October 18, 2010 by staff
Citigroup, (Bloomberg) – U.S. stocks, rose led by financial stocks after earnings from Citigroup Inc. exceeded estimates and an unexpected drop in industrial production added to signs the Federal Reserve will buy more assets to power recovery.
Citigroup, the bank 12 percent owned by U.S. taxpayers, increased by 3.3 per cent, resulting in a measure of financial companies for the biggest gain in the Standard & Poor’s 500 Index. Hasbro Inc., Toy Company second in the world, rose 6.2 percent after reporting higher earnings than originally estimated that sales of products acquired preschool. Halliburton Co., the second largest global provider of tankers, slumped 5.1 percent after third quarter earnings missed estimates by someanlysts.
The S & P 500 rose 0.4 percent to 1181.04 at 10:18 in New York. The gauge rallied last week after Fed Chairman Ben S. Bernanke said the economy may need more stimulation and earnings boosted investor confidence. The Dow Jones Industrial Average rose 59.30 points, or 0.5 percent, to 11,122.08.
“We remain positive on the market on the basis of a decent income and expected actions of the Fed,” said Stewart Beach, which oversees and 1.1 billion as chief investment strategist at Old Second National Bank in Aurora, Illinois. “While earnings beat Citigroup, which is kind of surprising given the problems we see on the front of foreclosure.”
Citigroup rose 3.3 percent to 4.08 and the profit amounted to 2.17 billion, or 7 cents per share, compared with profit of 101 million, or a loss of 27 cents per share the same period a year earlier. Tenanlysts surveyed by Bloomberg estimated earnings per share of 5 cents per share in the bank, the third largest in the United States by assets. Bank of America Corp., Wells Fargo & Co. and Goldman Sachs Group Inc. also plans to publish the results this week.
Stocks rose as production in the U.S. unexpectedly fell in September for the first time in over a year, showing the industry that leads the economy out of recession is cooling. Output in the factories, mines and utilities fell 0.2 percent, the first decline since the recession ended in June 2009, the Federal Reserve figures showed today.
Bernanke said Oct. 15 that he has a case of “new measures” by the central bank in the form of monetary stimulus further because inflation is too low and unemployment is too high.
Hasbro rose 6.2 percent to $ 47.88. Third quarter results excluding certain items were $ 1.09 per share, against the average estimate ofanlysts in a Bloomberg survey by 5 percent.
Halliburton has lost 5.1 per cent and 34 as the result of excluding certain items rose to 58 cents per share, 2 cents more than the average estimates of 33anlysts compiled by Bloomberg, after work to land in America North consists of a slowdown in the Gulf of Mexico. Someanlysts had estimated earnings of up to 62 cents per share.
McMoRan Exploration Co. fell 3.9 percent to $ 17.73. The company, which has been a partner in some of the most important discoveries offshore U.S. oil companies in the last decade, reported a net loss in the third quarter of 26 cents per share, worse than expected loss of 22 cents byanlysts.
Of the 24 million SP 500 companies have reported results since Oct. 8, 18 beatanlysts’ earnings per share estimates, according to data compiled by Bloomberg. Analysts surveyed by Bloomberg forecast a 24 per cent of its profit in the third quarter of the previous year to S & P 500, the fourth consecutive quarterly increase.
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