CNBC Market Dispatches 11/13/01 04:10 PM ET
Good news breaks out
moneycentral.msn.com
Developments in Afghanistan and the retail and tech sectors send shares up, up, up. Home Depot, Texas Instruments lead the way.
Good news broke out on several fronts, pushing stocks of most stripes higher Tuesday. The Dow industrials gained 2%, the Nasdaq composite 3%.
The Taliban’s retreat from Kabul, the retail sector’s rosy reports, and the tech sector’s earnings affirmations gave investors hope that 1) the war in Afghanistan could resolve more quickly than expected, 2) the economy could be bottoming and 3) the tech boom could actually return someday.
If investors’ reaction to the day’s developments seemed exaggerated, perhaps they could be forgiven. After all, the bad news has flowed heavily of late.
A day after the plane crash in New York, even travel stocks were up. Two examples: United parent UAL Corp. (UAL, news, msgs), up about 8%, and hotelier Starwood Hotels & Resorts (HOT, news, msgs), up about 6%.
But retailers were the stars of the day. Home Depot (HD, news, msgs) came through with an impressive earnings report that reflected a focus on cost-cutting efficiencies and a still-strong housing market. Investors rewarded the home-improvement chain with a 7% stock pop. Discounter Wal-Mart Stores (WMT, news, msgs), taking advantage of America’s new cost-consciousness, registered good gains as well.
Texas Instruments (TXN, news, msgs) was the tech leader. After an executive affirmed the company’s 2001 outlook, its shares, as well as those of other semiconductor makers, bolted higher. |
