Stock Market Wrapup July 13th
The major stock market averages continued to tack on gains following yesterday's large run-up in equity prices. The Dow Jones set another all-time trading high finishing the day up 45.5 points. The S&P rose 4.8 points, also setting a new trading high for the benchmark average. Stocks continued to advance on positive earnings, as negative retail data did not spoil the bull's mood. Oil hit an 11-month high on reports that a pipeline shutdown in the North Sea will affect oil production. Crude ended the session up $1.43 to $73.93.
The Commerce Department reported today that retail sales dropped -0.9% in June; the decrease was the biggest in nearly two years. The government agency also reported a revision of a 1.5% increase in May. The report cited that one of the worst housing slumps in more than 16 years contributed to shoppers curbing their spending. Not all economic news was bad, as a report showed consumer confidence rose more than expected this month.
In earnings related news, General Electric (NYSE: GE - News) shares notched a 5-year high on news that the industrial and media conglomerate reported earnings of $5.4 billion, or 53 cents a share, a penny ahead of analyst estimates. Revenue rose 12% to $42.3 billion, led by its infrastructure division. The Dow component also upped its share repurchase program to $14 billion, of which $12 billion would be purchased in the second half of the year. Shares finished the session up 1.3%.
Oil services giant Baker Hughes (NYSE: BHI - News) fell -5.8% after it warned that its second-quarter earnings would be below forecasts due to a significant deterioration of activity in Canada. The company now expects to earn $1.07-1.09 a share, including 5 cents related to higher taxes and costs associated with repair and maintenance. Analysts expected the company to earn $1.18 a share.
In company news, Amgen (Nasdaq: AMGN - News), the world's largest biotech company, announced that its board has authorized an additional $5 billion stock buyback program. It is the company's second multi-billion dollar share repurchase program in the past two months. Back in May, the company said it would purchase $3 billion in stock; the company as $1.5 billion remaining on that repurchase plan. Shares of struggling homebuilder Hovnanian Enterprises (NYSE: HOV - News) got a big boost after rumors surfaced that value investor and billionaire Warren Buffet was buying the shares. The news also lifted other homebuilders on the session. Shares of Hovnanian rose 12.0% on the day.
In merger news, Energizer Holdings (NYSE: ENR - News) agreed to purchase Playtex Products (NYSE: PYX - News) for $1.9 billion including debt. Playtex, the maker of sunscreen and wet wipes, received a premium of 18% over where it ended the session on Thursday.
By the BullMarket.com Staff
The Commerce Department reported today that retail sales dropped -0.9% in June; the decrease was the biggest in nearly two years. The government agency also reported a revision of a 1.5% increase in May. The report cited that one of the worst housing slumps in more than 16 years contributed to shoppers curbing their spending. Not all economic news was bad, as a report showed consumer confidence rose more than expected this month.
In earnings related news, General Electric (NYSE: GE - News) shares notched a 5-year high on news that the industrial and media conglomerate reported earnings of $5.4 billion, or 53 cents a share, a penny ahead of analyst estimates. Revenue rose 12% to $42.3 billion, led by its infrastructure division. The Dow component also upped its share repurchase program to $14 billion, of which $12 billion would be purchased in the second half of the year. Shares finished the session up 1.3%.
Oil services giant Baker Hughes (NYSE: BHI - News) fell -5.8% after it warned that its second-quarter earnings would be below forecasts due to a significant deterioration of activity in Canada. The company now expects to earn $1.07-1.09 a share, including 5 cents related to higher taxes and costs associated with repair and maintenance. Analysts expected the company to earn $1.18 a share.
In company news, Amgen (Nasdaq: AMGN - News), the world's largest biotech company, announced that its board has authorized an additional $5 billion stock buyback program. It is the company's second multi-billion dollar share repurchase program in the past two months. Back in May, the company said it would purchase $3 billion in stock; the company as $1.5 billion remaining on that repurchase plan. Shares of struggling homebuilder Hovnanian Enterprises (NYSE: HOV - News) got a big boost after rumors surfaced that value investor and billionaire Warren Buffet was buying the shares. The news also lifted other homebuilders on the session. Shares of Hovnanian rose 12.0% on the day.
In merger news, Energizer Holdings (NYSE: ENR - News) agreed to purchase Playtex Products (NYSE: PYX - News) for $1.9 billion including debt. Playtex, the maker of sunscreen and wet wipes, received a premium of 18% over where it ended the session on Thursday.
By the BullMarket.com Staff
posted by Stock Administrator @ 7:04 PM
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