3SOF

Thursday, March 10, 2011...

Overnight U.S. Stock News

•   March S&Ps this morning are trading down -5.80 points. The US stock market yesterday fluctuated on both sides of unchanged and turned lower late as weakness in technology stocks offset a decline in oil prices: Dow Jones -0.01%, S&P 500 -0.14%, Nasdaq Composite -0.51%.

                Bearish factors for stocks included (1) concern the violent unrest in Libya will spread throughout the oil-producing regions of North Africa and the Middle East as protestors are expected to stage a "Day of Rage" protest in Saudi Arabia on Friday, (2) concern the European sovereign-debt crisis may worsen after the managing director of European sovereign ratings at Standard & Poor's warned some countries in the Euro-Zone might have their credit ratings cut further while a Greek debt default is a "possibility," and (2) weakness in technology stocks led by declines in makers of networking equipment after Finisar warned of weaker than expected earnings.

   Bullish factors included (1) the decline in oil prices for a second day, which eases concern that rising energy costs will derail the global economy, (2) the larger-than-expected increase in Jan wholesale inventories along with the upward revision to Dec (Jan +1.1% versus expectations of +0.9% and Dec revised up to +1.3% from +1.0%), which cut the Jan wholesale inventory-to-sales ratio to 1.13 months, matching the Apr 2010 record low, and signals further increases in production as businesses try to keep up with demand, (3) strength in retailers after American Eagle Outfitters reported better-than-expected Q4 profits, and (4) the +15.5% increase in MBA mortgage applications last week, the biggest gain since June and a sign the housing market may be stabilizing.



•   Hewlett-Packard (HPQ) slipped 1% after a shareholder-advisory group accused HP's directors of going against rules in their appointment of new board members.

Friday, March 11, 2011...

Overnight U.S. Stock News

•   June S&Ps this morning are trading down -5.50 points. The US stock market yesterday tumbled after China's export growth slowed, Spain's credit ratings were cut and weekly US jobless claims rose more than expected: Dow Jones -1.87%, S&P 500 -1.89%, Nasdaq Composite -1.84%. The Dow, S&P 500 and the Nasdaq all posted 1-1/4 month lows.

                Bearish factors for stocks included (1) carry-over weakness from a plunge in European stocks on concern the European sovereign-debt crisis may worsen after Moody's Investors Service cut Spain's credit rating by one level to Aa2, saying the government has underestimated the cost of shoring up the banking industry, (2) the slowest pace of growth in Feb China exports in 15 months along with the unexpected decline in Jan German exports, which bolsters concern that the global economic recovery may be faltering, (3) the larger-than-expected increase in weekly initial US unemployment claims (+26,000 to 397,000 versus expectations o f +8,000 to 376,000, (4) the larger-than-expected Jan US trade balance which widened by the most in 7 months (-$46.3 billion versus expectations of -$41.5 billion), and is negative for US Q1 GDP growth, and (5) AP reports that Saudi police opened fire on protestors, which fuels concern the civil unrest that has plagued North Africa and the Middle East has spread to Saudi Arabia.

   Bullish factors included (1) the decline in oil prices for a third day, which eases concern that rising energy costs will derail the global economy, (2) Fed data that showed Q4 US household wealth climbed +3.9% q/q and +16.6% y/y to $56.8 trillion, which may boost US consumer confidence and spending, and (3) the tumble in the 10-year T-note yield to a 1-1/4 month low of 3.36%.


•   Alcoa (AA) fell 1.9% in pre-market trading after the prices of most metals plunged following the Japanese earthquake.


•   Berkshire Hathaway (BRK), which owns reinsurer General Re, slid 1.2% in pre-market trading as it follows European insurers lower.

Monday, March 14, 2011...

Overnight U.S. Stock News •June S&Ps this morning are trading down -6.90 points . The US stock market last Friday opened lower on carry-over weakness from a slump in Asian markets after Japan's worst earthquake on record but recovered their losses and moved higher on strong Feb US retail sales and as crude oil prices slumped for a third day: Dow Jones +0.50%, S&P 500 +0.71%, Nasdaq Composite +0.54%. The Dow, S&P 500 and the Nasdaq all posted 1-1/4 month lows but erased their losses and closed higher.

