Strong Data and Earnings Push S&P to Five-Year High (BAC, INTC)
The S&P 500 hit a five-year high on Thursday on positive data from the housing market, jobs report and corporate results that beat expectations for the fourth-quarter. Unemployment claims in the US dropped to a five-year low last week. Several companies in the housing sector gained including PulteGroup Inc. (PHM) and Toll Brothers Inc. (TOL). The Dow and Nasdaq finished in the green today as well. Multiple earnings reports were released from major banks -both Citigroup (C) and Bank of America (BAC) saw stock prices drop after sharing their Q4 data.After the bell Intel (INTC) announced a higher-than-expected revenue for the past quarter but earnings that were still lower than the same quarter one year earlier. After news of this positive economic data Treasury prices fell for the first day in five. Increased investor demand at Spain's debt auction momentarily eased euro zone worries and pushed the euro up against the dollar, while the yen continued to drop and hit another low.
Word on the Street
- Citigroup (C) misses earnings estimates for Q4 and blames increased regulatory pressures.
- Jobless claims drop to 335,000, the lowest level in five years.
- Bank of America (BAC) profit drops 63% after $5 billion mortgage charge.
- SurveyMonkey to raise $800 million to remain privately held, Google (GOOG) to invest.
- Japanese yen falls to lows seen more than two-and-a-half years ago against the dollar.
- PNC Financial (PNC) profits surge on $254 million loan expansion.
- Embraer SA signs a contract with Aldus Aviation Ltd. worth up to $1.56 billion.
Published on Jan 17, 2013By InvestorGuide Staff