Thursday, April 23, 2009

US Stocks Stage Late Rally, Ebay Soars

. Thursday, April 23, 2009

By stockOzone team

US stocks finished with on Thursday after Apple and Ebay announced strong quarterly results from Apple and Ebay. The Dow Jones Industrial Average climbed 70.49 points or 0.89% to finish at 7,957.06. The S&P 500 gained 8.37 points or 0.99% to end at 851.92. The Nasdaq Composite advanced 6.09 points or 0.37% to 1,652.21.Late on Wednesday, iPhone maker Apple (NASDAQ: AAPL) reported that its fiscal second quarter net income rose to $1.2 billion, or $1.33 per share, from $1 billion, or $1.16 a share, in the year. Revenue increased 9% to $8.16 billion for the quarter. Shares of Apple rose $3.89 or 3.20% to $125.40.

Ebay (NASDAQ: EBAY) too reported first-quarter profit that exceeded Wall Street estimates. fell to $357 million, or 28 cents a share, from $460 million, or 34 cents a share, in the year ago quarter. On an adjusted basis, earnings for the quarter were 39 cents a share. The online auctioneer said that the revenue for the period ended in March fell to $2.02 billion from $2.19 billion. Ebay surged $1.84 or 12.45% to $16.62.

Among financials, American Express (NYSE: AXP) rallied 26 cents or 7.93% to $20.97. Bank of America (NYSE: BAC) jumped 56 cents or 6.78% to $8.82. JP Morgan (NYSE: JPM) gained$1.31 or 4.11% to close at $33.21. Wells Fargo (NYSE: WFC) soared $1.91 or 10.51% to $20.09.

Early on Thursday, PNC Financial Services (NYSE: PNC) said that its first quarter net income rose 22% to $460 million, or $1.03 a share, from $377 million, or $1.09 a share, in the prior year period.

CIT Group Inc. (NYSE: CIT) plummeted 74 cents or 21.02% to $2.78 after it announced that first quarter loss grew to $438.1 million, or $1.30 a share, compared with a year-earlier net loss of $238.7 million, or $1.35 a share.

Shares of EMC Corp. (NYSE: EMC) retreated 53 cents or 4.17% to $12.17 after it said first-quarter net income fell to $194.1 million, or 10 cents a share, from $251.7 million, or 12 cents a share, in the same period a year ago. Revenue dropped to $3.15 billion from $3.47 billion.

United Parcel Service Inc. (NYSE: UPS) fell $1.42 or 2.59% to $53.33 after it announced that first-quarter net income fell 56% to $401 million, or 40 cents a share from $906 million, or 87 cents a share in the year earlier quarter. On an adjusted basis, net income totaled 52 cents a share. Quarterly revenue declined 13.7% to $10.9 billion.

On the front of economic data, a release by Department of Labor on Thursday showed number of Americans filing first- time claims for unemployment benefits increased by 27,000 to 640,000 in the week ending April 18, matching consensus estimates. The four-week average of seasonally adjusted initial jobless claims, a less volatile gauge, decreased by 4,250 to 646,750. Continuing claims for the week ending April 11 jumped 930,000 to a record 6.14 million.

According to National Association of Realtors, existing home sales fell 3 percent to an annual rate of 4.57 million in March month from a downwardly revised pace of 4.71 million units in February. Economists expected the existing home sales to decline to an annual rate of 4.7 million units.

European stocks settled lower. The U.K. FTSE fell 12.43 points or 0.31% to 4,018.23. The German DAX and French CAC decreased 1.22% and 0.55% respectively.

Asian stocks finished higher. The Nikkei 225 rose 119.71 points or 1.37% to 8,847.01. The Hang Seng index of Hong Kong jumped 336.01 points or 2.26% to 15,214.46.

NYMEX crude oil for June delivery climbed 77 cents or 1.6% to settle at $49.62 a barrel.

Disclosure: Author does not own any of the stocks discussed here.

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