Stocks Rally on Altria's Record High Shares, Led by Tobacco Stocks

Yesterday's session saw stocks rise despite lingering caution ahead of the employment report for June, thanks to a rally in tobacco stocks led by Altria's record high shares. The Dow Jones industrial average rose 0.66 percent, the S&P 500-stock index gained 0.25 percent, and the Nasdaq composite index edged up 0.08 percent. However, the broader market's gains were limited by a sell-off in shares of eBay and Apple Computer.

Key Takeaways:

• Altria's shares rose 6 percent, or $4.43, to reach a record high of $79.10, making it the leading stock in yesterday's rally.
• An index of tobacco stocks rose 1.8 percent, with Reynolds American shares increasing 4 percent, or $4.59, to close at $118.95.
• eBay shares plummeted 5.3 percent, or $1.51, to close at $26.85, after the company announced changes to its PayPal payments unit.
• Apple's shares dropped 2.2 percent, or $1.23, to $55.77, following news of a lawsuit over stock option grants and a competitor to the iPod music player.
• Shares of companies closely tied to economic cycles rebounded, with 3M's stock rising 1 percent, or 84 cents, to $81.39.
• Wal-Mart Stores' shares slipped 0.6 percent, or 30 cents, to $46.72, as mixed June sales were reported by major retailers.

Statistics:

• 1.41 billion shares changed hands on the New York Stock Exchange, below last year's daily average of 1.61 billion.
• 1.64 billion shares traded on Nasdaq, below last year's daily average of 1.80 billion.
• The price of the 10-year Treasury security rose 10/32, to 9918/32.
• The yield on the 10-year Treasury security fell to 5.18 percent, from 5.22 percent on Wednesday.
• Altria's shares jumped 6 percent, or $4.43, to close at $77.76.

Sources:

• Associated Press
• Bloomberg Financial Markets
• Merrill Lynch
• Federal Home Loan Mortgage Corp.
• Wedbush Morgan regional investment bank.