Dow Hits 14,000 and Keeps On Going
Feb 19th 2013 12:00PM
Updated Feb 19th 2013 2:00PM
See what a nice three-day weekend can do for one's well-being? After the President's Day holiday, the Dow Jones Industrial Average is stretching its legs this morning. Hitting well above the 14,000 mark shortly after the opening bell, the index is hovering around a 45-point gain as of this writing. The index is getting closer to its 2007 record close of 14,163 -- another benchmark for investors to watch in the coming days and weeks.
Investor confidence may be up following some news from Europe. The German economy is gaining steam, with the ZEW economic sentiment index reaching 48.2 in February, a 34-month high. European markets gained on the news, with indexes in Germany, France, and Britain up 1%.
We also have quite a lineup of company earnings releases today, which will fuel more trading during this short week. Scheduled to release earnings after the closing bell, Hewlett-Packard is up 2% in trading this morning. The beleaguered tech company is reporting first-quarter earnings, and so far Wall Street isn't expecting much. But investors may be banking on the company's past earnings surprises -- it beat analyst estimates in the past four quarters. So as bears sell off shares today, bulls may be scooping them up with expectations of a big earnings win. And that may not be so hard to do -- analysts are expecting the PC maker to report huge drops in both revenue and earnings, with the latter expected to decline 22%.
Bank of America is also leading the pack today in winning Dow components, up 1.7% so far today. The bank has been getting some good press so far in this short week of trading. After court documents were released last week, it's been noted that the Federal Reserve put its weight behind B of A in the legal fight between the bank and insurance giant AIG . Seeking $7 billion in damages, AIG is still trying to recover losses from mortgage-backed securities it insured that were not of the quality banks like BAC had represented them to be. Bank of America also got some good news when regional bank Arvest Bank received regulatory approval to purchase 29 of the big bank's branches. The sale will move forward, with Arvest beginning its rebranding of the branches next month. The bank also recorded a mark in the win column for record growth of its commercial bank 401(k) business -- it had a 28% increase from 2011.
Other news spurring on investors today? One word: mergers. OfficeMax and Office Depot were both up big this morning as news hit that the companies are deep in talks of merging. The news is benefiting OfficeMax a bit more, boosting the stock up 25%-plus while Office Depot has risen 15.3% so far in trading. Even rival Staples got a boost this morning, up 11.9%. Investors shouldn't be surprised to see these gains move as more details of the merger are released.
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The article Dow Hits 14,000 and Keeps On Going originally appeared on Fool.com.Fool contributor Jessica Alling has no position in any stocks mentioned, but you can contact her here. The Motley Fool recommends American International Group. The Motley Fool owns shares of American International Group, Bank of America, and Staples and has the following options: Long Jan 2014 $25 Calls on American International Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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