                Bullish factors for stocks included (1) strong Feb US retail sales which posted their biggest increase in 4 months (Feb +1.0% and +0.7% less autos) along with the upward revision to Jan retail sales (+0.7% and +0.6% less autos, stronger than the previously reported +0.3% and +0.3% less autos), (2) the larger-than-expected increase in Jan business inventories (+0.9% versus expectations of +0.8%) along with the upward revision to Dec (+1.1% versus the previously reported +0.8%), as companies increased production to keep up with demand, and (3) the slump in crude oil prices for a third day, which eases concern that rising energy prices will derail the economy.


                Bearish factors included (1) the early decline in stock prices on carry-over weakness from a plunge in global stock markets on concern that Japan's worst earthquake on record may derail its economy, the world's third largest, (2) a slump in insurance companies on concern the Japanese quake will undercut their earnings as they pay out damage claims, and (3) the larger-than-expected decline in Mar US University of Michigan consumer confidence which fell to a 5-month low (-9.3 to 68.2 versus expectations of -1.0 to 76.5).


•General Electric (GE) fell 2.3% in pre-market trading after failues at Japanese nuclear plants prompted US lawmakers to review atomic energy plans.


•Exxon Mobil (XOM) slid 1.4% in pre-market trading as the price of crude oil tumbled to a 1-1/2 week low in overnight trade.

Tuesday, March 15, 2011...

Overnight U.S. Stock News

•June S&Ps this morning are trading sharply lower by -28.80 points as the risk of radiation leaks in Japan increases. The US stock market yesterday tumbled on uncertainty over how much damage Japan's worst earthquake on record will do to the global economy: Dow Jones -0.43%, S&P 500 -0.60%, Nasdaq Composite -0.54%. The Dow, S&P 500 and the Nasdaq all posted 1-1/2 month lows.

                Bearish factors for stocks included (1) concern that earthquake damage to Japan, the world's third-largest economy, will hurt global economic growth, (2) a slump on commodity and energy producers as commodity prices moved lower on demand concerns, (3) weakness in communications stocks after Oppenheimner & Co predicted that the communications-equipment industry may be hurt by the Japanese earthquake as supplies from Japanese component makers are cut and network spending drops in the near term, and (4) a decline in insurance stocks after AIR Worldwide said the insurance industry may face claims of as much as 2.8 trillion yen ($34 billion) from the Japanese earthquake, although estimates don't include damage caused by the tsunami that followed the quake, which could make claims costs much higher.

                Bullish factors included (1) the fall in crude oil prices to a 2-week low, which eases concern that rising energy prices will derail the economy, (2) reduced concerns over the European sovereign-debt crisis after credit default swaps on European sovereign debt declined when European leaders over the weekend agreed on a retooled bailout plan for Europe's most indebted nations, which prompted a rally in European bank stocks after JPMorgan Chase raised its recommendation for European banks to "overweight" from "neutral," and (3) strength in solar stocks on speculation that renewable energy plants will win favor from global governments after explosions at 2 Japanese nuclear plants undercut confidence in nuclear power.


•General Electric (GE), which is in talks to sell nuclear reactors to India, lost 7.9% in pre-market trading on top of the 2.2% the stock lost yesterday.


•Exelon (EXC), owner of the largest group of US nuclear power plants, tumbled 2.8% in pre-market trading as nuclear power stocks globally come under pressure due to nuclear concerns in Japan.

Stocks plunge as Japan nuclear crisis worsens
AP - 25 mins ago Tuesday, March 15, 2011...


NEW YORK (AP) — Stocks plunged Tuesday, sending the Dow Jones industrial average down almost 300 points at the opening, as the nuclear crisis in Japan intensified following a deadly earthquake and tsunami.

Dangerous levels of radiation began leaking from a crippled nuclear plant Tuesday, forcing Japan to order 140,000 people to stay indoors. Japan's prime minister also warned that more leaks could occur.

Peter Cardillo, chief market economist at New York-based brokerage house Avalon Partners, said fear had taken hold in the market as traders worried about the nuclear crisis and a possible slowdown in Japan's economy, the world's third-largest.

