Stocks Climb Back on Earnings

albena
19 Apr, 2005
New York City

Technology stocks got boosted by Texas Instruments Inc. solid earnings. Several Dow components including Pfizer Inc. and Coca-Cola Co. reported higher-than-expected earnings and sent U.S. stocks higher, lifting investors sentiment.

In midmorning trading, the Dow Jones industrial average rose 52.47, or 0.5 percent, to 10,123.72. The Standard & Poor's 500 index rose 6.45, or 0.6%, at 1,152.43, and the Nasdaq composite climbed 15.51, or 0.8%, to 1,928.43.

Investors overlooked a rise in crude oil prices - a barrel of light crude rose back 71 cents and was quoted at $51.08 on the New York Mercantile Exchange. In London, Brent crude climbed 72 cents to $51.50 per barrel on the International Petroleum Exchange.

In earnings news, Johnson & Johnson ((JNJ)) reported a strong first-quarter profit, beating Wall Street's profit expectations by 5 cents per share. Johnson & Johnson added 17 cents to $69.21.

Coca-Cola ((KO)) soared $1.47 to $42.44 although profits dropped 11% percent compared with a year earlier. Coke outpaced analysts' forecasts by 4 cents per share.

Automaker General Motors Corp. ((GM)) dropped 59 cents to $25.60 after reporting a $1.1 billion 1Q loss on growing costs and disappointing North American sales. The company still beat Wall Street's cut loss estimates by a penny a share.

Drug maker Pfizer Inc. ((PFE)) profits plunged 87% on numerous charges. Pfizer nonetheless beat Wall Street expectations by a penny per share. Pfizer shed 19 cents at $27.41.

The Russell 2000 index of smaller companies gained 6.00, or 1%, at 591.33.

Nikkei stock average surged 1.16%, while Britain's FTSE 100 climbed 0.54%, Germany's DAX increased 0.41%, and France's CAC-40 was up 0.46%.

The dollar was mixed against most major currencies, while gold prices remained slightly higher.

The dollar slightly stabilized against the euro and yen on Tuesday as investors remained nervous about U.S. growth prospects.

Crude prices rose back above $51 per barrel Tuesday, as a move by Russian authorities to freeze the main remaining assets of Yukos unsettled markets, even amid expectations of further accumulation in U.S. crude stocks.


Shares UP:

Macromedia gained 3.27, or 9.8%, to 36.72
Eli Lilly advanced 93 cents, or 1.6%, to 59.
Bank of America rose 45 cents, or 1%, to 44.73.
J.P. Morgan Chase rose 71 cents, or 2.1%, to 34.64.
Citigroup, the No. 1 U.S. bank, advanced 46 cents, or 1%, to 46.21.
Downey Financial rose 3.77, or 6.5%, to 61.49.
Nucor rose 2.88, or 5.9%, to 51.67.


Shares DOWN:

3M lost $4.96, or 6.1%, to $75.90.
Adobe Systems lost 5.89, or 9.7%, to 54.77.
Instinet lost 56 cents, or 8.6%, to 5.93.
Mattel lost 39 cents, or 2.1%, to 18.28.
Brocade Communications Systems fell 29 cents, or 5.4%, to 5.06.
Check Point Software Technologies shed 43 cents, or 2%, to 21.37.