The Joplin Globe, Joplin, MO

Business

April 16, 2013

Stock market rebounds from worst day of the year

NEW YORK — Strong housing and earnings reports helped stocks rebound from their worst day of the year.

The Dow Jones industrial average rose 129 points, or 0.9 percent, on Tuesday, to 14,728 as of 1:50 p.m. EDT, winning back about half of the 265 points it lost a day earlier.

Home construction topped 1 million last month, the highest level since June 2008. Robust earnings from companies including Coca-Cola also propelled the market higher.

A recovery in housing and a pickup in hiring were major catalysts driving the stock market’s surge early this year. The Dow and the Standard & Poor’s 500 jumped 11.3 percent and 10.3 percent, respectively, in the first three months of 2013.

That run-up was interrupted Monday when stocks had their biggest decline since November. Worries about an economic slowdown in China led to a drop in prices for oil, copper, and other commodities, causing mining and energy stocks to fall. The rally slowed earlier this month after reports of weak hiring and retail sales suggested that the economy was cooling off.

“This is the first time in a while that we’ve had pretty positive numbers,” said JJ Kinahan, chief derivatives strategist for TD Ameritrade. “We had one bad day yesterday. You can’t say because of that one bad day that all bets are off.”

While Chinese growth fell short of expectations, Monday’s sell-off may have been disproportionate to the trend revealed by the data.

The world’s biggest economy still expanded at a rate of 7.7 percent in the first three months of the year, missing analysts’ expectations by just 0.3 percentage points. China is watched especially closely because it is a major market for foreign goods from iron ore to smartphones and is relatively healthy. Investors hope demand from China can help offset weakness in the U.S., Europe and Japan.

Mining stocks were rising Tuesday as commodities markets stabilized. Gold, which was at the epicenter of Monday’s sell-off, rose $26.30 to $1,387.40 an ounce.

The precious metal logged its steepest fall in 30 years Monday, plunging 9.4 percent. Gold had been drifting lower since the start of the year and the decline accelerated Friday after the government reported a drop in inflation. People often buy gold when they’re fearful of rising prices and sell it when they see inflation ebbing.

Gold is down 27 percent since it climbed to a record in August 2011, when lawmakers wrangled over raising the debt ceiling and threatened to push the U.S. into default.

Copper edged up 3 cents to $3.30 a pound. Crude oil fell 12 cents to $88.58 a barrel.  

Materials stocks rose the most of the 10 industry groups in the S&P after leading the market lower the day before. Freeport-McMoRan Copper & Gold was up 0.8 percent at $29.50, a day after plunging 8 percent, the biggest drop in the S&P 500 index.

Home builders rose following the housing report. PulteGroup rose 66 cents to $18.51 and Lennar climbed 45 cents to $38.23.

In other trading, the Standard & Poor’s 500 climbed 19 points, or 1.2 percent, to 1,571. The Nasdaq composite rose 42 points, or 1.3 percent, to 3,254.

Small company stocks rose more than the broader market, a sign that investors are moving money into riskier assets. The Russell 2000 index climbed or 1.4 percent to 920.13. That’s a reversal from the day before, when the index plunged 3.8 percent.

Traders on the floor of the New York Stock Exchange observed a moment of silence to honor the victims of Monday’s bombing attacks at the Boston Marathon.

Among stocks making big moves:

Coca-Cola gained $2.14 to $42.23 after its first-quarter results came in above Wall Street’s forecasts. Coke said it struck a deal to start refranchising its business in the U.S., which will lower costs.

W.W. Grainger Inc., which sells power tools and other industrial equipment, rose $17.36 to $243 after the company said its first-quarter net income climbed 13 percent.

U.S. Bancorp dropped 71 cents to $32.60 after the lender reported first-quarter earnings that fell short of analysts’ expectations. The Minneapolis bank’s net income rose 7 percent to $1.43 billion as it set aside less cash to cover soured loans. Whirlpool Corp. jumped $2.94 to $116 after the appliance maker raised its quarterly dividend 25 percent to 62.5 cents.

