Stocks Jumped to Highest on Strong Earnings

in Earning

Strong earnings reports from U.S. companies and encouraging signs of price and unemployment ease pushed stocks to the new highs in almost three years. 


The Russell 2000 index, a benchmark for small cap stocks in the United States, neared a record high of 855.77 that it reached in July 2007.


The Dow Jones industrial average rose 0.9 percent, to 12,595.37. The Nasdaq composite advanced 0.8 percent, to 2,847.54.


The Standard and Poor's 500 index rose 0.9 percent, to 1,347.24, the highest level since June 2008 and near 1,565 recorded in October 2007.


Consolidated volume came to 4.1 billion shares, with only one fell for every three stocks that rose on the New York Stock Exchange.


This has been the historic recovery in the stock market since it plunged to the bottom in March 2009. Stocks are expected to continue to rise in case of low unemployment rate and increasing global demand. 


Most of S&P components posted better-than-expected earnings in the first quarter.


Stocks' gains were bouyed by a report on consumer confidence. Unemployment rate slowed down in April. 


Delta Air Lines Inc. (NYSE: DAL) added 11 percent after reporting better-than-expected earnings. 


Shares of Cummins Inc. (NYSE: CMI) surged 8 percent, driven by its earnings outlook. 3M Co., also raised its earnings forecast for the full year. 


Ford Motor Co. (NYSE: F) reported earnings which beat Wall Street's estimates. The carmaker's shares rose almost 1 percent on stronger sales of new vehicles.


Kindred Healthcare rose roughly 18 percent on higher-than-expected profit. The acute-care facility company said its first-quarter net income was $22.1 million, or 55 cents a share. This was up from $14.9 million, or 38 cents a share, for the same period a year earlier. 


Investors are keeping close watch on stock of Boeing Co., eBay Inc. and Starbucks Corp which are three among companies expected to report earnings.


Boeing is estimated to report earnings of 70 cents a share in the first quarter. EBay is expected to report a profit of 46 cents a share. 

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Lee Dobbins has 433 articles online and 7 fans

Economics is the study of our lives,our jobs, our homes, our families and the little decisions we face every day. Thus, I am keen on reading and studying economic issues.

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Stocks Jumped to Highest on Strong Earnings

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This article was published on 2011/04/28