Earnings reports extend market’s big July rally

Earnings reports extend market’s big July rally
AP
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First Published: Fri, Jul 31 2009. 10 47 AM IST
Updated: Fri, Jul 31 2009. 10 47 AM IST
New York: Stocks added to an already impressive run as another round of earnings reports gave investors new reasons to be optimistic about the economy.
The Dow Jones industrial average rose 84 points on Thursday and the Nasdaq composite index traded above 2,000 for the first time since October.
According to preliminary calculations, the Dow rose 83.74, or 0.9%, to 9,154.46 after being up as much as 176 points. The Standard & Poor’s 500 index rose 11.60, or 1.2%, to 986.75.
It rose to nearly 997 during the day. It hasn’t traded above 1,000 since November.
The Nasdaq advanced 16.54, or 0.9%, to 1,984.30. It rose to nearly 2,010 in morning trading, its first move above 2,000 since 3 October. The index is up 56% from its low of 1,269 in March.
The latest reports struck on a theme that has played out for weeks: Times are tough but companies aren’t doing as badly as had been feared. Many have chopped costs to produce profits well beyond the market’s modest expectations.
With one day to go, the Dow is up 8.4% this month, its strongest July since 1989, when it gained 9%. A much-anticipated report on the overall output of the economy is sure to drive the market’s direction on Friday.
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First Published: Fri, Jul 31 2009. 10 47 AM IST
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