US stocks climb as earnings at Walmart, Disney top estimates
Tuesday, 17 November 2009
NEW YORK, Nov 14 (Bloomberg): US stocks climbed for a second week as the Group of 20 nations agreed to maintain economic stimulus efforts and profits at companies from Wal-Mart Stores Inc to Walt Disney Co beat analysts' projections.
Walmart, the world's largest retailer, and Disney, the world's biggest media company, climbed at least 3.8 per cent. American Express Co, the top credit-card issuer by purchases, jumped 8.4 per cent for the steepest gain in the Dow Jones Industrial Average after worldwide spending rose in October. Dow Chemical Co surged as it predicted that cost cuts and rising sales will boost earnings more than analysts estimate.
The Standard & Poor's 500 Index climbed 2.3 per cent this week to 1,093.48 following a 3.2 per cent gain in the first week of November. The Dow average rose 247.05 points, or 2.5 per cent, to 10,270.47. The Russell 2000 Index added 1 per cent to 586.28.
"The consumer is going to start to come back, and it seems like the market got some confirmation of that," said Stephen Auth, the New York-based chief investment officer for equities at Federated Investors Inc, which oversees $390 billion. "They don't look dead and buried."
All 10 industries in the S&P 500 gained this week. The benchmark for American equity climbed to a 13-month high on November 11, extending its rally from a 12-year low on March 9 to 62 per cent, as China's industrial production surged. The dollar touched a 15-month low against the currencies of major US trading partners that same day on bets the Federal Reserve will keep borrowing costs near zero.
UK Chancellor of the Exchequer Alistair Darling, hosting a meeting of finance ministers from G-20 nations, said that his colleagues decided to keep interest rates low and maintain record budget deficits until economic recoveries take hold.
Walmart jumped 3.8 per cent to $53.20. The Bentonville, Arkansas-based retailer said third-quarter profit rose 3.2 per cent, helped by inventory reductions, and forecast higher full-year profit. Net income increased to $3.24 billion, or 84 cents a share, more than the 81-cent average estimate of analysts surveyed by Bloomberg.
Walmart, the world's largest retailer, and Disney, the world's biggest media company, climbed at least 3.8 per cent. American Express Co, the top credit-card issuer by purchases, jumped 8.4 per cent for the steepest gain in the Dow Jones Industrial Average after worldwide spending rose in October. Dow Chemical Co surged as it predicted that cost cuts and rising sales will boost earnings more than analysts estimate.
The Standard & Poor's 500 Index climbed 2.3 per cent this week to 1,093.48 following a 3.2 per cent gain in the first week of November. The Dow average rose 247.05 points, or 2.5 per cent, to 10,270.47. The Russell 2000 Index added 1 per cent to 586.28.
"The consumer is going to start to come back, and it seems like the market got some confirmation of that," said Stephen Auth, the New York-based chief investment officer for equities at Federated Investors Inc, which oversees $390 billion. "They don't look dead and buried."
All 10 industries in the S&P 500 gained this week. The benchmark for American equity climbed to a 13-month high on November 11, extending its rally from a 12-year low on March 9 to 62 per cent, as China's industrial production surged. The dollar touched a 15-month low against the currencies of major US trading partners that same day on bets the Federal Reserve will keep borrowing costs near zero.
UK Chancellor of the Exchequer Alistair Darling, hosting a meeting of finance ministers from G-20 nations, said that his colleagues decided to keep interest rates low and maintain record budget deficits until economic recoveries take hold.
Walmart jumped 3.8 per cent to $53.20. The Bentonville, Arkansas-based retailer said third-quarter profit rose 3.2 per cent, helped by inventory reductions, and forecast higher full-year profit. Net income increased to $3.24 billion, or 84 cents a share, more than the 81-cent average estimate of analysts surveyed by Bloomberg.