| CATEGORY: MARKET REPORT - US CLOSE SECTOR: FOSSIL FUELS AND DISTRIBUTION |
US close: Volatile day ends on a high |
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Thu 13 Nov 2008
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Market Movers
Dow Jones 30: 8,835, up 552 (+6.67%)
S&P 500: 911, up 58 (+6.92%)
NASDAQ Composite: 1,596, up 97 (6.50%)
LONDON (SHARECAST) - It was a volatile day for the US stock market after a hesitant start, with shares rallying strongly at the death, paced by oil and property shares.
The recovering oil price, coupled with a report indicating that the earnings multiples of oil shares were at their lowest levels in more than a decade, sparked vibrant demand for oil stocks, with Chevron and Exxon leading the way. Crude oil for December delivery advanced $2.08 to $58.24 a barrel by mid-afternoon, having fallen below $55 at one point.
Bargain hunters also moved in on property stocks. Property broker CB Richard Ellis climbed steeply after a successful open offer which raised $188.5m. Earlier this year the company had failed to get a placing of its shares away.
Wal Mart lifted third quarter revenue earnings and profits, but trimmed its full year guidance to reflect the effects of currency movements. In the three months to October 31, net sales at Wal Mart climbed to $97.6bn from $90.8bn over the same period a year ago, helping to lift earnings per share (EPS) from continuing operations to 77 cents from 70 cents.
Meanwhile, Dr Pepper Snapple lost its fizz on a fall in sales and profits as weak economic conditions hit sales of 7UP and other drinks. The group also lowered its full-year earnings guidance in recognition of the worsening state of the US economy.
Intel was initially down after it revealed late yesterday that it will cut more than $1bn from its sales forecast due to a reduction in the demand for chips, but was later swept higher in the end of day buying frenzy..
Insurance company Genworth Financial clawed back yesterday’s heavy losses which were suffered after a credit rating downgrade meant it was ineligible to participate in a government programme that buys short term debt from financial companies. The insurer tapped revolving credit lines to borrow $930m which it will use to pay off debt due in 2009.
Prologis, another of yesterday’s big fallers, also hit the comeback trail in a big way after a “buy” recommendation from Barclays.
PC maker Dell dipped after Goldman Sachs cut its price target for the stock from $14 to $9.
In economic news, the US trade deficit in September narrowed 4.4% to $56.5bn from $59.1bn in August, its smallest deficit in nigh on a year. The fall in the size of the deficit was larger than expected.
US initial jobless claims rose more than expected in the week to 8 Nov. First time jobless claims jumped 32,000 to 516,000 from a revised 484,000 the week before.
S&P 500 - Risers
Prologis Sbi (PLD) $6.86 +53.47%
Genworth Financial (GNW) $1.53 +53.00%
Office Depot Inc. (ODP) $2.43 +35.00%
Cb Richard Ellis Group (CBG) $4.86 +28.91%
Progressive Corp. (PGR) $15.21 +24.88%
Paccar Inc. (PCAR) $31.64 +24.47%
Network Appliance Inc. (NTAP) $12.88 +23.97%
Sovereign Bancorp (SOV) $2.64 +22.22%
Autonation Inc. (AN) $7.28 +22.15%
Charles Schwab Corp. (SCHW) $19.42 +21.00%
S&P 500 - Fallers
Dr. Pepper Snapple Group Inc. (DPS) $18.22 -12.86%
KB Home (KBH) $11.74 -5.90%
M B I A Inc. (MBI) $6.00 -5.36%
Prudential Fincl Inc. (PRU) $25.40 -4.30%
Humana Inc. (HUM) $31.46 -3.79%
Supervalu Inc. (SVU) $12.13 -3.79%
Gen Dynamics Corp. (GD) $55.41 -3.72%
Covidien Ltd. (COV) $36.75 -3.64%
Dynegy Inc. Holdings Co (DYN) $2.26 -3.22%
Liz Claiborne Inc. (LIZ) $4.55 -3.17%
Dow Jones I.A - Risers
Chevron Corp. (CVX) $75.71 +12.53%
Home Depot Inc. (HD) $22.20 +12.12%
Caterpillar Inc. (CAT) $39.25 +11.89%
Alcoa Inc. (AA) $11.17 +9.83%
Walt Disney-Disney C (DIS) $22.14 +9.82%
Exxon Mobil Corp. (XOM) $75.68 +9.79%
Dow Jones I.A - Fallers
Citigroup Inc. (C) $9.49 -1.56%
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