Stock Market Wrapup Nov. 28th
All three major indices soared higher, as comments from a Fed official fueled speculation that the central bank would again slash a key interest rate. The Dow added 331 points on the day to close at 13,289. Meanwhile, the Nasdaq closed up 82 points to end the day at 2,663, and the S&P rose 2.9% for the day to end at 1,469. Light, sweet crude dropped sharply on an inventory report to settle at $90.62 a barrel. Treasury and gold prices both tumbled for the second-straight day, while the dollar gained against the euro but dipped versus the yen.
In economic news, the Commerce Department announced that orders for durable goods, like computers and refrigerators, fell -0.4% versus a revised drop of -1.4% in September. Analysts had expected durable good order to be unchanged. The drop has raised concerns about whether the dismal housing market is starting to creep into other areas of the economy. Elsewhere, Federal Reserve Vice Chairman Donald Kohn warned that continued market turmoil could halt economic growth, which Wall Street took as a sign that the Fed Reserve may once again look to cut interest rates in December.
On the earnings front, discount retailer Dollar Tree (Nasdaq: DLTR - News) posted an 11% increase in third-quarter profit helped by strong seasonal sales. For the quarter, the company reported net income of $35.9 million, or 38 cents per share, up from $32.5 million, or 32 cents per share, last year. Revenue in the quarter climbed to $997.8 million, up 10% from $910.4 million a year ago. On average, analysts were calling for earnings of 37 cents per share on $1.05 billion in revenue. Shares of Dollar Tree closed off -1.2% in trading.
Late yesterday, Pep Boys (NYSE: PBY - News) posted a wider third-quarter loss and announced that it cut 550 jobs and closed 31 of its stores as part of a restructuring plan. For the quarter, the company reported a loss of -$21.7 million, or -42 cents per share, versus a loss of -$10.7 million, or -20 cents per share, a year earlier. Quarterly revenue dropped to $534.4 million, down -3% from $550.8 million in 2006. Analysts were looking for revenue of $538.9 million. Pep Boy's stock was down -16.2% at the bell.
In other corporate news, shares of Freddie Mac (NYSE: FRE - News) soared 14.3% despite announcing that it will halve its dividend and that it plans to sell $6 billion in preferred stock. The government-backed lender said the steps were being taken in order to boost finances in anticipation of future losses.
Bear Stearns (NYSE: BSC - News), meanwhile, announced today that it would cut 650 jobs, as the company continues to battle the effects of mortgage-related losses. The head-count reduction marks the third round of layoffs by the nation's fifth-largest investment bank. Shares of Bear Stearns traded up 4.3% for the day.
After yesterday's close, Wells Fargo (NYSE: WFC - News) said that it would report a -$1.4 billion loss in the coming fourth quarter stemming from home equity loans. The bank said it expects the charge to "adequately cover all losses inherent in its portfolios." Wells Fargo also announced it would look to liquidate the riskiest of its $11.9 billion in home equity loans. The stock climbed 3.0% during the session.
By the BullMarket.com Staff
In economic news, the Commerce Department announced that orders for durable goods, like computers and refrigerators, fell -0.4% versus a revised drop of -1.4% in September. Analysts had expected durable good order to be unchanged. The drop has raised concerns about whether the dismal housing market is starting to creep into other areas of the economy. Elsewhere, Federal Reserve Vice Chairman Donald Kohn warned that continued market turmoil could halt economic growth, which Wall Street took as a sign that the Fed Reserve may once again look to cut interest rates in December.
On the earnings front, discount retailer Dollar Tree (Nasdaq: DLTR - News) posted an 11% increase in third-quarter profit helped by strong seasonal sales. For the quarter, the company reported net income of $35.9 million, or 38 cents per share, up from $32.5 million, or 32 cents per share, last year. Revenue in the quarter climbed to $997.8 million, up 10% from $910.4 million a year ago. On average, analysts were calling for earnings of 37 cents per share on $1.05 billion in revenue. Shares of Dollar Tree closed off -1.2% in trading.
Late yesterday, Pep Boys (NYSE: PBY - News) posted a wider third-quarter loss and announced that it cut 550 jobs and closed 31 of its stores as part of a restructuring plan. For the quarter, the company reported a loss of -$21.7 million, or -42 cents per share, versus a loss of -$10.7 million, or -20 cents per share, a year earlier. Quarterly revenue dropped to $534.4 million, down -3% from $550.8 million in 2006. Analysts were looking for revenue of $538.9 million. Pep Boy's stock was down -16.2% at the bell.
In other corporate news, shares of Freddie Mac (NYSE: FRE - News) soared 14.3% despite announcing that it will halve its dividend and that it plans to sell $6 billion in preferred stock. The government-backed lender said the steps were being taken in order to boost finances in anticipation of future losses.
Bear Stearns (NYSE: BSC - News), meanwhile, announced today that it would cut 650 jobs, as the company continues to battle the effects of mortgage-related losses. The head-count reduction marks the third round of layoffs by the nation's fifth-largest investment bank. Shares of Bear Stearns traded up 4.3% for the day.
After yesterday's close, Wells Fargo (NYSE: WFC - News) said that it would report a -$1.4 billion loss in the coming fourth quarter stemming from home equity loans. The bank said it expects the charge to "adequately cover all losses inherent in its portfolios." Wells Fargo also announced it would look to liquidate the riskiest of its $11.9 billion in home equity loans. The stock climbed 3.0% during the session.
By the BullMarket.com Staff
posted by Stock Administrator @ 1:02 AM
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