Thread: Dow Rises to Highest Close in 34 Months

APRIL 4, 2011, 6:31 P.M. ET.

Dow Rises to Highest Close in 34 Months

By BRENDAN CONWAY

Blue-chip stocks eked out small gains in the lightest trading volume all year, but other major indexes finished flat as technology shares sagged.

The Dow Jones Industrial Average added 23.31 points, or 0.2%, to finish at 12400.03, its highest close since June 5, 2008 and the index's 10th advance in 13 sessions.

Johnson & Johnson led the blue chips as it gained 66 cents, or 1.1%, to $60.15. Wal-Mart Stores added 52 cents, or 1%, to 52.65, on a report that it is considering selling groceries online. The gains were kept in check by Hewlett-Packard, which dropped 64 cents, or 1.6%, to 40.34, and Intel, which lost 23 cents, or 1.2%, to 19.49.

Technology stocks were broadly lower after Gartner analysts made cautious comments on semiconductor supply-chain problems in the wake of Japan's earthquake.

Blue-chip stocks eked out small gains in light trading volume, but other major indexes finished flat as the technology sector sagged. Joe Bel Bruno has details.
.The Nasdaq Composite shed 0.41 point, or 0.01%, to 2789.19, its first drop in five sessions. The Standard & Poor's 500-stock index edged up 0.46 point, or 0.03%, to 1332.87, led by the materials and health-care sectors.

"The focus continues to be on inflation," said Michael Sansoterra, portfolio manager for the RidgeWorth Large Cap Growth Fund. "Investors are weighing how much [inflation] is OK versus how much is too much. Oil is really strong and it continues to drive commodity prices," he said.

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.New York Stock Exchange composite volume was 3.26 billion shares, the lowest level since New Year's Eve. Several Federal Reserve officials are scheduled to speak this week. Last week brought hawkish comments from some Fed officials, which prompted investors to consider when a policy change might occur.

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.Southwest Airlines dropped 21 cents, or 1.7%, to 12.46, as the Texas airline continued to inspect its fleet of Boeing 737-300 jetliners for fuselage cracks after a hole opened in one aircraft, forcing an emergency landing. Boeing slipped six cents, or 0.1%, to 73.95.

Pfizer added 16 cents, or 0.8%, to 20.54, after the company sold its Capsugel unit to private-equity firm Kohlberg Kravis Roberts.

General Dynamics dropped 4.05, or 5.2%, to 73.37, after a Gulfstream G650, made by its Gulfstream Aerospace unit, crashed during a flight test Saturday, killing the four people on board.

Vivus climbed 42 cents, or 6.7%, to 6.73, after it said patients treated with the investigational drug Qnexa showed reductions in blood pressure.

BP's U.S.-listed shares advanced 23 cents, or 0.5%, to 45.89, after the U.K. oil company said it agreed to sell its ARCO Aluminum unit to a group of Japanese investors for $680 million in cash. In addition, the company is pursuing permits to resume drilling in the Gulf of Mexico.

McCormick & Schmick's Seafood Restaurants surged 2.10, or 29%, to 9.22, after Landry's Restaurants founder and Chief Executive Tilman J. Fertitta offered to buy the dining company for $137.2 million.

Molycorp gained 7.16, or 12%, to 66.41, after the rare-earth mining company said it acquired a 90% stake in rare-earth processing company Silmet, an $89 million deal that gives it a foothold in Europe and doubles its production capacity.

Epicor Software gained 1.32, or 12%, to 12.56, as the company, along with Activant Solutions, agreed to buyout offers from funds affiliated with private-equity firm Apax Partners in a combined deal valued at about $2 billion.

Ambassadors International plunged 2.15, or 77%, to 65 cents, as the company said it is looking to sell its Windstar Cruises, a luxury line of yachts that sail to destinations such as the Greek Isles, in a fast-track bankruptcy sale to its lender or a higher bidder.

Write to Brendan Conway at brendan.conway@dowjones.com

http://online.wsj.com/article/SB1000142 ... Collection

Dow Rises to Highest Close in 34 Months

Probably because the US pulled it's planes off of Libya.

How long do you think the Dow will stay in the green?

Originally Posted by HAPPY2BME

Dow Rises to Highest Close in 34 Months

Probably because the US pulled it's planes off of Libya.

How long do you think the Dow will stay in the green?

Stocks Turn Higher, Led by Materials

Published: Monday, 4 Apr 2011 | 12:09 PM ET Text Size By: CNBC.com

Stocks traded slightly higher amid another day of quiet trading and after a week of strong gains.

The Dow Jones Industrial Average rose more than 15 points after stocks started the second quarter solidly, closing higher on Friday amid optimism over a recovery in the labor market after data showed a drop in unemployment.

