Thursday, April 16, 2009

Wall Street Rallies As HP Soars, JP Morgan Gains

. Thursday, April 16, 2009

By stockOzone team

US stocks climbed on Thursday as technology shares rallied, led by Hewlett Packard amid hopes that an conomic recovery is within sight.The Dow Jones Industrial Average rose 95.81 points or 1.19% to finish at 8,125.43. The S&P 500 increased 43.64 points or 2.68% to end at 865.30. The Nasdaq Composite gained 43.64 points or 2.68% to 1,670.44.

Hewlett Packard (NYSE: HPQ) surged $1.77 or 5.08% to $36.62 after Gartner Inc. and IDC reported that the company overtook Dell Inc. (NASDAQ: DELL) as the top PC maker in the U.S. Software giant Microsoft Corp. (NASDAQ: MSFT) jumped 93 cents or 4.94% to $19.76. iPhone maker Apple Inc. (NASDAQ: AAPL) finished at $121.45, up $3.81 or 3.24%.

Nokia (NYSE: NOK) advanced $1.52 or 11.38% to $14.88 after it reported that its first quarter net profit dropped 90% to 122 million euros ($160 million) amid falling handset sales and lower prices for its handsets.

Concerns about the health of financial firms eased after after JP Morgan (NYSE: JPM) delivered better than expected results, easing fears about the health of banking system. Early on Thursday, J.P Morgan reported that first-quarter net income fell to $2.14 billion, or 40 cents a share, compared to $2.37 billion, or 67 cents a share, in the year ago period. Revenue rose to $25 billion from $16.9 billion. JP Morgan leaped 68 cents or 2.09% to $33.24.

Shares of diversified US firm General Electric (NYSE: GE) gained 44 cents or 3.72% to $12.27.

Walt Disney Co. (NYSE: DIS) climbed 78 cents 3.95% to $20.51.

Shares of language-learning software company Rosetta Stone Inc. (NYSE: RST) soared $7.12 or 39.56% to $25.12 on Thursday in their public debut on the New York Stock Exchange.

Harley-Davidson Inc. (NYSE: HOG) surged 98 cents or 5.72% to $18.11 after it reported that first quarter net income declined to $117.3 million, or 50 cent, from $187.6 million, or 79 cents, in the same quarter of 2008.Quarterly revenue totaled $1.29 billion compared to $1.31 billion.

Meanwhile, General Growth Properties Inc.(NYSE: GGP), the second-largest US mall operator, filed for Chapter 11 bankruptcy protection early Thursday after it failed to refinance maturing debt.

On the front of economic data, a Department of Commerce release showed housing starts fell 10.8% in March to seasonally adjusted annual rate of 510,000. Economists expected Housing Starts to decline to an annual rate of 540,000.

Building Permits declined 9% to annual rate of 513,000. Economists had anticipated building permits to drop to 549,000 in March.

RealtyTrac said that foreclosure filings, including default notices, auction sale notices and bank repossessions, on U.S. properties reached 341,180 in March, up 17% from February and 46% from a year ago.

A release by Department of Labor on Thursday showed number of Americans filing first- time claims for unemployment benefits fell by 53,000 to 610,00 in the week ending April 11. . Economists had forecast jobless claims to fall to 658,000. The four-week average of seasonally adjusted initial jobless claims, a less volatile gauge, decreased by 8,500 to 651,000. Continuing claims for the week ending Apr. 41 rose to 3.89 million, their highest level since 1983.

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





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