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Dow higher on positive US data, GM, J.M. Smucker in focus

16th Feb 2012, 2:57 pm by Joyanta Acharjee
Dow higher on positive US data, GM, J.M. Smucker in focus

US equity markets were higher Thursday afternoon as positive domestic economic data comforted investors nervous about Greece's ability to secure a second bailout.

As at 2.29pm EDT, the Dow Jones Industrial Average rose 1% to 12,900.11, the S&P 500 also gained 1% to 1,357.04 and the NASDAQ was up 1.4% to 2,955.89.

Unemployment figures and housing numbers released Thursday continued to paint a picture of the US economy on the verge of a comeback.

The data helped take investor's minds off a warning from Moody's, which put 17 global banks and 114 European financial institutions on review for possible downgrades.

In corporate news, General Motors (NYSE:GM) posted 2011 earnings of $9.19 billion last year, the largest profit in the auto-maker's history, while its European business again lost money.

GM’s full-year profit in 2010 of $6.17 billion had been the automaker’s largest annual profit since it earned $6.7 billion in 1997, excluding profit in 2009 to account for its post-bankruptcy recapitalization.

For 2011, revenue increased to $150.3 billion from $135.6 billion.

For the fourth quarter, however, net income slid 48 percent to $725 million, the lowest in two years. GM had earned more than $2 billion in each of the three previous quarters.

The J.M. Smucker Co.’s (NYSE:SJM) share price slid Thursday after the company said third-quarter profits fell 11 percent amid declining overall sales volumes.

Molson Coors Brewing Co. (NYSE:TAP) said Thursday fourth-quarter sales jumped 12.2 percent, spurred by higher pricing, overhead cost reductions and one extra shopping week. For the quarter that ended December 31, the company said that net income from continuing operations surged to $172.4 million, or 95 cents per share, compared to a year-earlier profit of $111.3 million, or 59 cents per share.

VF Corp (NYSE:VFC) said Thursday its fourth quarter sales rose to record levels while its profit more than quadrupled, bolstered by its September 2011 acquisition of The Timberland Company brand.

Media company CBS (NYSE:CBS) late Wednesday posted fourth-quarter sales that missed analysts’ estimates as advertising declined.

CBS, owner of the most-watched US television network, said revenue for the period that ended December 31 slid three percent to $3.78 billion, missing the $3.9 billion average of 21 analyst estimates.

Net income climbed 31 percent to $370 million, or 55 cents per share, on higher fees from pay-TV systems and affiliate stations.

On the economic front, initial unemployment claims for the week that ended February 11 fell to 348,000 -- down 13,000 from the prior week. Economists were expecting 365,000 claims.

Housing starts for January rose 1.5% to 699,000, according to the Commerce Department. Building permits rose 0.7% to 676,000 in January. Both numbers were higher than expected.

Commodities

In NYMEX futures trading, oil for March delivery added 26 cents to $102.86 a barrel while gold futures for April delivery fell $8.10 to $1,718.20 an ounce.

Europe

European markets finished mixed as of the most recent closing prices. The CAC 40 gained 0.09%, while Britain's FTSE 100 fell 0.12% and Germany's DAX was off 0.09%.

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