drlogic Posted November 18 Report Share Posted November 18 S&P 500 climbs to 4 1/2-year highGE in $8.5B insurance asset sale; H-P gains on earnings By Mark Cotton, MarketWatchLast Update: 10:19 AM ET Nov. 18, 2005 NEW YORK (MarketWatch) - U.S. stocks rose in morning trading Friday, with the S&P 500 Index climbing to its best level since June 2001 in a market boosted by gains in blue chips General Electric and Hewlett-Packard, and a multi-billion acquisition in Cisco Systems.A drop in crude-oil prices also underpinned gains. The Dow Jones Industrial Average ($INDU: Dow Jones Industrial AverageNews, chart, profileLast: 10,738.87+18.65+0.17%10:40am 11/18/2005Add to portfolioAnalystCreate alertInsiderDiscussFinancialsMore $INDU$INDU10,738.87, +18.65, +0.2%) rose to a session high of 10,796.26 before paring gains. The benchmark index was last up 40 points at 10,759.The Nasdaq Composite Index ($COMPQ: Nasdaq Composite IndexNews, chart, profileLast: 2,225.13+4.67+0.21%10:40am 11/18/2005Add to portfolioAnalystCreate alertInsiderDiscussFinancialsMore $COMPQ$COMPQ2,225.13, +4.67, +0.2%) rose to a fresh four and a half year high, up 10 points at 2,230.The S&P 500 Index ($SPX: S&P 500 IndexNews, chart, profileLast: 1,245.27+2.47+0.20%10:40am 11/18/2005Add to portfolioAnalystCreate alertInsiderDiscussFinancialsMore $SPX$SPX1,245.27, +2.47, +0.2%) also rose to its best level in four and a half years, up 5 points at 1,247. "This is just an extension of the rally we've been seeing," said Ken Tower, chief market strategist at CyberTrader. "The S&P is joining the party that the Nasdaq joined yesterday.""We've had a little lessening concern on inflation and a little drop in interest rates although I'm not sure how long it will last."Tower said all the merger and acquisition activity is also lending support as it shows the confidence that corporate leaders feel and also the confidence of the banks and investors who make those deals happen. On the broader market for equities, advancers outpaced decliners by around two to one on both the New York Stock Exchange and the Nasdaq. Gold futures bounced off 18-year highs amid mild profit taking even though the precious metal is expected to see continued strength on strong physical demand, central-bank buying and inflation concerns.Gold for December delivery reached $489.20 an ounce, its highest level since 1987 and was last trading down 30 cents at $486.60 an ounce. See Metals StocksOn the currency markets, the euro rebounded against the dollar after remarks by European Central Bank President Jean-Claude Trichet, hinting that eurozone interest rates may have to rise. The euro was up 0.3% at $1.1774. Against the Japanese yen, the greenback pared gains, up just 0.2% at 118.96. See CurrenciesOn the bond market, Treasury prices fell, pushing yields higher, as traders used an empty economic calendar as an excuse to lock in recent gains. The benchmark 10-year note was last trading down 8/32 at 100. Its yield climbed to 4.5% from 4.45% at Thursday's close.Crude-oil futures fell sharply in morning, taking the benchmark index to a five and a half month low. Crude for December delivery was down 94 cents at $55.40 a barrel in New York trading. Dow stocks in focusShares in General Electric Co. (GE: General Electric CompanyNews, chart, profileLast: 35.65+0.99+2.86%10:20am 11/18/2005Add to portfolioAnalystCreate alertInsiderDiscussFinancialsMore GEGE35.65, +0.99, +2.9%) rose to a four-month high of $35.75 after the conglomerate lifted earnings estimates and said it will sell most of its Insurance Solutions reinsurance division to Swiss Re for $8.5 billion, after losing $700 million from that side of the business over the last five years.The company said it will also lift its share-buyback plan to $25 billion through 2008 from an earlier plan of $15 billion through 2007. See full story.Hewlett-Packard (HPQ: Hewlett-Packard Co.News, chart, profileLast: 29.78+0.78+2.69%10:20am 11/18/2005Add to portfolioAnalystCreate alertInsiderDiscussFinancialsMore HPQHPQ29.78, +0.78, +2.7%) rallied in morning trading after the computer and printer maker raised its profit outlook after posting earnings, excluding restructuring charges, that handily topped expectations. The company's solid performance came on the back of strong sales of its personal computers, servers and storage gear. The stock, one of the biggest gainers on the Dow industrials, rose as much as 4% to $30.17 after gaining 2.6% Thursday in front of its quarterly release. See