"It's a situation where you sell, and you ask questions later," he said.

The New York Stock Exchange enacted a process at the start of trading to help smooth out volatility. The so-called Rule 48 was aimed at responding to the "volatility in the pre-market," said Rich Adamonis, a spokesman for the exchange.

After initially falling as much as 297 points, the Dow backtracked a bit and was down 239 points, or 2 percent, to 11,758 in early trading.

The Standard & Poor's 500 index fell 30 points, or 2.4 percent, at 1,265. The Nasdaq composite index fell 77, or 2.8 percent, at 2,623.

All 10 company groups in the S&P fell. Energy stocks fared the worst, falling 2.6 percent.

Investors flocked to the relative safety of U.S. Treasurys, sending prices higher and yields lower. The yield on the 10-year Treasury note dropped to 3.23 percent from 3.36 percent late Monday.

Oil prices fell $3.95 to $97.22 as analysts anticipated lower demand in the aftermath of the earthquake.

Other commodities, including gold, silver and copper, also fell.

In corporate news, Impax Laboratories Inc. rose 6.9 percent in morning trading after a Collins Stewart analyst said a potential Parkinson's disease treatment could generate as much as $400 million in annual U.S. sales.

Wednesday, March 16, 2011...

Overnight U.S. Stock News

•June S&Ps this morning are trading down -4.90 points. The US stock market yesterday slumped on concern a nuclear crisis in Japan might cripple the global economy but recovered some of its losses when the Fed said the economy was on a "firmer footing": Dow Jones -1.15%, S&P 500 -1.12%, Nasdaq Composite -1.25%. The Dow, S&P 500 and the Nasdaq all fell to 2-month lows.

                Bearish factors for stocks included (1) carry-over weakness from the plunge in Japan's stock market to a 1-3/4 year low after Japan's Prime Minister Kan warned of further radiation leaks at the Fukushima Dai-Ichi nuclear power plant, which if not contained, could turn into the world's largest nuclear disaster and derail the global economy, (2) the larger-than-expected increase in Feb import prices (+1.4% m/m and +6.9% y/y versus expectations of +0.9% m/m and +6.3% y/y, (3) the plunge in energy and commodity producers after commodities sank on demand concerns, and (4) the escalation of civil unrest in the Middle East after Bahrain declared a 3-month state of emergency and allowed a second contingent of troops from the Gulf Cooperation Council into its country to support the government as anti-government protests intensified.


                Bullish factors included (1) the larger-than-expected increase in the Mar Empire manufacturing index which expanded at its fastest pace in 9 months (+2.1 to 17.5 versus expectations of +1.0 to 16.4), (2) the as-expected +1 point increase in the Mar NAHB housing market index to a 10-month high of 17, which suggests a slight improvement in the US housing market, (3) the fall in crude oil prices to a 2-week low, which eases concern that rising energy prices will derail the economy, and (4) the post-FOMC meeting statement that said "The economic recovery is on a firmer footing and overall conditions in the labor market appear to be improving gradually."


•Apple (AAPL) declined 1% in pre-market trading after JMP Securities cut its rating on the company to "market perform" from "market outperform."

Thursday, March 17, 2011...

Overnight U.S. Stock News

•   June S&Ps this morning are trading up +9.30 points. The US stock market yesterday finished sharply lower on concern Japan's nuclear crisis will worsen and after US housing starts and building permits plunged in Feb: Dow Jones -2.04%, S&P 500 -1.95%, Nasdaq Composite -1.89%. The Dow fell to a 2-1/4 month low, the S&P 500 posted a 2-1/2 month low and the Nasdaq slumped to a 3-1/4 month low.

                Bearish factors for stocks included (1) concern the condition of Japan's crippled nuclear reactor is worsening after the International Atomic Energy Agency said four nuclear units in Japan have core damage and as the EU Energy Commissioner warned of a "major disaster," (2) a sell-off in homebuilders after the weaker-than-expected Feb US housing starts which fell to their lowest level in 1-3/4 years (-22.5% to 479,000 versus expectations of -4.9% to 567,000), (3) the unexpected plunge in Feb US building permits which fell to their lowest level since records b egan in 1960 (-8.2% to 517,000 versus expectations of +1.2% to 570,000), (4) the larger-than-expected increase in Feb PPI (+1.6% m/m and +5.6% y/y versus expectations of +0.7% m/m and +4.7% y/y), and (5) concern the escalation of violence in Bahrain will spread to Saudi Arabia, the world's biggest crude-exporting country, after Bahrain declared a 3-month state of emergency as anti-government protests intensified.


