U.S. Stocks Rise on Policy Bet as Earnings Beat Estimates
Stocks on Verge of `Great Bull Market', Belski Says
Story by Bloomberg
Written By Rita NazarethU.S. stocks advanced, sending the Standard & Poor’s 500 Index higher for a third straight day, amid better-than-estimated corporate earnings and speculation global central banks will take steps to boost economic growth.
CVS Caremark Corp. (CVS), the largest provider of prescription drugs in the U.S., climbed 1 percent as profit beat analysts’ projections. Chesapeake (CHK) Energy Corp., the second-largest U.S. natural-gas producer, increased 7.1 percent after reporting the highest quarterly profit in the company’s history.
Sirius (SIRI) XM Radio Inc., the nation’s largest satellite-radio company, gained 1.7 percent after boosting its annual profit forecast.
About three stocks advanced for each that fell on U.S. exchanges at 9:41 a.m. New York time. The S&P 500 increased 0.5 percent to 1,401.37, rallying 2.7 percent in three days. The Dow Jones Industrial Average added 53.96 points, or 0.4 percent, to 13,171.47 today. Trading in S&P 500 companies was almost in line with the 30-day average at this time of day.
“The fear of things collapsing is going away,” said Tom Wirth, who helps manage $1.6 billion as senior investment officer for Chemung Canal Trust Co., in Elmira, New York. “The recession, which everyone was concerned about a month ago, is not going to happen. There’s a perception that the ECB is willing to buy bonds if needed.”
U.S. stocks rose as 73 percent of the S&P 500 companies which reported second-quarter results beat earnings estimates, according to data compiled by Bloomberg. Federal Reserve Bank of Boston President Eric Rosengren said the central bank should pursue an “open-ended” easing program of “substantial magnitude.” German Chancellor Angela Merkel backed a bond- buying plan announced last week by the European Central Bank, a spokesman said yesterday.
CVS’s Results
CVS added 1 percent to $45.36. The company boosted revenue 16 percent after winning customers from Walgreen Co. (WAG), which last year ended its contract to sell prescriptions through employee benefits manager Express Scripts Holding Co. CVS reiterated today it expects to retain at least half of those customers in the fourth quarter as Walgreen and Express Scripts prepare to renew their agreement, effective Sept. 15.Chesapeake rose 7.1 percent to $18.96. The company increased the minimum it plans to raise through asset sales this year to $13 billion from $11.5 billion, and said more than half of that will come by the end of next month when it completes sales of Texas oifields. It lifted its full-year production estimate thanks to discoveries in Texas and Ohio, and said the danger of outspending cash flow next year has abated.
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home