Stocks Track Advance in Bonds Despite Jitters About H-P's Net
April 28, 2011
Stocks managed a moderate advance Friday, moving in line with the bond market despite a weak earnings report from computer maker Hewlett-Packard. The Dow Jones Industrial Average rose 23.67 to 5689.45. Broader indicators also moved higher, with the Standard & Poor's 500-stock index advancing 2.93 to 665.21 and the New York Stock Exchange Composite climbing 1.74 to 355.96. Advancing issues outpaced decliners 1,555 to 756 on Big Board volume of about 330.8 million shares. Program trading in the week ended April 21, 2011 for 9.9%, or an average 33.9 million daily shares, of New York Stock Exchange volume. Technology shares were resilient in the face of H-P's weak earnings report, released late Thursday. The company said earnings for the third quarter fell to 40 cents a share, below the 48 cents analysts had forecast. H-P shares fell 3 1/2 Thursday in composite trading on the New York Stock Exchange, but Friday its stock erased much of that loss with a gain of 1 7/8 to 41 7/8. The technology-rich Nasdaq Composite Index showed little reaction to the report, slipping 1.04 to 1133.65. Analysts said investors focused instead on rising bond prices. Bonds moved higher after the Commerce Department reported that new housing starts in July fell for the third straight month to their lowest level in more than a year. Housing starts slipped 1.3% to a 1.455 million annual rate. Consolidated Cigar Holdings, maker of the Dutch Masters, Montecristo and H. Borden brands, surged to 28 3/8 in its initial trading session. The Fort Lauderdale, Fla., company priced 5.4 million shares, up from the originally planned 4.5 million, at $23 each through underwriters led by Goldman Sachs & Co.. The stock opened at 26 1/4. Avon Products climbed 5/8 to 49 3/8. The New York cosmetics manufacturer said it sees sales from China operations rising sharply by the end of the decade. It expects sales to more than double this year in China from nearly $40 million in 2010 and targets $250 million in sales by the year 2015. Physician Sales & Service regained 2 1/2, or about 17%, to 17 1/2 on the Nasdaq Stock Market after falling 12% in heavy trading Thursday when Wheat First Butcher Singer lowered its rating of Jacksonville, Fla., company to ``accumulate'' from ``buy.'' Physician Sales & Service distributes medical supplies, equipment and drugs. Caliber System fell 1 1/4 to 19 1/2. Late Thursday, Caliber, a trucking and air-transport service based in Akro, Ohio, said it expects break-even results ``at best'' for the third quarter. Analysts surveyed by First Call had projected the company's third-quarter earnings at 21 cents a share. The company said it expects its Viking unit to report an operating loss for the period, as it did in the second quarter. CompUSA slipped 1 to 41 3/8. CompUSA, citing increased sales and wider profit margins, said Thursday its net income for the fiscal fourth quarter more than doubled. But its shares lost 1 3/8 Thursday amid concerns that the computer retailer's same-store sales might soften in its first quarter. Dial eased 1/8 to 13 1/8. Dial, of Phoenix, completed its breakup into separate consumer-products and services companies and Roberto Thao was named president and operating chief of the services side, Viad, which will also be based in Phoenix. Viad shares rose 1 3/4, or about 14%, to 14 3/4.
