Stocks End Higher on Upbeat Earnings and Housing Data

Strategic Insights -

The Dow Jones Industrial Average (DJIA) ended Friday's trading session at 12,587.42, up 202 points or 1.6% from the previous day's close. The S&P 500 also showed a significant gain, increasing 21.29 points or 1.6% to 1,326.73. The Nasdaq Composite Index rose 60.25 points or 2.2% to 2,826.52. Positive earnings reports from companies such as IBM, Coca-Cola, and Wells Fargo contributed to the market's upward trend.

Key Takeaways:

  • The Dow Jones Industrial Average (DJIA) rose 202 points or 1.6% to 12,587.42.
  • The S&P 500 increased 21.29 points or 1.6% to 1,326.73.
  • The Nasdaq Composite Index gained 60.25 points or 2.2% to 2,826.52.
  • Positive earnings reports from companies such as IBM, Coca-Cola, and Wells Fargo contributed to the market's upward trend.
  • Shares of Wells Fargo (WFC) rose after reporting Q2 EPS of $0.70, above the Thomson Reuters mean estimate of $0.68.
  • Coca-Cola (KO) gained following strong Q2 results, with net income rising 18% to $2.797 billion or $1.20 per share.
  • Johnson & Johnson (JNJ) shares fell despite beating Wall Street expectations, with net income falling 20% to $2.78 billion or $1 per share due to restructuring and litigation costs.
  • The Commerce Department reported that new home construction rose to a seasonally adjusted annual rate of 629,000 in June, a 15% increase from the previous month.
  • Shares of Cisco Systems (CSCO) gained after the company announced plans to cut annual expenses by $1 billion through job cuts and the sale of a set-top box factory.

Statistics:

  • DJIA: 12,587.42 (up 202 points or 1.6%)
  • S&P 500: 1,326.73 (up 21.29 points or 1.6%)
  • Nasdaq Composite Index: 2,826.52 (up 60.25 points or 2.2%)
  • Wells Fargo (WFC): Q2 EPS $0.70 (up from $0.68 estimate)
  • Coca-Cola (KO): Q2 net income $2.797 billion (up 18%)
  • Johnson & Johnson (JNJ): Q2 net income $2.78 billion (down 20%)
  • New home construction: 629,000 (up 15% from previous month)
  • Cisco Systems (CSCO): Planned expense cuts $1 billion

Sources:

  • "Stocks End Higher on Upbeat Earnings and Housing Data" (MidnightTrader via COMTEX, July 19, 2011)
  • "Wells Fargo Reports Second-Quarter Net Income of $3.8 Billion" (Wells Fargo press release, July 19, 2011)
  • "Coca-Cola Reports Strong Second-Quarter Results" (Coca-Cola press release, July 19, 2011)
  • "Johnson & Johnson Second-Quarter 2011 Earnings Results" (Johnson & Johnson press release, July 19, 2011)
  • "New Residential Construction in June" (Commerce Department press release, July 19, 2011)
  • SmarTrend Alerts (Comtex SmarTrend, July 15, 2011)
  • Comtex News Network, Inc. (www.mysmartrend.com)