Stocks rally on retail salesWall Street jumps in the early going after strong report on consumer spending in January. Earnings from Applied Materials and Coca-Coca top expectations.Video
NEW YORK (CNNMoney.com) -- A strong reading on retail sales and upbeat earnings from Applied Materials were among the factors boosting stocks Wednesday morning. The Dow Jones industrial average (INDU) and the broader Standard & Poor's 500 (SPX) index both added 0.6% in the early going. The Nasdaq composite (COMP) gained 1.2%. Blue chips rallied Tuesday on news that Warren Buffett reached out to ailing bond insurers and that major lenders came up with a plan that they say will help homeowners avoid foreclosure. But a tech advance fizzled, with the Nasdaq ending near the unchanged line. A surprisingly strong January retail sales report fired up investors Wednesday, soothing worries about a slowdown in consumer spending. Retail sales rose 0.3%, the Commerce Dept. reported, versus forecasts for a drop of 0.3%. Sales excluding autos rose 0.3%, versus forecasts for a rise of 0.2%. (Full story). In corporate news, Applied Materials (AMAT, Fortune 500) reported lower quarterly sales and earnings that nonetheless topped forecasts in a report released late Tuesday. Shares gained 6% Wednesday. Dow component Coca-Cola (KO, Fortune 500) reported higher quarterly sales and earnings Wednesday that topped estimates. Nonetheless, shares inched lower. In addition to the retail sales report, another economic report showed that December business inventories rose 0.6% versus forecasts for a rise of 0.5%. Inventories rose 0.4% in the previous month. Other markets. Treasury prices fell, raising the yield on the benchmark 10-year note to 3.7% from 3.66% late Tuesday. Bond prices and yields move in opposite directions. In currency trading, the dollar gained versus the euro and the yen. U.S. light crude oil for March delivery fell 38 cents to $92.40 a barrel on the New York Mercantile Exchange, ahead of the weekly oil inventories report. COMEX gold for April delivery fell $6.30 to $904.80 an ounce. |
Photo Galleries
When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More
|
