Nasdaq stocks clung to gains earned in an early surge Wednesday, ignited by a flurry of mostly positive economic data. The composite finished up 1.8%, near the top of its trading range. Volume ran about 10% higher for the day, as the index followed through on the seventh day of its latest rally attempt. Nasdaq’s advancing issues led decliners by about 2-to-1, and more than 80 of the Nasdaq 100 companies registered gains for the day. A number of leading stocks staged solid moves....
Stocks Open Higher On Renewed Optimism
April 30, 2008 on 12:18 pm | In Finance |
Stocks opened solidly higher as continued overseas central bank injections appeared to buoy financial markets.
As of 10:06 a.m. ET, the Nasdaq rose 0.7%, the S&P 500 0.6% and the Dow 0.5%. The small-cap S&P 600 was the clear leader once again for a 2nd straight session, up 1.2%.
But the major averages are off their highs. Anyone who’s been watching stocks in the last few weeks knows that the market can turn on a dime at a moment’s notice.
Oil prices and Treasury yields are both up on easing fears about the U.S. economy.
Investment banks such as Bear Stearns () are mostly higher. Transports are doing well, notably oceanic shippers such as Dryships (). Retail groups are among the best performers, helped by solid retail sales data. Zumiez () remains a leader.
Chipotle Mexican Grill () is enjoying a solid day for restaurants while Crocs () and Deckers Outdoor () are putting their best foot forward for shoe makers.
Battery and shaving specialist Energizer () shot up 6% toward its 50-day moving average after rebounding off its 200-day line on Friday.
On the downside, many lenders still struggled.
Fannie Mae () fell after federal regulators said Fannie and fellow gov’t-sponsored mortgage giants such as Freddie Mac () could not increase the size of the mortgage portfolio cap.
Accredited Home Lenders () dived 32% as buyout firm Lone Star Funds said it may not complete the deal, citing “drastic deterioration” of the lender’s financials.
9:15 a.m. ET Update: Futures Point To Strong Open
By Vincent Mao
Stock futures pointed to a very strong open Monday ahead of a busy week of economic and earnings news. The Nasdaq is up 15 points vs. fair value, the S&P 500 up 9 points and the Dow up 68.
Last week, the major averages edged higher despite growing turmoil in the credit markets.
The European Central Bank added another 47.67 billion euros ($65.3 billion) into their banking system Monday. Japan’s central bank injected 600 billion yen or $5 billion. European and Asian stock markets were higher.
The Fed will decide at 9:30 a.m. ET, if additional injections are needed.
Retail sales rose 0.3% in July, beating views of 0.2%. Excluding autos, sales climbed 0.4%, bouncing back from a 0.2% dip in June. Economists expected 0.3%.
In M&A news, Akzo Nobel () agreed to buy rival Imperial Chemical Industries for $16.2 billion in cash.
Midwest Air Group () said it would accept a $16-a share bid from TPG Capital. Air Trans () had been pursuing the company for months.
Investment banking giant Goldman Sachs () rose about 2% in the premarket. The company said that a group of investors will invest $3 billion in its Global Equity Opportunities fund, which has lost about 14% over the past 12 months.
Blackstone Group () jumped 9% in pre-market trading on strong earnings. The investment manager has seen some rough times since coming public in June.
Sears Holding () rose 2% despite warning that Q2 earnings may come in below estimates. But the company said it would buy back an additional $1.5 billion of its shares.
Hovnanian Enterprises () edged higher in the premarket. The home builder delivered 3,179 new homes in the third quarter, down 31% from a year ago.
Piper Jaffray upgraded Nordstorm () to outperform from market perform and lifted its price target. The department store retailer reports earnings on Thursday.
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