Stocks Rise Despite Smaller Intel Forecast
Stocks rose in early trading Friday as Wall Street reconciled itself with Intel Corp.'s tightened forecast and a recent runup in energy prices. Friday's advance followed two sessions of moderate losses as investors scoured for any news that might bring revive its yearend rally after a two-week hiatus. Many are hoping for a solid holiday shopping season, with lower gasoline prices contributing to improving consumer confidence.
Oil and gas prices were higher in premarket activity but fell slightly despite a snowstorm in the Northeast that was expected to drive a spike in heating fuel demand. On the New York Mercantile Exchange, natural gas lost 13.4 cents to $14.86 per 1,000 cubic feet, and a barrel of light crude dropped 6 cents to $60.60. In the first hour of trading, the Dow Jones industrial average gained 9.13, or 0.08 percent, to 10,764.25. Broader stock indicators were also higher. The Standard & Poor's 500 index was up 2.07, or 0.16 percent, at 1,257.91, and the Nasdaq composite index added 4.20, or 0.19 percent, to 2,250.66. Bond prices fell, with the yield on the 10-year Treasury note climbing to 4.5 percent from 4.46 percent late Thursday. The dollar was mixed against other major currencies in European trading, while gold prices lingered near record highs. Intel trimmed $200 million from both the high and low ends of its fourth-quarter sales estimate, narrowing its forecast to a range of $10.4 billion to $10.6 billion. Intel's revision, which fell slightly below Wall Street expectations, follows a sharpened outlook at rival Texas Instruments and improved guidance from Xilinx Inc. Intel fell 23 cents to $25.47, while TI gained 25 cents to $32.88 and Xilinx rose 51 cents to $26.53. Merck & Co. slipped 71 cents to $28.97 after the New England Journal of Medicine on Thursday said researchers failed to disclose that three patients suffered heart attacks in a 2000 Merck-funded study of its Vioxx painkiller. Meanwhile, jurors in the first federal Vioxx trial were to continue deliberating whether Merck failed to warn about the drug's risks. Rural telecommunications provider Alltel Corp. said it plans to become a pure wireless carrier by spinning off its fixed-line phone business and merging that unit with Valor Communications Group Inc. in a $4.9 billion deal. Alltel was up $2.07 at $66.89, and Valor added 29 cents to $12.53. The Russell 2000 index of smaller companies rose 0.99, or 0.14 percent, to 686.21. Overseas, Japan's Nikkei stock average jumped 1.45 percent. In afternoon trading, Britain's FTSE 100 fell 0.27 percent, Germany's DAX index sank 0.12 percent, and France's CAC-40 was lower by 0.3 percent.
Oil and gas prices were higher in premarket activity but fell slightly despite a snowstorm in the Northeast that was expected to drive a spike in heating fuel demand. On the New York Mercantile Exchange, natural gas lost 13.4 cents to $14.86 per 1,000 cubic feet, and a barrel of light crude dropped 6 cents to $60.60. In the first hour of trading, the Dow Jones industrial average gained 9.13, or 0.08 percent, to 10,764.25. Broader stock indicators were also higher. The Standard & Poor's 500 index was up 2.07, or 0.16 percent, at 1,257.91, and the Nasdaq composite index added 4.20, or 0.19 percent, to 2,250.66. Bond prices fell, with the yield on the 10-year Treasury note climbing to 4.5 percent from 4.46 percent late Thursday. The dollar was mixed against other major currencies in European trading, while gold prices lingered near record highs. Intel trimmed $200 million from both the high and low ends of its fourth-quarter sales estimate, narrowing its forecast to a range of $10.4 billion to $10.6 billion. Intel's revision, which fell slightly below Wall Street expectations, follows a sharpened outlook at rival Texas Instruments and improved guidance from Xilinx Inc. Intel fell 23 cents to $25.47, while TI gained 25 cents to $32.88 and Xilinx rose 51 cents to $26.53. Merck & Co. slipped 71 cents to $28.97 after the New England Journal of Medicine on Thursday said researchers failed to disclose that three patients suffered heart attacks in a 2000 Merck-funded study of its Vioxx painkiller. Meanwhile, jurors in the first federal Vioxx trial were to continue deliberating whether Merck failed to warn about the drug's risks. Rural telecommunications provider Alltel Corp. said it plans to become a pure wireless carrier by spinning off its fixed-line phone business and merging that unit with Valor Communications Group Inc. in a $4.9 billion deal. Alltel was up $2.07 at $66.89, and Valor added 29 cents to $12.53. The Russell 2000 index of smaller companies rose 0.99, or 0.14 percent, to 686.21. Overseas, Japan's Nikkei stock average jumped 1.45 percent. In afternoon trading, Britain's FTSE 100 fell 0.27 percent, Germany's DAX index sank 0.12 percent, and France's CAC-40 was lower by 0.3 percent.
posted by Chris Placitella at 9:14 AM
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