26.10.2006 11:42 Real Estate
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The Dow climbed to 12,147.97 -- another record intraday high -- shortly after the Federal Reserve announced its decision to keep its fed funds rate steady at 5.25 percent.
Helping the Nasdaq, online retailer Amazon.com. (Nasdaq:AMZN - news) reported stronger-than-expected earnings, driving up its shares and those of other Internet companies such as Google Inc. (Nasdaq:GOOG - news).
"The first major uptick in oil prices in quite some time can't be ignored by the stock markets," said Jim Awad, chairman of Awad Asset Management, in New York. "As for earnings, we had some worries with GM and Boeing, but a handful of companies released positive news."
The Dow Jones industrial average (^DJI - news) gained 6.80 points, or 0.06 percent, to close at a record 12,134.68. The Standard & Poor's 500 Index (^SPX - news) added 4.84 points, or 0.35 percent, to finish at 1,382.22. The Nasdaq Composite Index (^IXIC - news) advanced 11.75 points, or 0.50 percent, to close at 2,356.59.
U.S. crude oil for December delivery surged $2.05 to settle at $61.40 per barrel on Wednesday after data showed a surprising drop in crude supplies and a larger-than-expected fall in product stockpiles in the latest week.
Exxon Mobil's shares gained 1.6 percent, or $1.12, to $71.01 on the New York Stock Exchange and ranked as the Dow's second-biggest advancer. Exxon Mobil also was the No. 1 gainer in the S&P 500.
ALTRIA FLIES, BUT BOEING FALLS
Shares of Altria Group Inc. rose 2.9 percent, or $2.28, to $82.10 on the NYSE and gave the Dow its biggest boost after the company said it is comfortable enough with the U.S. legal environment to "move forward" with the spin-off of its Kraft Foods Inc. (NYSE:KFT - news) unit. Altria, however, said it will wait until the end of January to announce the spin-off's timing
Boeing shares fell 3.3 percent, or $2.73, to $80.86 on the NYSE after the jet plane manufacturer, which also is the No. 2 U.S. defense contractor, announced a charge that nudged down the top end of its full-year 2006 earnings forecast. For details see .
GM's shares fell 4.1 percent, or $1.48, to $34.71. GM on Wednesday posted operating earnings at the high end of Wall Street expectations. But wary investors sent the stock down on expectations that the easiest part of the automaker's turnaround was nearing an end.
Shares of electronics retailer RadioShack (NYSE:RSH - news) fell 7.7 percent, or $1.45, to $17.45 on the NYSE after the company posted a quarterly loss, hit by higher costs and lower wireless sales.
THE AMAZON EFFECT
Shares of Amazon.com jumped 12 percent, or $4.05, to $37.68 on the Nasdaq after the company's profit and revenue beat analysts' estimates.
Google's stock gained 2.8 percent, or $13.29, to close at $486.60 on Nasdaq. Earlier, Google hit an all-time high of $488.50.
Volume was heavy on the NYSE, where about 1.83 billion shares changed hands, above last year's daily average of 1.61 billion. On the Nasdaq, about 2.19 billion shares were traded, above last year's daily average of 1.80 billion.
Gainers outnumbered decliners on the Big Board by about 2 to 1. On the Nasdaq, about four stocks rose for every three that fell.
