Market Indexes in New York Advance on Rise in Core Industrial Orders

Nichole Harper
27 Feb, 2013
New York City

U.S. stocks extended gains for the second day in a row after core durable goods orders indicated improving economy. Market indexes also advanced after Italian treasury sold debt meeting its maximum sale target.

[R]1:10 PM New York – U.S. stocks extended gains for the second day in a row after core durable goods orders indicated improving economy. Market indexes also advanced after Italian treasury sold debt meeting its maximum sale target.[/R]

U.S. durable goods orders fell 5.2% in January, the most in more than a year according to the data released by the Commerce Department.

The core orders excluding volatile defense and transportation jumped 6.3% in the month. Defense orders plunged the most in 12 years. Core orders declined 0.3% in December but rose 3.3% in November and 3% in October.

The core orders for capital goods including industrial machinery and construction equipment and computers, increase suggested the strength in the underlying economy.

Pending home sales index increased to 4.5% in January from December, ahead of economists forecast of at least 2%.

European markets rebounded after Italy managed to sell debt a day after election results. The FTSE MIB Index gained 1.8% after falling as much as 5% in Tuesday’s trading.

Italy placed 5- and 10-year of bonds totaling 6.5 billion euros, the maximum target set by the treasury. The yields on the bonds jumped to a 4-month high to 4.8% but lower than 4.96% at yesterday’s close.

Stocks in Review

Accretive Health ((AH)) plunged 25% after the revenue management services provider withdrew its guidance and postponed its quarterly results release date.

Apple Inc ((AAPL)) fell slightly ahead of the annual shareholder meeting at its headquarters in Cupertino, California as investors seek answers on how company plans to share its cash hoard of $137.1 billion.

Coach Inc ((COH)) fell 5% after the luxury goods maker was the subject of media speculation that the company may seek a buyer. Andrea Resnick, a spokesperson for the company, did not offer any comments.

DreamWorks Animation SKG ((DWA)) dropped 2.2% after the animation studio reported weaker than expected earnings on a write-down of the cost of the movie “Rise of the Guardians.”

Deere & Co. increased 1% after the agriculture equipment maker increased its quarterly dividend by 11% to 51 cents a share.

LinkedIn Corp ((LNKD)) soared 6% after Wunderlich Securities recommended share with a price target of $195.

Priceline.com ((PCLN)) gained 3% after the online travel agent reported higher than expected international travel and hotel bookings.

Target Corp ((TGT)) increased 1% after the company’s quarterly sales were lower than anticipated.

Verisk Analytics Inc ((VRSK)) soared 10% to $59.35 after the data provider to insurance companies reported better than expected fourth quarter earnings.