its earnings per share outlook unchanged. Shares in the PC powerhouse gained more than 2 percent.
Before the start of trading Thursday, General Electric (GE: up $0.08 to $31.48, Research, Estimates) reported earnings of 32 cents per share, unchanged from a year earlier and in line with analysts' estimates, leading to an uptick in its shares.
In other corporate news, the previously announced reshuffling of the Dow 30 went into effect at the start of trading Thursday. Verizon Communications (VZ: down $0.17 to $37.14, Research, Estimates), Pfizer (PFE: up $0.07 to $35.74, Research, Estimates) and American International Group (AIG: down $0.36 to $75.89, Research, Estimates) were added, replacing International Paper (IP: down $0.20 to $42.20, Research, Estimates), AT&T (T: down $0.10 to $19.42, Research, Estimates) and Eastman Kodak (EK: up $0.06 to $25.55, Research, Estimates).
The weekly jobless claims report added support, as well, with new claims for unemployment benefits falling to their lowest level in three years.
Market breadth was mixed and trading volume was robust, although it was expected to wind down as the session progressed since Wednesday is the last trading day before an extended Easter weekend. On the New York Stock Exchange, declining stocks narrowly outnumbered advancers as 218 million shares changed hands. On the Nasdaq, where 373 million shares traded, gainers beat losers by three to two.
Treasury prices fell. The benchmark 10-year note lost 1/4 of a point, pushing its yield up to 4.18 percent from 4.15 percent. The dollar edged higher versus the yen and euro.
Among commodities markets, NYMEX light sweet crude oil futures rose 40 cents to $36.55 a barrel. COMEX gold fell $3.10 to $420.60 per ounce.
In international trading, Asian markets closed higher and European markets rose in the afternoon there.
U.S. stock markets rose Wednesday as investors found satisfaction in Yahoo!'s outstanding quarterly report, Dell's raised revenue forecast and the shrinking number of people seeking unemployment benefits.
The addition of three new members to the Dow industrials, which became effective at the start of trading, also contributed to the upbeat tone of the market.
However, geopolitical concerns remained, as fighting continued in Iraq and National Security Advisor Condoleezza Rice testified before the September 11 Commission. (For more on these news events, go to CNN.com.)
Sporting gains in two of its three new components, the Dow Jones industrial average (up 14.69 to 10494.84, Charts) was up about 0.3 percent after about 40 minutes of trading. The Standard & Poor's 500 (up 3.41 to 1143.94, Charts) index showed a similar gain, and the Nasdaq composite (up 13.33 to 2063.57, Charts), the strongest of the three, was up 0.8 percent.
Stock markets struggled for two sessions amid concerns that the first-quarter earnings reporting period might not be as bullish as had been hoped, due in part to disappointment about Alcoa's earnings and a few profit warnings from companies such as Nokia.
However, those concerns were mollified Thursday, with a slew of strong earnings and other corporate news.
After the bell Wednesday, Yahoo! (YHOO: up $6.81 to $55.16, Research, Estimates) reported a profit of 13 cents per share, up from 8 cents a year earlier and two cents more than what analysts were expecting. The company also announced a 2-for-1 stock split. The stock surged more than 13 percent.
Dell (DELL: up $0.87 to $35.69, Research, Estimates) raised its first-quarter revenue forecast late Wednesday, although it kept its earnings per share outlook unchanged. Shares in the PC powerhouse gained more than 2 percent.
Before the start of trading Thursday, General Electric (GE: up $0.08 to $31.48, Research, Estimates) reported earnings of 32 cents per share, unchanged from a year earlier and in line with analysts' estimates, leading to an uptick in its shares.
In other corporate news, the previously announced reshuffling of the Dow 30 went into effect at the start of trading Thursday. Verizon Communications (VZ: down $0.17 to $37.14, Research, Estimates), Pfizer (PFE: up $0.07 to $35.74, Research, Estimates) and American International Group (AIG: down $0.36 to $75.89, Research, Estimates) were added, replacing International Paper (IP: down $0.20 to $42.20, Research, Estimates), AT&T (T: down $0.10 to $19.42, Research, Estimates) and Eastman Kodak (EK: up $0.06 to $25.55, Research, Estimates).
The weekly jobless claims report added support, as well, with new claims for unemployment benefits falling to their lowest level in three years.
Market breadth was mixed and trading volume was robust, although it was expected to wind down as the session progressed since Wednesday is the last trading day before an extended Easter weekend. On the New York Stock Exchange, declining stocks narrowly outnumbered advancers as 218 million shares changed hands. On the Nasdaq, where 373 million shares traded, gainers beat losers by three to two.
Treasury prices fell. The benchmark 10-year note lost 1/4 of a point, pushing its yield up to 4.18 percent from 4.15 percent. The dollar edged higher versus the yen and euro.
Among commodities markets, NYMEX light sweet crude oil futures rose 40 cents to $36.55 a barrel. COMEX gold fell $3.10 to $420.60 per ounce.
In international trading, Asian markets closed higher and European markets rose in the afternoon there.
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