Arrow-right Camera

The Spokesman-Review Newspaper The Spokesman-Review

Friday, October 18, 2019  Spokane, Washington  Est. May 19, 1883
Partly Cloudy Day 41° Partly Cloudy
News >  Nation/World

Stocks Leap As Investors Cheer Inflation News

By Associated Press

The Dow Jones industrial average rallied to its second-biggest point gain ever Tuesday as a tame inflation report provided at least temporary relief from the interest rate fears plaguing the market.

The technology-laden Nasdaq market slumped, however, in the aftermath of an impressive profit report, but less-than-enthusiastic forecast from Intel.

The Dow rose 135.26 to 6,587.16, its biggest point gain since a 186.84-point jump that came two days after the Black Monday crash of 1987. The 2.1 percent increase was the biggest in percentage terms in three years.

Most broad market measures also rallied as interest rates eased from a nine-month high in the bond market.

In the past two sessions, the Dow has recovered about 200 of the nearly 700 points it had lost during the sharp pullback of the past month.

“We were way oversold late last week. The market was due for a rally,” said Jim Weiss, deputy chief investment officer for equities at State Street Research and Management Co. in Boston. But he cautioned that the two-day rally doesn’t mean an end to the market’s near-term troubles.

Advancing issues outnumbered decliners by a 12-to-5 margin on the New York Stock Exchange, where volume totaled 506.88 million shares as of 4 p.m., up sharply from Monday’s sluggish pace.

Some of the stocks that moved substantially or traded heavily Tuesday:

NYSE

Caterpillar, up 3-5/8 at 83.

The heavy equipment maker’s first-quarter profits soared 33 percent - its best quarter ever - beating forecasts.

Eastman Kodak, up 2-1/4 at 75-3/8.

Weighed down by sluggish sales and the dollar’s strength, the photography and imaging company’s profit fell in the first quarter, but the results met analyst expectations.

Chase Manhattan, up 2-1/8 at 92-5/8.

Citicorp, up 3/8 at 106-7/8.

The nation’s two largest banks reported increased first-quarter earnings despite continued higher losses from consumer lending. Chase’s results were right on target with analysts’ expectations, while Citicorp’s profits slightly exceeded forecasts.

NASDAQ

Intel, down 2-3/4 at 131.

The chip maker’s first-quarter profit more than doubled, exceeding most expectations. But Intel also cautioned late Monday that it expects flat revenues and flat or slightly lower gross margins during the current quarter as it undergoes major product transitions.

Objective Systems Integrators, down 4-1/32 at 4-1/32.

The maker of client-server software will post an unexpected loss for its third quarter ended March 31, blaming delays in finalizing some contracts.

Subscribe to the Morning Review newsletter

Get the day’s top headlines delivered to your inbox every morning by subscribing to our newsletter.

You have been successfully subscribed!
There was a problem subscribing you to the newsletter. Double check your email and try again, or email webteam@spokesman.com