| CATEGORY: MARKET REPORT - US CLOSE SECTOR: IT HARDWARE |
US close: Apple and Fed spark rally |
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Wed 27 Jan 2010
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LONDON (SHARECAST) - US shares recovered after the Federal Reserve held interest rates at near zero, while Apple launched its eagerly awaited iPad tablet computer.
Dow Jones closed up 41 at 10,236. Nasdaq added 17 at 2,221 while the S&P 500 added 5 at 1,097.
In its keenly watched statement, the Fed keep its stance on the economy little changed from last time, suggesting it has continued to strengthen since December's meeting.
On a busy news day, Apple was the star company turn as chief executive Steve Jobs unveiled the Apple iPad, a touch-screen tablet computer that runs apps from the iTunes store. Priced at $499, the launch sparked feverish trading in Apple shares with volumes three times higher than normal.
Sales of new homes in the US declined sharply for the second month in a row, sliding 7.6% in December to a seasonally adjusted annualised rate of 342,000, from a revised November figure of 370,000. The fall came as a surprise to economists, who had been expecting house sales to bounce back.
Boeing headed the risers on the Dow. Fourth quarter earnings of $1.75 a share were 31% ahead of expectations.
Caterpillar was the biggest faller on the Dow and the S&P after the construction machinery giant saw fourth-quarter earnings fall. The company said it is encouraged by signs of improving demand.
‘Dealer sales to end users are up, order rates are up, dealer inventories came down in 2009, and we're seeing stronger service parts sales,’ said chairman and chief executive Jim Owens.
College operator DeVry reported earnings more than one-fifth higher than expected. DeVry is the best performer in the S&P.
Factory software provider Rockwell Automation is the second best performing S&P company after underlying first quarter earnings per share of 54 cents were well above expectations.
Ratings agency Moody’s is wanted, as is McGraw Hill, owner of the Standard & Poor’s credit rating firm, after the ratings agencies celebrate the dismissal of a law suit taken out against them holding them culpable for losses sustained on AAA mortgage backed securities issued by Lehman Brothers.
Programmable semiconductor designer Altera is doing its bit to bolster the Nasdaq Composite. The shares advance after the company reported underlying earnings per share of 34 cents that topped market expectations of 29 cents a share.
Drug maker Gilead Sciences is the biggest riser on the Nasdaq after better than expected figures due to sharply higher royalties from the flu treatment Tamiflu.
Internet giant Yahoo! has stolen a little of Apple’s thunder after posting a net profit of $153m, or 11 cents per share, in the three months to December compared with a loss of $303m, or 22c per share, a year earlier.
Ignoring one-offs, earnings per share (EPS) would have been 15 cents. Sales fell 4% to $1.7bn year-over-year, but were 10% higher on the previous quarter. Yahoo! published the figures after the closing bell last night.
S&P 500 - Risers
DeVry Inc. (DV) $63.32 +12.73%
Rockwell Automation Inc (ROK) $50.84 +10.14%
Moody's Corp. (MCO) $28.83 +8.26%
Gilead Sciences Inc. (GILD) $48.17 +7.35%
Boeing Co. (BA) $61.93 +7.31%
S&P 500 - Fallers
United States Steel (X) $46.60 -6.07%
Meadwestvaco Corp. (MWV) $25.07 -5.75%
Mckesson Corp. (MCK) $59.52 -4.54%
International Game Tech (IGT) $19.04 -4.51%
Qlogic Corp. (QLGC) $18.06 -4.41%
Dow Jones I.A - Risers
Boeing Co. (BA) $61.93 +7.31%
Bank Of America Corp. (BAC) $15.19 +2.84%
JP Morgan Chase & Co. (JPM) $39.28 +2.19%
Kraft Foods Inc. (KFT) $28.35 +2.13%
American Express Inc. (AXP) $38.67 +1.50%
Dow Jones I.A - Fallers
Caterpillar Inc. (CAT) $53.44 -4.32%
Alcoa Inc. (AA) $13.30 -1.77%
United Technologies Corp. (UTX) $67.61 -1.26%
Walt Disney Co. (DIS) $29.32 -1.15%
Verizon Communications Inc. (VZ) $29.87 -0.99%
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