Dow records first back-to-back gain since early February
NEW YORK — Stocks ended with only modest gains Wednesday but the Dow Jones industrial average still recorded its first two-day climb since early February.
The session’s mood was more tentative than on Tuesday when Citigroup Inc.’s upbeat assessment of its business sent investors rushing into the market, but given the market’s dismal performance for much of 2009, just holding on to gains from the rally was a victory. Financial stocks that led the market’s huge rally Tuesday continued to pull ahead Wednesday. Tech stocks also rose after an analyst raised Hewlett-Packard Co.’s rating.
Analysts said much of Tuesday’s buying came from short covering, which takes place when investors need to buy stock to replace shares that were borrowed and then sold on expectations of a market decline.
The Dow rose 3.91, or 0.1 percent, to 6,930.40. The rise gives the blue chips their third advance in four sessions and the first back-to-back wins since Feb. 5-6.
The Standard & Poor’s 500 index rose 1.76, or 0.2 percent, to 721.36, while the Nasdaq composite index, which has a heavy representation of tech stocks, rose 13.36, or 1 percent, to 1,371.64. The Russell 2000 index of smaller companies slipped 1.45, or 0.4 percent, to 366.30.
Citigroup rose 9 cents, or 6.2 percent, to $1.54. JPMorgan Chase & Co. rose 90 cents, or 4.6 percent, to $20.40. Bank of America Corp. rose 14 cents, or 2.9 percent, to $4.93.
Hewlett-Packard jumped $1.57, or 5.8 percent, to $28.61. A UBS analyst upgraded the printer and computer maker, saying investors have been overly cautious about the stock guaranteed online payday loans.
Other stocks that moved substantially or traded heavily Wednesday included:
•Ford Motor Co., up 11 cents at $1.96: The automaker said changes to its union contract would help it achieve parity with wages paid by overseas-based competitors.
•Staples Inc., down 27 cents at $15.47: Customers shied away from buying expensive office furniture, leading to a 14 percent drop in fourth-quarter profit.
•Big Lots Inc., up $1.23 at $19.81: A JPMorgan analyst upgraded the stock to "Overweight" from "Neutral," saying shares are inexpensive and sales at the discount retailer are recovering.
•ConocoPhillips, down 2 cents at $37.98: The oil company said it expects oil and gas production to be flat this year as it reduces spending and cuts costs.
•Vail Resorts Inc., up $2.05 at $18.56: The ski resort operator reported a better-than-expected quarterly profit and announced companywide wage cuts.
•Apple Inc., up $4.05 at $92.68: The company unveiled a newer and smaller version of its miniscule iPod Shuffle, reducing the size to just 2 inches long.
•Take-Two Interactive Software, down 44 cents at $6.41: Shares took a hit after the video game publisher issued a second-quarter outlook below Wall Street’s expectations.
Filed under: business by Specialist