   Bullish factors included (1) early carry-over strength from a rally in Japanese stocks which recovered from a 2-day plunge, and (2) the decline ion the 10-year T-note yield to a 3-1/4 month low of 3.145%.



•   Lockheed Martin (LMT) may be active to the upside today after BofA Merril Lynch raised its rating on the company to "neutral" from "underperform."



•   Guess? (GES) slid 5.5% in pre-market trading after the compnay late yesterday forecast Q1 earnings of no more than 44 cents a share, well below analysts' estimates of 62 cents.

Friday, March 18, 2011...

Overnight U.S. Stock News

•               June S&Ps this morning are trading up +9.60 points . The US stock market yesterday rallied right from the start and closed higher on strong economic data along with speculation that Japan will contain its nuclear crisis: Dow Jones +1.39%, S&P 500 +1.34%, Nasdaq Composite +0.73%.

                Bullish factors for stocks included (1) the larger-than-expected decline in weekly initial US unemployment claims (-16,000 to 385,000 versus expectations of -10,000 to 387,000), (2) the unexpected increase in the Mar Philadelphia Fed manufacturing index which expanded at its fastest pace in 27 years (+7.5 to 43.4 versus expectations of -5.9 to 30.0), (3) the action by Tokyo Electric Power to fix power cables on its crippled power plant to supply power to the reactor coolant system, which reduced market concerns that the Japanese nuclear crisis will worsen, and (4) the slump in the dollar that led to a broad-based rally in commodities which boosted energy and commodity producers.


                Bearish factors included (1) the larger-than-expected increase in Feb CPI (+0.5% m/m and +2.1% y/y versus expectations of +0.4% m/m and +2.0% y/y, (2) the unexpected decline in Feb industrial production (-0.1 versus expectations of +0.6%), and (3) the unexpected drop in Feb capacity utilization (-0.1 to 76.3% versus expectations of +0.4 to 76.5%).



•General Electric (GE), which has lost more than 4% since Japan's earthquake struck on Mar 11, climbed 1.4% in pre-market trading as it is in talks to sell nuclear reactors to India.



•Nike (NKE) slumped 4.8% in European trading reported Q3 profit of $1.08 a share, below analysts' estimates of $1.12 a share and the company's first miss in 19 straight quarters.

Monday, March 21, 2011...

Overnight U.S. Stock News

•               June S&Ps this morning are trading up +14.50 points. The US stock market last Friday rallied after G-7 nations agreed to help weaken the yen, which may support Japan's economy and after Libya announced a cease fire: Dow Jones +0.71%, S&P 500 +0.43%, Nasdaq Composite +0.29%.

                Bullish factors for stocks included (1) carry-over strength from a rally in Asian stock markets after G-7 nations agreed to coordinated intervention to weaken the yen, which may help keep Japan from falling into recession, (2) the action by Libya to announce a halt to all of its military action against rebel forces and that it will start talks with the opposition, which bolsters the chances of a resolution to the conflict, and (3) a rally in bank stocks after the Fed said 19 of the largest US banks will be able to restart dividend payments or buy back shares after "significant improvement" in their capital positions and the economy.


                Bearish factors included (1) comments from Japanese Prime Minister Kan who said Japan's nuclear crisis remains "very grave"' as workers there attempt to restore power to the crippled Fukushima Dai-Ichi power plant's cooling systems, and (2) the action by China to raise banks reserve requirements for the third time this year by 50 bp to 20%, which may slow China's economic growth and the global economy as well.


•AT&T (T) rose 1.9% in European trading after it agreed to buy T-Mobile USA from Deutsche Telekom AG for about $39 billion in cash and stock to create America's largest mobile-phone company.

Tuesday, March 22, 2011...

