Stocks close with gains, but off their highs
NEW YORK — A commingle of corporate news sent Wall Street zigzagging today. Stocks rose on optimism about Pfizer’s acquisition of rival drugmaker Wyeth but fell on proceeds reports that pointed to further weakness in the economy. The major indexes closed the day with gains, but off their highs concerning the session.
The Dow Jones pertaining average closed up 38.47, or 0.5 percent, at 8,116.03, although it had been up as much being of the kind which 154 points earlier in the day. The Standard & Poor’s 500 index rose 4.62, or 0.6 percent, to 836.57, but was opposite an early gain of well-nigh 21 points. The tech-heavy Nasdaq composite table of contents closed up 12.17, or 0.8 percent, at 1,489.46, although it had been up parsimoniously 37 points earlier.
Pfizer’s $68 billion acquisition of Wyeth offered investors reassurance that have commerce making could still take occupation in a recession. And a sound from the National Association of Realtors that sales of existing homes rose rather than fell in December stirred hopes that look black prices and falling interest rates are helping eat at a distance at a overplus of homes with “for sale” signs.
But mixed news from big companies weighed attached the market. Downbeat comments from Caterpillar near the health of its business curbed the push in the Dow industrials. Caterpillar shares dropped 8.9 percent after the maker of hard equipment said plunging commodity prices left the company “whipsawed” in the fourth furnish with quarters. Caterpillar aforesaid it would offer buyouts to 25,000 employees in the U.S. and divide executive pay.
Home Depot also announced big job cuts. The company said it would slash 7,000 jobs and cease its smaller Expo enslave as it struggles with the weekly housing market.
“There’s a lot of things during the term of investors to digest in what is a very uncertain market environment, and I think that is why you see some hesitation,” said Todd Salamone, senior defect president of research, Schaeffer’session Investment Research.
Earnings data this week and company’s comments about the coming year will play a big part in shaping investor sentiment.
“Depending on how these earnings reports come out, that is going to set the tone going forward,” said Jon Biele, head of chief city markets at Cowen & Co.
Northwest companies reporting proceeds this week include Boeing, Starbucks, Alaska Air Group, Amazon.com and Paccar.
Investors are also awaiting more particulars on President Barack Obama’s proposed stimulus package, that is moving its way through Congress.
Senate committees are scheduled to take up the massive plan Tuesday and the full House is expected to vote on its version of the $825 billion package Wednesday. The plan could include big tax cuts and a massive public works program.
“Right now (the market) is in a holding pattern,” said Doug Roberts, chief investment strategist at Channel Capital Research. “They know things aren’t going to get any better soon, on the contrary want to see what this package is going to look like.”
Stocks are advent off a wild week of big ups and downs as companies’ financial results weighed on the market. All the major indexes finished last week with losses of more than 2 percent.
Analysts expect mutability in the market to persist through the leavings of proceeds season.
“It’s almost like a teeter-totter right now,” said Alan Lancz, currency manager at Alan B. Lancz & Associates. “Earnings season is always treacherous in this kind of global household environment by all the uncertainty.”
Of the companies in the Standard & Poor’session 500 hand that have reported results in newly come weeks, more than half regard fallen limited of analysts’ already reduced estimates. The poor showing has left investors nervous that the good housewifery is in worse shape than feared.
Bond prices bloody today as stocks rose. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.65 percent from 2.62 percent late Friday. The relinquish without ceasing the three-month T-bill, considered one of the safest investments, rose to 0.10 percent from 0.09 percent late Friday.
The dollar fell over against other greater currencies, while gold prices rose.
Light, sweet crude slipped 66 cents to $45.81 on the New York Mercantile Exchange.
Overseas, Japan’s Nikkei stock average fell 0.08 percent. Britain’s FTSE 100 rose 3.86 percent, Germany’s DAX index rose 3.54 percent, and France’s CAC-40 jumped 3.73 percent.
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