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US markets rally on positive earnings news from Microsoft; Profit estimates from Countrywide

Sunday, October 28, 2007

US stocks rallied after sales from Microsoft topped analyst estimates by 1 billion dollars. Countrywide Financial forecast a profit, easing concerns the economy will slip into a recession.

The report from Countrywide that it expects to return to profitability soon, despite a big third-quarter loss, rekindled investor hope that the problems in the housing market are contained and that US consumers still have spending power. Countrywide surged $ 4.23, or 32%, to $ 17.30. Strong report from Microsoft inspired buying throughout the technology sector. Microsoft rose $ 3.04 to $ 35.03, pushing software companies in the S&P 500 to a 4.1% gain, the steepest advance since April 2003.

The S&P 500 climbed 20.88, or 1.4%, to 1,535.28, its steepest advance this month. The Dow Jones Industrial Average gained 134.78, or 1%, to 13,806.7. The Nasdaq Composite Index jumped 53.33, or 1.9%, to 2,804.19.

For the week, the Dow rose 2.11%, the Nasdaq was up 2.90%, and the S&P 500 jumped 2.31%. The gains were welcome after all three indexes posted losses in the previous week.

After spiking above $ 92 a barrel, December crude futures rose $ 1.40 to settle at $ 91.86 a barrel on the New York Mercantile Exchange. Gold futures rose $ 16.50 to close at $ 787.50 an ounce, the highest price since January 1980. Energy, metals and agriculture futures all moved higher.

Indian ADRs flare; ICICI Bank up 11%, HDFC Bank up 10%

The strength in the US markets and the good performance by the Indian stocks made sure that the ADRs had a good close. All of them mamangaed to end in the green. The gainers were led by the banks-ICICI and HDFC, which were up 11% and 10% respectively. VSNL was other major gainer rising 9%.

In the technology pack, Infosys Technologies was up 1.32% at $ 49.22, Patni Computers was up 4.18% at $ 22.67, Satyam Computers was up 6.65% at $ 29.84, while Wipro ended the day 3.19% higher at $ 15.87.

In the non-technology pack, HDFC Bank was up 10.18% at $ 125.85, VSNL was up 8.7% at .73, ICICI Bank was up 11.01% at $ 64.64, MTNL was up 1.74% at $ 9.36, Tata Motors was up 4.05% at $ 20.29, Dr Reddy's Lab was up 0.89% at $ 15.92 and Sterlite was up 7.44% at $ 23.97.

Posted by FR at 6:07 PM  


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Investment in equity shares has its own risks. Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that we consider reliable. I, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and I am not responsible for any loss incurred based upon it.& take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations given in this blog.