Star-Bulletin news services
Stocks rise despite
weak durable-goods orders
NEW YORK >> Brushing aside a report of sluggish factory orders, Wall Street extended its rally today as it focused instead on hopes for an economic rebound. Upbeat earnings from companies such as Krispy Kreme and Costco fed the market's optimism.
"The market is really looking forward and the consensus is that we're going to see a strong economic recovery in the second half," said Keith Keenan, vice president of institutional trading at Wall Street Access, a New York-based brokerage firm.
But he added, "some of that is fueled by performance anxiety. A lot of money managers are not fully invested, and a lot of hedge funds are short, so you're seeing a lot of unwinding."
Advancing issues outnumbered decliners 4 to 3 on the New York Stock Exchange. Volume was heavy.
The Dow Jones industrial average closed up 11.77, or 0.1 percent, at 8,793.12, having gained 179.97 points in the previous session to its best closing level since Jan. 14.
The broader market also finished higher. The Nasdaq composite index rose 6.55, or 0.4 percent, to 1,563.24, after advancing 46.60 points to its highest close since June 5, 2002. The Standard & Poor's 500 index rose 1.74, or 0.2 percent, to 953.22, having gained 18.26 points yesterday to its best level since Aug. 22, 2002. The Russell 2000 index rose 2.77, or 0.7 percent, to 430.48.
The price of the Treasury's 10-year note closed down 15/32 point, while its yield fell to 3.41 percent from 3.42 percent yesterday. The price of two-year Treasury notes was unchanged, but their yield fell to 1.30 percent from 1.32 percent yesterday.
The Commerce Department reported today that orders to U.S. factories for big ticket goods fell by 2.4 percent in April from the month before, when they rose 1.4 percent. The decline, the largest since September, was deeper than the 1 percent drop analysts expected.
A string of upbeat earnings news gave the market some of its lift.
Krispy Kreme climbed $2.32 to $34.18 after the doughnut chain posted quarterly profits that came in a penny higher than analysts' expectations.
Toll Brothers rose $1.05 to $28.50 after the luxury homebuilder reported fiscal second-quarter operating earnings that beat Wall Street's estimates by 4 cents per share.
Retailers also advanced. Target added $1.25 to $35.25 after the discounter said same-store sales were better than expected last week, while Costco Wholesale increased $1.43 to $37.35 after posting quarterly earnings that beat estimates by 2 cents per share.
Decliners included AutoZone, which fell $3.67 to $83.74, after the auto parts retailer said fiscal third-quarter earnings grew 23 percent, citing strong sales; the results were in line with the company's previous estimates.
Overseas, Japan's Nikkei stock average finished 1.4 percent higher. In Europe, France's CAC-40 and Britain's FTSE 100 both gained 2 percent while Germany's DAX index advanced 1.6 percent.
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