Stock Market Wrapup Dec. 5th
Stocks rallied after two-consecutive down days, fueled by strong economic data and anticipation that the Fed will again cut rates when it meets next week. The Dow ended the day up 196 points to close at 13,445. Meanwhile, the Nasdaq was up 1.8% at the bell to end at 2,666, and the S&P posted a 1.5% gain to close at 1,485. Oil prices finished lower in trading with light, sweet crude settling at $87.49 for January delivery. Treasury prices eased, and gold prices fell to $803.70 an ounce. The dollar was up against the euro and the yen.
On the economic front, a report by ADP Employer Services showed that the private sector added 189,000 jobs in November. Forecasts were calling for a gain of 50,000 jobs. A separate report from the Labor Department showed worker productivity grew at an annual rate of 6.3% in the third quarter, far better than anticipated and representing the fastest growth in four years. A third report showed a reading of the ISM services index fell to 54.1 in November, down from 55.8 in October. Any reading over 50 represents expansion in the sector. Economists were expecting a drop to 55.0.
In earnings news, shares of Guess? (NYSE: GES - News) were up 5.3% in trading after the company reported a surge in third-quarter profits after Tuesday's close. For the quarter, the jeans maker posted net income of $58.3 million, or 62 cents per share, up 32% from $44 million, or 48 cents per share, last year. Quarterly revenue rose to $469.1 million, up 43% from $328.8 million a year earlier. On average, analysts were looking for earnings of 57 cents per share on $424.5 million in revenue.
Meanwhile, late yesterday Chico's (NYSE: CHS - News) posted a drop in third-quarter profit to $23.5 million, or 13 cents per share, down -44% from $42.1 million, or 24 cents per share, a year ago. Results included a 2-cent gain stemming from an asset sale. Revenue for the quarter grew to $416 million, up from $402 million last year. Analysts were expecting a profit of 11 cents per share on revenue of $421 million. Chico's stock tumbled -12.5% on the day.
In corporate news, shares of Comcast (Nasdaq: CMCSA - News) were off -12.3% at the bell after the conglomerate said revenue from its cable arm would grow slower than expected this year, as the company battles increased competition and a lagging economy.
Elsewhere, Jones Soda (Nasdaq: JSDA - News) announced today that its founder and CEO, Peter van Stolk, will step down as the head of the company by year-end. The move comes amid a string of disappointing results for the company including a November announcement that it swung to a third-quarter loss. Jones Soda stock was up 7.2% at the bell.
By the BullMarket.com Staff
On the economic front, a report by ADP Employer Services showed that the private sector added 189,000 jobs in November. Forecasts were calling for a gain of 50,000 jobs. A separate report from the Labor Department showed worker productivity grew at an annual rate of 6.3% in the third quarter, far better than anticipated and representing the fastest growth in four years. A third report showed a reading of the ISM services index fell to 54.1 in November, down from 55.8 in October. Any reading over 50 represents expansion in the sector. Economists were expecting a drop to 55.0.
In earnings news, shares of Guess? (NYSE: GES - News) were up 5.3% in trading after the company reported a surge in third-quarter profits after Tuesday's close. For the quarter, the jeans maker posted net income of $58.3 million, or 62 cents per share, up 32% from $44 million, or 48 cents per share, last year. Quarterly revenue rose to $469.1 million, up 43% from $328.8 million a year earlier. On average, analysts were looking for earnings of 57 cents per share on $424.5 million in revenue.
Meanwhile, late yesterday Chico's (NYSE: CHS - News) posted a drop in third-quarter profit to $23.5 million, or 13 cents per share, down -44% from $42.1 million, or 24 cents per share, a year ago. Results included a 2-cent gain stemming from an asset sale. Revenue for the quarter grew to $416 million, up from $402 million last year. Analysts were expecting a profit of 11 cents per share on revenue of $421 million. Chico's stock tumbled -12.5% on the day.
In corporate news, shares of Comcast (Nasdaq: CMCSA - News) were off -12.3% at the bell after the conglomerate said revenue from its cable arm would grow slower than expected this year, as the company battles increased competition and a lagging economy.
Elsewhere, Jones Soda (Nasdaq: JSDA - News) announced today that its founder and CEO, Peter van Stolk, will step down as the head of the company by year-end. The move comes amid a string of disappointing results for the company including a November announcement that it swung to a third-quarter loss. Jones Soda stock was up 7.2% at the bell.
By the BullMarket.com Staff
posted by Stock Administrator @ 9:44 PM
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