Thursday, April 24, 2008

Stocks rally on company news

Stocks rallied on better news from companies & earnings reports. Dow was up 86 (after being up 150 earlier), advancers ahead of decliners 3-2 & NAZ was 24. It didn't hurt that commodities pulled back highlighted by oil dropping 2 to 116. Overall a pretty good day but volume continues to drag along at 1.45B. Bloomberg News reported after an interview with the head of troubled AMBAC (ABK) that they were in great shape & expecting to maintain their AAA debt rating. Pretty good trick after losing billions in 6 months, sending the stock down over 90%. Merrill Lynch (MER) said they had ample cash to maintain the div. In addition, the favorable unemployment report this AM helped bring back buyers looking past dreary economic news.

Not all company news has been favorable. The Microsoft (MSFT) - Yahoo (YHOO) dispute drags on. Starbucks (SBUX) is at the lowest level in almost 5 years, maybe that's because I don't drink coffee. Aetna (ET) reported lower Q1 earnings, down 83¢. Sales beat expectations & EPS was up on lower earnings because of fewer shares. They also maintained guidance of $4 for the year. Let's see what tomorrow brings.

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