full story.Walt Disney Co., (DIS: Walt Disney Company (The) (Holding Company)News, chart, profileLast: 25.19-0.80-3.08%10:20am 11/18/2005Add to portfolioAnalystCreate alertInsiderDiscussFinancialsMore DISDIS25.19, -0.80, -3.1%) another Dow component, fell as much as 3.6% to $25.05 after net income for the fourth quarter fell more than 25% due mostly to underperforming films.On a per-share profit, however, the media giant beat analyst expectations. See full story. Shares in General Motors Corp. (GM: General Motors CorporationNews, chart, profileLast: 23.55+0.92+4.07%10:20am 11/18/2005Add to portfolioAnalystCreate alertInsiderDiscussFinancialsMore GMGM23.55, +0.92, +4.1%) was up 4.6% at $23.67. Chief Executive Rick Wagoner told employees in a memo Wednesday that it doesn't plan to file for bankruptcy reorganization, according to a filing late Thursday with the Securities and Exchange Commission. "That is not only unnecessary; it would be clearly contrary to the interests of our employees, our stock and bond holders, our dealers, and our suppliers and importantly, our customers," Wagoner said in the memo. "What we are doing is taking the necessary steps to get our business profitable."DealsOutside the Dow, Cisco Systems Inc. (CSCO: Cisco Systems, Inc.News, chart, profileLast: 17.05-0.32-1.84%10:25am 11/18/2005Add to portfolioAnalystCreate alertInsiderDiscussFinancialsMore CSCOCSCO17.05, -0.32, -1.8%) said it is buying cable television set-top maker Scientific Atlanta Inc (SFA: Scientific-Atlanta, Inc.News, chart, profileLast: 42.02+0.57+1.38%10:20am 11/18/2005Add to portfolioAnalystCreate alertInsiderDiscussFinancialsMore SFASFA42.02, +0.57, +1.4%) for $6.9 billion. Cisco shares were off 0.9% at $17.20. Scientific Atlanta's stock rose to an early high of $42.24. Apparel company Liz Claiborne Inc. (LIZ: Liz Claiborne, Inc.News, chart, profileLast: 36.22+0.63+1.77%10:20am 11/18/2005Add to portfolioAnalystCreate alertInsiderDiscussFinancialsMore LIZLIZ36.22, +0.63, +1.8%) said it has offered to buy J. Jill Group's Inc. (JILL: j jill group inc comNews, chart, profileLast: 18.09+5.30+41.44%10:25am 11/18/2005Add to portfolioAnalystCreate alertInsiderDiscussFinancialsMore JILLJILL18.09, +5.30, +41.4%) for about $366 million, or $18 a share in cash, representing a 40% premium to Thursday's closing price. Liz Claiborne shares rose 2.6% to $36.50 while shares of J. Jill Group shot up 45% to $18.54. Elsewhere in the retail space, shares in The Gap Inc. (GPS: The Gap, Inc.News, chart, profileLast: 16.94-1.57-8.48%10:20am 11/18/2005Add to portfolioAnalystCreate alertInsiderDiscussFinancialsMore GPSGPS16.94, -1.57, -8.5%) tumbled more than 8% to a session low of $16.96 after the apparel retailer lowered its full-year outlook after fashion miscues and a drop in sales at its namesake stores drove earnings down 20%. See full story. Quote Link to comment Share on other sites More sharing options...
bigpoppanils Posted November 18 Report Share Posted November 18 if you look at the bond market, there is a different story. short term yields are extremely close to that of long term yields. the last time short term and long term yields were this close was right before the recession began in 2000. when short term yields go higher than long term yields, a recession ALWAYS occurs. Quote Link to comment Share on other sites More sharing options...
drlogic Posted November 18 Author Report Share Posted November 18 if you look at the bond market, there is a different story. short term yields are extremely close to that of long term yields. the last time short term and long term yields were this close was right before the recession began in 2000. when short term yields go higher than long term yields, a recession ALWAYS occurs.I remember that "mild" recession which came about during a Clinton budget. The Bush budget wasn't even implemented until about 8 months after he took office. What month was it that Bush actually moved into the white house? Elected in Nov., right(oh yeah, recount, recount recount)? Assumed the role when? Anyway, point being that unemployment figures are better than that of his predecesor. Clinton economy did not come out of recession until his 6th year in office.....blah,blah,blah..................I know, you don't care. Point being: The psycho-babble we hear about Bush and economy are pure politrix'tas playing games. Quote Link to comment Share on other sites More sharing options...
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