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Entries in dow jones (15)

Friday
Mar222013

Strong Corporate Earnings Push Stocks Higher to End Week 

Hemera/Thinkstock(NEW YORK) -- Strong corporate earnings pushed stocks higher to end the week, with the Dow up 91 points at 14,512 and the Nasdaq up 22 points at 3,245.

The S&P gained 11 points for the day to 1,557.

Robust earnings from Nike and Tiffany were the big drivers.  Nike's stock hit a record after the company announced a surge in quarterly profit, while Tiffany rose after its earnings beat expectations by about one percent.

Fitch Ratings is placing the United Kingdom's triple-A rating on review for a downgrade.  The warning comes just days after Britain's treasury chief unveiled an austere budget, despite weakness in the economy, and raises fears of another recession.

A New Jersey compounding pharmacy that issued a national recall of all of its drugs will remain closed for two more weeks.  Med Prep Consulting is investigating the cause of contamination found in bags of an IV drug given to women to control seizures and premature labor.

Goodyear's adding a new blimp to its iconic line of airships. It'll be larger, faster, and carry more passengers.

Copyright 2013 ABC News Radio

Tuesday
Feb282012

Dow Jones Industrials Close Over 13,000

Ben Hider/Getty Images(NEW YORK) -- The Dow Jones industrial average closed above 13,000 for the first time since 2008, capping a remarkable run-up in stocks that has coincided with a revival of consumer confidence to levels not seen since well before the economic downturn began.

The index, which is comprised of 30 large companies, is a closely-watched barometer of the stock market. The Dow has risen 6.74 percent this year after ending nearly even for all of 2011.  

Despite record gas prices and ho-hum economic news, consumer confidence rose to 70.8, up more than nine points since January 2012.

“Consumer Confidence, which had declined last month, posted a sizable improvement in February.  The Index is now close to levels last seen a year ago,” Lynn Franco, director of The Conference Board Consumer Research Center, said Tuesday in a statement.

“Consumers are considerably less pessimistic about current business and labor market conditions than they were in January. And, despite further increases in gas prices, they are more optimistic about the short-term outlook for the economy, job prospects, and their financial situation,” said Franco.

It’s been a tough barrier to break. Last week, the Dow managed to skate above 13,000 several times but was unable to close above the mark. On Monday, the Dow was close to reaching above 13,000, but near the end of the day the Dow lost 1.44 points and closed at 12,981.51.

The last time the Dow closed above 13,000 was on May 19, 2008.

Copyright 2012 ABC News Radio

Tuesday
Dec272011

Wall Street Closes with Mixed Results in First Post-Christmas Session

Mario Tama/Getty Images(NEW YORK) -- Light trading on Wall Street's first post-Christmas session produced mixed results for investors.

The Dow Jones Industrial closed down nearly three points at 12291.35, while the Nasdaq was up six and a half points at 2,625.20, and the S&P 500 was up 0.10 points to 1,265.43. Meanwhile, the monthly "consumer confidence index" offered unexpected optimism as consumer faith in the economy surged in December to the highest level since April -- and is now almost at a post-recession peak.  

However, consumer optimism was offset by signs of lingering trouble in the housing market and poor holiday sales for Sears.

A review found prices dropped in 19 of 20 metro housing areas in October from September, while Sears holding shares lost 27 percent of their value amid news Sears is shutting down as many as 120 of its Sears and Kmart stores as a result of dismal holiday sales.

Copyright 2011 ABC News Radio

Wednesday
Nov302011

Dow Jones Industrials Soar on Central Bank Action

Hemera/Thinkstock(NEW YORK) -- U.S. stocks soared Wednesday morning after the Federal Reserve in a surprise move cut the cost of emergency dollar funding for European banks as part of a globally coordinated central-bank effort to ease the sovereign-debt crisis that has roiled markets for months.

The Fed said in a statement Wednesday that it slashed the so-called dollar overnight index swap rate to 50 basis points from 100 basis points, or 1 percent, until Feb. 1, 2013.

“The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity,” the central banks said in a joint statement.

The effort is being coordinated with the European Central Bank, the Bank of Canada, the Bank of England, Bank of Japan, and Swiss National Bank.

The Dow Jones industrial average surged 401 points, or 3.4 percent, at 10:30 a.m. in New York.

“Obviously, these moves are designed to increase the flow of dollar liquidity to European banks, which are struggling to attract short-term funding because of questions about their exposure to potential losses on holdings of European sovereign bonds,” said Paul Ashworth, chief U.S. economist at Capital Economics.

The central bank move is designed to free up credit, which has tightened as countries in Europe attempt to get their debt under control and stave off a possible breakup of the euro zone.

Markets in Europe rallied, with the German DAX rising 4.2 percent and  UK’s FTSE up 2.9 percent.

