11-Feb-2012 - US Stocks Drift

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By CHRIS DIETERICH And CHRISTIAN BERTHELSEN NEW YORK—U.S. stocks drifted as investors assessed a Greek austerity deal and continued improvement in the labor market. The Dow Jones Industrial Average rose 15 points, or 0.1%, to 12901 in midday Thursday trade. The Standard & Poor's 500-stock index gained 1 point, or 0.2%, to 1351 and the Nasdaq Composite edged up 7 points, or 0.1%, to 2923. Technology and consumer-staple stocks led sector gains. United Technologies led among Dow members, rising 2.2%. Top blue-chip laggards were Hewlett-Packard, down 1.4%, and Cisco Systems, which declined 0.8% although the company's fiscal second-quarter nfl jerseys cheap results late Wednesday topped expectations. Stocks received an initial boost after Greek Prime Minister Lucas Papademos and his coalition partners struck a deal on new cuts demanded by creditors to secure a vital bailout. The prime minister had struggled recent days find an agreement on economic overhauls sought by the European Union and the International Monetary Fund in exchange for lending an additional €130 billion (172.39 billion) to the Greek government to keep it from defaulting on its debts next month. A German official cautioned that the agreement likely won't be sufficient for any decisions at Thursday's meeting of euro-zone finance ministers in Brussels, because the deal lacks detailed paperwork. I"There's some optimism about Europe. I don't know whether it's justified or not from one day to the next," said John Carey, portfolio manager at Pioneer Investment Management in Boston. "I think people are probably waiting for the details. There've been so many stories in the past that the issue was resolved, so people are rightly skeptical until the details are there." In the U.S., separate readings on jobs and business activity were better than expected. Initial unemployment claims fell more than expected last week, down 15,000 to 358,000. The previous week's figure was revised up to 373,000 from 367,000. Economists surveyed by Dow Jones Newswires expected the latest week's claims to total 370,000. U.S. wholesale inventories rose more than expected in December, a signal that businesses restocked at the end of last year to meet rising demand. Inventories increased by 1.0% from the prior month to a seasonally adjusted 473.17 billion. Economists surveyed by Dow Jones Newswires had forecast a 0.5% increase. European markets rose on news of the Greek deal, but pared earlier gains. The Stoxx Europe 600 added 0.2%, and was on track for its first gain in four sessions. Asian bourses were mixed after an unexpected increase in the Chinese inflation rate. China's Shanghai Composite edged up 0.1% while Japan's Nikkei Stock Average slipped 0.2%. Gold futures added 0.9% to 1,746.30 a troy ounce, while crude-oil futures advanced 1.4% to 100.18 a barrel. The U.S. dollar lost ground against the euro, but edged higher against the yen. U.S. Treasurys ticked lower, and the yield on the 10-year rose to 2.0576%. In corporate news, PepsiCo declined 3.8% after the soft-drink and snack company reported better-than-expected fourth-quarter results, but provided a 2012 earnings outlook that was below current estimates. It also announced a restructuring plan that includes cutting its global workforce by about 8,700. Groupon slumped 12% after the company reported a slight fourth-quarter loss against expectations of a slight profit, although revenue beat estimates, and the first-quarter revenue outlook was above current projections. TripAdvisor fell 18%, leading the S&P 500 lower, after the company's first quarterly results since its separation from Expedia fell short of estimates and the travel website provided a subdued outlook. Akamai nfl jersey supply Technologies shot up 10%, and led the S&P 500, after the reporting better-than-expected fourth-quarter earnings and revenue. Separately, the company said James Benson, currently its senior vice president of finance, will succeed J. Donald Sherman as chief financial officer, effective March 1. Lorillard's fourth-quarter earnings jumped 20% as the cigarette maker reported higher shipments and gains in Newport and Maverick brands. Shares gained 9.6%. Visa tacked on 3.8% after fiscal first-quarter earnings and revenue exceeded forecasts. Diamond Foods tumbled 38% after the company said the company's audit committee concluded that financial statements for fiscal 2010 and 2011 will need to be restated, and noted "material weaknesses" in the company's internal controls. The company said it was taking a number of corrective actions, including appointing a new chief executive officer and chief financial officer, and also appointed a chairman of the board. Teradata's fourth-quarter earnings rose 15% as all regions posted double-digit revenue increases and the business-data storage company approved a new 300 million stock-repurchase program. Shares rose 7.9%.

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