Overnight U.S. Stock News

•               June S&Ps this morning are trading down -0.10 of a point. The US stock market yesterday opened sharply higher and maintained most of its gains as Japan's nuclear crisis eased along with an increase in M&A activity: Dow Jones +1.50%, S&P 500 +1.50%, Nasdaq Composite +1.83%. The Dow posted a 1-week high.

                Bullish factors for stocks included (1) reduced concern over Japan's nuclear crisis after the US Nuclear Regulatory Commission said the situation at Japan's Fukushima Dai-Ichi plant "is on the verge of stabilizing," (2) increased M&A activity after AT&T agreed to buy T-Mobile USA from Deutsche Telekom AG for about $39 billion to create America's largest mobile-phone company and Charles Schwab agreed to buy OptionsXpress Holdings for $1 billion, and (3) strength in energy producers as allied air strikes in Libya boosted crude oil prices and threatens to prolong a supply outage in Africa's third biggest oil producer.


                Bearish factors included (1) the weaker-than-expected Feb existing home sales (-9.6% to 4.88 million versus expectations of -4.5% to 5.12 million, (2) the estimate from the nonpartisan CBO that said President Obama's budget would produce $2.3 trillion more in deficits over the next decade than the administration projects, and (3) the prediction from market researcher IHS iSuppli that production halts at Shin-Etsu Chemical and MEMC Electronic Materials because of Japan's earthquake have idled 25% of the global production of silicon wafers used to make microchips, which may cut production and profits for many technology companies that use chips in their products.


•Chipmakers may move to the upside today after Citigroup said the semiconductor industry will probably avoid the worst supply constraints and recommended that investors should buy chip stocks after their recent declines.

Stocks edge lower after a three-day rally
Stocks dip, ending a 3-day rally on easing concerns about Japan; Dow clings to 12,000

NEW YORK (AP) -- Stocks edged lower Tuesday, ending a three-day rally that had lifted the Dow Jones industrial average above 12,000 for the first time since an earthquake hit Japan more than a week ago.

The Dow dipped 17.90 points to close at 12,018.63. The broader Standard & Poor's 500 index fell 4.61, or 0.4 percent, to 1,293.77. The Nasdaq composite index fell 8.22, or 0.3 percent, to 2,683.87.

A day with such little change for stocks has been rare so far in March. The Dow has moved up or down by at least 100 points in four of the five previous trading days. Developments in Japan's nuclear crisis and the violence in Libya have been driving the volatility.

The Dow jumped 3.6 percent over the previous three days, its biggest gain since September. That has nearly brought the Dow back to its close of 12,044 on March 11, the day the earthquake struck Japan.

"We've had a really nice rally off the lows, but I think there are too many uncertainties still revolving around Libya and the recovery in Japan to give people the confidence to break the market through 1,300 on the S&P," said Carlton Neel, senior portfolio partner at Virtus Investment Partners.

Crude oil prices, a major source of concern since mid-February, rose $1.88 to settle at $104.97 per barrel. Oil briefly topped $105 on concerns that conflicts in the Middle East could pinch oil supplies as demand begins to rise.

Among the most active stocks, online video and DVD provider Netflix Inc. climbed 4 percent to $221.39. Credit Suisse upgraded the company on expectations it will expand its services overseas.

Bristol-Myers Squibb Co. rose 1 percent to $26.29. The company said late Monday that a new study of its melanoma drug helped patients with advanced skin cancer.

Walgreen Co. fell 6.6 percent to $39.21. The drugstore chain's bottom-line results were in line with expectations but the company's profit margin wasn't as strong as investors hoped.

Carnival Corp. fell 4.5 percent to $39.16 after its forecast for earnings this quarter fell short of expectations. Higher fuel prices are hindering its profits.

Stocks climbed consistently between Sept. 1 and Feb. 18, when the Dow closed at 12,391. That was the highest close since June 5, 2008. Stocks have dropped since then on worries that uprisings in Libya and across the Middle East could disrupt oil supplies.

The earthquake-tsunami disaster in Japan and the crisis at the country's nuclear plants that followed also sent stocks lower, though stocks in Japan and the U.S. have recovered in recent days on signs that the situation at the plants is stabilizing.

