Stock Market Wrapup Oct. 5th
Stocks ended the week on a high note following a positive jobs report that showed a rebound in hiring by U.S. employers in September and a large upward revision to August's number. On the session, the Dow and S&P each touched above record highs with the Dow closing up 91 points and the S&P closing at a record 1,557.59 for the day. Meanwhile, the Nasdaq was up 1.7% at the close. Gold prices rose on the day, while oil prices for November delivery fell.
On the economic front, the Labor Department reported that U.S. payrolls posted a net gain of 110,000 workers in September, which was in line with the forecast of a 100,000 gain by economists surveyed by Briefing.com. August payrolls, meanwhile, were revised upward from a -4,000 loss to an 89,000 gain. In reaction to the news, bond prices dipped and yields rose as strong job growth may mean the Fed will hold tight with current rates.
In earnings news, shares of Merrill Lynch (NYSE: MER - News) finished up 2.5% on the day following a warning that it would take an approximately -$5.5 billion hit as a result of this summer's lending fiasco. The brokerage firm said it would post a Q3 net loss of up to -50 cents a share when results are reported on October 24th, below previous forecasts of a $1.24 a share profit. Similar to other financial institutions, Merrill will write down $4.5 billion on lending issues, but the action is being viewed as a "one-time event" by some and an indication that the subprime chaos is in the past.
Likewise, Washington Mutual (NYSE: WM - News) also announced Friday that it will take a hit as a result of the dismal housing sector and credit crunch, saying it will see a -75% drop in net income for the third quarter. After reporting earnings of $748 million in the Q3 of 2006, the nation's largest savings bank is likely to post a profit in the neighborhood of $187 million for the same quarter in 2007. Shares of Washington Mutual closed up 2.2% for the day.
In other corporate news, Microsoft (Nasdaq: MSFT - News) announced today that it would be parting ways with the creator of its hugely successful "Halo" gaming series. While the software company will retain a minority stake in an independent Bungie LLC, the gaming studio will be free to pursue development deals with other gaming platforms.
M&A activity saw McKesson (NYSE: MCK - News) announce after Thursday's close that the drug distribution and healthcare IT provider would buy Oncology Therapeutics Network, a U.S. distributor of specialty drugs for the treatment of cancer and rheumatoid arthritis, for approximately $575 million, which includes the assumption of debt. Shares of McKesson rose 0.7% for the day. Subscribers can read our take on McKesson in today's issue.
By the BullMarket.com Staff
On the economic front, the Labor Department reported that U.S. payrolls posted a net gain of 110,000 workers in September, which was in line with the forecast of a 100,000 gain by economists surveyed by Briefing.com. August payrolls, meanwhile, were revised upward from a -4,000 loss to an 89,000 gain. In reaction to the news, bond prices dipped and yields rose as strong job growth may mean the Fed will hold tight with current rates.
In earnings news, shares of Merrill Lynch (NYSE: MER - News) finished up 2.5% on the day following a warning that it would take an approximately -$5.5 billion hit as a result of this summer's lending fiasco. The brokerage firm said it would post a Q3 net loss of up to -50 cents a share when results are reported on October 24th, below previous forecasts of a $1.24 a share profit. Similar to other financial institutions, Merrill will write down $4.5 billion on lending issues, but the action is being viewed as a "one-time event" by some and an indication that the subprime chaos is in the past.
Likewise, Washington Mutual (NYSE: WM - News) also announced Friday that it will take a hit as a result of the dismal housing sector and credit crunch, saying it will see a -75% drop in net income for the third quarter. After reporting earnings of $748 million in the Q3 of 2006, the nation's largest savings bank is likely to post a profit in the neighborhood of $187 million for the same quarter in 2007. Shares of Washington Mutual closed up 2.2% for the day.
In other corporate news, Microsoft (Nasdaq: MSFT - News) announced today that it would be parting ways with the creator of its hugely successful "Halo" gaming series. While the software company will retain a minority stake in an independent Bungie LLC, the gaming studio will be free to pursue development deals with other gaming platforms.
M&A activity saw McKesson (NYSE: MCK - News) announce after Thursday's close that the drug distribution and healthcare IT provider would buy Oncology Therapeutics Network, a U.S. distributor of specialty drugs for the treatment of cancer and rheumatoid arthritis, for approximately $575 million, which includes the assumption of debt. Shares of McKesson rose 0.7% for the day. Subscribers can read our take on McKesson in today's issue.
By the BullMarket.com Staff
posted by Stock Administrator @ 8:31 PM
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