Strong earnings reports from some major players in their respective sectors has the Dow Jones Industrial Average breathing down the neck of the psychologically important 10,000-point mark.
JPMorgan Chase & Co. (NYSE: JPM) is one of the first banks up to report third-quarter earnings, and the results are cheering Wall Street. The bank reported a $3.59 billion profit, but also stated that it had about doubled the money set aside for home and credit loan defaults in the quarter, reports Stephen Bernard for the Associated Press. Financial Select Sector SPDR (NYSEArca: XLF) is up more than 2% this morning; JPM is 12.3%.
Tech bellwether Intel (Nasdaq: INTC) also made good on its assurances that the PC market is slowly beginning to reboudn by reporting results that, while glum, surpassed expectations. The chip-maker reported that profits and sales dipped 8% in the third quarter. iShares Dow Jones U.S. Technology (NYSEArca: IYW) is up about 1.25% this morning; Intel is 6%. More on why semiconductors are doing well.
Oil prices have hit a one-year high above $75 a barrel thanks to new lows for the U.S. dollar, reports Claire Rangel for The Wall Street Journal. The dollar hit a 14-month low against a basket of currencies. Oil is priced in U.S. dollars, so as the dollar weakens the commodity becomes cheaper for those overseas.
Business inventories in August were cut for the 13th straight month, dropping 1.5%. It was more than what analysts had expected. On the flip side, sales by manufacturers, wholesalers and retailers rose 1%. Much of the boost came from the “cash for clunkers” program, reports Martin Crutsinger for the Associated Press. Read about the holiday sales outlook here.
For more stories on oil, visit our oil category.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.