flopper, I hope you took my advice and got out of the market. Looks like another tough day. kennyboy depressed and deranged -- mentally unstable ....
Stocks Post Gains for 2nd Day
By CHRISTOPHER WANG, AP Business Writer
21 minutes ago
NEW YORK - Stocks advanced for a second session Thursday as strong earnings from Bear Stearns Cos. and mild economic data helped Wall Street regain its footing after several weeks of hefty losses.
Bear Stearns was the latest of its peers to post upbeat second-quarter results on improved trading activity during the market's runup earlier this spring. Meanwhile, rival Goldman Sachs Group Inc. was engaged in a takeover battle for Associated British Ports Holdings PLC.
Investors welcomed a decline in industrial output last month, which came as a sign of a weakening economy and bolstered hopes that the Federal Reserve won't have to raise interest rates much higher. That data overshadowed an unexpected dip in weekly unemployment claims and a surge in New York-area manufacturing activity.
A late-day rally Wednesday catapulted the Dow Jones industrials more than 110 points despite consumer inflation data almost guaranteeing another interest rate hike from the Fed later this month. However, that clarity appeared to motivate investors who had been confused about the interest rate outlook.
In the first hour of trading, the Dow jumped 64.67, or 0.6 percent, to 10,881.59.
Broader stock indicators also rose. The Standard & Poor's 500 index was up 8.46, or 0.69 percent, at 1,238.50, and the Nasdaq composite index gained 23.05, or 1.1 percent, to 2,109.05.
Bonds slumped, with the yield on the 10-year Treasury note up to 5.09 percent from 5.06 percent late Wednesday. However, the continued inversion of short- and long-term yields signaled continued investor expectations of a slowing economy.
Wall Street's Wednesday recovery led overseas stock markets higher. Japan's Nikkei stock average gained 1.13 percent; in afternoon trading, Britain's FTSE 100 added 1.32 percent, Germany's DAX index climbed 1.34 percent and France's CAC-40 was higher by 1.16 percent.
Crude futures saw another day of gains after the government reported a larger-than-expected drop in U.S. oil reserves as refineries stepped up output to meet summer gasoline demand. A barrel of light crude climbed 64 cents to $69.78 on the New York Mercantile Exchange.
Thursday's economic news gave Wall Street mixed signals on the economy, but traders mostly focused on data showing May industrial production fell 0.1 percent, below estimates for a 0.2 percent rise and down sharply from a 0.8 percent jump the month before. The Fed said capacity utilization fell slightly to 81.7 percent.
The Labor Department said first-time jobless claims dipped by 8,000 to 295,000 last week, although analysts maintained expectations for a weakening job market this spring. Meanwhile, the Fed's New York Empire State index for June surged to 29 from 12.9 in the prior month.
In corporate news, Bear Stearns' quarterly profit grew 83 percent to easily beat Wall Street estimates, lifted by strength in equity trading and fixed-income revenue. Bear Stearns rose $3.53 to $127.73.
Goldman Sachs, which on Tuesday also posted outstanding earnings, boosted its offer for AB Ports to about $4.8 billion, which was matched by Australia-based Macquarie Bank Ltd. in an intensifying bidding war. Goldman Sachs gained $2.85 to $141.35.
The Russell 2000 index of smaller companies rose 12.11, or 1.79 percent, to 689.20.
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