Dow extends two-week winning streak on earnings
Filed under: Company News, Investing, Earnings, JC Penney, Walt Disney
The Dow Jones Industrial Average ($INDU) shrugged off some disappointing data to post solid gains Friday, helped by better-than-expected earnings from key consumer bellwhethers. The blue-chip barometer added 1% for the week, extending its winning ways to a second straight week.
At the closing bell the Dow was up 73 points, or 0.7%, to 10,270. Equities shrugged off a disappointing report on consumer confidence, focusing instead on earnings reports. The broader S&P 500 ($INX) gained 6 points, or 0.6% to finish at 1,093, while the tech-heavy Nasdaq Composite ($COMPX) rose 19, or 0.9%, to 2,168.
"Today the main story we had was better earnings from cyclical bellwether stocks Abercrombie & Fitch and Disney, which surprised to the upside," says Ticonderoga Securities analyst John Stoltzfus. "And out of Europe today we had the report that the euro zone emerged from its recession in the latest quarter."
Dow component Walt Disney (DIS) reported late Thursday its fourth-quarter earnings grew 18% on improved results at cable network ESPN and syndication sales of "Grey's Anatomy" and "Desperate Housewives." The results were above estimates and showed improvement at the company's operations.
Trendy teen retailer Abercrombie & Fitch (ANF) a 39% lower profit of $38.8 million, or 44 cents per share, but adjusted profit was much better than Street estimates, helped by cost cuts. Net sales fell 15% to $765.4 million as same-store sales fell 22%.
Meanwhile, J.C. Penney (JCP) reported a lower quarterly profit of $27 million, or 11 cents a share, in line with estimates. Sales fell 3.2% to $4.18 billion in the third quarter. Same-store sales fell 4.6% during the quarter. But the retailer raised its forecast for the full year to a level that could top Wall Street expectations.
The U.S. dollar continued its slide against other major currencies, while gold rose to $1117.20 an ounce. Crude oil fell 61 cents to settle at $76.33 a barrel.
At the closing bell the Dow was up 73 points, or 0.7%, to 10,270. Equities shrugged off a disappointing report on consumer confidence, focusing instead on earnings reports. The broader S&P 500 ($INX) gained 6 points, or 0.6% to finish at 1,093, while the tech-heavy Nasdaq Composite ($COMPX) rose 19, or 0.9%, to 2,168.
"Today the main story we had was better earnings from cyclical bellwether stocks Abercrombie & Fitch and Disney, which surprised to the upside," says Ticonderoga Securities analyst John Stoltzfus. "And out of Europe today we had the report that the euro zone emerged from its recession in the latest quarter."
Dow component Walt Disney (DIS) reported late Thursday its fourth-quarter earnings grew 18% on improved results at cable network ESPN and syndication sales of "Grey's Anatomy" and "Desperate Housewives." The results were above estimates and showed improvement at the company's operations.
Trendy teen retailer Abercrombie & Fitch (ANF) a 39% lower profit of $38.8 million, or 44 cents per share, but adjusted profit was much better than Street estimates, helped by cost cuts. Net sales fell 15% to $765.4 million as same-store sales fell 22%.
Meanwhile, J.C. Penney (JCP) reported a lower quarterly profit of $27 million, or 11 cents a share, in line with estimates. Sales fell 3.2% to $4.18 billion in the third quarter. Same-store sales fell 4.6% during the quarter. But the retailer raised its forecast for the full year to a level that could top Wall Street expectations.
The U.S. dollar continued its slide against other major currencies, while gold rose to $1117.20 an ounce. Crude oil fell 61 cents to settle at $76.33 a barrel.
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Reader Comments (Page 1 of 1)
11-13-2009 @ 5:03PM
MargeeD said...
so... a little more "jobless recovery"? There was an article earlier this week about how the REAL unemployment rate, including those that have taken part time or "under employed" type positions and those that have simply given up and moved in with relatives, is over 17%... so how is it that the market is rising, and leaving all the rest of us in the pit? I used to have a lot of faith in the systems and processes of this country, but not anymore. I see again and again, the bankers and finance guys getting all the government money, and experiencing economic recovery, when 'everyman' is still losing his job, and his house and moving in with his mother.
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11-13-2009 @ 5:12PM
Don said...
J.C. Penny sales were down 78% and if you spin and weave the data you come up with earnings above expectations ??????? WTF ! It is shear madness
looking through the rose colored glass, that is cracked !
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