It's been two and a-half years since investors saw the Dow Jones Industrial Average close above 12,000.
Today, the blue chip index gained 148.23 points, or 1.3%, to close at 12,040.16, the highest level since June 19, 2008. Pfizer (PFE) helped boost the index, thanks to better-than-expected fourth-quarter results.
Strong results from UPS (UPS) and improvement in U.S. manufacturing also helped lift optimism about the global economy. The Institute for Supply Management's index for manufacturing activity rose to a reading of 60.8 in January, from 58.5 in December. Readings above 50 indicate expansion in the sector. It was the highest reading since May 2004, and the 18th straight month of expansion.
Chinese Internet search giant Baidu.com (BIDU) jumped in today's trading as well, after the company late Monday said that its fourth-quarter profit more than doubled.
The Nasdaq Composite Index jumped 51.11, or 1.9%, to close at 2751.19, its best level since August 28, 2008, and the Standard & Poor's 500 index added 21.47, or 1.7%, to 1307.59, the highest close since June 25, 2008.
Tuesday, February 1, 2011
Thursday, January 27, 2011
S&P Cuts Japan's Debt Rating
Credit rating company Standard & Poor's lowered its debt rating on Japan to "AA-" from "AA" this morning, citing the country's high debt load.
S&P said that it expects Japan's fiscal deficits to remain high for the next few years and that the country's government lacks a “coherent strategy” to address its growing debt. S&P said that Japan is still dealing with "persistent deflation" and a "fast-aging population."
S&P said its outlook on the country is stable.
It was the first downgrade of Japanese government debt since 2002.
Other countries have also faced downgrades over the past year, including Greece, Spain and Portugal, and S&P and Moody's, another credit rating company, have cautioned that the United States could lose its "AAA" rating because if its increasing deficit.
S&P said that it expects Japan's fiscal deficits to remain high for the next few years and that the country's government lacks a “coherent strategy” to address its growing debt. S&P said that Japan is still dealing with "persistent deflation" and a "fast-aging population."
S&P said its outlook on the country is stable.
It was the first downgrade of Japanese government debt since 2002.
Other countries have also faced downgrades over the past year, including Greece, Spain and Portugal, and S&P and Moody's, another credit rating company, have cautioned that the United States could lose its "AAA" rating because if its increasing deficit.
Tuesday, January 25, 2011
Yahoo Posts Drop in Sales
Yahoo (YHOO) late Tuesday offered a mixed picture for the company's most recent quarter, reporting better-than-expected earnings but a decline in revenue.
Yahoo said fourth-quarter net income was $312 million, or 24 cents per share, up from $153 million or 11 cents per share, in the same period a year earlier. The results included restructuring charges of 2 cents per share. Analysts had expected earnings of 23 cents per share.
Net sales fell 4% to $1.21 billion, but they, too, beat expectations of $1.19 billion. The decline is partly attributable to the company's search partnership with Microsoft (MSFT).
The company said it expects revenue for the current quarter to come in between $1.02 billion and $1.08 billion; Wall Street is looking for sales of $1.13 billion.
Earlier Tuesday, Yahoo announced plans to cut 1% of its work force, or 100 to 150 employees. The company eliminated 4% of its employees in December.
Yahoo said fourth-quarter net income was $312 million, or 24 cents per share, up from $153 million or 11 cents per share, in the same period a year earlier. The results included restructuring charges of 2 cents per share. Analysts had expected earnings of 23 cents per share.
Net sales fell 4% to $1.21 billion, but they, too, beat expectations of $1.19 billion. The decline is partly attributable to the company's search partnership with Microsoft (MSFT).
The company said it expects revenue for the current quarter to come in between $1.02 billion and $1.08 billion; Wall Street is looking for sales of $1.13 billion.
Earlier Tuesday, Yahoo announced plans to cut 1% of its work force, or 100 to 150 employees. The company eliminated 4% of its employees in December.
Wednesday, January 19, 2011
EBay Tops Expectations, Gives Rosy Forecast
Online auction Web site eBay (EBAY) reported better-than-expected quarterly earnings late Wednesday. The company said it earned $559 million, or 42 cents per share, in the fourth quarter. Excluding one-time items, earnings were 52 cents per share, compared with 44 cents per share in the same period a year earlier.
Sales rose more than 5% to $2.5 billion.
Wall Street analysts were looking for earnings of 47 cents and sales of $2.49 billion.
EBay said it expects to earn 44 cents to 46 cents per share in the current quarter, excluding items, in line with analysts' consensus estimate of 45 cents per share. The company also forecast sales between $2.4 billion and $2.5 billion; analysts are looking for $2.42 billion in revenue.
The company also projected better-than-expected earnings and revenue for 2011. Earnings will be between $1.90 per share and $1.95 per share, excluding items, eBay said, with sales as high as $10.6 billion. The Street has eBay earning $1.86 per share on $10.2 billion in revenue.
Revenue at eBay's PayPal division jumped 22% to $971 million in the most recent quarter. EBay benefited from a strong holiday shopping season -- earlier this month, research company comScore said that retail e-commerce spending for the November to December 2010 holiday season was a record $32.6 billion, a 12% jump from 2009.
Sales rose more than 5% to $2.5 billion.
Wall Street analysts were looking for earnings of 47 cents and sales of $2.49 billion.
EBay said it expects to earn 44 cents to 46 cents per share in the current quarter, excluding items, in line with analysts' consensus estimate of 45 cents per share. The company also forecast sales between $2.4 billion and $2.5 billion; analysts are looking for $2.42 billion in revenue.
