-- U.S. stocks rose for the third time in four weeks, led by energy companies, as higher consumer spending and the Federal Reserve's efforts to provide cash to banks spurred speculation the economy will keep expanding.
Exxon Mobil Corp. and Hess Corp. led energy companies to the biggest gain in the Standard & Poor's 500 Index after oil prices climbed for a second week. Earnings reports from Oracle Corp. and Research In Motion Ltd. drove technology stocks to the second- steepest advance among 10 industries.
``You can just feel the tide turning here,'' said Jim Paulsen, who helps oversee about $200 billion as chief investment strategist at Wells Capital Management in Minneapolis. ``Economic data keeps coming in better than expected and I think it's part of the recovery story.''
The S&P 500 added 16.51, or 1.1 percent to 1,484.46 this week, bringing its year-to-date advance to 4.7 percent. The Dow Jones Industrial Average rose 0.8 percent to 13,450.65. The Nasdaq Composite Index climbed 2.1 percent to 2,691.99. The Russell 2000 Index of small-company shares gained 4.2 percent.
Stock markets close at 1 p.m. New York time on Dec. 24 for the holiday and reopen at 9:30 a.m. on Dec. 26.
Yields on 10-year Treasury notes lost 0.06 point to 4.17 percent, while two-year yields lost 0.11 point to 3.20 percent.
Shares gained after the European Central Bank injected a record $500 billion into the financial system to help the economy withstand a deteriorating housing market. The Fed said it will also conduct emergency auctions of loans as ``long as necessary'' to help restore faith in the money markets.
Consumer Spending
A U.S. Commerce Department report showing consumer spending rose more than forecast in November allayed concern that the shopping season in five years may have already pushed the economy into recession.
Purchases gained 1.1 percent after a 0.4 percent increase in October that was more than previously estimated, the Commerce Department said today in Washington. Incomes also advanced, while the Federal Reserve's preferred measure of inflation accelerated, the report showed.
Crude oil for February delivery rose 1.9 percent to $93.31, after the spending report signaled economic growth may spur demand for fuel. Futures have surged 53 percent this year.
Exxon Mobil, the world's biggest oil company, added 2.5 percent to $93.43. Hess, the fifth-largest U.S. oil company, rose 15 percent to $98 after saying it plans to spend $4.4 billion on capital expenditures and exploration next year.
Trane Inc. had the steepest gain in the S&P 500 after Ingersoll-Rand Co. said Dec. 17 that it agreed to buy the maker of heaters and air conditioners for $10.1 billion. Trane had its biggest weekly gain since its 1995 initial public offering, rising 24 percent to $45.99.
Oracle Revenue
Oracle, the world's largest database software maker, rose 7.1 percent to $22.71 after saying it can withstand an economic slump. Oracle expects third-quarter revenue to rise as much as 23 percent, indicating sales of $5.47 billion. That forecast beat the estimates of analysts in a Bloomberg survey.
Research In Motion climbed 12 percent to $118.63 after the maker of the BlackBerry e-mail phone boosted sales and profit forecasts, citing higher demand. Profit this quarter will rise to as much as 70 cents a share, the company said. Analysts in a Bloomberg survey had estimated profit of 66 cents.
The S&P 500 Information Technology Index climbed 1.8 percent. EBay Inc., the world's biggest online auctioneer, and Amazon.com Inc., the world's largest Internet retailer, advanced after Sanford C. Bernstein & Co. said ``strong'' holiday sales may boost earnings. EBay gained 4.9 percent to $34.30 while Amazon added 2.5 percent to $91.26.
Financial Stocks
Financial shares advanced even after the housing market's collapse caused Morgan Stanley and Bear Stearns Cos. to report the first quarterly losses in their history as public companies.
Morgan Stanley received a $5 billion cash infusion from state-controlled China Investment Corp., suggesting to investors that the world's second-largest securities firm has put the worst of its subprime losses behind it. The stock had its biggest weekly advance in two months, climbing 8.1 percent to $54.37.
Merrill Lynch & Co., the world's biggest brokerage firm, may receive a cash infusion of as much as $5 billion from Singapore's state-owned Temasek Holdings Pte, the Wall Street Journal reported. The stock fell 2.3 percent to $55.54.
Sales of new homes in the U.S. fell in November, signaling no end to the housing recession that threatens to stall economic growth, economists said before a report this week.
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