The benchmark S&P 500 rose for the third straight
day on Wednesday after data released showed that housing starts hit a four-year
high.
The Dow Jones Industrial Average was however under
pressure after IBM posted weak results for the third quarter.
The U.S. Commerce Department said that housing starts
rose 15 percent in September, the fastest rise since July 2008, and an
indication that the nascent recovery in the housing recovery was gradually spreading
to the economy at large.
The PHLX Housing Index also rose nearly 3 percent.
International Business Machines Corp.(NYSE:IBM)‘s results
disappointed the markets after the company reported results that fell short of
analyst expectations. The shares in the company fell nearly 5 percent, dragging
down the Dow on which IBM has a heavy weightage. IBM closed at $200.63 a share.
The World's largest chip maker also lost about 2.5
percent to close at $21.79, after it guided for a weaker outlook. The S&P
technology sector index slid 0.8 percent and was the only loser among the
S&P 500's 10 industry sectors on Wednesday.
It’s just the start of the earnings season, but so far
it has been much better than expected. Of the fourteen percent of S&P 500
companies that have already reported earnings, 65 percent have beaten analysts'
expectations, ahead of the long-term average of 62 percent.
The Dow Jones Industrial Average (INDEXDJX:.DJI) rose
5.22 points, or 0.04 percent, to 13,557 at the close. The S&P
500(INDEXSP:.INX) gained 5.99 points, or 0.41 percent, to finish at 1,460.91. The
NASDAQ Composite (INDEXNASDAQ:.IXIC) advanced 2.95 points, or 0.10 percent, to
close at 3,104.12.
Over the past three days, the S&P 500 has gained
2.3 percent - its best three-day advance in more than a month. The benchmark
index is now just 0.33 percent off its 2012 closing high.
Pfizer Inc.(NYSE:PFE) continued to hit new highs and
rose 0.16% to $25.84 after hitting a new high of $25.93.
MGIC Investment Corp.(NYSE:MTG) shares soared 20.70%
after the firm S&P raised Radian & MGIC ratings after criteria revision.
Arena Pharmaceuticals, Inc.(NASDAQ:ARNA) was among the
big gainers in the healthcare sector and added 6.71% to end the day at $9.99.
The stock has shown massive rally of 434% so far this year. Moreover, the
company announced an addition to its research and development pipeline, a new
treatment for pulmonary arterial hypertension.
Apollo Group Inc(NASDAQ:APOL) had a rough session as
the stock slumped 22% company trimmed its full-year revenue outlook to $3.65
billion to $3.8 billion, less than the $4.07 billion analysts were looking for.
Moreover, multiple analysts downgraded the stock following a weak earnings
report.
A123 Systems, Inc.(NASDAQ:AONE) tumbled another 11.50%
after falling 75% in the previous trading session. The company said on Tuesday that it is likely to default on its debt obligations and it
would soon seek bankruptcy protection. The company revealed this is a
regulatory filing with the Securities and Exchange Commission.
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