Indexes had been running hot into the close, but pulled back some in the session’s final half-hour.
The NYSE composite swelled 1.5% for the day, but had climbed as high as 2% before pulling back some. The Nasdaq shot up 1.7%, but it had added as much as 2.3% before it wobbled.
Transports, banks and financials led the Nasdaq’s upside. Those Nasdaq indexes posted gains of 3.7%, 3.4% and 3%, respectively. Small caps staked out higher ground throughout the day, with the S&P 600 ending 2.7% higher. The S&P 500 and the Dow each rose 1.7%.
Volume increased on both exchanges compared with Wednesday’s strong trading action. Advancing issues led decliners by 3-to-1 on the NYSE and by better than 2-to-1 on the Nasdaq.
Amazon () added 3.49, or 5%, to 77.70 after announcing Wednesday that it met Q4 earnings and beat sales expectations. The stock initially got pummeled in after-hours trade Wednesday.
Railroader Norfolk Southern () spiked up 2.29 to 54.39. The stock’s second day of high-volume gains left it well above its 50- and 200-day moving averages, and 9% below its July high.
Dow component Wal-Mart Stores () powered ahead 1.58 to 50.74 on better than double its average volume.
On the downside, MWI Veterinary Supply () stabbed down 3.20 to 38.23 on wicked volume. The veterinary products distributor missed Q4 earnings views and closed well below its 10-week moving average.
All eyes will be turned Friday morning toward jobs data, the Institute of Supply Management’s purchasing managers’ survey and consumer sentiment numbers from the University of Michigan.
3 p.m. Update: Major Indexes Hitting New Intraday Highs
BY MARIE BEERENS
The stock market continued trending higher by late-afternoon Thursday.
Around 3 p.m. EST, smaller stocks were still leading the rally, with the S&P 600 leaping 2.4%. The Nasdaq jumped 1.3%. The S&P 500 rose 1.2%, while the Dow was up 1.1%. The NYSE was tracking 1% higher. Volume increased across the board for this time of day.
Consumer products giant Procter & Gamble () was the latest to report solid earnings, beating Thomson Financial consensus view by a penny. The company said it benefited from strong sales growth and increased cost savings, which offset higher commodity prices.
While Procter & Gamble was off a few pennies, its news added to the slew of earlier strong results for the retail group. The Retail-Discount and Variety group is now up nearly 10% on the day, and is leading IBD’s 197 industry groups.
Burger King Holdings () leapt 1.87, or 8%, to 26.03, regaining both its 200- and 50-day moving averages on five times its normal trade. The operator of fast-food restaurants posted a 29% increase in fiscal Q2 EPS to 36 cents a share. That’s 4 cents above analysts’ views. The hamburger chain said strong demand for its Homestyle Melt sandwich drove worldwide sales.
Crown Holdings () rose 0.70 to 24.70 in fast trade. It, too, regained its 50- and 200-day moving averages, as volume nearly quadrupled. The container maker reported its Q4 results on Thursday.
L.B. Foster () advanced 2.18, or 5%, to 44.11 on double its regular volume. The maker of trackworks, steel sheet pilings and pipe coatings reported a 200% jump in Q4 earnings to 81 cents a share, beating views by 41 cents. The company booked a huge gain on the sale of a railroad stake..
1 p.m. Update: Stocks Take Higher Ground On Heavy Trade
BY ALAN R. ELLIOTT
Earnings news continued to drive stocks in early afternoon trade, as indexes powered into positive territory after a steep sleep earlier this morning.
The NYSE composite was up 0.2%, and the Nasdaq, S&P 500 and Dow were all up 0.3% at 12:55 p.m. EST. Small caps continued to outperform: The S&P 600 surged 1.4%. NYSE volume soared 53%, and the Nasdaq 33%, compared with the above-average pace seen Wednesday.
The Retail-Discount & Variety group led all industries with an 8% gain for the day. Dollar Tree Stores () and Family Dollar Stores () all racked up solid gains.
MasterCard () charged ahead 25.54 to 214.54 on heavy volume. The 14% leap cleared the stock’s 50-day moving average, putting shares within 6% of their Dec. 11 high. The global credit and transaction services provider’s Q4 earnings nearly tripled to 89 cents as share, easily topping views of 72 cents. Sales jumped 28% to $1.07 billion from $839.2 million a year ago.
Amazon () rebounded from a 7% loss in early trade to gain 0.50 to 74.71, showing the biggest volume percentage change on the S&P 500. On Wednesday, the Web’s top retailer met views with a 109% surge in fourth-quarter profit. Sales growth of 42% topped estimates, but shares slumped on weak profit margins. The stock remains below its 10- and 40-week moving averages, and is 26% below its October high.
Cameron International () tumbled 2.93 to 40.13, as volume swelled to more than four times its norm. The oil and gas drilling equipment maker reported better-than-expected Q4 earnings, but lowered its guidance for Q1. The 7% stumble drove shares well-below their 200-day moving average.
CVS Caremark () staged a powerful gap up, adding 2.60 to 38.62 in fast trade. The pharmacy chain reported Q4 earnings above views, boosted by widening margins on both its pharmacy and retail sides. The company also cited benefits of scale from its acquisition last year of heavyweight Caremark. Management also halved its original estimates for a $2 billion loss in government contracts in 2008 related to the Caremark acquisition. The 7% jump pushed the stock above its 200-day line, and now is trying to regain its 50-day line.
11:15 a.m. Update: Stocks Rise Off Lows After Early Sled Ride
By ALAN R. ELLIOTT
Stocks climbed off their early lows as investors digested a heavy dose of earnings reports and economic data.
