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Closing Update: Markets Soar As Data Supports Bulls

 September 24, 2010 05:26 PM
 

-DJIA up 197.84 (+1.86%) to 10,860.26

-S&P 500 up 23.84 (+2.12%) to 1,148.67

-Nasdaq up 54.14 (+2.33%) to 2,381.22

GLOBAL SENTIMENT

Hang Seng up 0.33%

Nikkei down 0.99%

FTSE up 0.93%

UPSIDE MOVERS

(+) AMD gains despite sequential revenue decline.

(+) NKE beats with Q1 results.

(+) TIBX tops Q3 expectations.

(+) KBH sales beat.

(+) NVS gets payment plus milestone for selling bladder drug to Warner Chilcott.

DOWNSIDE MOVERS

(-) VICL continues slide after share sale announcement.

(-) FINL misses with Q2 results.

(-) ORCL considering buying chipmaker.

MARKET DIRECTION

Stocks surged in Friday's regular session, with the major indices sticking close to their day highs into the close. A bump in business confidence in Germany soothed continuing worries over European markets while U.S. traders were keen to focus on better-than-expected manufacturing data in the states. Data released this morning showed demand for big-ticket items last month fell 1.3% but largely as the result of the volatile transportation category. The 1.3% overall drop was smaller than Wall Street's expected 1.4% decline and without transport, durable goods orders actually rose 2% compared to the Street's call for a 0.06% gain.

Contrasting that, domestic new-home sales were flat in August, matching the second lowest level on record. Sales were steady at a seasonally adjusted annual rate of 288,000 units, below the 300,000 pace expected by economists surveyed by MarketWatch.

Looking out to next week, there is a modest slate of earnings due as the latest calendar quarter closes out on Thursday, with the full flow of earnings season to start over the next few weeks. On Monday, Cal-Maine (CALM), Jabil (JBL) and Paychex (PAYX) post financials. On Tuesday, Walgreen (WAG) will release numbers, followed by Family Dollar (FDO) and Xyratex (XRTX) on Wednesday.


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