U.S. stocks climb on earnings, economic optimism; DOW up 0.36
Published Jan 19, 2012 04:27PM ET
At the close of U.S. trade, the Dow Jones Industrial Average gained 0.36%, the S&P 500 added 0.49% and the Nasdaq Composite advanced by 0.67%.
Stocks climbed as initial U.S. jobless benefit claims plummeted 50,000 to 352,000 in the week ending January, 14th. This crushed the median analyst's forecast of 384,000, increasing hopes that the world's largest economy continues to improve.
Meanwhile, a U.S. consumer price index signaled that inflation is under control reducing worries about Central Bank monetary actions.
In the euro zone, Spain sold EUR6.6billion of bonds maturing in 2016, 2019 and 2022 beating the maximum target of EUR4.5billion. Yields on the 2019 and 2022 dropped, but borrowing costs increased on the 2016's adding to the worldwide economic optimism
The European Central Bank fueled the bullish session by stating that it has a whole range of unconventional measures to manage the debt crisis.
Richard Weeks of High Tower Wealth Management, told Bloomberg, " We are in a fragile economy, we are not going to have robust growth, but its going to take a lot of things to derail the economy."
35 companies in the S&P 500 reported results since January 9th. 22 beat earnings estimates, according to Bloomberg's data. Combined S&P 500 profit is forecast to hit USD104.76 a share in 2012, the highest level ever.
Bank of America climbed 2% after posting a profit and Morgan Stanley soared over 5% after reporting a less than expected loss.
Ebay jumped 3.5% as the internet auction house beat estimates.
Retailer Sears climbed 7% on a report that CIT Group will approve factoring financing for the company's vendors.
In bearish news, search engine giant, Google missed analysts estimates sending shares plunging over 10% in after hour trade.
After the close of European trade, the EURO STOXX 50 surged 1.86%, France's CAC 40 rocketed 1.96%, while Germany's DAX advanced 0.97%. Meanwhile, in the U.K. the FTSE 100 climbed 0.68%.
Investors are awaiting German producer price numbers and the U.K. retail sales report, along with Australia's import price figures and U.S. existing home sales.
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Written By: Investing.com
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