The Joplin Globe, Joplin, MO

Business

June 27, 2012

Stocks rise on stronger US housing, factory data

NEW YORK — A rare double shot of good news about the U.S. economy sent stocks strongly higher Wednesday. The Dow Jones industrial average rose 92 points despite lingering fear about Europe’s debt turmoil.

Americans signed more contracts to buy previously occupied homes in May, matching the fastest pace in two years, the National Association of Realtors said. It was the latest signal that the housing market is improving in many regions following a slump of more than six years.

Homebuilders soared. Lennar Corp. jumped $1.31, or 5 percent, to $28.70. That company had reported earlier that its second-quarter profit rose as it boosted deliveries and new orders. PulteGroup, D.R. Horton and Hovnanian Enterprises also rose sharply.

Earlier, the government said that businesses placed more orders for long-lasting manufactured goods in May, suggesting that their confidence in the U.S. economy was not shaken by signs of weakness that emerged this spring. Core goods, a measure of business investment plans, also jumped.

The reports “were really quite good,” boosting hopes about the economic recovery after three months of weak output and abysmal job growth, said Dennis Gartman, an economist and editor of The Gartman Letter, a source of daily market commentary.

“The economy is doing reasonably well and will continue to muddle on through,” Gartman said.

The Dow closed up 92.34 points, or 0.7 percent, at 12,627.01. Coca-Cola rose $1.26, or 2 percent, to $76.34, after saying it will invest another $3 billion in India’s rapidly growing consumer market over the next eight years.

The Standard & Poor’s 500 index rose 11.86 points, or 0.9 percent, to 1,331.85. Its biggest loser by far was auto parts maker O’Reilly Automotive, which fell $13.83, or 14 percent, to $82.61. O’Reilly said its second-quarter earnings will be at the low end of its earlier estimates and sales will be weaker than previously expected.

H&R Block leapt 58 cents, or 4 percent, to $15.67. The tax preparation company posted a lower fourth-quarter profit than analyst had expected, but the company gained valuable market share while cutting jobs and closing stores to focus on electronic tax filing.

The Nasdaq composite average rose 21.26 points to 2,875.32.

Investors remain wracked with concern about Europe as leaders there prepare for a two-day summit aimed at defusing their lingering debt crisis. German Chancellor Angela Merkel warned Wednesday that there would be no quick solution to the structural issues plaguing the continent.

Europe will cause volatile stock trading in the coming weeks because the summit is unlikely to produce a lasting solution, Gartman said. The meeting is scheduled to be two days, he said, but Italian Prime Minister Mario Monti promised to keep it going until Sunday if an agreement has not been reached.

“I think he can keep them there until Sunday five weeks from now and there’s little chance they’ll agree,” Gartman said.

 

1
Text Only
Business
  • Business US stocks edge lower after a six-day rise

    Stocks edged mostly lower Wednesday, breaking a six-day winning streak, as investors were disappointed by the latest round of earnings from U.S. companies.

    April 23, 2014 1 Photo

  • Sales of new US homes plunge 14.5 percent in March

    The number of Americans buying new homes plummeted in March to the slowest pace in eight months, a sign that real estate’s spring buying season is off to a weak start.

    April 23, 2014

  • 3M plant expansion to create 22 jobs

    An $18.7 million expansion at the 3M Co. manufacturing plant in Nevada will create 22 new jobs, a company official said Wednesday. “We started 43 years ago as a small manufacturer,” said Todd Cantrell, plant manager, in a meeting with employees. “We are now the largest 3M plant in the state of Missouri and one of the largest of all 3M plants.”

    April 23, 2014

  • First lady announces one-stop job site for vets

    First lady Michelle Obama has announced a new online effort to link soldiers leaving the military with jobs that match their skill sets.

    April 23, 2014

  • Advocates vow to revive Navajo junk-food tax

    Facing a high prevalence of diabetes, many American Indian tribes are returning to their roots with community and home gardens, cooking classes that incorporate traditional foods, and running programs to encourage healthy lifestyles.

    April 23, 2014

  • Feds seek $211K in fines from Minn. company

    Federal safety regulators are proposing $211,000 in fines for a Minnesota agriculture company that authorities say repeatedly failed to make sure workers weren’t exposed grain dust hazards in Montana.

    April 23, 2014

  • Business US stocks edge lower after a six-day rally

    The stock market slipped Wednesday after rallying for six straight days as investors worked through another round of quarterly earnings reports from U.S. companies.

    April 23, 2014 1 Photo

  • GM, lawyers fight over bankruptcy protections

    General Motors Co. and a battalion of trial lawyers are preparing for an epic court fight over whether GM is liable for the sins of its corporate past.

    April 22, 2014

  • Comcast 1Q earns surge on upbeat NBC results

    Comcast Corp. said Tuesday that its first-quarter net income rose by 30 percent as ad revenue surged at broadcast network NBC, helped by the Winter Olympics in Sochi and Jimmy Fallon’s elevation as host of “The Tonight Show.”

    April 22, 2014

  • Valeant, Ackman make $45.6B Allergan bid

    Valeant Pharmaceuticals and activist investor Bill Ackman have unveiled details of their offer to buy Botox maker Allergan, proposing a cash-and-stock deal that could be worth about $45.6 billion.

    April 22, 2014

Poll

A Missouri Senate committee has adopted a state budget provision that would prevent public colleges and universities from offering in-state tuition rates to students living in the country illegally. Do you agree with this?

Yes.
No.
     View Results
Facebook
Twitter Updates
Follow us on twitter
NDN Video
SKorea Ferry Toll Hits 156, Search Gets Tougher Video Shows Possible Syrian Gas Attack Cubs Superfans Celebrate Wrigley's 100th Raw: Cattle Truck Overturns in Texas Admirers Flock to Dole During Kansas Homecoming Raw: Erupting Volcanoes in Guatemala and Peru Alibaba IPO Could Be Largest Ever for Tech Firm FBI Joining Probe of Suburban NY 'Swatting' Call U.S. Paratroopers in Poland, Amid Ukraine Crisis US Reviews Clemency for Certain Inmates Raw: Violence Erupts in Rio Near Olympic Venue Raw: Deadly Bombing in Egypt Raw: What's Inside a Commercial Jet Wheel Well Raw: Obama Arrives in Japan for State Visit Raw: Anti-Obama Activists Fight Manila Police Motels Near Disney Fighting Homeless Problem Michigan Man Sees Thanks to 'bionic Eye' S.C. Man Apologizes for Naked Walk in Wal-Mart Chief Mate: Crew Told to Escape After Passengers