Stock averages closed up around 1% and in the upper end of the
day's range. Gains shaped up after a brief swoon into the red in early
trading. Stocks have continued to trade at 2009 highs as most earnings
meet or top expectations, in many cases due to cost-cutting. Crude
closed up 1.4% at a near one-year high of $79.61 a barrel. The dollar
fell after the New York Fed clarified that recent tests and speculation
were not an indication of immediate action.
The New York Fed confirmed it has tested reverse repurchase
agreements, to prepare for when or if policy makers decide they should
be used. The tests are "a matter of prudent advance planning by the
Federal Reserve, and no inference should be drawn about the timing of
monetary policy tightening," the bank said in a statement.
In a week of big earnings reports, the market gained some positive
momentum from anticipated filings by Apple Inc. (
AAPL) and Texas
Instruments (
TXN), which will announce quarterly results after the bell
tonight.
Hasbro (
HAS) gained then fell after the toymaker posted
higher-than-expected quarterly profit this morning, boosted by
movie-related toy sales, although revenues missed the Street.
Gannett Co. (
GCI), publisher of USAToday and other newspapers, also beat the Street on earnings.
Diversified manufacturer Eaton Corp. (ETN) topped expectations as
well, although quarterly profits were off sharply from last year's, and
said it saw signs of recovery in its markets.
So far, some 61 companies in the S&P 500 have reported
earnings, with 79% topping Street expectations, according to data
compiled by Thomson Reuters.
Financial stocks were mixed; BB&T Corp (
BBT) reported a sharp
drop in Q3 profit, but said it's loan problems are under control and
not as bad as Q2's situation. Frannie Mae (
FNM) and Freddie Mac (
FRE)
were both downgraded this morning, adding to the sector's woes.
In merger news, iPCS (IPCS) surged after the company agreed to be
acquired by Sprint Nextel (
S) for about $831 million, including the
assumption of $405 million in debt.
NYSE up 88.3 (1.2%) to 7,222.21.
-DJIA up 96.28 (1%) to 10,092.
-S&P 500 up 10.23 (0.9%) to 1,098.
-Nasdaq up 19.5 (0.9%) to 2,176.
GLOBAL SENTIMENT
Hang Seng up 1.23%
Nikkei down 0.21%
FTSE up 1.12%
UPSIDE MOVERS
(+) CIT amends restructuring plan.
(+) IPCS sold to Sprint Nextel for $24/share.
(+) TRBN reports positive Phase 2b retreatment stufy of TRU-015.
(+) BEST inks deal to supply coated food-safe packaging.
(+) ALLI sold to HIG Capital for $6.60/share.
(+) AEZS to complete Phase 3 trial of Macimorelin as first oral diagnostic test for growth hormone deficiency.
(+) RNN reports positive study results for depression treatment.
(+) FIGI inks new contracts.
(+) APC gets favorble Barron's coverage.
(+) BPOP reports smaller Q3 loss vs year-ago quarter.
DOWNSIDE MOVERS
(-) HAS beats with Q3 EPS, but gain largely on cost cuts.
(-) IDCC declines after ITC says Nokia did not infringe on patents.
(-) BEXP selling shares.
(-) AMGN says FDA requests more information on Prolia BLA.
(-) FNM, FRE downgraded.
