Stocks Rise Amid Mixed Economic Signals

Strategic Insights -

The US stock market ended the day on a mixed note, with about six stocks advancing for every five that fell on the New York Stock Exchange and Nasdaq Stock Market. The S&P 500 slipped less than 0.1 percent to 1,138.5, while the Dow Jones Industrial Average decreased 13.68 points, or 0.1 percent, to 10,552.52. The rally was led by insurance companies, with American International Group Inc. (AIG) climbing 3.6 percent after agreeing to sell its American Life Insurance Co. unit to MetLife Inc. for $15.5 billion. Sprint Nextel Corp. also gained 3.7 percent, expecting revenue growth in the next several quarters.

Several notable companies reported positive earnings, including McDonald's Corp., which gained 2.3 percent after global sales topped estimates. The market's mixed performance was also influenced by President Barack Obama's push to overhaul the medical industry, which led to a drop in healthcare stocks. Despite this, the market remains optimistic, with Hugh Johnson, chairman and chief investment officer of Johnson Illington, stating that "the fact that AIG is starting to get back on its feet is good news."

Key Takeaways:

  • The S&P 500 slipped less than 0.1 percent to 1,138.5, marking the first drop in seven days.
  • American International Group Inc. (AIG) climbed 3.6 percent after agreeing to sell its American Life Insurance Co. unit to MetLife Inc. for $15.5 billion.
  • Sprint Nextel Corp. gained 3.7 percent, expecting revenue growth in the next several quarters.
  • McDonald's Corp. gained 2.3 percent after global sales topped estimates.
  • The market's mixed performance was influenced by President Barack Obama's push to overhaul the medical industry, causing a drop in healthcare stocks.
  • About six stocks advanced for every five that fell on the New York Stock Exchange and Nasdaq Stock Market.
  • The Dow Jones Industrial Average decreased 13.68 points, or 0.1 percent, to 10,552.52.
  • The Nasdaq Composite Index increased 0.3 percent to 2,332.21.
  • The Russell 3000 Index rose less than 0.1 percent.

Statistics:

  • S&P 500: -0.1% to 1,138.5
  • Dow Jones Industrial Average: -13.68 points, or 0.1%, to 10,552.52
  • Nasdaq Composite Index: +0.3% to 2,332.21
  • Russell 3000 Index: +0% to 1,123.5
  • AIG stock price: +3.6% to $52.45
  • Sprint Nextel Corp. stock price: +3.7% to $4.95
  • McDonald's Corp. stock price: +2.3% to $69.11
  • Global sales topped estimates for McDonald's Corp.: 12.1% increase

Sources:

  • Euclid Infotech Pvt. Ltd.
  • American International Group Inc. (AIG)
  • MetLife Inc.
  • Sprint Nextel Corp.
  • McDonald's Corp.
  • President Barack Obama
  • Hugh Johnson, chairman and chief investment officer of Johnson Illington
  • New York Stock Exchange
  • Nasdaq Stock Market
  • Dow Jones Industrial Average
  • S&P 500 Index
  • Nasdaq Composite Index
  • Russell 3000 Index