European Leaders Plan On Debt Crisis Help US Market To Pare Losses In Closing Session; Basic Materials Gain

 Oct 28, 2011 |

 

The US market closed the week on a volatile note as investors remained optimistic on the European leaders move to implement bold plans to resolve the continent's debt crisis, and skeptic on the US debt crisis as it still looming closer to home.

Among the economic data, consumer spending recorded 0.6 percent increase in September 2011, matching economists' expectations, and the Thomson Reuters/University of Michigan consumer sentiment index rose to 60.9 from a 57.5 reading earlier in the month. The latest reading was better than the 58.5 number economists were expecting.

The Dow Jones industrial average gained 0.18 percent or 22.56 points to close at 12,231.11. The Nasdaq Stock Market Inc. composite index fell 0.05 percent or 1.48 points to finish the day at 2,737.15. The Standard & Poor's 500 index was up 0.04 percent or 0.86 points to end at 1,285.08. Among other major indices, the New York Stock Exchange composite index lost 0.01 percent or 0.87 points to close at 7,810.22. The American Stock Exchange composite index was up 1.30 percent or 30.15 points to end the week at 2,340.25.

Hot Stocks of the Day: HPQ, MRK, WHR, GT, NOK, CVX, TOT, GS

Hewlett-Packard Co. (NYSE: HPQ) announced that it will retain its PC business. Shares gained 3.14 percent or $0.85 to trade at $27.94.

Merck & Co. Inc. (NYSE: MRK) and Goodyear Tire & Rubber Co. (NYSE: GT) unveiled their FY2011 Q3 earnings early today. MRK reported an increase in its profit to $1.69 billion or $0.55 a share, from $342 million, or $0.11 per share, in the year-ago period. Revenue rose 8 percent to $12 billion, while GT swung to a profit of $211 million, or $0.60 a share in its FY2011 Q3, from a year-ago loss of $20 million, or $0.08 a share. Wall Street analysts expected a net profit of $0.91and $0.25 per share, respectively, for the companies. Shares of MRK added 2.51 percent or $0.85 to close at $35.16. Shares of GT gained 3.78 percent or $0.54 to end at $14.82.

Whirlpool Corp. (NYSE: WHR) plans to cut 5,000 jobs or nearly 10 percent of its workforce in North America and Europe, as it faces soft demand and higher cost for materials. Before the earning bell today, it reported net earnings of $177 million, or $2.27 per diluted share in its FY2011 Q3, compared to net earnings of $79 million, or $1.02 per diluted share reported during the same period last year.


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