Dow rallies to new high
Intraday record set as earnings, outlook continue to impress; Wal-Mart surges as retailer reins in spending.
NEW YORK (CNNMoney.com) -- Wall Street had a little party Monday on the latest round of solid corporate earnings, pushing the Dow Jones industrial average up more than 100 points to another record high.
The 30-share Dow (up 111.90 to 12,114.27, Charts), the world's most widely watched stock market gauge, jumped nearly 1 percent with about two and a half hours left in the session.
Corporate earnings continued Monday, and results were generally solid. Ford (down $0.13 to $7.88, Charts) reported a loss of 62 cents a share for its third-quarter. It was the company's biggest loss in 14 years, but shares didn't suffer too much as it was in line with analysts' expectations.
Wal-Mart said it's slowing its rate of growth in the U.S., planning to increase its capital expenditures by 2 to 4 percent next year versus the 15 to 20 percent rate this year.
"The consumer is still there and companies are having a strong earnings season," said Kim Caughey, an analyst at Fort Pitt, a Pittsburgh-based asset management company. "Very few companies have guided down. Things look strong."
Last week, earnings were mostly positive as well, pushing the Dow above the 12,000 mark for the first time ever.
But investors remain nervous as to whether the economy can handle a cooling period without slipping into recession, as well as about the ever-present threat of inflation.
Earnings period continues in full swing this week, with reports due from companies in varied sectors of the economy including autos, consumer goods, tech and energy.
The Federal Reserve also is set to meet this week, which could make investors jittery. Central bank policymakers are widely expected to hold interest rates steady at 5.25 percent when they meet Tuesday and Wednesday.
On the commodities front, Oil prices tumbled, sinking 83 cents to $58.50 a barrel on the New York Mercantile Exchange despite an announcement from Saudi Arabia that it would cut production.
Oil traders have strong doubts that the rest of OPEC will follow Saudi Arabia's lead and rein in production, regardless of what OPEC officially says.
COMEX gold fell $9.40 to $587.
Treasury prices were lower, raising the yield on the benchmark 10-year note at the 4.83 percent.
In currency trading, the dollar rose against the euro and the yen.
Stocks in Asia rose, with Tokyo's benchmark Nikkei average closing at its highest level since May. European shares finished higher as well.
Market breadth was positive. On the New York Stock Exchange, winners beat losers three to two on volume of 859 million shares. On the Nasdaq market, advancers edged out decliners as 1.07 billion shares changed hands.