Mon, February 22, 2010
Stocks are rising in early trading as investors extend a market rally into a fifth straight day.
Another round of upbeat earnings and corporate dealmaking Monday is helping the market. Signs of a strengthening U.S. economy helped push stocks sharply higher last week.
Oilfield services company Schlumberger said Sunday it is buying Smith International for about $11 billion in stock.
Home improvement retailer Lowe's says its profit rose 27 percent during the fourth quarter. Campbell Soup's fiscal second-quarter profit met expectations.
The Dow Jones industrial average is up 28.27, or 0.3 percent, at 10,430.62. The Standard & Poor's 500 index is up 2.89, or 0.3 percent, at 1,112.06, while the Nasdaq composite index is up 7.53, or 0.3 percent, at 2,251.40.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
NEW YORK (AP) — Stock futures rose modestly Monday as investors try to extend a market rally into a fifth straight day.
Overseas markets were mixed.
Signs of a strengthening U.S. economy helped push stocks sharply higher last week. The Dow Jones industrial average rose for the second straight week, and posted its best weekly performance since early November after a string of strong earnings and economic reports.
Earnings and economic data will continue to provide traders with insight into the economy throughout the upcoming week.
Lowe's Cos. said Monday its fourth-quarter profit rose 27 percent as it cut costs and saw a slight increase in sales. The home-improvement retailer's results beat expectations and it expects sales to grow as the housing market recovers. However, excitement was tempered after it forecast first-quarter earnings that were below analysts' expectations.
Campbell Soup Co.'s fiscal second-quarter profit met forecasts as lower costs helped offset a slowdown in U.S. sales.
Other major retailers, including Macy's Inc., Target Corp., Home Depot Inc. and Gap Inc., release quarterly results this week. The reports should provide clues about the strength of a rebound in consumer spending, which accounts for more than two-thirds of economic activity.
Ahead of the opening bell, Dow Jones industrial average futures rose 31, or 0.3 percent, to 10,409. Standard & Poor's 500 index futures rose 4.60, or 0.4 percent, to 1,110.80, while Nasdaq 100 index futures rose 11.75, or 0.7 percent, to 1,831.00.
An updated estimate on the nation's economic output for the fourth quarter is also scheduled for release this week. The gross domestic product report, due out Friday, is expected to show the economy grew at a pace of 5.6 percent during the final three months of 2009, according to economists polled by Thomson Reuters.
An initial reading of GDP showed growth of 5.7 percent.
On Monday, the National Association for Business Economics reaffirmed in its latest outlook that an economic recovery remains on track, though it will be slow. The group of economists expects to see job growth later this quarter, but unemployment is expected to stay above 9 percent throughout the year.
The unemployment rate was 9.7 percent in January.
The government and trade groups will also release reports this week on home prices and sales, consumer confidence, durable goods orders and weekly unemployment claims.
Economists predict reports on home prices and sales of both new and existing homes should show the sector is continuing to stabilize. A collapse in home prices and sales helped push the economy into recession.
Durable goods orders likely grew again in January, pointing to a continued recovery in the industrial sector, which has consistently shown growth in recent months.
First-time claims for unemployment benefits likely fell last week. High unemployment remains one of the biggest obstacles to a strong, sustainable recovery. Investors believe job growth is necessary to help further strengthening consumer confidence and spending.
Meanwhile, bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.79 percent from 3.78 percent late Friday.
The dollar was mixed against other major currencies. Gold and oil prices both rose slightly.
Overseas, Japan's Nikkei stock average rose 2.7 percent. Britain's FTSE 100 gained 0.4 percent, Germany's DAX index rose 0.2 percent, and France's CAC-40 rose 0.2 percent.
(Agencies)
