(By Salman - iStockAnalyst Writer)
US stocks finished at fresh 13-month highs as broker upgrades and gains in commodity sector offset downbeat holiday spending outlooks from retailers.
The Dow Jones Industrial Average rose 30.46 points or 0.29% to finish at 10,437.42. The S&P 500 added 1.02 points or 0.09% to end at 1,110.32. The Nasdaq Composite climbed 5.93 points or 0.27% to 2,203.78.
Shares of software giant Microsoft Corp. (NASDAQ:
MSFT) jumped 59 cents or 2% to $30 after Morgan Stanley raised its price target on the shares, citing strong demand for Windows 7 and the outlook for the holiday season.
Alcoa Inc.(NYSE:
AA), the largest US aluminum maker, added 15 cents or 1.10% to close at $13.76.
Among energy stocks, Exxon Mobil Corp (NYSE:
XOM) rose 60 cents or 0.81% to $75.03. Barclays on Tuesday upped its recommendation on the stock to "overweight" from "equal-weight.
Early on Tuesday, home improvement retailer Home Depot Inc. (NYSE:
HD) reported that its third quarter net income declined 8.9% to $689 million, or 41 cents per share,, compared with $756 million, or 45 cents, in the year-earlier quarter. Revenue dropped 8 percent to $16.36 billion. The company also raised its full-year earnings guidance. For the full year, Home Depot now expects earnings per share from continuing operations of about $1.50. That would be a 9.5 percent increase from last year, better than the company's previous expected range of flat to up 7 percent. Shares of the company plunged 66 cents or 2.39% to $26.99.
Shares of discount retailer Target Corp. (NYSE:
TGT) slumped $1.52 or 3.02% to $48.77 after it said that its third quarter net income surged 18% to $436 million, or 58 cents a share, from $369 million, or 49 cents, in the year-earlier quarter. Revenue climbed 1.4% to $14.8 billion.
Dillard Inc. (NYSE:
DDS) soared $1.18 or 8.85% to $14.51 after it reported that it swung to a third-quarter profit of $8 million, or 11 cents a share, compared with a loss of $56 million, or 76 cents a share, in the prior-year quarter. Revenue slipped to $1.36 billion from $1.51 billion.
General Electric Co. (NYSE:
GE) announced Tuesday that it plans to start a joint venture with Shenhua Group Corp. to develop "cleaner coal" technology in China. The companies expect the transaction to be completed in the first half of 2010. Shares of the diversified US firm finished at $16.02, up 2 cents or 0.13%.
Shares of the fast food chain McDonald's Corp. (NYSE:
MCD) lost 96 cents or 1.49% to close at $63.57.
On te economic front, a release by Federal Reserve on Tuesday showed that industrial production rose 0.1 percent following an increase of 0.6 percent in September. Capacity utilization rose to 70.7 percent last month from 70.5 percent in September. Economists expected industrial production to increase 0.4 percent while capacity utilization was forecast to rise to 70.8 percent.
The Department of Labor said Tuesday that U.S. producer prices fell 0.3% in October while core producer prices declined 0.6% in the month. Economists expected producer price index to drop 0.5% in October.
European stocks settled with losses. The UK FTSE lost 35.44 points or 0.66% to 5,347.23. The German DAX and French CAC decreased 0.38% and 0.85% respectively.
Asian stocks finished down. The Nikkei 225 fell 61.25 points or 0.63% to 9,729.93. The Hang Seng index of Hong Kong slumped 29.83 points or 0.13% to 22,914.15.
NYMEX crude oil for December delivery climbed 24 cents or 0.3% to settle at $79.14 a barrel.
Disclosure: Author doesn't own any of the stocks discussed here.
