US Stocks Increase Amidst Optimism on Corporate Earnings

The US stocks have increased after recovering from the losses experienced in 2 straight days by the Standard & Poor’s 500 Index. The investors are optimistic about the corporate earnings of the 4th quarter and this sentiment has helped the market positively. The S&P 500 Index actually went ahead by 0.3% and is at 1461.15 now. The Dow Jones Industrial Average has also surged ahead by 58.76 points and is currently at 13387.61. The trading volume in the registered companies of the S&P 500 Index was 9.7% more than the 30-day average.

The breakout star of the day was probably Alcoa Inc. as its reports of better sales than the estimates boosted the entire market. This is actually first company listed in Dow Jones to have published the results. The company is currently trying to avoid a downgrade by the Moody’s Investors Services and is increased by 0.4% today to get to $9.14 per share. According to the Co-Chief Investment Officer of Oakbrook Investments LLC, Peter Jankovskis, it was Alcoa’s report that helped the US stocks to consolidate further. Peter added that if some of the bellwether companies post further good results, chances are high that the market will move upwards.

The biggest gain today was experienced by the Industrial and Health Care shares. On the other hand, shares of the utility and energy companies were the worst performers. The Transportation Average of Dow Jones increased by 0.8% and has reached its highest level in last 18 months.

The 2nd biggest payments network of US, MasterCard Inc. posted surges of 2.2%, as it was raised at the Goldman Sachs Group Inc., from neutral to buy. On the other hand, Bank of America suffered a decline of 3.8% as its stock’s rating was cut down by the Credit Suisse Group.

The biggest increase among the S&P companies was experienced by Seagate Technology Plc. It went ahead by 4.8% and is currently priced at $32.9 per share. The company was able to maintain its share in the computer hard drive market and sales figures increased to at least $3.6 billion in the 2nd fiscal quarter. This exceeds the earlier forecast of $3.5 billion. Western Digital, on the other hand, increased by 4.5% and is at $43.86 per share now. The biggest gainer in Dow Jones was Boeing Co. as it increased by 3.1%.