U.S. markets were also boosted by a report from payroll processor ADP that companies added 206,000 jobs in November, more than twice the number that was expected.

Copyright 2011 ABC News Radio´╗┐

Thursday
Sep222011

Stocks Plunge on Jobs, Gloomy Fed Statement

ABC News(NEW YORK) -- The U.S. stock market plummeted after a rocky of day of trading on Thursday.

The Dow Jones industrial average fell 391.01 points, or 3.51 percent, closing at 10,733.83. The NASDAQ ended the day down 3.25 percent at 2,455.67.

Early in the day the Dow was down more than 500 points. U.S stock markets started a sell-off Wednesday after the Fed announced its latest effort to boost the economy but also said that there are "significant downside risks" to the global economy. Things went from bad to worse as global stock markets followed the negative trend that then continued in trading in New York on Thursday.

Thursday was the biggest one-day point and percentage drop on the Dow since Aug. 10, 2011. It was also the biggest two-day point drop on the Dow since November 2008, when the economy was in the depths of the recession.

Investors are clearly panicking about the threat of another recession in the U.S. and Europe.

European leaders cannot seem to come up with a bold consensus to deal with the crisis in their economies, while there was yet another example of the bickering in Washington as GOP leaders failed to pass a stop-gap bill in Congress.

The Labor Department announced earlier in the day that applications for unemployment claims fell 9,000 last week to 423,000, higher than the 420,000 claims economists expected.

Copyright 2011 ABC News Radio

Thursday
Sep222011

Dow Jones Drops More than 300 Points after Fed's Announcement

Comstock/Thinkstock(NEW YORK) -- Stocks plunged and bond yields fell Thursday morning after the Federal Reserve's announcement of a $400 billion securities swap and a disappointing initial jobless claims report.

The Dow Jones Industrial Average dropped over 350 points to 10,769, or 3.2 percent, after trading began in New York. The S&P 500 and tech-heavy Nasdaq index fell about 3 percent.

The Labor Department announced Thursday that applications for unemployment claims fell 9,000 last week to 423,000, higher than the 420,000 claims economists expected.

Phil Orlando, chief equity strategist with Federated Investors, said 400,000 claims or lower would indicate a healthier economic environment for employment.He said the claims figures and a drop in stocks in European and Asian markets - mostly related to fears of a Greek default - contributed to the stock market's tumble.

Stock trading also responded to the Federal Reserve's announcement that "economic growth remains slow" on Wednesday. The Federal Open Market Committee announced the intent to purchase $400 billion of long-term securities by the end of June 2012 and the sale of an equal amount of short-term securities.

"Recent indicators point to continuing weakness in overall labor market conditions, and the unemployment rate remains elevated. Household spending has been increasing at only a modest pace in recent months despite some recovery in sales of motor vehicles as supply-chain disruptions eased," the committee said in a statement at the conclusion of its two-day meeting.

Orlando said the stock markets had rallied after the Federal Reserve completed its annual meeting in Jackson Hole, Wyoming late August when chairman Ben Bernanke expressed some optimism about the economic recovery. The rally started to falter until about two days ago, in part over rumored action by the Federal Reserve.

Orlando said the Federal Reserve did a good job "telegraphing" its "Operation Twist," which aims to decrease long-term interest rates further than already low levels.

And the Fed's move is already working, at least according to the 10-year Treasury yield. The yield fell below 1.8 percent, the lowest level since the 1940s. But will the low yield help stimulate the economy?

"The point is: how much incremental economic activity are we going to see with the 10 year yield at 1.75 versus 2 percent?" he asked.

"The problem is the reluctance of banks to lend money to credit-worthy small businesses and personal borrowers," Orlando said. "Yes, you have lower interest rates but is that going to increase lending to credit borrowers?"

Copyright 2011 ABC News Radio

Monday
Aug082011

Dow Falls More than 600 Points in Worst Day Since 2008

ABC News(NEW YORK) -- The Dow Jones Industrial Average fell over 600 points Monday after a one-two punch: the first-ever Standard & Poor's downgrade of U.S. debt, then the downgrading of government-backed mortgage debt. The Dow's one-day drop of more than 600 points was its biggest point loss in a single day since December 1, 2008.

In closing figures, the Dow Jones Industrial Average sank 634.76 points at 10,809.

The Standard & Poor's 500 stock index tumbled 78 points, or 6.5 percent, to 1123, with financial and energy stocks falling hardest.

Monday's nose-dive came on the heels of President Obama's proclamation that the United States knew well before the S&P downgrade that it had a debt problem.

"The U.S. will always be a triple-A country despite what rating agencies say," he said.

The good news, he said, is the debt is a "solvable" problem that can be addressed through tax reform and spending cuts.

Investors don't seem to agree. The Dow plunged another 100 points to hover around 500 after the president's speech.

As stocks reeled, gold surged by $68 to a record $1,720 an ounce.

