The world is crazy... have a Read.....For us is good though !! NEW YORK (Dow Jones)--Stocks staged a broad rally as Bed Bath & Beyond rallied on a profit report, Sallie Mae spiked on an analyst upgrade and shares of shoe maker Nike were beaten down.
The Dow Jones Industrial Average gained 172.54 points, or 2.08%, to 8472.40, snapping a four-day losing streak. The Standard & Poor's 500 index added 19.32, or 2.14%, to 920.26. The Nasdaq Composite Index added 37.20, or 2.08%, to 1829.54.
Stocks climbed even though data showed that the number of U.S. workers filing new claims for jobless benefits jumped last week. Thursday's gains came after a big drop for stocks early in the week.
The stock market seems to be changing its mind every couple days about when it thinks the economy is going to bottom, said Uri Landesman, head of global growth strategies at ING Investment Management. "Investors wanted to see the glass as half full [Thursday]. They were taking pieces of news and interpreting it positively," he said. "It's a schizophrenic market. I'm not sure we can say: Happy days are here again."
Positive earnings from a retailer helped consumer discretionary stocks do well. Bed Bath & Beyond (Nasdaq) gained 2.69, or 9.5%, to 31.08. The retailer's fiscal first-quarter profit jumped 14% on higher sales in the first full quarter since rival Linens 'n Things closed the last of its stores. The housewares retailer's earnings topped Wall Street's expectations.
SLM Corp., commonly known as Sallie Mae, added 87 cents, or 10%, to 9.20. JPMorgan upgraded the stock to overweight from neutral, saying that the company's transition to primarily a loan servicer, as opposed to a lender, will lower interest rate and funding risks, thus improving earnings visibility.
Nike fell 1.74, or 3.3%, to 51.28. The shoe maker fiscal fourth-quarter profit dropped 30% on $195 million in restructuring charges, as revenue and margins slid and future orders dropped in all regions.
Hertz Global Holdings gained 1.12, or 16%, to 8.13. The car rental company projected second-quarter earnings above analysts' estimates on increased cost savings. The company said U.S. and European demand is stabilizing and the outlook for summer reservations improved.
J.C. Penney rose 1.60, or 6%, to 28.20. JPMorgan upgraded the retailer's stock to overweight from neutral and lifted its price target on the shares to $33 from $28, partly because the retailer could benefit from lower apparel input costs.
Jefferies Group added 1.35, or 6.6%, to 21.80. The investment bank said its second-quarter results should come in well above expectations after posting record revenue for the period.
Paychex (Nasdaq) fell 1.65, or 6.2%, to 25.06. The payroll processing company's fiscal fourth-quarter profit dropped 16% on lower sales and interest rates. Results fell short of Wall Street's expectations, and it forecast fiscal-year results below analysts' estimates.
Red Hat fell 84 cents, or 4.2%, to 19.29. The open-source software maker's shares slid after its fiscal first-quarter report showed shorter contract durations and a slowdown in billings growth.
Supervalu fell 52 cents, or 3.8%, to 13.29. Northcoast Research cut the grocery chain's stock to sell from hold following the company's announcement it likely will miss first-quarter earnings estimates.
Boston Scientific gained 49 cents, or 5.2%, to 10. The medical-devices maker announced that longtime Chief Executive Jim Tobin plans to retire next month, and that Ray Elliott, the former chief at Zimmer Holdings, will take the helm. As a well-known personality in the medical-devices field, Elliott's arrival at Boston Scientific has been welcomed.
ConAgra Foods fell 85 cents, or 4.2%, to 19.18. The packaged food company's fourth-quarter profit was in line with Wall Street's expectations. ConAgra shares had a run-up early this week ahead of the company's profit report, and some investors may have expected an earnings beat for the quarter or possibly even higher guidance.
Deere gained 2.12, or 5.3%, to 42.11. Goldman Sachs moved the stock's rating to neutral from sell. Goldman said a recent drop makes shares more attractive and the balance sheet is conservative.
American International Group added 4 cents, or 2.8%, to 1.46 after finalizing an agreement giving the Federal Reserve Bank of New York an interest in its foreign life insurance businesses in return for reducing the debt AIG owes by $25 billion.
First Solar (Nasdaq) fell 11.71, or 6.8%, to 159.48. Canaccord Adams cut its rating on the stock to hold from buy, pointing to near-term risks and lack of catalysts for the solar power modules company.
-By Anjali Cordeiro, Dow Jones Newswires; 212-416-2200; [email protected]
(Jon Kamp contributed to this article.)
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=xaWSLnwIyLSCoci0MepO5A%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
NXS Price at posting:
34.7¢ Sentiment: Buy Disclosure: Held
(20min delay)