Stock climbed in New York on Friday, buoyed by rosy earnings from Procter Gamble amid a backdrop of sturdy corporate results. But continued erosion in the share price of Apple meant it was no longer the most valuable American company by market value.
The Standard Poor’s 500-stock index climbed 0.3 percent in afternoon trading. The S.P. 500 was poised for an eighth day of gains, its longest winning streak in eight years. The Dow Jones industrial average added 0.3 percent and the Nasdaq rose 0.4 percent.
The equity market was also bolstered by agreement in Washington to extend the government’s borrowing power through mid-May, encouraging signs of recovery in the global economy, solid corporate earnings and seasonal inflows into stocks.
Those factors helped the S.P. 500 rally for a seventh day on Thursday to a five-year peak. Still, the index struggled to climb convincingly above 1,500 points, a level it surpassed briefly Thursday for the first time since December 2007.
“We are seeing a very broad-based rally, and the ingredients are still in place” for gains to continue, said Steve Goldman, principal at Goldman Management in Short Hills, N.J. “This is the liftoff phase and it’s still significant.”
In midday trading, Apple stock fell to $443.92, down 1.5 percent, returning the crown of most valuable company to Exxon Mobil.
Procter Gamble, the world’s top household products maker, said quarterly profit soared past expectations and raised its sales and earnings outlook for the fiscal year. Shares were up 3.5 percent.
Pointing to a rotation out of bonds, 30-year Treasury bonds traded more than a point lower in price on Friday, with yields touching session highs at 3.10 percent.
“You have had more confidence from fund managers to provide more allocations to equity markets,” which looked more attractive than bonds or cash, said Rick Meckler, president of investment firm LibertyView Capital Management.
Recent company earnings have been encouraging. Thomson Reuters data through early Thursday showed that of the 133 S.P. 500 companies that have reported earnings so far, 66.9 percent exceeded expectations, more than the 65 percent average over the last four quarters.
German business morale improved for a third consecutive month in January to its highest in more than half a year, but Britain’s economy shrank 0.3 percent at the end of 2012, pushing it perilously close to slipping into recession for a third time since 2008.
European stock markets were up moderately. The DAX in Germany gained 1.3 percent and the CAC 40 in France added 0.7 percent.
Article source: http://www.nytimes.com/2013/01/26/business/daily-stock-market-activity.html?partner=rss&emc=rss
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