| CATEGORY: MARKET REPORT - US CLOSE |
US close: Dow rallies after disappointing data |
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Fri 30 Jul 2010
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LONDON (SHARECAST) - US stocks recovered early losses after disappointing US economic data.
Dow Jones closed down one point at 10,465, the S&P 500 was unchanged at 1,101 and Nasdaq added 3 to 2,254. Over July, the Dow and S&P 500 both gained about 7%.
Gross domestic product (GDP) data rose at an annualised rate of 2.4% in the second quarter, a significant slow-down from the 3.7% annualised gain in the first quarter. Meanwhile, US consumer sentiment tumbled in July to its lowest level since November 2009.
Corporate news flow failed to engender much enthusiasm. Oil giant Chevron’s second quarter earnings more than tripled but the shares fell back as revenues came in below analysts’ estimates.
Drug company Merck was another casualty as second quarter earnings more than halved, due to acquisition and other exceptional charges. The company also trimmed the upper end of the guidance range for full year sales.
A lack of available solar modules hit First Solar’s second quarter sales. The company kept modules for its own projects.
There was a more positive response to security software supplier McAfee’s better than expected second quarter profit and acquisition of Tencube, a provider of the WaveSecure mobile security service.
Theme park operator and film studio Walt Disney wilted after announcing it will sell Miramax Films to a consortium of investors for more than $660m after a six-month search to find a buyer.
"Our current strategy for the Walt Disney Studios is to focus on the development of great motion pictures under the Disney, Pixar and Marvel brands," said Disney chief executive Robert Iger.
Mortgage guarantor and life insurer Genworth Financial is being subpoenaed by New York Attorney General Andrew Cuomo as part of the state’s life-insurance fraud probe.
Dow Jones I.A - Risers
Home Depot Inc. (HD) $28.51 +1.64%
Boeing Co. (BA) $68.14 +1.37%
Alcoa Inc. (AA) $11.17 +1.36%
Verizon Communications Inc. (VZ) $29.06 +0.62%
McDonald's Corp. (MCD) $69.73 +0.50%
Caterpillar Inc. (CAT) $69.75 +0.50%
Dow Jones I.A - Fallers
Intel Corp. (INTC) $20.61 -2.00%
Merck & Co. Inc. (MRK) $34.46 -1.71%
Exxon Mobil Corp. (XOM) $59.68 -1.09%
Microsoft Corp. (MSFT) $25.75 -1.08%
3M Co. (MMM) $85.54 -0.93%
Procter & Gamble Co. (PG) $61.16 -0.83%
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