Stock Market News for October 27, 2011 - Market News
27 Ottobre 2011 - 11:05AM
Zacks
Markets posted decent gains
on Thursday as the European leaders were poised for a breakthrough
to the region’s debt crisis, though they remained guarded about the
details of a comprehensive plan. Additionally, better-than-expected
corporate results helped the broader markets, while the fear-gauge
index plummeted once again below 30.
The Dow Jones Industrial
Average (DJIA) surged 162 points or 1.4% and settled at 11,869.04.
The Standard & Poor 500 (S&P 500) moved up 1.1% to finish
the day at 1,241.99. The Nasdaq Composite Index gained 0.5% and
closed the day at 2,650.67. The fear-gauge CBOE Volatility Index
(VIX) has been on quite a ride for the last three sessions,
including yesterday. While the index moved below 30 on Monday, on
Tuesday it once again surged 10% to trade over 32. Yesterday, the
index dropped 7% and was back below 30. On the New York Stock
Exchange (NYSE), Amex and Nasdaq, consolidated volumes were 8.54
billion shares, higher than the daily average of 8.01 billion. On
the NYSE, the advance decline ratio was 2,404 to 598.
Markets had been expecting a
positive move from the European leaders while they met at the
European Council meeting to figure out a breakthrough for the
continent’s lingering debt concerns. No substantial details were
divulged, and specific figures of bank recapitalization
requirements remained undisclosed. The information that came
through was that European leaders were in agreement about the need
to recapitalize European banks and Germany agreed to support the
initiative for leveraging the bailout fund. However, the size of
the Greek write-down has caused an impasse. It was reported later
that China had agreed to boost the emergency fund and French
President Nicolas Sarkozy is expected to meet Chinese President Hu
Jintao today.
The benchmarks are being
mostly guided by European developments, and hopes of European
leaders making a breakthrough to the crisis had lifted the
sentiment since last Friday except on Tuesday, when reports of the
cancellation of a meeting ahead of the Wednesday’s summit spooked
investors. Yesterday’s news from the European front provided few
details and did not suggest anything major. However, the markets
did not miss out on cashing in on the gains as market onlookers
opined that the expectation level for the summit was set low. Thus,
whatever progress was made was satisfactory for the
investors.
Also helping to lift the
mood were encouraging corporate results. Boeing Co. (NYSE:BA) with
gains of 4.5% led the gainers among the 30 Dow components, after it
reported profits that surpassed the Street’s expectations. The
company also guided up its outlook for 2011. Separately, Corning
Inc. (NYSE:GLW) reported better-than-expected results and shares
closed 3.0% higher. In the defense sector, both General Dynamics
Corp. (NYSE:GD) and Lockheed Martin Corporation (NYSE:LMT) managed
to top expectations, but their shares dropped 2.1% and 3.2%,
respectively. Both the companies reported a slip in their backlog
and General Dynamics reported a 5.3% drop in its total backlog,
Lockheed Martin finished the third quarter with $73 billion of
backlog versus $78.4 billion at fiscal-end 2010.
On the economic counter, the
Commerce Department said durable-goods orders were in line with the
consensus for the current period. Though “New orders for
manufactured durable goods in September decreased $1.5 billion or
0.8 percent to $200.3 billion,” bookings for other manufactured
goods climbed higher, reflecting growth in the economy. Also,
“excluding transportation, new orders increased 1.7 percent.
Excluding defense, new orders decreased 1.1 percent”. Orders for
core capital goods gained 2.4% to post an all-time high.
Separately, the U.S. Census
Bureau and the Department of Housing and Urban Development said in
a joint statement: “Sales of new single-family houses in September
2011 were at a seasonally adjusted annual rate of 313,000…
This is 5.7
percent (±18.4%)* above the revised August rate of 296,000, but is
0.9 percent (±16.3%)* below the September 2010 estimate of
316,000”.
BOEING CO (BA): Free Stock Analysis Report
GENL DYNAMICS (GD): Free Stock Analysis Report
CORNING INC (GLW): Free Stock Analysis Report
LOCKHEED MARTIN (LMT): Free Stock Analysis Report
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