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Will this rally continue?
Posted By: www.onlydogs.net
Date: 4/18/08 at 2:05 p.m. EST
Apr. 18, 2008 (Investor's Business Daily delivered by Newstex) --
The major stock indexes continued to charge ahead midday Friday, as strong earnings reports encouraged buyers.
At 12:44 p.m. EDT, the Nasdaq leapt 2.9%. That put the technology-laden index back above the 2,400-level for the first time since February. The Dow and S&P 500 climbed 2.1% each, and the NYSE composite gained 1.7%.
Volume continued to track higher on this options expiration day.
Advancers trounced decliners by nearly 5-to-1 on the NYSE and by more than 3-to-1 on the Nasdaq.
Internet and machinery-related groups scored solid gains. But metal-related groups got hammered as gold slumped $27 to $915.90 a ounce.
May crude oil pulled back to $115.20 a barrel after gushing to a new record of $116.10.
Caterpillar's (CAT) solid Q1 report inspired gains in heavy equipment-related firms.
Terex (TEX) gapped up and rallied 3.98 to 71.43. That pushed the stock above its 200-day moving average. Terex reports Q1 results on Wednesday. Analysts expect earnings of $1.41 a share on sales of $2.34 billion.
Titan Machinery (TITN) climbed 2.53, or 12%, to a record high of 23.93. The construction and agricultural equipment distributor came public in December and has yet to form its first base.
Meanwhile, Halliburton (HAL) reversed from an early loss and gained 2.15 to 47.30. The oil services giant confirmed it may be interested in buying Britain's Expro International Group. On Thursday, Expro agreed to a takeover offer from a consortium of investors.
11:15 a.m. Update: Indexes Hold High Ground On Heavy Volume
By ALAN R. ELLIOTT
Indexes flattened, holding onto their best levels after earnings news from Citibank and Google spurred an early jump.
The NYSE composite leapt 1.3%, and the Nasdaq roared 2.3% as of 10:53 a.m. EDT. Nasdaq's computers index jumped 3.5%. The S&P 500 bolted 1.7%, the Dow 1.6%.
Options expirations drove very heavy trading volume on both exchanges.
The Shanghai composite eased to a 2% loss after slipping more than 4% in midday trading. The index has been falling since October, and ended the week at a 12-month low.
Hong Kong's Hang Seng index edged down 0.3%. A bigger loss was averted, thanks to China Mobile's (CHL) 1.9% rise ahead of its earnings release Monday.
Tokyo's Nikkei 225 moved up 0.6%, as the yen got whacked vs. the dollar. The move capped the index's fifth-straight week of advances its best showing in six months.
Markets in Europe and the U.K. marked solid gains, as Citibank's not-as-bad-as-expected loan-loss write-down in the U.S. spurred confidence that the financial market meltdown was on the mend. Frankfurt's DAX had jumped 2.2% by late in the session. The CAC-40 in Paris popped for a 2% rise. London's FTSE 100 reported a more modest 0.8% advance, held back by the Royal Bank of Scotland, which lagged after news reports said the bank may launch a 20-billion-pound offering to raise cash.
The expiring May crude oil contract was trading $1.18 lower at $113.68 a barrel.
Visa (V) charged 2.80 higher to 69.84. That put the credit card services provider just above its prior high of 69, on modestly higher volume.
Oil and gas field services heavyweight Schlumberger (SLB) added 4.85 to 100.15. The company reported Q1 EPS just below analysts' estimates, but said that barring "a severe global recession leading to a steep drop in demand" it expected to see growth strengthen through the year. The stock is building the right side of a base begun in October.
10:15 a.m. Update: Stocks Scream In Early Trade
By VINCENT MAO
Stocks ramped out of the gates Friday following a number of strong earnings reports.
At 9:57 a.m. EDT, the Nasdaq was up 2% while the Dow and S&P 500 each gained 1.5%. The NYSE composite picked up 1.1%.
Volume was tracking sharply higher on both exchanges, due to options expiration.
Financials surged on the heels of Citigroup's (C) results, which included lower-than-anticipated write-downs.
Goldman Sachs (GS) jumped 6.87 to 178.97 and regained its 50-day moving average. Merrill Lynch (MER) tacked on 1.57 to 48.28, also taking back its 50-day line.
Meanwhile, the Financial Select Sector SPDR (XLF) gained 0.73, or 3%, to 26.63.
Elsewhere, Apple (AAPL) sweetened 4.47 to 158.96 in fast trade. The iPhone maker reports fiscal Q2 results on April 23. Analysts expect earnings of $1.06 a share on sales of $6.95 billion.
On the downside, Forest Oil (FST) slipped 1.39 to 59.13. It's pulling back from a multi-year high, but still remains 13% past a 52.32 buy point from an odd-shaped base.
9:15 a.m. Update: Stocks On Pace For Solid Open
By VINCENT MAO
Stock futures signaled a strong open Friday, fueled by the latest round of corporate report cards.
Nasdaq futures jumped 42 points vs. fair value, S&P 500 futures rallied 21 points and Dow futures gained 155 points.
Google (GOOG) vaulted 18% in pre-market trading on the heels of its Q1 report. Late Thursday, the Internet search titan reported a 32% rise in earnings and a 42% increase in sales. Both beat views. Friday morning Jefferies & Co. raised Google's shares to buy from hold, while Lehman Bros. lifted Google's target to 620 from 580.
Group mate Baidu.com (BIDU) rallied 9% in the pre-open. It reports on April 24. Yahoo (YHOO) rose 1% in pre-market trading.
A couple of Dow stocks reported.
Citigroup (C) posted a wider-than-expected Q1 loss, but its write-downs were not as bad as Wall Street expected. That helped lift shares 8% in the pre-market. During the quarter, the bank lost $1.02 a share vs. views for a loss of 95 cents. It booked about $12 billion in write-downs on mortgage-related investments.
Moody's Investors Services changed its credit ratings outlook on Citi to negative, citing write-downs that were on the high side of its estimates. Meanwhile, Fitch Ratings cut Citi's long-term default rating and left its outlook at negative.
Caterpillar (CAT) climbed 4% in the pre-market on strong earnings. The construction and mining equipment maker earned $1.45 a share, up 18% from a year earlier and 12 cents ahead of views. Sales also rose 18% to $11.8 billion, thanks to strong international demand. Caterpillar reaffirmed full-year sales growth of 5% to 10% and profit growth of 5% to 15%.
Former Dow component Honeywell (HON) gained 4% in the pre-market. The manufacturing conglomerate delivered top- and bottom-line results ahead of views and boosted its outlook for earnings and sales.
On the downside, Intuitive Surgical (ISRG) tumbled 9% after sales forecasts fell short of views. On Thursday the maker of robotic surgical systems reported an 81% surge in Q1 profit, topping views by 14 cents. Sales grew 65%, also above views. But Intuitive's new guidance implies full-year sales of $853.2 million. Analysts had expected $857.3 million.
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