The Dow industrials and the S&P 500 climbed on Thursday to 2009 closing highs, buoyed by energy stocks as oil prices jumped, but financials retreated as investors panned results from Goldman Sachs and Citigroup.
The Nasdaq eked out a slim gain, but shares of big-cap tech companies, including Apple
Google lost 1 percent to close at $529.91 on Nasdaq in the regular session, but after the bell, the stock jumped 1.5 percent to $538.00 following results that beat Wall Street's expectations.
U.S. crude oil futures hit a one-year high, rising $2.40, or more than 3 percent, to settle at $77.58 a barrel after data showed gasoline and distillate inventories fell sharply in the latest week. Energy shares rose, with Chevron Corp
While Goldman Sachs Group
It appears the market is reacting to the energy inventory data, the strength in crude and the idea that the economic recovery is firming, said Nick Kalivas, vice president of financial research and senior equity index analyst at MF Global in Chicago.
The Dow Jones industrial average <.DJI> gained 47.08 points, or 0.47 percent, to close at 10,062.94, a fresh 52-week high. The Standard & Poor's 500 Index <.SPX> rose 4.54 points, or 0.42 percent, to finish at 1,096.56, its highest close for the year. The Nasdaq Composite Index <.IXIC> added 1.06 points, or 0.05 percent, to end at 2,173.29.
Goldman's earnings nearly quadrupled, largely because of strong trading results. Citigroup's third-quarter loss was narrower than expected, but the company booked $8 billion in credit losses.
Goldman's stock fell 1.9 percent to $188.63 and Citigroup shares shed 5 percent to $4.75, while an S&P financial index <.GSPF> lost 0.7 percent.
There's a lot of profit taking and rethinking of the financial sector, Kalivas said. I think the expectations for Goldman Sachs were extremely high, and basically they couldn't get themselves much over the whisper numbers.
On the economic front, data showed the Consumer Price Index prices edged up in September and the number of workers filing new claims for jobless benefits dropped to a nine-month low last week.
A sharp increase in New York state factory activity was tempered by a report showing factory activity in the Mid-Atlantic region grew less than expected.
Markets will continue to feel the push and pull of earnings season as investors react to individual corporate results.
Most money managers I know, while being respectful of the upward momentum ... recognize there are significant long-term problems and issues that need to be faced, said Jim Awad, managing director at Zephyr Management in New York.
I think they will be quick to pull the trigger -- if and when the momentum dissipates.
(Editing by Jan Paschal)