Posted on 09/02/2004 1:09:35 PM PDT by RWR8189
NEW YORK (Reuters) - U.S. stocks rallied on Thursday after a fast retreat in the oil price helped boost confidence among investors, while retailers, such as Best Buy Co. Inc. (BBY.N: Quote, Profile, Research) and Gap Inc (GPS.N: Quote, Profile, Research) , lent support.
The stock market was cheered as several retailers beat sales expectations or raised forecasts, pushing up the Standard & Poor's retailing index 2.4 percent.
An easing in the oil price also helped sentiment.
Crude for October delivery ended up just 5 cents at $44.05 a barrel after gains of more than a dollar earlier pushed it above $45. The oil price rise evaporated on a flurry of late-session profit-taking that followed a nearly $2 gain on Wednesday on bullish supply data.
A higher oil price generally weighs on stock prices as investors worry about the impact increased costs will have on corporate profits.
"In my mind there's almost a direct correlation - crude sells off and the market lifts," said Mike Driscoll, Bear Stearns listed trader and managing director.
"But there's extremely low volume and moves are exaggerated in either direction."
The Dow Jones industrial average was rose 119 points, or 1.17 percent, at 10,287. The Standard & Poor's 500 Index gained 13 points, or 1.16 percent, at 1,119. The technology-laced Nasdaq Composite Index advanced 25 points, or 1.34 percent, at 1,875.
Economic data gave a mixed picture. Factory orders rose in July and were revised up in June, suggesting economic strength. U.S. worker productivity in the second quarter grew at the slowest clip since the fourth quarter of 2002.
Volume remained light as it has this week on Wall Street. Many investors were out of New York on vacation or to avoid commuting problems caused by the Republican convention.
Home improvement stocks rose as the approach of Hurricane Frances to Florida and the U.S. mainland suggested sales could be helped in coming days.Volume is almost nonexistent today. Things are very quiet and it's going to be even quieter tomorrow before the Labor Day weekend," said Weston Boone, vice president of listed trading at Legg Mason Wood Walker. U.S. markets will be closed on Monday for the holiday.
Home Depot Inc. (HD.N: Quote, Profile, Research) rose 67 cents to $37.55 while Lowe's Cos. Inc. (LOW.N: Quote, Profile, Research) gained $1.59 to $51.77.
American Eagle Outfitters Inc. (AEOS.O: Quote, Profile, Research) gained 6.5 percent, or $2.23, to $36.39 after the retailer raised its profit forecast, while Gap was up $1.15, or about 6 percent, to $20.15 after its same-store sales fell less sharply than Wall Street had expected.
Best Buy rose $2.36 to $49.11, or more than 5 percent, after it forecast second-quarter operating profit to beat Wall Street's estimates.
Wal-Mart Stores Inc. (WMT.N: Quote, Profile, Research) reversed an early slip to nudge up 3 cents to $52.66. Earlier the group cut its sales forecast for the current quarter and said earnings would likely reach only the low end of its forecast after weaker-than-expected August sales.
Investors were eyeing bellwether technology company Intel Corp. (INTC.O: Quote, Profile, Research) before its midquarter business update after the closing bell. Its shares were up 11 cents at $21.54.
U.S. nonfarm payrolls data for August is scheduled to be released at 8:30 a.m. on Friday. Economists believe about 150,000 jobs were created last month, nearly five times the paltry 32,000 gain in July. A weaker-than-expected figure could prompt the Federal Reserve to slow its interest rate hikes.
Anyone have any idea about what the job report is going to be like?
I heard on MSNBC (don't shoot me) that the president already knows the jobs number coming out tomorrow and is going to announce them in his speech tonight. They must be good.
If that last minute rally was any indication, I'm willing to say its going to be good.
Last month the Thursday before the jobs report, we were down 1%+ in all major indices, and today we are plus 1%+!
Sounds good to me. I am looking forward to his speech.
Expecting +150,000 non-farms and the UR to hold at %5.5.
It's the worst economy since Hubert Humphrey, isn't it? Yeah, sure it is.
Administration officials officially get the numbers leaked to them right about now, so this wouldn't surprise me to much.
I doubt he would announce it in his speech though.
It would save me from getting up at 7:30 however.
It's a darn stockmarket crash - Yup its the great Kerry depression.
I'm a bond trader and the rumor being floated out there this afternoon is that W will mention the number during his speech tonight. The administration gets the number around 4 ET the day before, so they already know what it is. I personally think he'll won't actually leak the specific number during his speech, but I will not be surprised at all if he mentions the report in an ambiguous way.
You are kidding me? Last months new jobs were low, but over a half a million people found new jobs, dropping the umemployment rate.
Temporary Open Market Operations for September 02, 2004
Last updated: September 02, 2004 09:52 AM
Number of operations today: 2
Delivery date: Thursday, September 02, 2004
Maturity date: Friday, September 03, 2004
Type of operation: O/N RP 1
Operation close time: 09:45 AM
Total Money Value of Operation (in $bil.)
9.500
Delivery date: Thursday, September 02, 2004
Maturity date: Thursday, September 16, 2004
Type of operation: 14-day RP 1
Operation close time: 08:35 AM
Total Money Value of Operation (in $bil.)
15.000
It means alot to my company - I work for one of the Leading Online Global Careers Networks.
If the economy is bad, then how come I have two job interviews tomorrow???
Strange... a lot of the reports coming out seem to suggest a bad jobs report - especially in light of the Hurricane..
Wooo hooooo! Good luck tomorrow! :-)
Pray for good job numbers.
Literally.
If they are bad, it could end the bounce.
Investors were eyeing bellwether technology company Intel Corp. (INTC.O: Quote, Profile, Research) before its midquarter business update after the closing bell. Its shares were up 11 cents at $21.54.
Intel just released their guidance and they're guiding lower. The report doesn't look too encouraging so expect the market to go down tomorrow unless the jobs report is a blockbuster.
I thought these reports were kept under wraps. How could he know them the night before.
Plus the WH needs to do a better job of touting the Household survey job numbers (which are just as accurate...and include contract workers and the self-employed!) - These numbers showed over 600,000 jobs added last month alone!! (that is why UE dropped) -
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