Falling shares outnumbered rising ones by a four-to-three margin on the New York Stock Exchange. Consolidated trading volume was 3.7 billion shares.

Wednesday, March 23, 2011...

Overnight U.S. Stock News

•               June S&Ps this morning are trading up +2.50 points. The US stock market yesterday settled lower as US home prices fell more than expected along with concern European leaders won't find a solution to their debt crisis: Dow Jones -0.15%, S&P 500 -0.36%, Nasdaq Composite -0.31%.

                Bearish factors for stocks included (1) carry-over weakness from a decline in European stocks on heightened sovereign-debt concerns after the yield on Irish 2-year notes surged to 10.18%, the highest since Bloomberg began collecting the data, as Germany and France demand that Ireland raise its corporation tax rate in return for better terms on loans from the European Financial Stability Facility bailout fund, along with the warning from JPMorgan that Portugal's government may collapse on Wednesday as the country's parliament may not pass a plan for fiscal austerity measures, (2) the larger-than-expected decline in the Jan FHFA US house price index along with the downward revision to Dec (Jan -0.3% m/m versus expectations of -0.2% m/m and Dec revised lower to -1.0% m/m from the originally reported -0.3% m/m), and (3) the larger-than-expected fall in the Mar Richmond Fed manufacturing index (-5 to 20 versus expectations of -1 to 24).
               
                Bullish factors included (1) optimism that Japan's nuclear crisis is nearer to containment, (2) early strength in technology stocks after Citigroup said the semiconductor industry will probably avoid the worst supply constraints and recommended that investors should buy chip stocks after their recent declines.



•Jabil Circuit (JBL) soared 10% in pre-market trading after the company late yesterday forecast Q3 earnings of as much as 59 cent a share, better than analysts' estimates of 53 cents, and predicts Q3 revenue of at least $4.1 billion, stronger than analysts' estimates of $4.03 billion.

Thursday, March 24, 2011...

Overnight U.S. Stock News

•               June S&Ps this morning are trading up +6.30 points. The US stock market yesterday fluctuated on either side of unchanged until early afternoon when they moved higher after a rally in commodity producers offset weakness in US new homes sales: Dow Jones +0.56%, S&P 500 +0.29%, Nasdaq Composite +0.54%.

                Bullish factors for stocks included (1) a rally in commodity producers after copper rose to a 2-week high and silver surged to a 31-year high, (2) gains in energy producers after crude oil rose to a 1-1/2 week high, and (3) the prediction from Wells Fargo that government data showing a record low pace in Feb new-home sales will likely be revised higher as they don't reflect market "reality."

                Bearish factors included (1) carry-over weakness from a slump in Japanese stocks after Japan's government estimated the damage from this month's earthquake and tsunami to be as much as 25 trillion yen ($309 billion), (2) concern that he European debt crisis may worsen after the yield on the 10-year Irish note exceeded 10% for the first time since the euro was introduced in 1999 and the yield on Portugal's 5-year bond rose to a record 8.14%, and (3) the unexpected decline in Feb new home sales which fell to their lowest level since records began in 1963 (-16.9% to 250,000 versus expectations of +2.1% to 290,000).


•Micron Technology (MU) climbed 3.7% in pre-market trading after the company reported fiscal Q2 sales of $2.26 billion, stronger than analysts' estimates of $2.06 billion.


•Red Hat (RHT) surged 9.6% in European trading after the company late yesterday reported fiscal Q4 earnings of 26 cents a share, beating analysts' estimates of 22 cents.

Friday, March 25, 2011...

Overnight U.S. Stock News

•               June S&Ps this morning are trading up +5.40 points. The US stock market yesterday moved steadily higher the entire day after weekly jobless claims fell along with optimism that European leaders will seek a solution to their debt crisis: Dow Jones +0.70%, S&P 500 +0.93%, Nasdaq Composite +1.41%. The Dow, S&P 500 and the Nasdaq all posted 2-week highs.

                Bullish factors for stocks included (1) carry-over support from a rally in European stocks on optimism that European leaders in the midst of a 2-day summit in Brussels will come up with a solution to the region's debt crisis, (2) the larger-than-expected decline in weekly initial unemployment claims (-5,000 to 382,000 versus expectations of -2,000 to 383,000), (3) strength in technology stocks after Red Hat and Micron Technology, the largest US maker of computer-memory chips, reported better-than-expected earnings.

