Wall Street gains as earnings flow in; Boeing up
NEW YORK — Stocks rose on Wall Street on Wednesday as corporate earnings reports got off to a good start.
The Dow Jones industrial average climbed 61.66 points to 13,390.51, its first gain of the week. The Standard & Poor's 500 index gained 3.87 points to 1,461.02, and the Nasdaq composite rose 14 to 3,105.81.
Having rallied after a last-minute resolution stopped the United States from going over the “fiscal cliff,” stocks are facing their first big challenge of the year as companies start to report earnings for the fourth quarter of 2012.
Throughout last year, analysts cut their outlook for earnings growth in the period and now expect them to rise by 3.21 percent, according to data from S&P Capital IQ.
“Maybe earnings expectations were a little too low,” said Ryan Detrick, a strategist at Schaeffer's Investment Research.
“You don't need to have great earnings; you just need to beat those expectations” for stocks to rally, he said.
Early indications were decent. Aluminum maker Alcoa reported late Tuesday that it swung to a profit for the fourth quarter, with earnings that met Wall Street's expectations.
Alcoa brought in more revenue than analysts had expected, and the company predicted rising demand for aluminum this year as the aerospace industry gains strength.
Alcoa is usually the first Dow component to report earnings every quarter.
Despite the better revenue number, Alcoa's stock performance on Wednesday was lackluster. It traded higher for part of the day then ended down 2 cents at $9.08.
Other companies fared better after reporting earnings. Helen of Troy, which sells personal care products under brands including Dr. Scholl's and Vidal Sassoon, rose 2.7 percent, up 90 cents to $34.43 after reporting a 15 percent increase in quarterly net income.
The yield on the 10-year Treasury note edged down to 1.86 percent from 1.87 percent.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- H-D Advanced Manufacturing in Franklin Park buys Virginia-based aerospace components maker Firstmark
- Government contests sale of GE appliance business to competitor Electrolux
- Kraft shareholders approve merger with Heinz
- Stocks rise on wind of Greece resolution
- Rules holding for-profit schools accountable for student earnings go into effect
- SEC votes to expand clawbacks of executive bonuses
- June manufacturing growth shows expansion
- Alpha Natural Resources buys out European partner in Marcellus venture
- Pending home sales in U.S. climb to 9-year high
- Heinz executives to dominate post-merger management of Kraft Heinz Co.
- Halliburton to close Indiana County office