The Dow Jones Industrial Average (DJIA) gained 0.4% to close at 12,505.99. The Standard & Poor 500 (S&P 500) ended at 1,337.38 after gaining 0.5% and the Nasdaq was up 0.6% to end at 2,820.16. Composite volumes on the New York Stock Exchange were 3.7 billion shares, significantly below the average daily volume of roughly 4.37 billion shares and for every 2 stocks that rose, one stock was on the declining side. The indices were jolted on Monday after the Standard & Poor’s downgraded the US sovereign debt rating. Robust earnings reports helped the indices recoup losses and the markets ended with their first week of gains in three. The Dow, S&P 500 and the Nasdaq jumped 1.3%, 1.3% and 2.0%, respectively. For the week, the fear-gauge CBOE Volatility Index (VIX) dropped 4.9% to settle at 14.57.
According to the Labor Department, initial claims decreased to 403,000, for the week ending April 16, against the expected decrease to 395,000, after increasing to 416,000, the revised level for the previous week. This is the first time that jobless claims have been above 400,000 for two straight weeks since January. The report limited the indices’ gains as claims below the 400,000 mark generally suggest a steady job growth.
Robust earnings reports from bellwethers drove the markets higher. Shares of Apple Inc. (NASDAQ:AAPL - Analyst Report) jumped 2.4% after reporting better-than-expected quarter results. Fueled by strong iPhone sales, record Mac sales and increased iPad sales, Apple reported earnings of $6.40 per share, well ahead of its conservative guidance of $4.90 and also surpassed the Street’s estimates. Sales jumped 82.7% year over year to $24.67 billion and surpassed Apple’s own forecast of $22.00 billion. The strong revenue growth was driven by increased momentum in Mac shipments and booming sales of iPhones and iPads. International sales accounted for 59.0% of total revenues for the quarter.
QUALCOMM Incorporated (NASDAQ:QCOM - Analyst Report) also reported robust earnings and its shares leaped 3.0% to settle at $56.94. Qualcomm reported solid earnings in the second quarter of fiscal 2011, supported by significant surge in demand for high-end 3G smartphones and tablets. Total revenue of $3,875 million was up 46% year over year and net income was up 29% year over year and 15% sequentially, signifying the extent of the company’s operating efficiency. Subsequently, tech shares lifted both the tech and the broader markets. Other advancing stocks in the technology sector included International Business Machines Corp. (NYSE:IBM - Analyst Report), Intel Corporation (NASDAQ:INTC - Analyst Report), Amazon.com Inc. (NASDAQ:AMZN - Analyst Report) and Hewlett-Packard Company (NYSE:HPQ - Analyst Report).
Other companies to join the league of strong earnings results included The Travelers Companies, Inc. (NYSE:TRV - Analyst Report), Unitedhealth Group, Inc. (NYSE:UNH - Analyst Report) and Morgan Stanley (NYSE:MS - Analyst Report). Aided by strong investment banking performance, Morgan Stanley reported better-than-expected results and the company’s shares jumped 1.7% and settled at $26.48.
The earnings season, that was kicked off unofficially by Alcoa, Inc. two weeks earlier, has been largely mixed with strong gains by the technology sector over the past two weeks. Companies like Johnson & Johnson, International Business Machines Corp., Intel Corporation, VMware, Inc. and Yahoo! Inc. topped analysts’ expectations and boosted the indices. Investors now patiently await another week of earnings reports and expectations are set higher with an uptrend in the earnings results. Source ; http://www.zacks.com/stock/news/51852/Stock+Market+News+for+April+25,+2011 For the latest updates PRESS CTR + D or visit Stock Market news Today
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