After sliding for two successive days, stocks managed to find some footing and ended Thursday with impressive gains as companies from McDonald’s to PNC Financial reported solid quarterly earnings. A mixed bag of economic reports notwithstanding, the Dow average once again scaled the 10,000 mark as components Travelers Cos, 3M Co., and AT&T Inc. posted stronger-than-expected results.
Investors, looking for bargains, picked up financial shares as many banks noted lower loan losses. Travelers (NYSE:TRV) surged almost 8% after reporting a three-fold jump in quarterly profit. Travelers, together with McDonald’s (NYSE:MCD), led the Dow average higher. AT&T Inc. (NYSE:T), also a Dow component, rose 0.6% after reporting better-than-expected profit.
The Dow Jones industrial average jumped 132 points, or 1.3%, to close at 10,081.31 and the S&P 500 index rose 11 points, or 1%. The tech-heavy NASDAQ, limited by late-session, downward guidance from eBay (NASDAQ:EBAY), gained 14 points, or 0.7%.
The New York Times Co. (NYSE:NYT) was the leading gainer among the S&P 500 stocks, surging 23%, after reporting improved quarterly profit helped by cost-cutting measures. 3M (NYSE:MMM) beat both earnings and sales estimates for the quarter and raised its 2009 guidance. Dow Chemical (NYSE:DOW) also reported better-than-expected profit report.
Among financial stocks, PNC Financial (NYSE:PNC), Fifth Third Bancorp (NASDAQ:FITB) and Sun Trust Banks Inc. (NYSE:STI) said borrowing costs were declining and they were offering lower deposit rates. Shares in all three companies recorded gains.
Commodity prices declined as the greenback remained neutral, and with larger-than-expected Treasury bond auction scheduled for next week, the 10-year declined 8/32 in price. The market’s measure of volatility, the CBOE Vix, eased to 20.69, off almost 7%. This rally, nevertheless, appears to be taking a cue from corporate results rather than backward-looking economic data. And yesterday’s reports affirmed hopes for a sustainable recovery.
Today’s calendar covers additional key corporate releases from Microsoft (NASDAQ:MSFT), Honeywell (NYSE:HON), Ingersoll-Rand (NYSE:IR), and Fortune Brands (NYSE:FO).
