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Oct. 5, 2010 --

  • DJIA up 193 (+1.8%) to 10,945
  • S&P 500 up 23 (+2%) to 1,161
  • Nasdaq up 55.31 (+2.4%) to 2,400

GLOBAL SENTIMENT

  • Hang Seng up 0.09%
  • Nikkei up 1.47%
  • FTSE up 1.44%

MID-DAY NYSE INDEX WATCH

  • NYSE Energy up 1.97% at 11,016.09
  • NYSE Financial up 2.24% at 4,785.06
  • NYSE Health Care up 1.49% at 6,393.95
  • NYSE Arca Tech 100 up 2.06% at 976.18

UPSIDE MOVERS

(+) SNTS (+4.7%) gets boost on study results for RHUCIN.

(+) LUX (+2.8%) inks license deal with Coach.

(+) CLNE (+3.0%) inks deal with Pilot Travel Centers.

(+) GERN (+3.5%) launches first human cellular assay product for drug discovery and toxicity screening.

(+) CLDX (+18.6%) continues evening jump after Reuters report that patients with a form of brain cancer treated with a vaccine developed by the company lived nearly as long as those who received radiation and chemotherapy.

(+) GYMB (+5.9%) hires Goldman Sachs to help with sale of company.

(+) WAG (+3.3%) upgraded.

(+) ETH (+8.6%) upgraded.

(+) HGSI (+2.2%) says it won't develop Zalbin any further.

(+) AFFX (+1.4%) downgraded.

(+) HD (+0.5%) downgraded.

(+) BKS (+1.6) downgraded.

DOWNSIDE MOVERS

(-) TLB (-11.6%) backs guidance that straddles Street view.

MARKET DIRECTION

Stocks end sharply higher up around 2%, and just off the best levels of the session, fueled by Japan's actions to lower borrowing costs and an upbeat reading from the service sector. Today's move puts the major equity averages, and oil above $82 a barrel, at five-month highs.

Gymboree (GYMB) shares were higher after the New York Post reported the company hired Goldman Sachs to begin a formal auction for the sale of the company. The company had been reportedly looking for $55 to $60 per share in a sale. One investment banker quoted in the story suggested the company could fetch $50 per share.

Walgreen Co (WAG) was up after its same-store sales rose 0.4% in September, bucking analysts' expectations for a monthly decline. The retailer reported same-store sales for its pharmacy unit rising 0.3% with the volume of prescriptions filled up 0.8%. Analysts polled by Thomson Reuters on average had expected total same-store sales to fall 1.1% with a 1.7% decline in the pharmacy business.

Jamba Inc. (JMBA) shares were sharply higher on news it and Nestle are near a deal that will renew a partnership to develop a new line of energy drinks, the companies said in a statement. Since announcing their intent to build a licensing growth platform, Jamba Juice has made progress in developing licensing alliances to manufacture, market, and distribute Jamba-branded offerings through grocery, convenience, and other retail channels, the company said in a statement.

Atwood Oceanics (ATW) was higher after the company said it signed an agreement to construct two high-spec jack-up drilling units for about $380 million along with Singapore's PPL Shipyard PTE LTD, according to a statement from the company. The rigs are scheduled for delivery in 2012 and will provide ongoing cash flows as well as debt, according a Reuters report on the deal.

Boeing Co. (BA) was higher as the market rally helped it weather a setback in its 787 airline program. The company said one of its 787 test airplanes suffered some mechanical trouble during its first flight and the pilot chose to land the plane early, The Seattle Times reported. A Boeing spokeswoman said the move was precautionary. The 787 program is two years behind schedule.

Luxottica Group (LUX) says it signed a license agreement with Coach (COH) for the design, manufacturing and global distribution of sun and prescription eyewear under the Coach, Coach Poppy and Reed Krakoff brands, beginning January 2012.

Commodities futures ended higher with futures contracts of both gold and crude oil logging gains. Crude oil for November delivery closed up 1.7%, or $1.35, to settle at $82.82 a barrel. In other energy futures, heating oil is up 0.74% to $2.30 a gallon while natural gas rose 0.21%, to $3.73 per million British thermal units.

Meanwhile, gold futures moved higher to hit a fresh record. Gold for December delivery closed up $23.50 to $1,340.30 an ounce. In other metal futures, silver was up 3.4% to $22.78 a troy ounce while copper rose 1.73% to $3.72 a pound.

Source: Stocks, Oil Hit Five-Month Highs