Stock Market News for Jan 27, 2011 - Market News

Markets rose to fresh highs as technology stocks led the rally after strong earnings results from Juniper Networks Inc (NYSE:JNPR) showed a continued demand for high-tech equipment.

The Dow rose above the psychological 12000 mark for the very first time after June 2008 before ending the day at 11985.44 as the index was held in check by weak earnings results of Boeing (NYSE:BA). The blue-chip index gained 8.25 points or 0.07%. The S&P 500 gained 0.42% to end the day at 1,296.63. The index closed at an all time high since the past 29 months. The tech-laden Nasdaq jumped 0.74% and closed at 2,739.50, its highest close since November 7, 2007. On the New York Stock Exchange, market breadth was on the positive side and about seven stocks rose for every three stocks that fell. On the New York Stock Exchange 8.10 billion shares were traded.

The Commerce Department gave an upbeat outlook for the economy by reporting a surge in New Home Sales. New Home Sales increased 17.5% in December to 329,000, the highest level recorded since April 2010. On Wednesday, the Federal Reserve once again kept key interest rates within the 0% to -0.25% range and decided to continue with its $600 million Treasury buying program. The stock market reacted little to the Fed’s decision as economists had expected that the Fed will stick to its old key interest rate and would continue with its bond-buying program.

On the international front, there was no significant international news that could have tilted the markets on either side. Major European indexes closed in the green.

On to news of earnings and estimates, shares of networking company Junipers Networks (NYSE:JNPR) jumped 6.4% after the company reported higher revenues for the fourth quarter and issued a forecast which was in line with estimates. The company reported a fourth quarter profit of $190.2 million and revenues of $1.19 billlion up from $941 million year-over-year. Share prices of Juniper (NYSE:JNPR) closed at $37.05. Share prices of Molex (NASDAQ:MOLX) rocketed up 5.17% to $26.65 after the electronics manufacturing service provider reported a surge in its earnings numbers and forecasted increased estimate figures for the coming quarter. Share prices of Boeing (NYSE:BA) fell 3.1% to $70.02 after the aircraft maker posted weak earnings results which saw a drop in quarterly profits and offered a gloomy forecast. Shares of Qualcomm Inc (NASDAQ:QCOM) gained 4.3% to $54.11 after the company reported an increased forecast for 2011 revenues and a more profitable second quarter revenue. Shares of network security systems provider, Fortinet Inc (NASDAQ:FTNT) gained 16.9% after the company reported better than expected results. On the other hand, shares of Starbucks Corp (NASDAQ:SBUX) fell 2% to $32.40 after the company reported lower than expected results because of rising coffee prices.

On a sectoral basis, technology stocks led the rally. Stocks such as Dell Inc (NASDAQ:DELL), Apple (NASDAQ:AAPL), Microsoft Corp (NASDAQ:MSFT) and Intel Corp (NASDAQ:INTC) gained 0.22%, 0.20%, 0.42% and 0.07% respectively. Oil and energy companies also joined the rally. Share prices of Halliburton (NYSE:HAL) and Cameron Intl (NYSE:CAM) rocketed nearly 8% and 6% to close at $43.69 and %53.35 respectively. ConocoPhillips (NYSE:COP) reported a better than expected profit resulting in the share prices of the company gaining 2.62% to close at $69.25. Valero Energy’s (NYSE:VLO) share prices rose 4.03% to $25.30 after the company reported a bright outlook for 2011.

Stock Market News for Jan 27, 2011 – Market News

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