Investors were hoping for some sign that the steep market selloff of the last three weeks would abate. Those hopes were dashed when S&P announced the downgrade of the mortgage debt agencies, which are now owned by the U.S. government following their takeover in the 2007 financial crisis. Lower ratings on U.S. bonds and mortgage debt could mean higher interest rates, creating still more drag on the faltering U.S. economy.

Though government officials sought to find fault with S&P's assessment, pointing out that the agency had made a $2 trillion error in its math, others say rampant government spending led to the downgrade.

"If we were running our affairs properly we wouldn't have to worry about S&P, Moody's and Fitch...," Paul O'Neill, treasury secretary in the Bush administration, told ABC News.

Since the late Friday announcement of S&P's downgrade of the U.S. credit rating, there were efforts across the world to calm markets. All weekend the White House has been fighting in some very strong language, calling the move "amateurish" and "breathtaking."

A managing director at Standard & Poor's told George Stephanopoulos on Good Morning America Monday that he has no second thoughts about the decision to cut the U.S. debt rating.

With global stocks sinking early Monday, S&P's David Beers said the agency's decision was based on factors including damage done to the U.S. reputation over the controversy surrounding the debt ceiling and concerns that underlying public finances are on an unsustainable path.

Asked if he had any second thoughts about the downgrade, Beers replied, "Absolutely not."

Copyright 2011 ABC News Radio

Thursday
Aug042011

300 Points and Dropping: Bears Running Again on Wall Street

STAN HONDA/AFP/Getty Images(NEW YORK) -- It's been another day of sharp losses on the corner of Wall and Broad -- with the Dow Jones Industrial Average down more than 300 points. Economist Joel Naroff with Naroff Economic Advisors says many people thought once lawmakers nailed down a debt deal, stocks would respond positively.

"During the spring and summer, we did not focus on the economic fundamentals, we were hoping a budget deal would get us through and now that it's done and we see what the economy is really like, investors are not very happy with the situation," Naroff said.

Stocks have been down nine out of the past 10 days -- falling more than 10 percent in value since their recent peak in late April. Analysts say investors are increasingly concerned about the fragile economy in the U.S. and the threat of a growing debt crisis in Europe.

"The markets tend to overreact, we always see that happening, but I'm not sure how long this will take," Naroff said.

A senior European Union official says Eurozone nations may have to make further changes in their bailout plan to step larger economies such as Italy and Spain from sliding into a debt crisis.

Copyright 2011 ABC News Radio

Wednesday
Aug032011

Worst Run of Selling Days in 33 Years Possible

Comstock/Thinkstock

(NEW YORK CITY) -- The stock market continues a massive sell-off as broad worries about the global economy are coming into focus.

As of late Wednesday morning, the Dow Jones is down about 65 points. If the major industrial average ends in the red Wednesday it will have seen nine consecutive days of sell-off -- a run that’s happened only 25 times since 1928. The most recent run of nine days of selling happened back in February 1978.

Investors seem to be shrugging off the better-than-expected jobs report from payroll company ADP (114,000 new jobs created by private sector employers in their July survey). Instead, stock pickers seem to be focused on reports showing factory orders fell in June and slower than expected activity in the nation’s service sector.

The broader measure of the market – the S&P 500 – hit a low-point of 1245 at around 10:37 a.m. -- matching its 2011 low -- and has since bounced back from that level.

Copyright 2011 ABC News Radio

Lots of Selling; Worst Run of Selling Days in 33 Years Possible

Friday
Jul152011

'Wall Street Journal' Publisher, Les Hinton, Resigns

Gary Gershoff/WireImage(NEW YORK) -- Dow Jones CEO Les Hinton resigned Friday, making him the second high-ranking casualty in less than 24 hours in a journalistic scandal that has jeopardized Rupert Murdoch's multibillion-dollar empire.

Earlier Friday, Rebekah Brooks, one of Murdoch's closest confidants and chief executive of his British newspapers, resigned her post. She was editor of News of the World when the incidents of phone hacking and bribery allegedly occurred.

In Hinton's resignation letter, obtained by the website All Things D, Hinton maintained he was unaware of the inappropriate action that occurred when he was chairman of News International.

"I have watched with sorrow from New York as the News of the World story has unfolded," he wrote. "I have seen hundreds of news reports of both actual and alleged misconduct during the time I was executive chairman of News International and responsible for the company."

"The pain caused to innocent people is unimaginable," he added. "That I was ignorant of what apparently happened is irrelevant and in the circumstances I feel it is proper for me to resign from News Corp., and apologize to those hurt by the actions of the News of the World."

In a statement of his own, Murdoch wrote, "That this passage has come to an unexpected end, professionally, not personally, is a matter of much sadness to me."

Hinton and Murdoch have worked together for more than 50 years.

Copyright 2011 ABC News Radio







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