Star-Bulletin news services
3M’s strong earnings
helps boost market
NEW YORK >> Wall Street had a moderate rebound yesterday as strong earnings from 3M Co. helped mute investor disappointment over an economic forecasting gauge that suggested business activity may be slowing.
Trading was quiet, and analysts said investors were taking a wait-and-see attitude as many large companies prepare to report earnings this week.
Among them was Texas Instruments Inc., which announced after the close that its third-quarter earnings more than doubled, beating analyst expectations.
The Dow Jones industrial average closed up 56.15, or 0.6 percent, at 9,777.94, having gained 0.5 percent last week.
The broader market also advanced. The Nasdaq composite index rose 12.78, or 0.7 percent, to close at 1,925.14, following a weekly loss of 0.2 percent. The Standard & Poor's 500 index rose 5.36, or 0.5 percent, to 1,044.68, having risen 0.1 percent last week.
Advancing issues outnumbered decliners about 5 to 4 on the New York Stock Exchange. Volume was light with 1.16 billion shares traded, compared to 1.3 billion shares Friday.
The Russell 2000 index rose 0.10, or 0.02 percent, to close at 521.44.
The NYSE composite index rose 23.56, or 0.4 percent, to 5,930.68. The American Stock Exchange composite index gained 1.91, or 0.2 percent, to 1,020.28.
The Treasury's two-year note was unchanged at 99 1832, with its yield slipping 1 basis point to 1.85 percent. The 10-year note was unchanged at 98 2932, with its yield remaining at 4.39 percent.
Investors were unhappy with the Conference Board's report that its Index of Leading Economic Indicators, a key forecasting measure, declined by 0.2 percent in September to 113.0, slightly below analysts' expectations. The dip marked the first decline in the index since March, and followed a 0.4 percent rise in August.
Before the market opened yesterday, 3M said its profits were up nearly 22 percent on strong sales, increased productivity and reduced costs, beating analyst estimates by 10 cents a share. The maker of Scotch-brand tape and Post-it Notes rose $1.43, or 1.9 percent, to close at $75.48.
Lexmark International Inc. reported a 16 percent rise in third-quarter earnings, beating the computer printer company's own estimates and Wall Street's expectations. Lexmark soared $6.75, or 10 percent, to close at $74.
Southwest Airlines Co. rose 59 cents, or 3.2 percent, to $18.99, after the discount carrier's earnings rose on strong summer travel. The company met analysts' forecasts.
Citigroup reported profits of $4.7 billion for the third quarter, well above Wall Street expectations, but the numbers failed to impress investors. The nation's largest financial institution declined 26 cents, to close at $48.12.
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