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MARKET SNAPSHOT: U.S. Stocks Rally On End-of-quarter Buying
By admin | June 28, 2007
MARKET SNAPSHOT: U.S. Stocks Rally On End-of-quarter Buying
MARKET SNAPSHOT: U.S. Stocks Rally On End-of-quarter Buying
Dow Jones
June 27, 2007: 05:15 PM EST
U.S. stocks rallied Wednesday, reversing early weakness, as investors set aside recent jitters about the subprime mortgage market and hedge fund woes to focus on rebuilding their portfolios ahead of the end of the second quarter on Friday.
Better-than-expected earnings from Oracle Corp. helped lift technology shares, while rising oil prices lifted energy stocks. A weak economic report on durable goods orders also helped to lower bond yields, which are used to benchmark borrowing costs for consumers and businesses.
The recent near collapse of two hedge funds owned by Bear Stearns Cos. Inc. BSC with heavy exposure to the subprime market had made investors more adverse to risk taking in recent sessions.
“The market remains in a very nervous state,” said Peter Cardillo, chief U.S. market economist at Avalon Partners. “Bailing out hedge funds is not good news for the market.”
Still, the Dow Jones Industrial Average DJI recovered from early weakness and finished up 90 points at 13,427. Of the Dows 30 stocks, 26 advanced, led by the likes of Intel Corp. INTC , 3M Co. MMM , Microsoft Corp. MSFT and Exxon Mobil Corp. XOM .
“In the absence of any more subprime time bombs, the change in sentiment should bode well for the stock market for the rest of today,” said Frederic Ruffy, analyst at Optionetics.
“Many professionals would like to see the market stage a midweek recovery beginning today because only two and half trading sessions remain in the second quarter,” he said.
Leading the gains on the Dow, Merck & Co. Inc. MRK gained 2.5% after the pharmaceutical giant said that its HIV drug Isentress was granted a priority review status by the Food and Drug Administration.
The S&P 500 index SPX gained 13.4 points to 1,506, while the Nasdaq Composite RIXF rose 31.2 points to 2,605.
Oil and oil services shares OSXX helped support the broad market as crude oil prices rallied after news that gasoline supplies had dropped in the latest week.
Topics: Dow Jones |