The company also projected better-than-expected earnings and revenue for 2011. Earnings will be between $1.90 per share and $1.95 per share, excluding items, eBay said, with sales as high as $10.6 billion. The Street has eBay earning $1.86 per share on $10.2 billion in revenue.
Revenue at eBay's PayPal division jumped 22% to $971 million in the most recent quarter. EBay benefited from a strong holiday shopping season -- earlier this month, research company comScore said that retail e-commerce spending for the November to December 2010 holiday season was a record $32.6 billion, a 12% jump from 2009.
Tuesday, January 18, 2011
Apple's Profit Hits a Record
Just a day after Apple (AAPL) CEO Steve Jobs announced plans to take another medical leave, the company assuaged investors' concerns with stellar fiscal first-quarter results late Tuesday.
Apple earned a record $6 billion, or $6.43 per share, in its most recent quarter ending Dec. 25, up from $3.38 billion, or $3.67 per share, in the same period a year earlier. Reveue surged 70% to $26.74 billion.
Wall Street was looking for earnings of $5.42 per share on revenue of $24.4 billion.
Apple also said that it sold a record 16.2 million iPhones in the quarter, along with 4.1 million Macintosh computers, 7.3 million iPads and 19.5 million iPods.
The company said it expects earnings of $4.90 per share for the current quarter on $22 billion in revenue. Analysts are looking for $4.47 per share on $20.9 billion in sales.
Chief Operating Officer Tim Cook will run the company while Jobs is on leave.
Apple earned a record $6 billion, or $6.43 per share, in its most recent quarter ending Dec. 25, up from $3.38 billion, or $3.67 per share, in the same period a year earlier. Reveue surged 70% to $26.74 billion.
Wall Street was looking for earnings of $5.42 per share on revenue of $24.4 billion.
Apple also said that it sold a record 16.2 million iPhones in the quarter, along with 4.1 million Macintosh computers, 7.3 million iPads and 19.5 million iPods.
The company said it expects earnings of $4.90 per share for the current quarter on $22 billion in revenue. Analysts are looking for $4.47 per share on $20.9 billion in sales.
Chief Operating Officer Tim Cook will run the company while Jobs is on leave.
Thursday, January 13, 2011
Intel's Earnings Surge
Intel (INTC) late Thursday reported a 48% jump in fourth-quarter earnings, thanks to strong demand for server processors.
The chip giant said net income was to $3.39 billion, or 59 cents per share, up from $2.28 billion, or 40 cents per share, in the same period a year earlier. Analysts had expected 53 cents per share.
Sales rose 8.4% to $11.5 billion, topping expectations of $11.37 billion.
"2010 was the best year in Intel's history. We believe that 2011 will be even better," Paul Otellini, Intel president and CEO, said in a written statement.
Intel forecast gross margins of 64% for the current quarter, which would be down slightly from the 67.5% Intel reported for the fourth quarter. Gross margins are the percentage of sales remaining after deducting production costs. The company also forecast revenue of between $11.1 billion and $11.9 billion in the current quarter. Analysts are looking for $10.74 billion in revenue.
Shares of Intel rose 70 cents, or 3.3%, to $21.99 in trading Thursday.
The chip giant said net income was to $3.39 billion, or 59 cents per share, up from $2.28 billion, or 40 cents per share, in the same period a year earlier. Analysts had expected 53 cents per share.
Sales rose 8.4% to $11.5 billion, topping expectations of $11.37 billion.
"2010 was the best year in Intel's history. We believe that 2011 will be even better," Paul Otellini, Intel president and CEO, said in a written statement.
Intel forecast gross margins of 64% for the current quarter, which would be down slightly from the 67.5% Intel reported for the fourth quarter. Gross margins are the percentage of sales remaining after deducting production costs. The company also forecast revenue of between $11.1 billion and $11.9 billion in the current quarter. Analysts are looking for $10.74 billion in revenue.
Shares of Intel rose 70 cents, or 3.3%, to $21.99 in trading Thursday.
Wednesday, January 12, 2011
Fed: Labor Market Slowly Starting to Heal
The Federal Reserve offered a muted hint of optimism about the economy today.
The central bank's Beige Book report, a survey of regional economic conditions, noted improved manufacturing and retail conditions across the country. "Economic activity continued to expand moderately from November through December,'' the central bank said in a statement.
There was little worry about inflation, however. "Most District reports cited comments by both retailers and manufacturers that costs were rising, but indicated that competitive pressures had led to only modest pass-through into final prices," the Fed said.
The Fed's Beige Book also had some modestly upbeat comments about the job market, but they were tempered by continued concern about the housing market. "Labor markets appeared to be firming somewhat in most Districts, as some modest hiring beyond replacement was said to have occurred,” the central bank said in its report, but housing was "weak and sluggish" in many regions.
The Beige Book is released two weeks ahead of the next Federal Open Market Committee meeting, which is scheduled for January 25-26.
The central bank's Beige Book report, a survey of regional economic conditions, noted improved manufacturing and retail conditions across the country. "Economic activity continued to expand moderately from November through December,'' the central bank said in a statement.
There was little worry about inflation, however. "Most District reports cited comments by both retailers and manufacturers that costs were rising, but indicated that competitive pressures had led to only modest pass-through into final prices," the Fed said.
The Fed's Beige Book also had some modestly upbeat comments about the job market, but they were tempered by continued concern about the housing market. "Labor markets appeared to be firming somewhat in most Districts, as some modest hiring beyond replacement was said to have occurred,” the central bank said in its report, but housing was "weak and sluggish" in many regions.
The Beige Book is released two weeks ahead of the next Federal Open Market Committee meeting, which is scheduled for January 25-26.
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