Rydex Retail group went Bullish last night
U.S. Stocks Rise as Consumer Confidence Tops Expectations
By Robert Dieterich
New York, March 26 (Bloomberg) -- U.S. stocks rose for the first day in three after a report showed consumer confidence climbed more than expected this month. General Electric Co. and Wal-Mart Stores Inc. led the gain.
``We're certainly in the midst of an economic recovery, and that'll translate into a profits recovery,'' said Duncan Richardson, who helps oversee $60 billion as chief equity investment officer at Eaton Vance Management in Boston. ``We've been very confident about the consumer.''
The Standard & Poor's 500 Index rose 10.89, or 1 percent, to 1142.76. Financial stocks made up one-fourth of the gain after brokerage Morgan Stanley Dean Witter & Co. reported earnings that topped forecasts and said business may be improving.
The Dow Jones Industrial Average climbed 111.96, or 1.1 percent, to 10,393.70, with 27 of 30 members gaining. The Nasdaq Composite Index added 19.23, or 1.1 percent, to 1831.72.
The Conference Board's gauge of consumer sentiment rose to 110.2 this month from 95 in February as optimism grew about the job market in a recovering economy. That put the index at its highest level since August and was above analysts' forecasts.
Stocks also got a boost after Robert McTeer, president of the Federal Reserve Bank of Dallas, suggested interest-rate increases may not be imminent. Shares fell last week and yesterday on concern that the Fed may raise rates, slowing the recovery in earnings.
`No Hurry'
``I'm in no hurry'' to raise rates, said McTeer, who is a member of the Fed's rate-setting committee, in an interview with Bloomberg News.
``I'm fairly hopeful that inflation can continue to decline somewhat in the next few months,'' in part because of ``productivity growing very rapidly,'' he said.
Three stocks rose for every two that fell on the New York Stock Exchange, while four advanced for every three that declined on the Nasdaq Stock Market. Some 338 million shares traded on the Big Board by 10:45 a.m. New York time, up 8.3 percent from a week ago.
Wal-Mart, the world's largest retailer, rose 99 cents to $62.28. Shares have gained 40 percent the past six months. Home Depot Inc., the largest home-improvement chain, added 41 cents to $48.86. TJX Inc., a discount retailer, jumped 65 cents to $38.80.
Philip Morris Cos., the biggest tobacco company, climbed $1.27 to $53.22, and Coca-Cola Co., the largest soft-drink maker, advanced 58 cents to $52.33.
GE, Financials Gain
General Electric, which makes light bulbs and appliances and owns the world's largest non-bank financial company, rose 60 cents to $37.64.
Morgan Stanley Dean Witter rose 81 cents to $55.66. Profit at the second-biggest securities firm by capital fell 16 percent in the first quarter, the sixth straight decline, as growth in mergers and stock sales remained muted.
Citigroup Inc., the biggest financial-services company, rose $1.05 to $49.70, and J.P. Morgan Chase & Co., the second-biggest U.S. bank, climbed 78 cents to $35.76. The biggest insurance company, American International Group Inc., rose $1.21 to $71.90 for its first gain in seven sessions.
Pennzoil-Quaker State Co. jumped $6.06, or 39 percent, to $21.55 after Royal Dutch/Shell Group agreed to buy the motor-oil company for $2.9 billion in cash and assumed debt. Royal Dutch's U.S. shares climbed 26 cents to $53.06.
Network Associates Inc. tumbled $2.67, or 11 percent, to $22.33. The SEC is examining how the maker of McAfee anti-virus software presents its earnings. The government has previously investigated the way Network Associates accounted for some of its acquisitions.
Network Associates said it has postponed its proposed offer to buy back shares of McAfee.com Corp., the Internet unit it established in 1998. McAfee fell $3.36, or 18 percent, to $15.15.
WebMD Corp. slid 85 cents to $7.02. The medical software maker plans to sell $300 million of notes that can be converted into stock to raise money for share buybacks, acquisitions and other purposes.
Calpine Corp. had the biggest decline in the S&P 500, sliding 74 cents to $12.94. Standard & Poor's cut the power-plant developer's unsecured credit rating three levels after Calpine pledged assets to its bankers in return for credit lines.
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Best Regards, J.T. |