Yields on U.S. government bonds rose as investors moved money out of safe-haven investments. The yield on the benchmark 10-year Treasury note climbed to 1.73 percent from 1.68 percent.

 

1
Text Only
Business
  • Business US stocks close higher for third day in a row

    Investors drove stock prices to their highest level in a week Wednesday,

    April 16, 2014 1 Photo

  • China’s growth slows to 7.4 percent in 1Q

    China’s economic growth slowed further in the latest quarter but appeared strong enough to satisfy Chinese leaders who are trying to put the country on a more sustainable path without politically dangerous job losses.

    April 16, 2014

  • A look at 3 minority business mentoring programs

    A look at minority business mentoring programs, called accelerators, in three metropolitan areas.

    April 16, 2014

  • Why high oil prices are actually good for airlines

    Airline executives frequently complain about fuel costs. But the truth is higher prices actually have been good for business.

    April 16, 2014

  • Business US stocks open higher; Yahoo soars in early trade

    U.S. stocks moved higher in early trading on Wednesday, extending their gains into a third day. Investors welcomed solid earnings from Yahoo as well as some encouraging news about China’s economy and U.S. factory production.

    April 16, 2014 1 Photo

  • Detroit strikes second deal with its other retirees

    The city of Detroit reached tentative agreements to preserve pensions for retired police office and firefighters but cut monthly payments for other former employees, key deals that could accelerate the largest public bankruptcy in U.S. history, officials said Tuesday.

    April 16, 2014

  • Missouri court expands legal rights for injured workers

    The Missouri Supreme Court has overturned 30 years of precedent with a ruling that gives greater legal protections to injured workers who are fired from their jobs.

    April 15, 2014

  • Immigration activists urge Obama to act boldly

    Latinos and immigration activists are warning of political peril for President Barack Obama and Democrats in the fall election unless the president acts boldly and soon to curb deportations and allow more immigrants to remain legally in the U.S.

    April 15, 2014

  • Farmers off to slow start planting corn crop

    Spring planting across the nation’s Corn Belt is sputtering because the soil remains too soggy or cold for effective seeding.

    April 15, 2014

  • Schreiber Foods schedules Carthage plant expansion

    Plans to expand a Schreiber Foods plant to eventually add 160 new jobs have been endorsed by a Carthage committee working with the company. Andrew Tobish, director of combinations for Schreiber, which is based in Green Bay, Wis., confirmed the project, which he said would be complete by late spring or early summer in 2015.

    April 15, 2014

Poll

The Supreme Court may take up a challenge to an Ohio law that bars false statements about political candidates during a campaign. Do you think false accusations made in the heat of an election should be punished as a crime?

A. Yes.
B. No.
     View Results
Facebook
Twitter Updates
Follow us on twitter
NDN Video
Disbanding Muslim Surveillance Draws Praise Hundreds Missing After South Korean Ferry Sinks Passengers Abuzz After Plane Hits Swarm of Bees Boston Bomb Scare Defendant Appears in Court Pistorius Trial: Adjourned Until May 5 Diaz Gets Physical for New Comedy Raw: Ferry Sinks Off South Korean Coast Town, Victims Remember Texas Blast Freeze Leaves Florida Panhandle With Dead Trees At Boston Marathon, a Chance to Finally Finish Are School Dress Codes Too Strict? Raw: Fatal Ferry Boat Accident Suspicious Bags Found Near Marathon Finish Line Boston Marks the 1st Anniversary of Bombing NYPD Ends Muslim Surveillance Program 8-year-old Boy Gets His Wish: Fly Like Iron Man Sex Offenders Arrested in Slayings of CA Women India's Transgenders Celebrate Historic Ruling Tributes Mark Boston Bombing Anniversary Raw: Kan. Shooting Suspect Faces Judge