The Nasdaq composite had slumped 0.7%, the NYSE composite 0.8% at 10:54 a.m. EST. The S&P 500 and the Dow each slipped 0.5%. Small caps moved ahead of the general market, with the S&P 600 rising 0.2%.
Transports provided a bright spot for the second day in a row. Nasdaq’s Transportation index moved up 1.1%. Dry-bulk shippers, trucking and logistics operators were that sector’s winners.
Indexes fell across Europe and China. London’s FTSE 100 dropped 1.2%, while France’s CAC-40 was off 1.5%. The Hand Seng index in Hong Kong and the Shanghai composite both slipped 0.8%. Markets in Japan and Korea notched solid gains: Tokyo’s Nikkei 225 jumped 1.9% and the Seoul composite rebounded 2.2%.
Online mortgage and credit information provider Bankrate () jumped 1.20 to 54.85, its seventh straight winning session. The heavy-volume, 4% move extends the stock’s break above resistance at 53 this week.
Nike () added 1.22 to 60.62, extending a rebound from support at its 200-day moving average. The athletic apparel maker is still off 11% from its Dec. 3 high.
On the downside, energy industry valve and fittings maker FMC Technologies () gapped down 3.05 to 47.66. The high-volume drop pushed shares back below their 200-day moving average, 30% below its October high. Analysts expect a solid 55% earnings gain in Q4 when the company announces results Feb. 14.
Covance () gapped down and plunged 6.32 to 81.78 in wicked volume. The drug development services specialist met Q4 earnings and topped revenue consensus. The gap-down loss clearly pierced the stock’s 50-day moving average and left it 16% below its Jan. 14 high.
10:15 a.m. Update: Indexes Slide At Open, But Off Lows
By Vincent Mao
Stocks stumbled out of the gate Thursday as earnings, bond insurer woes and economic news weighed. But they have shaved some losses.
At 10:04 a.m. EST, the energy-heavy NYSE composite slumped 1.3% and the financials-heavy S&P 500 1.1%. The Dow slid 1% and the Nasdaq 0.9%.
The Chicago purchasing managers index fell to 51.5 in January from 56.4 last month. That was below estimates for a dip to 52. Subindexes for jobs and new orders are below the neutral 50 level.
New Oriental Education & Technology Group () gapped down, stumbling 4% in brisk trading. Due to severe winter weather, the Chinese school operator now sees fiscal Q3 sales of $42.1 million to $44.2 million vs. analysts’ estimates of $44.74 million.
Nasdaq Stock Market () tumbled 4% in brisk trading. The exchange operator reported a 100% surge in Q4 profit, but missed views by a penny. Revenue rose nearly 16%, above views. Nasdaq didn’t give an outlook due to certain transactions that are expected to close in the first quarter.
On the upside, Gilead Sciences () gained 2%. Wachovia upgraded the biotech to outperform from market perform on valuation.
Allergan () gapped up 4%. The drug maker rallied on news that the FDA rejected competitor Medicis’ Reloxin application. Reloxin is seen as a threat to Allergan’s Botox aesthetic treatment.
9:15 a.m. Update: Stocks Set To Tumble
By VINCENT MAO
Stock futures pointed to a much weaker open Thursday on bond insurer fears and a big jump in jobless claims.
Nasdaq futures dropped 27 points vs. fair value, S&P 500 futures lost 22 points and Dow futures gave up 173 points.
In economic news, initial jobless claims jumped by 69,000 to 375,000 last week. That was the highest level since early October and much higher than economists’ expectations of 320,000. Analysts suggest the spike might be due to seasonal factors, but it’s still a sign of a weak labor market. Futures extended losses on the news.
The January jobs report will be out tomorrow.
Personal spending rose 0.2% in December, slightly above forecasts. Income climbed 0.5%, above estimates of 0.4%.
The core PCE deflator remained unchanged at 0.2%. On a year-over-year basis, core inflation rose 2.2%, or above the Fed’s comfort zone.
Meanwhile, the employment cost index rose 0.8% as expected in the fourth quarter.
The Chicago purchasing managers index for January will be out at 9:45 a.m. EST.
MBIA () fell 5% in pre-market trading. The bond insurer reported a Q4 loss of $2.3 billion, or $18.61 a share, vs. a profit of $1.32 a share in the year-ago quarter. Analysts expected a loss of $2.97 a share. The company booked $3.5 billion in write-downs on credit derivatives. MBIA also received a $500 million cash injection from private equity firm Warburg Pincus.
Group mate Ambac Financial Group () slumped 8% in the pre-market.
Amazon.com () tumbled 10% in pre-open trade. Late Wednesday, the Web’s top retailer reported a 109% surge in fourth-quarter profit, meeting views. Sales gained 42%, also above estimates. But shares slumped on weak profit margins.
This morning, Amazon said it would buy Audible.com () for $300 million in cash. Audible.com provides audio editions of books, newspapers and magazines, television and radio programs and original programming.
Cameron International () slumped 8% in the pre-open, even though the oil and gas equipment maker delivered fourth-quarter earnings of 61 cents a share, up 33% from a year earlier and a penny above views. Revenue climbed 25%, also above estimates. But it guided Q1 and full-year income below views.
MasterCard () charged up 5% in the pre-open. Excluding a one-time gain, the credit card firm’s Q4 earnings nearly tripled to 89 cents as share, easily topping views of 72 cents. Sales jumped 28% to $1.07 billion from $839.2 million a year ago.
Internet giant Google () reports after the close. Analysts expect earnings of $4.44 a share, up 40% from a year ago.