Friday, April 29, 2011

Daily Dow Jones: Marching Towards Upper Channel Around 12800-13000 Zones, 29-04-2011

Wall Street outlook: Dow rises 72 points for a third consecutive gains
U.S. stocks extended their run to multi-year highs as investors clung to optimism generated by the Federal Reserve's plans to keep interest rates low and amid the continued flow of encouraging corporate earnings. The Teflon coated market largely looked past a lukewarm round of economic data headlined by a weaker Q1 GDP report and a surprising increase in jobless claims. The Dow Jones Industrial Average rose 72.35 points, or 0.6%, to 12763.31. The S&P 500 climbed 4.82 points, or 0.4%, to 1360.48.

Sentiment was also boosted by strong earnings reports from Boeing, American Express, P&G, Dupont and better-than-expected march pending home sales, offsetting economic reports of lower 1Q GDP, rising weekly jobless claims and a weak Exxon result.

The U.S. economy grew at a slower pace than forecasted in the first quarter as consumer purchases cooled, home construction fell and government spending declined. GDP rose at a 1.8% annual rate from January through March after a 3.1% pace in the last three months of 2010. Higher gas prices prompted Americans to limit spending after they ramped up purchases in the prior three months. To keep spurring the expansion, Federal Reserve policy makers said they’ll complete their US$600bn round of stimulus through June. The first-quarter pace was the slowest since April through June of last year. For all of 2010, the world’s largest economy expanded 2.9%, the most in five years, after shrinking 2.6% in 2009.

Daily Dow Jones: Marching Towards Upper Channel Around 12800-13000 Zones.

Source: WSJ

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