Closing Market Report
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Stocks push higher but jitters remain
By Madlen Read / Associated Press
NEW YORK » Wall Street found a foothold yesterday as investors, still anxious that a credit crunch could crimp U.S. growth, took advantage of low prices after last week's steep losses. The Dow Jones industrial average surged more than 90 points.
Some solid earnings and takeover activity boosted the stock market, which is coming off the Dow's and the Standard & Poor's 500 index's biggest weekly drops in nearly five years. The Dow is down about 4.8 percent from its July 19 record close of 14,000.41, having caved under worries about a shakier lending climate.
In a sign that aversion to corporate debt hasn't stanched dealmaking, industrial equipment manufacturer Ingersoll-Rand said it's selling its Bobcat earth-moving division and two other units to Korea's Doosan Infracore for $4.9 billion. Ingersoll Rand rose $3.63, or 7.5 percent, to $51.77 on its decision to sell three of its units.
And despite rising defaults and delinquencies in mortgage lending, HSBC Holdings PLC, Europe's largest bank by market value, posted a 25 percent rise in first-half earnings. HSBC rose 1.4 percent in London trading. Also, General Motors Corp.'s GMAC Financial Services said second-quarter profit declined but that it expects its residential lending business to improve in the second half of the year. General Motors rose 4.9 percent, to $32.61, after GMAC reported its financial results.
The Dow rose 92.84, or 0.70 percent, to 13,358.31, after falling by as much as 46 points during the session. On Thursday and Friday, the Dow plunged a total of 585 points.
Broader stock indicators also rose. The Standard & Poor's 500 index added 14.96, or 1.03 percent, to 1,473.91, and the Nasdaq composite index advanced 21.04, or 0.82 percent, to 2,583.28.
Advancing issues outnumbered decliners by about 2 to 1 on the New York Stock Exchange, where volume came to 2.03 billion shares compared with a heavy 2.27 billion shares Friday.
The Russell 2000 index of smaller companies rose 6.40, or 0.82 percent, to 784.23 -- back in positive territory for the year after turning negative Friday.
Bonds fell modestly as stocks gained, driving the 10-year Treasury note's yield up to 4.81 percent from 4.77 percent late Friday.
High energy prices remain a concern for investors. Oil futures fell 19 cents to $76.83 a barrel on the New York Mercantile Exchange. On Friday, they finished a penny away from the record close of $77.03 reached July 14, 2006.
The dollar was mixed against other major currencies. Gold prices rose.
In other corporate news, Verizon Communications Inc. posted a rise in second-quarter profit that met expectations, and said Verizon Wireless, its joint venture with Vodafone Group PLC, will buy Rural Cellular Corp. in a deal worth about $757 million.
Verizon, one of the 30 Dow components, fell 49 cents to $41.51. Rural Cellular jumped $10.95, or 34 percent, to $42.76.
RadioShack Corp. said second-quarter sales fell 15 percent compared with a year ago.
The electronics retailer dropped $3.25, or 11.3 percent, to $25.55, although it swung to a second-quarter profit from a loss a year ago.
By Madlen Read
Associated Press
NEW YORK » Wall Street found a foothold yesterday as investors, still anxious that a credit crunch could crimp U.S. growth, took advantage of low prices after last week's steep losses. The Dow Jones industrial average surged more than 90 points.
Some solid earnings and takeover activity boosted the stock market, which is coming off the Dow's and the Standard & Poor's 500 index's biggest weekly drops in nearly five years. The Dow is down about 4.8 percent from its July 19 record close of 14,000.41, having caved under worries about a shakier lending climate.
In a sign that aversion to corporate debt hasn't stanched dealmaking, industrial equipment manufacturer Ingersoll-Rand said it's selling its Bobcat earth-moving division and two other units to Korea's Doosan Infracore for $4.9 billion. Ingersoll Rand rose $3.63, or 7.5 percent, to $51.77 on its decision to sell three of its units.
And despite rising defaults and delinquencies in mortgage lending, HSBC Holdings PLC, Europe's largest bank by market value, posted a 25 percent rise in first-half earnings. HSBC rose 1.4 percent in London trading. Also, General Motors Corp.'s GMAC Financial Services said second-quarter profit declined but that it expects its residential lending business to improve in the second half of the year. General Motors rose 4.9 percent, to $32.61, after GMAC reported its financial results.
The Dow rose 92.84, or 0.70 percent, to 13,358.31, after falling by as much as 46 points during the session. On Thursday and Friday, the Dow plunged a total of 585 points.
Broader stock indicators also rose. The Standard & Poor's 500 index added 14.96, or 1.03 percent, to 1,473.91, and the Nasdaq composite index advanced 21.04, or 0.82 percent, to 2,583.28.
Advancing issues outnumbered decliners by about 2 to 1 on the New York Stock Exchange, where volume came to 2.03 billion shares compared with a heavy 2.27 billion shares Friday.
The Russell 2000 index of smaller companies rose 6.40, or 0.82 percent, to 784.23 -- back in positive territory for the year after turning negative Friday.
Bonds fell modestly as stocks gained, driving the 10-year Treasury note's yield up to 4.81 percent from 4.77 percent late Friday.
High energy prices remain a concern for investors. Oil futures fell 19 cents to $76.83 a barrel on the New York Mercantile Exchange. On Friday, they finished a penny away from the record close of $77.03 reached July 14, 2006.
The dollar was mixed against other major currencies. Gold prices rose.
In other corporate news, Verizon Communications Inc. posted a rise in second-quarter profit that met expectations, and said Verizon Wireless, its joint venture with Vodafone Group PLC, will buy Rural Cellular Corp. in a deal worth about $757 million.
Verizon, one of the 30 Dow components, fell 49 cents to $41.51. Rural Cellular jumped $10.95, or 34 percent, to $42.76.
RadioShack Corp. said second-quarter sales fell 15 percent compared with a year ago.
The electronics retailer dropped $3.25, or 11.3 percent, to $25.55, although it swung to a second-quarter profit from a loss a year ago.