Stocks trending higher
The Russell 2000 (NYSE: IWM) and the Dow have now settled on a positive trajectory after bouncing around for most of the day. At 2:15 p.m. the small-cap index had gained 2.96 points, or 0.38%, to 780.88. The Dow Jones Industrial Average (INDU) was up 49.26 points, or 0.37%, to 13,411.63.
The upward momentum is largely due to news of positive earnings from some major players.
Finland’s Nokia Corp. (NYSE: NOK), the largest mobile phone maker in the world, set the tone when it said that second-quarter profit doubled due to strong sales in China and India.
Likewise, drugstore operator CVS Caremark Corp. (NYSE: CVS) also doubled its profit, reporting earnings of $723.6 million, or $0.47 per share, compared with $337.9 million, or $0.40 cents per share, a year earlier. That was just one cent above Wall Street’s forecast net income of $0.46 per share.
Meanwhile, coffee chain Starbucks Corp. (NYSE: SBUX) saw its quarterly revenue rise 20% in the third quarter of fiscal 2007 and said that it is maintaining its target of opening about 2,600 stores in fiscal 2008.
Adding to the positive sentiment was news that the number of Americans looking for work increased less than economists predicted for the week ended July 28.
The U.S. Labor Department reported that jobless claims added 4,000 to 307,000, while economists were expecting an increase of 7,000 to 310,000.
That means that the jobs market is slightly better now than this time in 2006, when jobless claims stood at 315,000.
The same can’t be said for the construction sector. Total construction, measured by the value of construction put in place, was an annual rate of $1,175 billion in June 2007, compared with $1,204 billion in the same month of 2006, according to the U.S. Census Bureau.
That’s 0.26% below the May 2007 total of $1,178 billion.
Residential construction dipped 0.69% to an annual pace of $551.6 million in June, from $555.4 million in May, no doubt reflecting the ongoing slump in the U.S. housing sector.
Elsewhere, the price of oil is little changed at about $76.50 a barrel.
The upward momentum is largely due to news of positive earnings from some major players.
Finland’s Nokia Corp. (NYSE: NOK), the largest mobile phone maker in the world, set the tone when it said that second-quarter profit doubled due to strong sales in China and India.
Likewise, drugstore operator CVS Caremark Corp. (NYSE: CVS) also doubled its profit, reporting earnings of $723.6 million, or $0.47 per share, compared with $337.9 million, or $0.40 cents per share, a year earlier. That was just one cent above Wall Street’s forecast net income of $0.46 per share.
Meanwhile, coffee chain Starbucks Corp. (NYSE: SBUX) saw its quarterly revenue rise 20% in the third quarter of fiscal 2007 and said that it is maintaining its target of opening about 2,600 stores in fiscal 2008.
Adding to the positive sentiment was news that the number of Americans looking for work increased less than economists predicted for the week ended July 28.
The U.S. Labor Department reported that jobless claims added 4,000 to 307,000, while economists were expecting an increase of 7,000 to 310,000.
That means that the jobs market is slightly better now than this time in 2006, when jobless claims stood at 315,000.
The same can’t be said for the construction sector. Total construction, measured by the value of construction put in place, was an annual rate of $1,175 billion in June 2007, compared with $1,204 billion in the same month of 2006, according to the U.S. Census Bureau.
That’s 0.26% below the May 2007 total of $1,178 billion.
Residential construction dipped 0.69% to an annual pace of $551.6 million in June, from $555.4 million in May, no doubt reflecting the ongoing slump in the U.S. housing sector.
Elsewhere, the price of oil is little changed at about $76.50 a barrel.
About the Author
Reporter Alex Alexandrov is based in SmallCapInvestor.com's Washington, D.C. bureau.
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