Stocks reacted positively to comments made by the European
Central Bank President Mario Draghi, and moved up sharply on Thursday further
boosted by a slew of upbeat economic data from the U.S.
The S&P 500 energy index rose 2.7 percent with a rise in
energy stocks.The Dow Jones industrial average was up 211.88 points, or 1.67
percent, at 12,887.93. The Standard & Poor's 500 Index was up 22.13 points,
or 1.65 percent, at 1,360.02. The Nasdaq Composite Index was up 39.01 points,
or 1.37 percent, at 2,893.25.
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Oil giant Exxon Mobil rose by 1.5 percent after reporting strong
second quarter profit growth from one-time gains, while 3M, Dow Chemical and Hershey also posted strong quarterly
results
Wall Street traders gained confidence from the remarks made
by Draghi at an investment conference in London where he assured the assembled
gathering that everything possible would be done to revive the Eurozone, whose
continuing woes has cast a shadow over economic recovery in the rest of the
globe.
"Within our mandate, the ECB is ready to do whatever it
takes to preserve the euro," Draghi said. "And believe me, it will be
enough."
The ECB is scheduled to meet next Thursday to discuss
monetary policy and there are hopes of positive action being announced at the
meeting.
The U.S. Labour Department also released data which showed
that initial jobless claims fell to 353,000 in the weekend to July from the
previous week's 388,000, much lower than analyst expectations of 380,000.
A report from the Commerce Department showed a much bigger
than expected increase in durable goods orders in the month of June, while the
National Association of Realtors released a report showing an unexpected
decrease in pending home sales in the month of June.
Major European markets ended positive - the French CAC 40
Index soared 4.1 percent, the German DAX Index jumped 2.8 percent and the
U.K.'s FTSE 100 surged 1.4 percent.
Zynga Inc (NASDAQ:ZNGA) ended lower by about 37.50% after
the company posted net income of $7 million or a penny a share, down 96% from a
year ago profit of $191 million, or $0.41
a share,, missing analysts’ estimate by a penny. Revenue during the
quarter came in at $12.83 billion, up 29% year over year, again missing
analysts target of $12.89 billion. For the third quarter, the company projects
to generate revenue of between $12.9 billion and $14.3 billion, shy of
analysts’ estimate of $14.10 billion.
Strayer Education Inc (NASDAQ:STRA) went down 12.41% to
$79.44 after the Company released second quarter results. Revenues decreased
11% to $146.3 million due to lower enrollment. Income from operations was $36.2
million compared to $50.1 million in the prior period. Operating income margin
was 24.7% compared to 30.6% in the previous year quarter. Net income was $21.2
million compared to $29.6 million in the same period of 2011. Diluted earnings
per share were $1.85 compared to $2.53 for the same period in 2011.
Sprint Nextel Corporation(NYSE:S) ended sharply higher after
the company reported strong revenue growth, overshadowing its higher than
projected loss and lost more costomers. The company said that incurred a loss
of $1.37 billion, or 46 cents a share, compared to a year ago loss of $847
million, or 28 cents a share, in the year-ago period, analysts were estimating
a loss of 46 cents a share. Revenue at the Overland Park, Kan., company was
$8.84 billion, up 6 percent from a year ago. Analysts were expecting $8.72
billion.
Fortinet, Inc.(NASDAQ:FTNT) added 11.88% as the company
reported a 25 percent jump in quarterly revenue, helped by higher demand from
U.S. enterprise customers. The company said that it earned $19.5 million or 12
cents a share on revenue of $129.0 million in the latest quarter, compared to a
year ago profit of $15.3 million or 9 cents a share.
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