U.S. stocks rose, sending benchmark indexes to a fourth straight weekly gain, as signs of improving demand for capital goods, technology products and consumer items tempered concern the economic rebound is slowing.
Apple Inc. surged to a record as an analyst boosted sales estimates for the iPad tablet computer, while Google Inc. climbed to an almost five-month high. Nike Inc. surged to the highest price since its initial public offering in 1980 after earnings topped estimates on growing demand in North America and China. The Standard & Poor’s 500 Index erased three days of losses yesterday as capital-goods orders exceeded forecasts.
The S&P 500 rose 2.1 percent this week to 1,148.67 to cap its longest weekly rally since April. The Dow Jones Industrial Average gained 252.41 points, or 2.4 percent, to 10,860.26. The Russell 2000 Index of small companies increased 3 percent. All three ended the week at their highest levels since mid-May.
“There’s a lot of momentum behind digital media,” said Michael Shinnick, a South Bend, Indiana-based money manager at Wasatch Advisors Inc., which oversees $7.5 billion. “In the past we had excessive consumption in housing and autos. Those sectors continue to be weak, and the American consumer continues to reset their spending priorities. That doesn’t mean they don’t have the wherewithal to spend in other categories.”
The S&P 500 is up 9.5 percent in September, historically the worst month for stocks. The main benchmark for American equities has fallen 0.7 percent on average in September since 1950, according to the Stock Trader’s Almanac. It hasn’t gained more than 8.3 percent in September since 1939. The index is up 3 percent in 2010 after recouping about two-thirds of its decline from a 19-month high in April.
Stocks Rally
Stocks rallied yesterday after a government report showed orders for durable goods excluding transportation equipment rose in August at twice the pace forecast by economists. Next week brings September gauges of consumer confidence and business activity.
Apple jumped 6.2 percent to $292.32, capping a week where it overtook PetroChina Co. to become the world’s second-biggest company by market value. With its stock valued at $267 billion, Apple trails only the $314.4 billion Exxon Mobil Corp. Gene Munster, an analyst at Piper Jaffray Cos. in Minneapolis, said Sept. 23 that Apple will sell 21 million iPads next year, an increase from his earlier estimate of 14.5 million.
Apple, which has been expanding distribution channels, selling more internationally and increasing sales to businesses could reach $390 a share, Munster said. Analysts surveyed by Bloomberg on average predict a share price of $342.81 in the next 12 months.
Tech Boom
Google gained 7.6 percent to $527.29 for its best weekly gain since February 2009. Technology companies in the S&P 500 increased 2.8 percent as a group, the second-biggest advance among 10 industries after consumer-discretionary companies. An 18 percent drop by Adobe Systems Inc., which made a sales forecast on Sept. 21 that trailed analyst estimates, limited the advance.
Nvidia Corp. surged 16 percent to $12.26 for the biggest advance in the S&P 500. The second-largest maker of graphics chips led gains in semiconductor companies after Oracle Corp.’s chief executive officer said it plans to make acquisitions in the industry.
Amazon.com Inc., the largest Internet retailer, and Nike Inc., the world’s largest maker of athletic shoes, rose to records, helping lead companies that depend on discretionary spending by consumers to the biggest advance in the S&P 500.
Amazon jumped 8.4 percent to $160.73. JPMorgan Chase & Co. raised its 2011 profit forecast and predicted the shares will reach $198. Digital sales of media products will benefit Amazon’s margin, analysts led by Imran Khan said in a report.
Nike, Banks
Nike added 3 percent to a $79.57. Per-share profit excluding some items beat the average analyst estimate for a 17th straight quarter, as orders in North America and China surged.
Banking shares declined as earnings estimates were lowered by Bank of America Corp. and Deutsche Bank AG. Banking companies fell 0.7 percent as a group, one of only two industries to decline among 24 groups in the S&P 500. Real-estate companies slipped 0.2 percent.
Bank of America and Deutsche Bank lowered third-quarter earnings estimates for Morgan Stanley and Goldman Sachs Group Inc., citing weak trading revenue. Bank of America also cut its estimates for Citigroup Inc. Morgan Stanley fell 5 percent to $25.15, Goldman Sachs slipped 2.5 percent to $147.28 and Citigroup lost 1.2 percent to $3.90.
CarMax Inc. soared 16 percent to $27.35 for the second- biggest advance in the S&P 500. The largest used-car dealer in the U.S. reported second-quarter per-share earnings of 48 cents, topping the average analyst estimate of 40 cents.
‘Muddling Along’
“We’re in a situation where the global economy is muddling along,” said Ron Holt, Chief Executive Officer of Hansberger Global Investors Inc. in Fort Lauderdale, Florida, which manages $8 billion. “When you get companies that can demonstrate they can grow in this kind of environment, investors will flock to those companies.”
Gold futures climbed to a record, surpassing $1,300 an ounce, the U.S. dollar weakened and two-year Treasury yields touched a record low after the Federal Reserve signaled it will keep U.S. interest rates near zero and take additional measures to boost economic growth if necessary. The measures may include additional purchases of U.S. government securities to lower long-term interest rates.