Among Dow components, GE [GE 20.53 0.19 (+0.93%) ], Wal-Mart [WMT 52.65 0.52 (+1%) ], and Bank of America [BAC 13.44 0.07 (+0.52%) ] gained, while Intel [INTC 19.49 -0.23 (-1.17%) ] and Hewlett-Packard [HPQ 40.34 -0.64 (-1.56%) ] fell.

The S&P 500 and the Nasdaq traded flat to higher. The CBOE Volatility Index, widely considered the best gauge of fear in the market, rose above 17.

The recovery in the jobs market will prompt speculation on when the Federal Reserve will start tightening monetary policy.

The European Central Bank is poised to raise interest rates on Thursday to curb rising inflation, leaving investors to wonder when other central banks will follow suit.

Comments by Federal Reserve Presidents will be closely watched in light of the ECB’s rate-setting meeting. The Bank of England and the Bank of Japan also meet this week.

Atlanta Fed President Dennis Lockhart and Chicago Fed President Charles Evans both speak on Monday morning, while Fed chairman Ben Bernanke speaks at the Atlanta Fed's financial markets conference at 7 p.m.

Developments in the Middle East and North Africa continue to keep investors on their toes. Oil prices rose Monday with U.S. crude at 2.5-year high, reflecting concerns over supply. U.S. light sweet crude [CLCV1 108.17 -0.30 (-0.28%) ] was flat, but just under $108 a barrel, while London Brent crude [LCOCV1 120.89 -0.17 (-0.14%) ]closed above $120.

In company news, Nortel [NRTLQ 0.0332 0.0082 (+32.8%) ] is selling all of its patents and patent applications for a $900 million to Google [GOOG 587.68 -4.12 (-0.7%) ] as part of a "stalking horse" asset-sale agreement. The sale follows a multi-round bidding process.

BP [BP 45.89 0.23 (+0.5%) ] is among stocks in the spotlight after The Sunday Times in Britian said the oil group struck a deal with U.S. regulators which allows it to resume drilling in 10 existing wells in the Gulf of Mexico.

The U.S. Bureau of Ocean Energy Management refuted the report, saying there was no such deal, Reuters said.

General Electric [GE 20.53 0.19 (+0.93%) ] gained after news Chief Executive Jeffrey Immelt defended the nuclear industry's safety record on a trip to Tokyo.

McCormick & Schmick's Seafood Restaurants [MSSR 9.22 2.10 (+29.49%) ] skyrocketed after Tilman J. Fertitta said he intends to begin an all-cash offer to buy the seafood restaurant company through his affiliiate LSRI Holdings, a subsidiary of Landry's Restaurants.

McDonald's [MCD 76.39 0.40 (+0.53%) ], meanwhile, traded flat after news the fast-food chain planned to hire 50,000 employees on April 19 as its business grows.

Shares of Southwest Airlines [LUV 12.46 -0.21 (-1.66%) ] fell after news the airliner canceled 70 flights on Monday after a Boeing 737 was forced to make an emergency landing Friday because of a hole in its fuselage, and that cracks were found in the fuselages of 3 other airlines after 33 were inspected. Boeing [BA 73.95 -0.06 (-0.08%) ] shares also fell on the news.

Molycorp [MCP 66.41 7.16 (+12.08%) ] soared after news the rare-earth producer bought a majority stake in AS Silmet, one of two rare-earth processing companies in Europe. "In the short-term, this will greatly increase our ability to supply our products into the increasingly tight global rare earth market and provide a convenient base from which to supply European customers," said Mark Smith, president and CEO, in a statement.

And Vivus [VVUS 6.73 0.42 (+6.66%) ] jumped after the company reported a two-year study showed Qnexa, its weight loss drug, also reduces high blood pressure.

In M&A news, Pfizer [PFE 20.54 0.16 (+0.79%) ] rose slightly after news Kohlberg, Kravis & Roberts [KKR 17.14 0.23 (+1.36%) ] plans to buy the drugmaker's Capsugel unit for $2.38 billion.

Deutsche Boerse is waiting to hear from NYSE Euronext's [NYX 38.98 -0.62 (-1.57%) ] board and the credit rating agencies before it will make a counter offer to Nasdaq [NDAQ 27.44 -0.79 (-2.8%) ] and IntercontinentalExchange's [ICE 118.90 -0.85 (-0.71%) ] offer for the stock exchange, sources told Reuters.

European stocks hit a three-week closing high after several merger announcements.

http://www.latimes.com/news/local/la-me ... 5953.story

Stock mutual funds have their best first quarter since 2006

http://www.alipac.us/ftopicp-1209415.html#1209415