Monday, October 23, 2006

NYSE continues into uncharted waters

The Dow's up 108, to new interday highs over 12,100.

Oct. 23 (Bloomberg) -- U.S. stocks rose, extending October's record-breaking rally, as falling oil prices bolstered speculation that consumer spending will sustain the economy.

Wal-Mart Stores Inc., the world's largest retailer, jumped after saying it will slow new spending on stores, relieving concern that it's growing too fast. Wm. Wrigley Jr. Co., the world's largest chewing-gum maker, had its biggest jump in almost three decades after naming former Nike Chief Executive Officer William Perez to head the company.

Stocks gained as earnings from Hasbro Inc., Xerox Corp. and Halliburton Co. exceeded analysts' estimates. Confidence that the Federal Reserve will leave interest rates unchanged this week for the third consecutive time also supported the markets.

[...]Amid evidence of a slowdown, third-quarter earnings have been a positive for the market. As of today, 167 members of the S&P 500 have reported financial results for the third quarter, with 73 percent topping analysts' estimates. That's more than the 57 percent average since 1992, according to data compiled by Bloomberg.

Only blackeyes on the market data is Ford's $5.8 billion loss and new data suggesting the Fed's not as confortable with rates where they're at...

Still 73% of companies reporting earnings greater than forecast is a great sign for the economy.

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