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Overnight Markets: Wall Street gains on stimulus hopes
by Himanshu Singh on Oct 25, 2013 at 04:53
Wall Street gained on Thursday as corporate earnings beat estimates and signs of slower economic growth underscored views US monetary stimulus will be in place for the foreseeable future.
The Dow Jones industrial average was up 96 points, or 0.62%, at 15,509. The Standard & Poor's 500 Index was up six points, or 0.33%, at 1,752. The Nasdaq Composite Index was up 22 points, or 0.56%, at 3,929.
Data showed economic growth is slowing, as US manufacturing expanded in October at a weaker pace than forecast, according to the Markit Economics preliminary index.
Euro-area services and factory output also missed economists’ projections while manufacturing output in China strengthened more than anticipated.
Homebuilders rallied after PulteGroup Inc.’s profit surged. McKesson Corp. jumped 4.9% after boosting its annual forecast and agreeing to buy Germany’s Celesio AG for about €3.9 billion. PulteGroup, the second-largest US homebuilder by market value, surged 7% after recording a tax-related gain and rising revenue from house sales. Home Depot Inc. advanced 2.3%.
Citrix Systems Inc. climbed 4.9% as it raised its share buyback. Xerox (XRX) Corp. tumbled the most in four years after its forecast trailed analysts’ estimates.
Amazon.com Inc. rallied 4.7% in extended trading after the company’s revenue beat analysts’ estimates as consumers flocked to the world’s largest online retailer, fueling sales growth while net losses shrank.
Southwest Airlines Co. added 3.7% after earnings and operating revenue matched analysts’ forecasts. U.S. Airways Group Inc. jumped 5.9% as Deutsche Bank AG lifted the stock’s rating to buy from hold.
Shares of Microsoft rose 5.6% after its profit rose more than expected. DuPont (DD.N) shares climbed 3% after the bell after the company said it will spin off its titanium dioxide unit and related businesses.
In Asia, shares declined on Friday after forecasts from Canon Inc. to Posco disappointed investors.
The MSCI Asia Pacific Index sank 0.5% to 142 as of 10:49 a.m. in Tokyo. Japan’s Topix index today fell 0.9%, Australia’s S&P/ASX 200 Index rose 0.4% and New Zealand’s NZX 50 Index advanced 0.5%. South Korea’s Kospi index dropped 0.8%. Hong Kong’s Hang Seng Index slid 0.2% and China’s Shanghai Composite declined 0.1%. Singapore’s Straits Times Index lost 0.1% and Taiwan’s Taiex Index retreated 0.4%.
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