Equities Update: Strong Finish Pads Day's Gains

by: Midnight Trader

4:26 PM, Jun 15, 2010 --

  • NYSE up 171.9 (+2.5%) to 6,989.88
  • DJIA up 213.9 (+2.1%) to 10,405
  • S&P 500 up 25 (+2.4%) to 1,115
  • Nasdaq up 61 (+2.8%) to 2,306


  • Hang Seng up 0.05%
  • Nikkei up 0.08%
  • FTSE up 0.30%


(+) SI inks five-year deal with Siemens.

(+) AAPL launches new version of Mac Mini.

(+) RIMM planning touch-screen smartphone with sliding keyboard: WSJ

(+) FDS beats with Q3, sets Q4 guidance mostly ahead of expectations.

(+) THC raises FY EPS view to mostly above Street expectations.

(+) ATRC continues evening gain seen after company gets FDA clearance for AtriClip.

(+) NGAS issues positive well update.


(-) ELY continues evening decline seen after company guides below Q2


(-) CPST continues evening decline that followed revenue miss.

(-) CASY beats with earnings.


Stocks end firmly in the green, with a late surge pushing the Dow Jones Industrial Average above 200 points. The S&P 500 and Nasdaq Composite up between 2.3% and 2.7%. Energy and tech sectors fronted the gain. The euro's stability above $1.23 restored some global market confidence a day after a downgrade for Greece.

U.S. economic data offered a mixed picture but wasn't enough to spoil the day's gains.

The New York Fed's Empire State Manufacturing index rose to 19.6 in June from 19.1 in May, remaining solidly in positive growth territory but off the high of 31.9 in April.

Also, pessimism among U.S. home builders was higher in June follwing the expiration of a tax break for home buyers, according to data from the National Association of Home Builders. The housing market index fell to 17 in June from 22 in May, the NAHB said.

The S&P 500 index gained momentum after pushing through its 200-day moving average.

Commodities were mostly higher as oil surged along with a bullish equities session. Gold also gained.

Crude-oil for July delivery, the most active contract, settled 2.1% higher, or $0.94, to $77.91 a barrel on the New York Mercantile Exchange.

In other energy futures, heating oil rose 2.08%, or $1.81, to $2.06 a gallon while natural gas rose 3.64%, or $0.18, to $5.18 per million British thermal units.

Meanwhile, gold for August delivery rose $10.20, or 0.8%, to $1,234.4 an ounce. In other metal futures, silver rose 0.92%, or $0.16, to $18.58 while copper rose 1.11%, or $0.03 to $3.04 a pound.

In company news, BP's (NYSE:BP) Fitch credit rating was cut to BBB from AA, leaving the oil giant's rating at one of the three major credit agencies just two notches above junk status. Fitch also put BP on negative watch for further downgrades. Fitch, which had cut BP's rating just two weeks ago, said the main driver was the Obama administration's insistence that claims being paid out of an escrow account.

GlaxoSmithKline (NYSE:GSK) gained after Votrient, the company's new kidney cancer drug, won approval from the European Commission, which will allow the drug maker to distribute the drug throughout Europe, Reuters reported.

Korn/Ferry International (NYSE:KFY) surged by double digits after swinging to a fourth quarter profit that exceeded Wall Street's expecations. The executive search firm reported earning $8.9 million, or 19 cents a share, compared to a loss of $17.2 million, or 40 cents a share, during the same period a year ago. Revenue rose 55% to $176.9 million. Analysts polled by Thomson Reuters had expected earnings of 13 cents a share on revenue of $155.6 million.

UAL Corp. (UAUA) gained after the parent company of United Airlines expects passenger revenue unit to gain considerably in the second quarter. UAL reported that its consolidated passenger revenue per available seat mile to rise between 26% and 27% from a year ago. Meanwhile, it sees capacity by available seat miles rising 0.9% from the same period a year ago.

Best Buy (NYSE:BBY) fell on disappointing first quarter earnings results. The electronics retailer reported net income rising to $155 million from $153 million a year ago, with profit remaining unchanged at 36 cents a share. Sales rose 7% from a year ago to $10.8 bilion. Analysts polled by FactSet had expected earnings of 50 cents a share on sales of $10.9 billion. Best Buy shares are down $2.66, or 6.48%, to $38.40.

Shares of News Corp. (NASDAQ:NWS) were higher as British Sky Broadcasting, the U.K.'s largest pay-TV provider, rejected an $11.5 billion offer from News Corp., The Wall Street Journal reported. British Sky asked for the bid to be raised by 14%, according to the report.

Citigroup (NYSE:C) is on the "road to recovery" and most likely wouldn't have access to another bailout package if it were needed, said Chairman Richard Parsons, according to a Bloomberg report. A second bailout lacks "the political will," the report quoted Parsons as saying. The comments came at a Bloomberg Link Boards & Risk Conference in Washington, the report said.