Posted on 04/26/2006 2:17:59 PM PDT by xcamel
NEW YORK (Reuters) - Stocks ended higher on Wednesday, with the Dow industrials hitting a 6-year high, buoyed by stronger-than-expected earnings from companies such as top brewer Anheuser-Busch Cos. and a key broker's dropping its "sell" rating on General Motors Corp.
The latest string of results in a stronger-than-forecast earnings season overshadowed investors' worries about rising interest rates after orders in March for durable goods such as airplanes and refrigerators surpassed expectations.
Anheuser-Busch reported stronger-than-expected earnings, sending its shares up 5.3 percent, or $2.27, to $44.90 on the New York Stock Exchange. For details see: .
Top U.S. brokerage Merrill Lynch & Co. upgraded General Motors Corp. to "neutral," saying it sees early signs of a turnaround, and making GM the Dow's top gainer as it rose 7.9 percent, or $1.70, to $23.11. .
"The consensus going into the quarter was that earnings were going to (rise) somewhere north of 10 percent and they have handily beat expectations," said Joe Liro, an economist and market strategist with Stone & McCarthy Research Associates, who pinned the rising markets on Wednesday on the flow of positive earnings news.
The Dow Jones industrial average <.DJI> ended up 71.24 points, or 0.63 percent, at 11,354.49, its highest close since January 19, 2000. The Standard & Poor's 500 Index <.SPX> closed up 3.67 points, or 0.28 percent, at 1,305.41. The Nasdaq Composite Index <.IXIC> finished up 3.33 points, or 0.14 percent, at 2,333.63.
Government data showed orders for durable goods — manufactured items meant to last three years or more — surged
in March, reviving worries the Federal Reserve would continue to raise rates into the second half of the year to cool a sizzling economy and ward off inflationary pressures.
Stocks also extended Wednesday's upward swing after a report showed a 13.8 percent jump in new home sales in March, which far exceeded expectations.
The Dow Jones index of home builders' stocks <.DJUSHB> rose 1.6 percent. That mirrored gains in stocks such as Toll Brothers Inc. , up 1.1 percent, or 36 cents, at
$33.30.
Weakness in biotech shares limited the Nasdaq's gains.
Shares of Gilead Sciences Inc. , a biopharmaceutical company whose drugs include HIV virus and bird flu treatments, fell 6.7 percent, or $4.11, to $57.31.
Analysts said there was concern that Gilead's royalties for flu drug Tamiflu for the year may not meet expectations.
Shares of AT&T Inc. and BellSouth Corp. , which own Cingular Wireless, and Verizon Communications , which owns Verizon Wireless with Vodafone Group Plc , all rose and helped lead the S&P 500 higher on Wednesday after Sprint Nextel Corp. , the No. 3 U.S. wireless service, reported results below expectations and fed concerns it is losing market share to its bigger rivals.
AT&T rose 2.2 percent, or 56 cents, to $26.16, while BellSouth was up 2.1 percent, or 69 cents, at $33.74. Shares of Verizon rose 1.8 percent, or 58 cents, to $33.08. All are traded on the NYSE.
While the broader stock market appears to be taking the spike in bond yields in stride, one group is taking it on the chin: utilities. The S&P 500's utilities index <.GSPU> is down by about 1 percent for a second straight day and is now the second-worst performer, behind health care <.GSPA>, in the index for the year.
Utilities pay the largest dividend yields over any other stock market sector and become less appealing when bond yields rise and become more competitive.
The 10-year U.S. Treasury note's yield hit 5.13 percent during the day — its highest in about four years. Late in the day, the 10-year note's yield was 5.11 percent, up from 5.07 percent on Tuesday, while its price was down 9/32 late Wednesday at 95-11/32.
Got a saying where I come from too pal, it is "stick it." You figure out the rest.
Got your measure. You're on the wrong forum.
You have an answer to your Freep mail pal. That is my final say to you, pal.
Umm, well - one could reasonably argue that what we had in '01 was the peak of a bubble, and that we have finally reached the level where it really should be.
In either case... life is good! And democrats can stew all they want.
There's no trainwreck. The people are just pissy they have to start changing their habits. Well they can get over it. And as soon as they do, demand goes down and so does the price, and then everyone will be driving all the time. Free god da$^ed market at work. It boggles the mind people just don't get that. There must be someone to blame, cause I can't drive my MEGA TRUCK as much as I want to. Jeeesh.
I like giraffes. They're so graceful...
Well, for one thing, I celebrated my birthday.
"Sell in May and go away. Headed for the October low from here."
That's what my brother keeps saying too. Maybe I should listen....
Oh CRAP!
The Dow ended?
What am I going to do now ? - I have money in there...
Is anything going to take the Dow's place?
LOL!!
Have you seen the profits Exxon-Mobil is making? Have you seen the retirement money their CEO is walking away with? How can I be happy when somebody is making money and it's not me?
Things weren't so great toward the end of Clintoon's term. Remember "Help is on the Way?" Kerry tried to steal that in 04 but it didn't work out so well for him.
Bush inherited his recession from Toon and the Net bust
The Left has finally found something that wasn't Bush's fault.
Is it close to the all time high?
Was, then backed off a bit.
Personally, 18.8 percent. Note to self: buy more oil company stocks.
ok...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.