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.
Sorry, but on average, historically, it has been up around 10%, some years 30% of higher.
I don't think we're in disagreement. The way we have 10% average annual returns is by having some -25% years and some +30% years.
I just looked out the window at cloudy skies. Chuckie is on the FNN News. This is all Bush's fault.
That would mean the market started FALLING BEFORE W took office!!!!, and that it was actually in decline during the Sink Emperor's.
Yes, and W mentioned it in every stump speech. The media who were forced to cover his campaign called him a fearmongerer. The recession started in March 2000.
So there is usually some bad news that propels stocks higher (rising energy costs...)
That is something I read last week, and I think is true...
But giving all those terrorist countries more money for terrorism (Iran, Russia, Libya, Angola, Nigeria) because the price of oil is going up is not good news...
Yes, we're going to burn up next week from global warming. :-)
Bush's fault.
Time to impeach him and put his dogs to sleep.
Put Karl Rove on Death Row and fire Rummy!
This has to be the worst economy since the last ice age and the current global warming period started thousands of years ago.
Sarcasum off!
I wonder how ABCNNBCBS will minimize this.
Or they will scream about inflation and the new decade of greed where homosexual, illegal aliens, lesbians and orphans are being hurt worse with this news.
"Unless Mary leaks this info to them, the MSM will never report it."
There you go. We can get Mary McTraitor drunk and high and tell her that this news is top secret, and she can't tell Dana Priest or her sissy girly husband. This is an evil plan to make millionaires out of all republicans owning stock and paupers out of all liberals who hate capitalism.
Then, it would be a top news story and might replace the Plame outing debacle.
LOL!
Would you please post some of those links and ping me or freep mail me the links.
Thanks.
Some of us have been wondering how much George $oreA$$ has been toking the gold and oil future markets.
It's an upwards downward spiral brought about by the amish investors, I'd invest heavily in tissue products.
Can't you see Peter Goss planting this story with the remaining Mary McTraitors at the farm. Then they go sleep with the pseudo reporter and editors for the Ny Slimes, La Slimes and the Washington Compost.
The headlines would scream: Evil Bush wants to make Republicans millionaires and Rats paupers.
All your stocks are belong to us !!
Well, this is an ABC story, isn't it?
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