Stocks Advance on Positive Nokia, P&G; Projections
The stock market powered ahead in heavy trading Thursday, showing few signs of wanting to give a break to those investors waiting for a pullback to buy.
Upbeat earnings projections from mobile phone maker Nokia and consumer products giant Procter & Gamble, and a forecast of sharply higher capital spending by telecom firm Verizon Communications, helped pace share prices.
In other trading, the dollar’s slump resumed after the European Central Bank’s president indicated the bank had little concern about the soaring euro.
On Wall Street, the technology sector continued to lead the way: The Nasdaq composite index jumped 22.57 points, or 1.1%, to 2,100.25, its highest close in 2 1/2 years.
After surging 50% in 2003 the Nasdaq index is up 4.8% in the first five trading days of 2004.
The Dow Jones industrial average rose 63.41 points, or 0.6%, to 10,592.44, a 21-month high. The Standard & Poor’s 500 was up 5.59 points, or 0.5%, to 1,131.92, also a 21-month high.
The Dow is up 1.3% this year; the S&P; 500 is up 1.8%.
Rising stocks outnumbered losers Thursday by more than 3 to 2 on the New York Stock Exchange and on Nasdaq. NYSE volume was the heaviest in 14 months.
Nokia sparked more interest in the tech sector after it said fourth-quarter earnings would be well ahead of estimates, thanks to robust sales. The stock jumped $2.50, or 14%, to $20.47.
Procter & Gamble added $1.03 to $99.13 after saying results in its recent quarter would beat estimates thanks to rising sales of cold and flu remedies.
The positive corporate reports outweighed a surprising uptick in the number of people filing new claims for jobless benefits in the most recent week.
Today the government reports on employment trends for December.
Many investors are focusing on fourth-quarter corporate earnings, betting they will come in well ahead of expectations.
“We built some positive momentum off the news from Nokia,” said Jeff Swensen, a senior trader at John Hancock Funds in Boston. “We’re expecting a good earnings season and more good readings on the economy.”
But the continued strength of the stock market isn’t helping the battered dollar. The euro climbed to $1.276 from $1.265 on Wednesday, after Jean-Claude Trichet, head of the European Central Bank, said the euro’s record highs won’t prevent the region’s exports from increasing.
In the bond market, yields were modestly higher. The Treasury saw weak demand at its auction of $12 billion in 10-year inflation-protected notes, traders said. The yield was 2.02%.
Among the day’s highlights:
* The telecom sector got a boost from the Nokia and Verizon news. Winners included Lucent Technologies, up 37 cents to $3.88; Qualcomm, up $3.19 to $58.95; Scientific Atlanta, up $3.13 to $33.12; and Motorola, up 67 cents to $15.73. Verizon rose 56 cents to $37.12.
Another telecom equipment supplier, Andrew Corp., rocketed $4.30 to $17.50 after raising its quarterly earnings forecast.
* Alcoa rose 46 cents to $38.66. After regular trading ended the firm said fourth-quarter results beat estimates.
* JetBlue Airways sank $3.25 to $25.67 after a J.P. Morgan analyst said the airline’s earnings would be flat in 2004 as competition rises. The stock has fallen from a peak of $46.84 in October.
* Home builders’ shares were broadly lower after Ryland Group said orders were down. Ryland lost $10.16 to $72.89, Lennar fell $3.81 to $89.46 and KB Home was off $2.83 to $66.31.
* Among pending new stock issues, Tustin-based power supply maker Cherokee International gave a price range of $12 to $14 a share for its planned offering. No date was set for the deal.
