U.S. stocks rose, with benchmark
indexes closing at all-time highs, amid optimism the economy is
showing sufficient strength to weather a slowdown overseas.
Phone companies led gains, while technology stocks rose as
Hewlett-Packard Co. advanced to the highest level since May 2011
even after missing analyst earnings estimates. Energy producers
decreased as Seadrill Ltd. suspended dividends amid the lowest
oil prices in more than four years.
The Standard Poor’s 500 Index (SPX) rose 0.3 percent to
2,072.83 at 4 p.m. in New York, extending gains in the final 15
minutes of trading. The Dow Jones Industrial Average added 12.81
points, or 0.1 percent, to 17,827.75. Both gauges ended at
records. The Nasdaq 100 Index climbed 0.7 percent to extend a
more than 14-year high. About 4.9 billion listed shares changed
hands in the U.S., 26 percent lower than the three-month daily
average. U.S. markets will be closed tomorrow for the
Thanksgiving holiday.
“Economic numbers in general have been good, and that
optimism is following through,” Richard Sichel, chief
investment officer at Philadelphia Trust Co., which oversees $2
billion, said in a phone interview. “It could be a good retail
season, and low gas prices are making a difference.”
Consumer confidence climbed to a more than seven-year high
in November as Americans’ views of their financial well-being
improved heading into the holiday shopping season. A separate
report showed consumer spending climbed in October at the same
pace as incomes, showing households are staying within their
means as the holiday-shopping season begins.
Data Watch
Orders for U.S. business equipment such as machinery and
electrical gear unexpectedly declined in October. Other data
showed jobless claims increased by 21,000 to 313,000 in the week
ended Nov. 22, the highest since early September, from 292,000
in the prior period. New homes in the U.S. sold at a slower pace
than forecast last month.
A report yesterday showed U.S. gross domestic product
expanded at a 3.9 percent annualized rate in the third quarter,
more than initially estimated.
The SP 500 has advanced each December for the past six
years. It is up 11 percent from its six-month low in October,
as data signaled the U.S. economy is improving and central banks
in Europe, Japan and China added more stimulus measures.
Stock Rebound
The rally in American equities has pushed stock valuations
to near the highest levels since 2009. The SP 500 trades at
17.3 times the projected earnings of its members, up from a
multiple as low as 15.5 last month. Profit for SP 500 companies
may rise 7.6 percent this year, estimates compiled by Bloomberg
show.
Calm has returned to equity markets. The Chicago Board
Options Exchange Volatility Index, the gauge of options prices
known as the VIX, has dropped 14 percent in the past five days
to a two-month low. The benchmark gauge of price swings surged
to a more than two-year high on Oct. 15.
Eight out of 10 main industries in the SP 500 increased
today, with phone and technology companies posting the largest
gains. Energy shares slumped the most, dropping 1.1 percent
ahead of tomorrow’s OPEC meeting.
Chipmakers surged, with Analog Devices Inc. climbing 5.5
percent after profit and sales for the fourth quarter exceeded
projections. The company’s adjusted gross margin, a measure of
profitability, was also wider than analysts had predicted.
Telecom Increases
Phone companies in the benchmark gauge gained the most
since July as CenturyLink Inc. rose 2.2 percent to lead gains.
ATT Inc. rose for a second straight day after falling 3.3
percent since Nov. 14.
Technology companies in the SP 500 climbed 0.9 percent.
Hewlett-Packard Co. added 4.1 percent even after the computer
maker reported fourth-quarter sales that missed estimates. The
company’s margins may benefit from a restructuring plan that
would spin off its personal-computer and printer operations into
a stand-alone entity, Brian Alexander, an analyst for Raymond
James, wrote in a client note today.
Mylan Inc. surged more than 4 percent. A Jefferies Group
LLC analyst said the company is viewed as the most likely
takeover target for Pfizer Inc.
Deere Co. pared its drop to 0.9 percent after losing as
much as 3.9 percent. The world’s largest maker of farm equipment
forecast 2015 profit that trailed estimates as farmers buy fewer
high-horsepower tractors and combines after crop prices fell.
Caterpillar Inc. slumped 0.4 percent.
Seadrill Ltd. fell 23 percent, the most in six years, after
the offshore driller controlled by billionaire John Fredriksen
suspended dividends as the slump in oil prices weakens demand
for rigs.
Energy companies declined the most out of the 10 main SP
500 industries as Diamond Offshore Drilling Inc., Transocean
Ltd. and Noble Corp. declined more than 5 percent. Crude oil
dropped 0.5 percent to $73.69 a barrel in New York, the lowest
since September 2010.
To contact the reporter on this story:
Joseph Ciolli in New York at
jciolli@bloomberg.net
To contact the editors responsible for this story:
Jeff Sutherland at
jsutherlan13@bloomberg.net
Michael P. Regan
Article source: http://www.dailymail.co.uk/wires/ap/article-2840600/China-school-bus-crash-kills-11-kindergarteners.html
U.S. stocks rose, with benchmark
indexes closing at all-time highs, amid optimism the economy is
showing sufficient strength to weather a slowdown overseas.
Phone companies led gains, while technology stocks rose as
Hewlett-Packard Co. advanced to the highest level since May 2011
even after...
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