U.S. stocks rally; set to post solid gains for the week
U.S. stocks rally; set to post solid gains for the week
By Mark Cotton, MarketWatch
Sep 9, 2005
U.S. stocks rallied as a drop in crude-oil prices and hopes of a pause in the Federal Reserve's cycle of interest-rate increases kept the market on course to post a week of solid gains.
The Dow Jones Industrial Index jumped 82.63 to 10678.56, while the Nasdaq Composite Index gained 9.48 to 2175.51. The S&P 500 Index added 9.81 to 1241.48.
"The near-term direction of the market is up based on the outlook for interest rates," said Michael Malone, trading analyst at SG Cowen. "The belief has grown in the marketplace that the Fed may take a pause here in terms of their interest-rate raising campaign." Federal Reserve policymakers are scheduled to meet on Sept. 20 to discuss whether to raise the central bank's key short-term interest rate, which currently stands at 3.5%. Some investors think the Fed will hold back on lifting rates to keep a lid on lending costs for companies and individuals as reconstruction efforts get underway in the Gulf Coast region after Hurricane Katrina.
Within the Dow Industrials, McDonald's rose as the fast-food giant posted increases in both its total and same-store sales for August, with its performance in the U.S. getting a lift from an enthusiastic response to its premium chicken sandwiches, extended business hours and a robust breakfast business.
Boeing Co. rose as The Wall Street Journal reported that the aerospace giant's negotiating a settlement with the Justice Department in which it could be required to pay up to $500 million but would avoid prosecution in two federal probes. The settlement would resolve allegations that Boeing improperly acquired thousands of pages of Lockheed Martin Corp.'s proprietary documents dealing with rocket programs, and illegally recruited a senior Air Force official while she still had oversight of billions of dollars in other Boeing contracts, the report said.
Intel Corp. saw its shares fall amid some disappointment that the chipmaker didn't raise its sales outlook for the third quarter in its update after the bell Thursday. "People were obviously hoping they were going to raise guidance a little bit rather than tighten it to the middle of the range," said Malone of SG Cowen. "I don't think it's a huge disappointment. They just ran it up a little bit into the midquarter update."
Rounding out the action in blue chips, Exxon Mobil gained as the oil giant continued to benefit from high crude-oil prices.
Crude futures ended lower as traders weighed a lower oil-demand forecasts against concerns over the newest storm in the Atlantic and the recovery progress in the hurricane-devastated Gulf of Mexico. The International Energy Agency lowered its world demand forecast, citing weaker Chinese consumption and fallout from Hurricane Katrina. Royal Dutch Shell, meanwhile, said 60% of its Gulf of Mexico production should be back on line during the fourth quarter.
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By Mark Cotton, MarketWatch
Sep 9, 2005
U.S. stocks rallied as a drop in crude-oil prices and hopes of a pause in the Federal Reserve's cycle of interest-rate increases kept the market on course to post a week of solid gains.
The Dow Jones Industrial Index jumped 82.63 to 10678.56, while the Nasdaq Composite Index gained 9.48 to 2175.51. The S&P 500 Index added 9.81 to 1241.48.
"The near-term direction of the market is up based on the outlook for interest rates," said Michael Malone, trading analyst at SG Cowen. "The belief has grown in the marketplace that the Fed may take a pause here in terms of their interest-rate raising campaign." Federal Reserve policymakers are scheduled to meet on Sept. 20 to discuss whether to raise the central bank's key short-term interest rate, which currently stands at 3.5%. Some investors think the Fed will hold back on lifting rates to keep a lid on lending costs for companies and individuals as reconstruction efforts get underway in the Gulf Coast region after Hurricane Katrina.
Within the Dow Industrials, McDonald's rose as the fast-food giant posted increases in both its total and same-store sales for August, with its performance in the U.S. getting a lift from an enthusiastic response to its premium chicken sandwiches, extended business hours and a robust breakfast business.
Boeing Co. rose as The Wall Street Journal reported that the aerospace giant's negotiating a settlement with the Justice Department in which it could be required to pay up to $500 million but would avoid prosecution in two federal probes. The settlement would resolve allegations that Boeing improperly acquired thousands of pages of Lockheed Martin Corp.'s proprietary documents dealing with rocket programs, and illegally recruited a senior Air Force official while she still had oversight of billions of dollars in other Boeing contracts, the report said.
Intel Corp. saw its shares fall amid some disappointment that the chipmaker didn't raise its sales outlook for the third quarter in its update after the bell Thursday. "People were obviously hoping they were going to raise guidance a little bit rather than tighten it to the middle of the range," said Malone of SG Cowen. "I don't think it's a huge disappointment. They just ran it up a little bit into the midquarter update."
Rounding out the action in blue chips, Exxon Mobil gained as the oil giant continued to benefit from high crude-oil prices.
Crude futures ended lower as traders weighed a lower oil-demand forecasts against concerns over the newest storm in the Atlantic and the recovery progress in the hurricane-devastated Gulf of Mexico. The International Energy Agency lowered its world demand forecast, citing weaker Chinese consumption and fallout from Hurricane Katrina. Royal Dutch Shell, meanwhile, said 60% of its Gulf of Mexico production should be back on line during the fourth quarter.
Famous Quotes Love Quotes 9/11 Quotes domain name Life Quotes CrockPot Recipes Marketing Firms Scottsdale Dentist Casserole Recipes Love Quotes Salmon Recipes Love Poems Website Marketing Recipes Funny Quotes Funny Quotes Love Quotes Famous Cooking Recipes Funny Quotes Fireplace Mantels flowmeters Dental Coupons Famous Quotes Sugar Free Recipes Vegetable Gardening Dental Office Free Recipes Garage Storage Cabinets Diabetic Recipes
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