The Herald Bulletin

Afternoon Update

Breaking News

January 29, 2013

Stocks edge higher, pushing Dow toward 14,000

NEW YORK —  Stocks edged higher on Wall Street, pushing the Dow toward 14,000, as investors digested the latest round of earnings and economic reports.

The Dow Jones industrial average rose 57 points to 13,939 points as of noon EST. The Standard and Poor's 500 rose five points to 1,505 points. The Nasdaq composite dropped less than a point to 3,153.

Stocks are approaching record levels after a January rally that has pushed the Dow 6.2 percent higher this month and the S&P 500 up 5.3 percent, its highest level since December 2007. Demand was bolstered after lawmakers reached a deal to avoid the "fiscal cliff" at the start of the year and by reports that have added to evidence showing that the U.S. housing market is recovering and the jobs market is slowly healing.

Homebuilder D.R. Horton gained $2.04 to $23.35 after it said that net income more than doubled as the housing recovery took hold. Improving home prices and better sales bolstered profits. Drugmaker Pfizer rose 83 cents to $27.67 after the company said its fourth-quarter profit more than quadrupled because of a $4.8 billion gain from selling its nutrition business, despite competition from generic drugs hurting sales.

Investor optimism was checked by a report that showed U.S. consumer confidence sank in January to the lowest level in more than a year as Americans fretted about the economic outlook and higher Social Security taxes. The Conference Board said that its consumer confidence index dropped to 58.6 in January, down from a reading of 66.7 in December.

Stocks also failed to get much of a lift from a report published before the market opened that showed the U.S. housing market is sustaining its recovery.

The Standard & Poor's/Case-Shiller 20-city home price index rose 5.5 percent in November compared with the same month a year ago, pushed higher by rising sales and a tighter supply of available homes.

"The turnaround in the housing market is for real," said Peter Cardillo, chief market economist at Rockwell Global Capital, who says the decline in consumer confidence will likely prove to be temporary as home prices rise. He predicts that the S&P 500 may climb as high as 1,575 this quarter as investor optimism about the economic recovery grows.

The Federal Reserve starts a two-day meeting Tuesday. Investors will also be looking at the release of their statement Wednesday for clues about the outlook for the economy and interest rates.

The yield on the 10-year Treasury note rose by 1 basis point to 1.97 percentage points. The yield on the note, which moves inversely to its price, rose briefly above 2 percent for the first time since April during trading Monday.

Other stocks in the news;

— Ford fell 81 cents to $12.97 despite reporting earnings that beat analysts' estimates. The automaker said that its losses in Europe would be bigger than it had previously forecast. The company's stock has advanced 56 percent in the last six months.

— Seagate Technology, which makes hard disk drives for storage, fell $3.25 to $34.16 after it reported a 13 percent drop in profits as expenses outpaced revenue growth.

— Software company VMware fell $20.05 to $78.27 after it said that it late Monday that it expects first-quarter revenue to come in lower than Wall Street analysts had forecast. The company is also cutting 900 jobs, or about 7 percent of its workforce.

 

1
Text Only
Breaking News
  • news_obamalocalschools.jpg Obama: 8 million signed up for health care

    Eight million people have signed up for health care through new insurance exchanges and the proportion of younger applicants has increased, President Barack Obama said Thursday.

    April 17, 2014 1 Photo

  • 0107 Super WAL-MART 1 Wal-Mart jumps into the money transfer biz, loudly

    The world's largest retailer introduced a new money transfer service Thursday that it says will cut fees for its low-income customers by up to 50 percent compared with similar services elsewhere.

    April 17, 2014 1 Photo

  • news_ukraineprotests.jpg Deal reached on calming Ukraine tensions

    Top diplomats from the United States, European Union, Russia and Ukraine reached agreement after marathon talks Thursday on immediate steps to ease the crisis in Ukraine.

    April 17, 2014 1 Photo

  • news_target.jpg Cyber cops: Target hackers may take years to find

    Secret Service investigators say they are close to gaining a full understanding of the methods hackers used to breach Target's computer systems last December.

    April 17, 2014 1 Photo

  • Evacuation came too late for many on sinking ferry

     An immediate evacuation order was not issued for the ferry that sank off South Korea's southern coast, likely with scores of people trapped inside, because officers on the bridge were trying to stabilize the vessel after it started to list amid confusion and chaos, a crew member said Thursday.

    April 17, 2014

  • 3 protesters killed in attack on Ukrainian base

    The turmoil in Ukraine dominated the European landscape Thursday, as three protesters were killed in a clash in southern Ukraine, high-level talks were held in Geneva and Vladimir Putin weighed in on his neighbor's future for hours from Moscow.

    April 17, 2014

  • news_marathonsecurity.jpg Boston Marathon organizers confident of safe race

    The arrest of a man with a rice cooker in his backpack near the Boston Marathon finish line led police to step up patrols Wednesday, while organizers sought to assure the city and runners of a safe race next week.

    April 17, 2014 1 Photo

  • news_diabetescomplications.jpg Study: Diabetic heart attacks and strokes falling

    In the midst of the diabetes epidemic, a glimmer of good news: Heart attacks, strokes and other complications from the disease are plummeting.

    April 17, 2014 1 Photo

  • news_skoreaferry.jpg Fears rise for missing in South Korea ferry sinking

    Fears rose Thursday for the fate of 289 passengers still missing more than 24 hours after their ferry flipped onto its side and filled with water off the southern coast of South Korea.

    April 16, 2014 1 Photo

  • news_ukraineprotests.jpg Pro-Russian gunmen make inroads in eastern Ukraine

    The well-armed, Moscow-backed insurgency sowing chaos in eastern Ukraine scored a new victory Wednesday, seizing armored vehicles and weapons from underequipped government forces, then rolling through two cities to a hero’s welcome.

    April 16, 2014 1 Photo

Featured Ads
More Resources from The Herald Bulletin
AP Video
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Helium debate
Helium
Front page
Poll

How well do you monitor your child's use of social media?

I do a good job
I check occasionally
Not well at all
     View Results