Issue link: https://www.epageflip.net/i/75013
4B Daily News – Thursday, July 19, 2012 A new sign of recovery in the housing market and strong corporate earnings sent stocks higher for a second day. The Dow Jones industrial average rose 103.16 points, or 0.8 percent, to 12,908.70 on Wednesday, a strong showing for what has been a mediocre July so far. The index has risen only four times in the last 12 trading days. ''The market expects NEW YORK (AP) — bad news, so when it doesn't get it, it rises,'' said John Manley, chief equity strategist at Wells Fargo Advantage Funds. ''Earnings haven't been disastrous for the quarter.'' Jump in housing starts, earnings send stocks up Wall Street cent jump brought the number of housing starts to the highest since October 2008. The news came a day after a gauge of confidence among U.S. home- builders jumped to the highest level in five years. A big gain by Intel after it posted a strong earnings report drove up technology stocks, espe- cially other chip mak- ers. Those companies, plus industrials, were responsible for much of the market's gains. The Nasdaq composite climbed 32.56 points, or 1.1 percent, to 2,942.60. The government reported that builders broke ground last month on the most new homes and apartments in nearly four years. The 6.9 per- Poor's 500 index rose 9.11 points, or 0.7 per- cent, to 1,372.78. Amphenol jumped near- ly 15 percent, the most in the index, after the maker of electronic cables and connectors reported second-quarter earnings that were high- er than analysts were expecting. Its stock rose $7.58 to $58.94. For several weeks, big companies have talked down prospects for big jumps in earn- ings, and Wall Street analysts have slashed their forecasts in response. At the start of the earnings season last week, they said earnings for companies in the S&P 500 would likely fall 2 percent, according to S&P Capital IQ. Earnings are still expected to fall, mark- The Standard & ing the first quarterly decline in nearly three years, but several com- panies have delivered pleasant surprises nonetheless. Honeywell International, a big technology and manu- facturing company, reported an 11 percent increase in second-quar- ter income Wednesday, more than Wall Street was expecting, thanks to higher demand for its products. Honeywell also raised its forecast for full-year profits. Its stock jumped $3.64, or 7 percent, to $58.18. Of the 65 companies in the S&P 500 to report earnings so far, 43 have beat estimates, or 66 percent, according to S&P Capital IQ. That is slightly higher than the 62 percent long-term average. ''Many of the risks — an anemic European economy, a slowdown in Asia — have been fac- tored into earnings expectations,'' said Tal- ley Leger, investment strategist at Macro Vision Research, an investment consulting firm. ''That's why we're seeing positive surpris- es.'' economy across the country showed modest expansion in June and early July, but that growth and hiring slowed in several regions. In his second day of Other earnings reports disappointed. Bank of America report- ed income that beat most analysts' expecta- tions for the second quarter, but its revenue fell short. The stock fell 39 cents, or nearly 5 per- cent, to $6.59. Profit declined for PNC Finan- cial Services Group and the investment manager BlackRock, sending both stocks down more than 0.5 percent. tors to sell a new weight-loss pill. Doc- tors consider the pill, Qsymia, the most effec- tive of a new generation of anti-obesity drugs. The company plans to start selling it by the end of the year. Wednesday was Intel, which rose 83 cents, or 3 percent, at $26.21. Investors also piled into Vivus Inc., pushing its stock up nearly 10 per- cent, after the drug maker announced approval from regula- Among the gainers den's stock lost 1 per- cent after the owner of the New York Knicks NBA team confirmed that it was losing star player Jeremy Lin to the Houston Rockets. The Knicks said they Madison Square Gar- wouldn't match a three- year, $25 million offer for the player. MSG's stock fell 36 cents to $35.45. ing news, the Federal Reserve said Wednes- day that its survey of the testimony before Con- gress, Federal Reserve Chairman Ben Bernanke did not signal any new stimulus is imminent, though he did say the Fed was looking at ''ways to address the weakness in the econo- my should more action be needed to promote a sustained recovery in the labor market.'' Treasury prices rose slightly as demand for low-risk assets remained strong. The yield on the benchmark 10-year Treasury note fell to 1.49 percent from 1.50 percent late Tues- day. Germany auctioned $6.14 billion in two- year treasury notes Wednesday with an average interest rate, or yield, of minus 0.06 percent. Three stocks rose for In addition to hous- every one that fell on the New York Stock Exchange. Volume was average at 3.6 billion shares. The busiest local information website in Tehama County! RedBluffDailyNews.com Please support these businesses that support 590 Antelope Blvd. Suite B-30 Red Bluff 26 Sale Lane, Red Bluff (530) 529-2192 www.Claytonredbluff.com Respecting People. Impacting Business 530-527-0727 243 So. Main Street www.expresspros.com 529-9454 Mortuary - Crematory 275 Solano St. #2 Hoyt-Cole Chapel Of The Flowers FD652 816 Walnut St.,-Red Bluff, CA (530) 527-1174 www.chapeloftheflowers.net Auto repair and refinishing, glass repair, custom paint and matching 530 527.6160 • 915 Madison St., Red Bluff • 238,999 monthly page views • 200,355 unique visitors 527-1616 1-800-708-1616 CA LIC #0585010 804 Main St., Red Bluff www.dollinginsurance.com Corning 1375 Montgomery Rd, Red Bluff (530) 529-0797 GROWNEY MOTORS 1160 Main Street, Red Bluff (530) 527-1034 2550 Sister Mary Columba Dr., Red Bluff (530) 529-8000 http://www.redbluff.mercy.org Your Authorized Full Service Dealer and Knowledgeable Sales Staff See us for ALL your equipment needs (530) 378-1116 1-800-439-3407 2025 BARNEY RD., ANDERSON Caesars RANDAL ELLOWAY Little (530) 527-1121 DDS, INC. Implant & Advanced Cosmetic Dentistry 2426 So. Main St., Red Bluf (530) 527-6777 ® RED BLUFF, 108 MAIN STREET, SUITE C (BY RIVER PARK) PROPERTIES YOUR NORTH STATE REAL ESTATE CONNECTION NORTH STATE (530) 529-7622 Furniture DEPOT 235 S Main St. Red Bluff 530 527-1657 www.thefurnituredepot.net OPEN EVERYDAY 9:00AM TO 6:00PM WE CARRY MANY SELECT BRANDS OF DOG & CAT FOODS 345 So. Main Street • Red Bluff (530) 527-4588 Gold Exchange 423 Walnut St., Red Bluff 530 Established 1994 Pawnbroker with a Heart • Jewelry • Coins • Checks Cashed • Income Tax • Local Payroll T-F 10am-5:30 pm • Sat 10am-4pm Fast, High Quality Repairs with 100% Satisfaction GUARANTEED! 528-8000