                Bearish factors included (1) the unexpected decline in Fed durable goods orders (-0.9% and -0.6% ex transportation versus expectations of +1.2% and +2.0% ex transportation), (2) concern that the European debt crisis may worsen after Moody's Investors Service cut the ratings on 30 Spanish banks and European official said a bailout of Portugal may total as much as 70 billion euros ($99 billion), and (3) concerns over a setback in the automotive industry after the report from IHS Automotive that predicts parts shortages caused by the Japanese quake crisis may reduce global automobile production by about 30%.



•Oracle (ORCL) jumped 4% in pre-market trading after the company late yesterday forecast profit this quarter, excluding acquisition costs and other expenses, of 69 cents to 73 cents, better than analysts' estimates of 66 cents.


•Accenture (ACN) rose 5% in European trading after the company forecast Q3 revenue would grow to a range of $6.3 billion to $6.5 billion, higher than analysts' estimates of $6.08 billion.

Stocks rise on Oracle earnings, higher GDP
Stocks rise after fourth quarter US economic growth revised higher, cap best week since July

Matthew Craft and Stan Choe, AP Business Writers, On Friday March 25, 2011, 4:48 pm EDT
NEW YORK (AP) -- Stocks rose for the third straight day Friday, capping the best week for the Dow Jones industrial average since July.

The government said the economy grew at a 3.1 percent annual rate in the fourth quarter of 2010. That's slightly better than economists expected and higher than the estimate made last month.

Technology shares rose after business software giant Oracle Corp. reported a 78 percent jump in income late Thursday. The database software maker credited new software license sales and the benefit of three full months of revenue from Sun Microsystems, a company it acquired last year.

The Dow rose 50.03 points, or 0.4 percent, to close at 12,220.59. It gained 362 points for the week, the most since a 512-point jump during the week ending July 9.

The S&P 500 rose 4.14, or 0.3 percent, to 1,313.80. The Nasdaq rose 6.64 points, or 0.2 percent, to 2,743.06.

All three stock indexes gained more than 2 percent for the week, helping them erase losses following the March 11 earthquake that hit Japan. The week started with a 178.01 point jump for the Dow after AT&T Inc. agreed to buy T-Mobile USA for $39 billion. That raised hopes for more buyouts. Better economic reports and stronger earnings followed, driving more gains.

Investors were able to set aside a long list of worries including high oil prices, problems with Japan's nuclear reactors and fresh developments in Europe's debt crisis. Portugal looked likely to need bailout funds from the European Union after lawmakers rejected a plan to cut the country's debts and the government fell. Standard & Poor's lowered its credit rating on Portugal late Thursday.

Portugal's debt troubles aren't rattling U.S. stock investors because there's an assumption that the European Union will come to the country's aid, said Jack Ablin, chief investment officer of Harris Private Bank in Chicago. "There's really this notion that governments stand ready in Europe or elsewhere to come to the rescue," he said.

There's also little incentive to shift money into the safest of investments, like bonds, Ablin said. The benchmark 10-year Treasury currently pays 3.4 percent a year. Even with a recent bout of turbulence, the Dow has gained 5.6 percent this year. "In the short-term, taking risk pays."

The VIX, a measure of volatility for U.S. stocks, fell 27 percent over the week. That's the biggest one-week drop since August 2007.

Accenture Plc rose 4.5 percent to $54.29. The consulting firm's quarterly earnings jumped 22 percent on stronger revenue. Both its income and revenue beat analysts' expectations.

The dollar rose and Treasury prices fell after Charles Plosser, president of the Federal Reserve's Philadelphia branch, said the stronger U.S. economy requires the central bank to begin planning ways to sell Treasury bonds and raise short-term interest rates in the "not-too-distant future."

Research in Motion Ltd., the maker of the BlackBerry mobile device, fell 11 percent. Its profit jumped, but the company forecast earnings in the current quarter that were well below what analysts expected.

Two stocks rose for every one that fell on the New York Stock Exchange. Consolidated volume was 3.5 billion shares.