Stock Market News for October 21, 2010 - Market News

A batch of stronger-than-anticipated earnings reports and a weaker dollar helped markets stage a smart rebound after Tuesday’s losses, and investors picked up material and energy stocks. Markets had dropped on Tuesday on fears Beijing’s decision to raise interest rates would crimp economic growth in that country and weigh on global economy.

However, those concerns took a backseat on Wednesday as a number of corporations – from airline companies to financial firms – elicited interest. Bargain hunting sent shares in financial companies up 1.1%. Wells Fargo (NYSE:WFC) jumped 4.3% to $25.60. Morgan Stanley (NYSE:MS) reported a loss of 7 cents a share on charges and its shares fell sharply before ending the session virtually unchanged. Goldman Sachs (NYSE:GS) was another notable gainer, up 1.8%, after the company’s earnings bet analysts’ projections. Shares in BlackRock (NYSE:BLK) dropped nearly 3% even as the company announced a 74% jump in quarterly earnings.

Shares in airline companies also advanced as a number of firms from the sector added to the optimism. Delta Air Lines (NYSE:DAL), which reported a third-quarter profit on higher passenger revenue and noted holiday bookings were strong, jumped 11% to $12.97. AMR Corp. (NYSE:AMR), the parent of American Airlines, saw its shares surging 13% after the company reported its first profit in two years. US Airways Group’s (NYSE:LCC) strong earnings sent shares in the company up 7.4%.

Boeing (NYSE:BA) added 3.4% and was the leading gainer on the Dow average after the company said it swung to a third-quarter profit. The airline company said it sees improved order for commercial aircraft and raised its outlook.

The Dow Jones Industrial Average rose 129 points, or 1.2%, to 11107.97. The broader S&P 500 stock index closed up 12 points, or 1.1%, at 1178.17. The tech-heavy Nasdaq Composite index added 0.8% to 2457.39. About two stocks rose in price for every one that declined on the New York Stock Exchange.

Bank of America (NYSE:BAC), continued to weigh, off 0.4%, amid concerns the nation’s largest mortgage service provider could be under pressure from a multitude of lawsuits. All ten S&P 500 industry sectors marked gains on the day, led by basic materials (+2.4%), telecom (+1.5%), oil and gas and industrials (+1.4%), consumer services (+1.3%), financials (+1.2%), tech and utilities (+0.8%), and consumer goods (+0.7%).

Equity trade may find its footing within the day’s trend of quarterly posts and guidance. Such bellwethers as AT&T (NYSE:T), American Express (NYSE:AXP), Caterpillar (NYSE:CAT), Eli Lilly (NYSE:LLY), McDonald’s (NYSE:MCD), UAL (NYSE:UAL), and UPS (NYSE:UPS) are due to release results today.

Stock Market News for October 21, 2010 – Market News

SIGN UP TO NEWSLETTER

Free E-Book

Recent Posts