To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.net
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net
http://jodnet.blogspot.com
Apple Inc. surged to a record as an analyst boosted sales estimates for the iPad tablet computer, while Google Inc. climbed to an almost five-month high. Nike Inc. surged to the highest price since its initial public offering in 1980 after earnings topped estimates on growing demand in North America and China. The Standard & Poor’s 500 Index erased three days of losses yesterday as capital-goods orders exceeded forecasts.
The S&P 500 rose 2.1 percent this week to 1,148.67 to cap its longest weekly rally since April. The Dow Jones Industrial Average gained 252.41 points, or 2.4 percent, to 10,860.26. The Russell 2000 Index of small companies increased 3 percent. All three ended the week at their highest levels since mid-May.
“There’s a lot of momentum behind digital media,” said Michael Shinnick, a South Bend, Indiana-based money manager at Wasatch Advisors Inc., which oversees $7.5 billion. “In the past we had excessive consumption in housing and autos. Those sectors continue to be weak, and the American consumer continues to reset their spending priorities. That doesn’t mean they don’t have the wherewithal to spend in other categories.”
The S&P 500 is up 9.5 percent in September, historically the worst month for stocks. The main benchmark for American equities has fallen 0.7 percent on average in September since 1950, according to the Stock Trader’s Almanac. It hasn’t gained more than 8.3 percent in September since 1939. The index is up 3 percent in 2010 after recouping about two-thirds of its decline from a 19-month high in April.
Stocks Rally
Stocks rallied yesterday after a government report showed orders for durable goods excluding transportation equipment rose in August at twice the pace forecast by economists. Next week brings September gauges of consumer confidence and business activity.
Apple jumped 6.2 percent to $292.32, capping a week where it overtook PetroChina Co. to become the world’s second-biggest company by market value. With its stock valued at $267 billion, Apple trails only the $314.4 billion Exxon Mobil Corp. Gene Munster, an analyst at Piper Jaffray Cos. in Minneapolis, said Sept. 23 that Apple will sell 21 million iPads next year, an increase from his earlier estimate of 14.5 million.
Apple, which has been expanding distribution channels, selling more internationally and increasing sales to businesses could reach $390 a share, Munster said. Analysts surveyed by Bloomberg on average predict a share price of $342.81 in the next 12 months.
Tech Boom
Google gained 7.6 percent to $527.29 for its best weekly gain since February 2009. Technology companies in the S&P 500 increased 2.8 percent as a group, the second-biggest advance among 10 industries after consumer-discretionary companies. An 18 percent drop by Adobe Systems Inc., which made a sales forecast on Sept. 21 that trailed analyst estimates, limited the advance.
Nvidia Corp. surged 16 percent to $12.26 for the biggest advance in the S&P 500. The second-largest maker of graphics chips led gains in semiconductor companies after Oracle Corp.’s chief executive officer said it plans to make acquisitions in the industry.
Amazon.com Inc., the largest Internet retailer, and Nike Inc., the world’s largest maker of athletic shoes, rose to records, helping lead companies that depend on discretionary spending by consumers to the biggest advance in the S&P 500.
Amazon jumped 8.4 percent to $160.73. JPMorgan Chase & Co. raised its 2011 profit forecast and predicted the shares will reach $198. Digital sales of media products will benefit Amazon’s margin, analysts led by Imran Khan said in a report.
Nike, Banks
Nike added 3 percent to a $79.57. Per-share profit excluding some items beat the average analyst estimate for a 17th straight quarter, as orders in North America and China surged.
Banking shares declined as earnings estimates were lowered by Bank of America Corp. and Deutsche Bank AG. Banking companies fell 0.7 percent as a group, one of only two industries to decline among 24 groups in the S&P 500. Real-estate companies slipped 0.2 percent.
Bank of America and Deutsche Bank lowered third-quarter earnings estimates for Morgan Stanley and Goldman Sachs Group Inc., citing weak trading revenue. Bank of America also cut its estimates for Citigroup Inc. Morgan Stanley fell 5 percent to $25.15, Goldman Sachs slipped 2.5 percent to $147.28 and Citigroup lost 1.2 percent to $3.90.
CarMax Inc. soared 16 percent to $27.35 for the second- biggest advance in the S&P 500. The largest used-car dealer in the U.S. reported second-quarter per-share earnings of 48 cents, topping the average analyst estimate of 40 cents.
‘Muddling Along’
“We’re in a situation where the global economy is muddling along,” said Ron Holt, Chief Executive Officer of Hansberger Global Investors Inc. in Fort Lauderdale, Florida, which manages $8 billion. “When you get companies that can demonstrate they can grow in this kind of environment, investors will flock to those companies.”
Gold futures climbed to a record, surpassing $1,300 an ounce, the U.S. dollar weakened and two-year Treasury yields touched a record low after the Federal Reserve signaled it will keep U.S. interest rates near zero and take additional measures to boost economic growth if necessary. The measures may include additional purchases of U.S. government securities to lower long-term interest rates.
To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.net
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net
http://jodnet.blogspot.com
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