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Dow ends at 6-year high (How would you ever know ???)
ABC ^ | Apr 26, 2006 | By Chris Sanders

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.


TOPICS: Breaking News; Business/Economy; News/Current Events
KEYWORDS: anheuserbusch; djia; dow; dow10000; high; record; term2; thebusheconomy; wgids
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To: builder
Unless Mary leaks this info to them,the MSM will never report it.

Great idea!

21 posted on 04/26/2006 2:34:39 PM PDT by Mo1 (DEMOCRATS: A CULTURE OF TREASON)
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To: RWR8189
Dow is a little less than 400 points away from its all time high. When this threshold is passed, the MSM silence will be deafening.

To be fair, and play devil's advocate, it can be viewed as stagnation over 6 years, in that it dipped and just returned to its high. You would expect about 10% growth each year, on average, and with compounding, you're looking at up 77%... So, even though that's somewhat aggressive, the Dow, by those (admittedly somewhat lofty) standards, the Dow should be at the 18,000 level by now...

I know, I know, that's simplistic as it doesn't account for 911, etc...

22 posted on 04/26/2006 2:35:16 PM PDT by NYC Republican
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To: xcamel
Dudden matter. IT IS ALL, I MEAN ALL, ABOUT GAS AND OIL PRICES WITH 99.99% OF AMERICANS RIGHT NOW. NOTHING ELSE MATTERS. GAS AND OIL PRICES. You cannot drive down the street without seeing all the prices out in front of gas stations going up, up, up, etc. That is all anyone cares about.
23 posted on 04/26/2006 2:35:23 PM PDT by RetiredArmy (Politicians and the U.S. Government are liars, cheats and thieves, in it for their own gain.)
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To: BikerGold
Hello,

(It's all Bush's fault?)

Glad to be here, MOgirl
24 posted on 04/26/2006 2:35:47 PM PDT by MOgirl (Democrats: The Culture of Treason (and you know what I'm talkin about!))
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To: BikerGold

You forgot global warming.


25 posted on 04/26/2006 2:35:51 PM PDT by VOATNOW1 (Hire an illegal, go to jail.)
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To: xcamel
"Dow ends at 6-year high"

I blame Bush

Sorry, folks, I couldn't resist

26 posted on 04/26/2006 2:39:51 PM PDT by muir_redwoods (Free Sirhan Sirhan, after all, the bastard who killed Mary Jo Kopechne is walking around free)
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To: CedarDave

Clinton-induced recession and 9/11 but you'd never know it from listening to the libs and MSM

---

Oh you will, but it will only happen after a dem is living off of the prosperity which was created by the republican/capitalistic administration put in place before them. Then they will take credit for everything like Clinton did.


27 posted on 04/26/2006 2:40:11 PM PDT by BoBToMatoE
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To: xcamel

it's very nice for most investors

but inflationary home prices

high gas

and fairly stagnant wages for lower wage earners

all sorta dim the DOW bulb

I'm happy but some kid starting out at 30K a year may be less so

that the MSM doesn't care is no surprise...a GOP is in office


28 posted on 04/26/2006 2:40:15 PM PDT by wardaddy (Chupacabra por El Presidente del Estados Unidos de Norte Azteca-Mejico!)
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To: RetiredArmy

IT IS ALL, I MEAN ALL, ABOUT GAS AND OIL PRICES WITH 99.99% OF AMERICANS RIGHT NOW. NOTHING ELSE MATTERS. GAS AND OIL PRICES

---

this is also true when it comes to elections.. and if not kept in check, the gas prices will torpeedoe the economy. That is a fact.


29 posted on 04/26/2006 2:41:00 PM PDT by BoBToMatoE
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To: xcamel

This Bud's for us!


30 posted on 04/26/2006 2:41:23 PM PDT by mainepatsfan
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To: RoseofTexas

If Bush can take credit for the DJIA rise then will he have to take credit for it's fall if it occurs?

Clinton presided over a stock boom the likes we've never seen but I never gave him credit ..no way.

I do think POTUS can create a good environment over two terms but a lot of this is out of his hands...largely.


31 posted on 04/26/2006 2:42:31 PM PDT by wardaddy (Chupacabra por El Presidente del Estados Unidos de Norte Azteca-Mejico!)
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To: RetiredArmy

If it makes you feel any better, the XOM stock that made me a bundle last week has been slipping back, this week. :)


32 posted on 04/26/2006 2:43:23 PM PDT by linda_22003
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To: xcamel

Worst economy since...Clinton.


33 posted on 04/26/2006 2:43:24 PM PDT by RobFromGa (In decline, the Old Media gets more shrill, thrashing about like a dinosaur caught in the tar pits.)
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To: xcamel
"Commodities traders and market speculators are driving the price up on open markets. Check the CME and see who is trading (George Soros owns about 15,000 contracts so far....)

You are correct, and this is HUGH and series. Unsure about Soros, but somebody HUGH is pulling some golden strings somewhere...

34 posted on 04/26/2006 2:45:37 PM PDT by BikerGold (Ruach/Pneuma/Holy Ghost)
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To: Mo1
oh crap .. more good news

LOL!

35 posted on 04/26/2006 2:45:58 PM PDT by cardinal4 (Kerry-Mcarthy in 2008!)
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To: xcamel

Just checked my 401K and other retirement/stock accounts . . . let's just say I have a BIG smile on my face!

[THANK YOU President Bush! . . . Hubby and I are finally getting back to where we were in 1999 BEFORE Clinton/Reno decided to 'take down' Microsoft/the NASDAQ and half our net worth with it!!]


36 posted on 04/26/2006 2:53:01 PM PDT by DrDeb ("I stand with the GREAT DECIDER!")
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To: xcamel
I just watched Kudlow. He had Buchanan on and of course, ole Pat trashed the economy, bringing up the deficit, on to illegals.

Off goes the TV. Will wait for Tony to be on with Brit before I put the set on again.

37 posted on 04/26/2006 2:53:39 PM PDT by OldFriend (I Pledge Allegiance to the Flag.....and My Heart to the Soldier Who Protects It.)
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To: xcamel

its the economy stupid


38 posted on 04/26/2006 2:54:59 PM PDT by wallcrawlr (http://www.bionicear.com/)
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To: wardaddy
I'm happy but some kid starting out at 30K a year may be less so

wardaddy,when I entered the workforce, unemployment was around 8%, interest rates were pushing 20%, young men lined up at the military recruiter's office because there were just no jobs for anybody, much less young people, at the time. I would have LOVED today's economy when I was 20.

39 posted on 04/26/2006 2:58:31 PM PDT by Warren_Piece (Smart is easy. Good is hard.)
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To: mathprof

Hmm.. 6 minutes apart.. bad lag?


40 posted on 04/26/2006 2:58:46 PM PDT by xcamel (Press to Test, Release to Detonate)
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