Related News
Stock market posts best week of 2012
Source: Agencies |
June 9, 2012, Saturday
|
Online Edition
Online Edition
STOCKS rose for the fourth day in a row on Friday, capping their best week so far this year.
It was a relief for investors after the big drops of the previous week.
Stocks fell in morning trading, with the Dow Jones industrial average down almost 63 points. But they turned around after the government said businesses are restocking their shelves faster than analysts had expected.
The Commerce Department said US wholesale stockpiles grew 0.6 percent in April. That's twice as fast as they grew in March and a sign that businesses are ordering enough goods to lead to increased factory production and sales. Investors had been braced for more sluggish growth.
Oil fell 72 US cents to US$84.10 per barrel. Sure, it was pushed down by long-term economic worries. But lower energy costs help consumers.
"If you had some doubts about an economic recovery, oil in the US$80s is a lot better than oil at US$110," said Jim Dunigan, managing executive of investments for PNC Wealth Management in Philadelphia. Oil traded just below US$110 in late February.
The Dow finished 93.24 points higher, or three-quarters of a percent, at 12,554.20. It ended the week up almost 3.6 percent.
The Standard & Poor's 500 index rose 10.67 points, or 0.81 percent, to close at 1,325.66. The Nasdaq composite rose 27.40 points, or 0.97 percent, to close at 2,858.42.
Nine out of the ten industry groups in the S&P 500 rose. Only energy stocks declined, following energy prices lower.
Wal-Mart Stores was the biggest gainer in the Dow, up US$2.35, or 3.6 percent, at US$68.22. Other companies that depend heavily on a strong economy grew too, including Intel, up 47 US cents, or 1.8 percent, at US$26.41, and General Electric, up 20 US cents, or 1 percent, to US$19.20. Home Depot rose US$1.11, or 2.2 percent, to US$52.35.
Facebook rose 79 US cents, or 3 percent, to US$27.10 after announcing an "app center" that will recommend new add-on software for users. Anything that boosts user interaction is likely to help it sell more ads, which has been a key concern for investors in its new stock, which debuted three weeks ago at US$38.
Chesapeake Energy shareholders punished their directors and were rewarded by the market. The stock rose 51 US cents, or 2.9 percent, to US$18.36 after shareholder votes prompted the resignations of two directors at the company's annual meeting Friday. Earlier in the day the company said it will sell pipeline assets in three deals for a total of more than US$4 billion in cash.
Navistar International rose US$4.25, or 17.6 percent, to US$28.36 after the activist investor Carl Icahn boosted his stake in the truck maker.
Markets fell in Asia. Shanghai's stock index lost a half-percent, its fifth day of losses. Japan's Nikkei fell 2.1 percent.
Chinese leaders have been showing signs of urgency ahead of May trade and industrial data due out this weekend that might be even weaker than earlier pessimistic forecasts. The Chinese government cut interest rates for the first time in four years and has reduced gasoline and diesel prices for the second time in a month.
Over the long run, that will put more money in the pockets of Chinese consumers. In the short run it's a sign that the government is worried about growth.
"That shows they're being proactive, but on the other hand, it also makes you wonder, what's the data is really like?" said Uri Landesman, president of Platinum Partners. "I'm wondering how bad the data's going to be. I'd be very surprised if it's good."
China is a key US trade partner so its growth is important to US companies. Its importance is magnified by the possibility that Europe's economy will go from slow growth to shrinkage, Landesman said.
Major European markets fell, although their declines were smaller after the US inventory news came out. France's benchmark index lost 0.6 percent, Britain's and Germany's each dropped 0.2 percent.
It was a relief for investors after the big drops of the previous week.
Stocks fell in morning trading, with the Dow Jones industrial average down almost 63 points. But they turned around after the government said businesses are restocking their shelves faster than analysts had expected.
The Commerce Department said US wholesale stockpiles grew 0.6 percent in April. That's twice as fast as they grew in March and a sign that businesses are ordering enough goods to lead to increased factory production and sales. Investors had been braced for more sluggish growth.
Oil fell 72 US cents to US$84.10 per barrel. Sure, it was pushed down by long-term economic worries. But lower energy costs help consumers.
"If you had some doubts about an economic recovery, oil in the US$80s is a lot better than oil at US$110," said Jim Dunigan, managing executive of investments for PNC Wealth Management in Philadelphia. Oil traded just below US$110 in late February.
The Dow finished 93.24 points higher, or three-quarters of a percent, at 12,554.20. It ended the week up almost 3.6 percent.
The Standard & Poor's 500 index rose 10.67 points, or 0.81 percent, to close at 1,325.66. The Nasdaq composite rose 27.40 points, or 0.97 percent, to close at 2,858.42.
Nine out of the ten industry groups in the S&P 500 rose. Only energy stocks declined, following energy prices lower.
Wal-Mart Stores was the biggest gainer in the Dow, up US$2.35, or 3.6 percent, at US$68.22. Other companies that depend heavily on a strong economy grew too, including Intel, up 47 US cents, or 1.8 percent, at US$26.41, and General Electric, up 20 US cents, or 1 percent, to US$19.20. Home Depot rose US$1.11, or 2.2 percent, to US$52.35.
Facebook rose 79 US cents, or 3 percent, to US$27.10 after announcing an "app center" that will recommend new add-on software for users. Anything that boosts user interaction is likely to help it sell more ads, which has been a key concern for investors in its new stock, which debuted three weeks ago at US$38.
Chesapeake Energy shareholders punished their directors and were rewarded by the market. The stock rose 51 US cents, or 2.9 percent, to US$18.36 after shareholder votes prompted the resignations of two directors at the company's annual meeting Friday. Earlier in the day the company said it will sell pipeline assets in three deals for a total of more than US$4 billion in cash.
Navistar International rose US$4.25, or 17.6 percent, to US$28.36 after the activist investor Carl Icahn boosted his stake in the truck maker.
Markets fell in Asia. Shanghai's stock index lost a half-percent, its fifth day of losses. Japan's Nikkei fell 2.1 percent.
Chinese leaders have been showing signs of urgency ahead of May trade and industrial data due out this weekend that might be even weaker than earlier pessimistic forecasts. The Chinese government cut interest rates for the first time in four years and has reduced gasoline and diesel prices for the second time in a month.
Over the long run, that will put more money in the pockets of Chinese consumers. In the short run it's a sign that the government is worried about growth.
"That shows they're being proactive, but on the other hand, it also makes you wonder, what's the data is really like?" said Uri Landesman, president of Platinum Partners. "I'm wondering how bad the data's going to be. I'd be very surprised if it's good."
China is a key US trade partner so its growth is important to US companies. Its importance is magnified by the possibility that Europe's economy will go from slow growth to shrinkage, Landesman said.
Major European markets fell, although their declines were smaller after the US inventory news came out. France's benchmark index lost 0.6 percent, Britain's and Germany's each dropped 0.2 percent.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
