National AP News | WCTV Eyewitness News: Tallahassee, Thomasville, Valdosta

Stocks Rise on Wall Street; Dow Hovers Near 13,000

By: Associated Press
By: Associated Press

New York, NY (AP) - The Dow Jones industrial average nudged above 13,000 Friday morning after a measure of consumer sentiment came in stronger than analysts had expected. But it spent the afternoon drifting lower.

The Dow was down 16 points at 12,967 shortly before 3 p.m. EST. American Express was the leading stock among the 30 that make up the average, gaining 1.2 percent.

It was a similar story earlier this week. The Dow flitted above 13,000 three times on Tuesday, then drifted lower. The average hasn't closed the day above 13,000 since May 19, 2008, four months before the worst days of the financial crisis.

On Friday, it cleared 13,000 for about 15 minutes in the morning, then for just under two hours in the afternoon, before dropping back.

What will it take for the Dow to close above 13,000 and stay there? Mark Lamkin, CEO of Lamkin Wealth Management in Louisville, Ky., said it would require a surprising news event, like a huge merger or an economic report that blows past expectations.

"It needs some type of surprise, a bombshell," Lamkin said. "We've had a pretty good run over the past four months. Now it's going to take something great to keep it above 13,000."

The two economic reports out Friday didn't appear to make the cut.

A consumer sentiment index taken by the University of Michigan and Reuters edged up in February to its highest level in a year. And the Commerce Department reported that sales of new homes dipped slightly in January, but the figure still topped economists' estimates. It also said sales in the final three months of 2011 were higher than previously reported.

"The numbers are just OK," Lamkin said. "They weren't bad, but they weren't great, either."

In other trading, the Standard & Poor's 500 index added a point to 1,364. Eight of the 10 industry groups within the index were higher, with utilities and information technology companies leading the way. The Nasdaq composite index rose four points to 2,961.

Oil prices hit a nine-month high of $109.77 a barrel with fresh signs that the U.S. economy, the world's largest, is gaining strength. The price of oil has jumped 10 percent this month as tensions mount over Iran's nuclear program.

The euro added a penny against the dollar, hitting $1.346, its highest since Dec. 8. Greece made a formal offer to creditors to swap their Greek government bonds for new ones, another step toward knocking $142 billion off its debts. The swap is part of a deal to prevent Greece from defaulting on a debt payment due next month.

Stock indexes have been on a climb since November, as European officials redoubled their efforts to contain the region's debt crisis and the European Central Bank has extended cheap loans to troubled banks. The S&P 500 index has gained 8.9 percent to start 2012, better than its long-term annual average gain.

In contrast to the volatile trading of late last year, the market's gains have been small but steady.

The Dow traded in a tight range of 43 points on Friday, the narrowest trading range in nearly a year. The Dow has traded in a smaller range only once in the last year, on April 4th, when it moved up and down just 38 points.

To Lamkin, the lack of large swings looks ominous. The world is still full of dangers, he said. Lamkin tells his clients that the top risks are another flare-up in the European debt crisis and a war between Israel and Iran.

"When the next big thing happens, and it will, you're going to see a pullback," he said. "I think we're due."

Among stocks making big moves:

- Sprint Nextel Corp. lost 3.2 percent. The country's largest cable company, Comcast, filed a suit against Sprint Nextel, alleging that it was violating Comcast's patents.

- Gap fell 3.8 percent. The clothing retailer reported a 40 percent plunge in quarterly profit after the market closed Thursday. Gap said higher costs and deep discounts weighed on its revenue.

- Deckers Outdoor Corp. sank 12 percent after the maker of Ugg boots and Teva footwear said higher costs will lead to lower profits for the quarter and full year.

- Kenneth Cole Production Inc. soared 19 percent to $15.57 on news that Kenneth Cole is offering to buy the rest of the company. Cole currently holds about 47 percent of the company and has offered would give stockholders $15 per share, a 15 percent premium to the company's Thursday closing price.


Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus
WCTV 1801 Halstead Blvd. Tallahassee, FL 32309
Gray Television, Inc. - Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 140350043 - wctv.tv/a?a=140350043