Nelson Mandela: A life in pictures
Nelson Mandela and his wife Winnie in this undated file picture.
NEW YORK (AP) — Reassuring comments from a Federal Reserve official and better earnings from two big retailers helped push the stock market higher Tuesday.
Stock indexes wobbled between gains and losses in early trading, then took a turn higher just before noon. That’s when news crossed that James Bullard, head of the Fed’s St. Louis branch, told an audience in Germany that the Fed ought to stick with its bond-buying effort to bolster the economic recovery.
“Those words were a salve for investors’ nerves,” said Lawrence Creatura, a fund manager at Federated Investors. Other Fed officials have recently talked about scaling back the program. “There’s a lot of uncertainty surrounding this issue. And uncertainty and investors aren’t always a happy match.”
The Dow Jones industrial average rose 52.30 points to 15,387.58, a gain of 0.3 percent.
The Standard & Poor’s 500 index edged up 2.87 points to 1,669.16, a slight increase of 0.2 percent. Both the Dow and the S&P are at record highs.
J.P. Morgan Chase & Co. gained 1.4 percent. Shareholders of the country’s biggest bank voted to allow Jamie Dimon to keep his two titles, CEO and chairman of the board. Groups had pushed to split the two jobs, a drive that gained momentum from a multi-billion trading loss last year. The bank’s stock rose 73 cents to $53.02.
Many investors were already looking ahead to Wednesday, when the Federal Reserve will release minutes from its most recent policy meeting, and Chairman Ben Bernanke will go before Congress to discuss his outlook for the U.S. economy.
“I think a lot of people are sitting on their hands waiting to see what the Fed says tomorrow,” said Michael Binger, senior portfolio manager at Gradient Investments in Minneapolis, Minn.
Money managers keep close tabs on speeches from Fed officials and minutes from Fed meetings for any sign the Fed is planning to make a move. Binger said their words take on added weight because some investors believe the Fed’s support is a crucial reason the stock market has soared to an all-time high. If the Fed pulls back, they think the market’s epic rally could come to an end.
But Binger doesn’t share that view. He believes a rise in business spending and stronger sales to emerging markets may help drive earnings higher, which would push stocks up, too.
In other trading, the Nasdaq composite rose 5.69 points to 3,502.12, a 0.2 percent gain.
The Dow has gained for 19 straight Tuesdays. The only day with a longer streak of consecutive gains is Wednesday, with 24 back in 1968, according to Schaeffer’s Investment Research.
Home Depot surged 2.5 percent. It reported an 18 percent increase in quarterly income as the housing market continues to recover. Home Depot rose $1.95 to $78.71.
Among other companies posting quarterly results, AutoZone jumped 5 percent. Better sales and shrinking costs helped the auto-parts company beat analysts’ earnings forecasts. AutoZone leapt $18.79 to $427.84.
It has been another solid earnings season for big companies, with corporate profits hitting all-time highs even as revenue barely rises.
Seven of 10 companies in the S&P 500 have trumped Wall Street’s earnings forecasts, according to S&P Capital IQ. First-quarter earnings are on track to rise 5 percent over the same period last year. Revenue is expected to rise just 1 percent.
In the market for U.S. government bonds, the yield on the 10-year Treasury note slipped to 1.93 percent from 1.96 percent late Monday.
In commodities trading, crude oil sank 55 cents to settle at $96.16 a barrel.
The price of gold fell $6.50 to $1,377.60 an ounce, extending a slump that has knocked gold down 18 percent this year. Tame inflation, a stronger dollar and a surging stock market have undermined gold’s appeal.
Among other companies in the news:
— Carnival Corp slumped 4 percent. The cruise-ship operator cut its earnings forecast for the year late Monday as it wrestles with the fallout from high-profile incidents, which left passengers stranded at sea. Carnival’s stock lost $1.51 to $33.81.
— Best Buy dropped 4 percent after reporting a quarterly loss and sales that fell short of the forecasts of financial analysts who follow the company. Its stock lost $1.17 to $25.64.
— TiVo gained 2 percent, or 26 cents, to $12.92. The digital video recording company narrowed its quarterly loss with the help of more subscribers.
Matthew Craft is a freelance writer in New York. More Matthew Craft.
Nelson Mandela and his wife Winnie in this undated file picture.
Mandela is accompanied by his former wife Winnie, moments after his release from prison February 11, 1990 after serving 27 years in jail. (Reuters)
In this February, 1990 photo, shortly after his release from 27 years in prison, Nelson Mandela, gives the black power salute to the 120,000 supporters packing Soccer City stadium in Soweto, near Johannesburg. (AP Photo)
Nelson Mandela showed his passport in February 19, 1990, shortly after his release from prison. The South African government authorized an application for himself and his wife Winnie - (Juda Ngwenya / Reuters)
In this July 27, 1991 photo, Cuban President Fidel Castro, and Nelson Mandela gesture during the celebration of the "Day of the Revolution" in Matanzas, Cuba. (AP Photo)
In this July 4, 1993 photo, President Bill Clinton and Nelson Mandela listen during Fourth of July ceremonies in Philadelphia during which Clinton presented the Philadelphia Liberty Medal to the African National Congress president and South African President F.W. de Klerk. (AP Photo/Greg Gibson)
President of the African National Congress Nelson Mandela acknowledges cheers from the crowd as he prepares to unveil the ANC's official election platform in 1994. (AP Photo/David Brauchli)
African National Congress (ANC) leader Nelson Mandela greeted residents of Mmabatho in March 1994, during a visit after the nominal homeland came under South African control following the ousting of the former President Lucas Mangope. (Reuters/Howard Burditt)
South African President Nelson Mandela smiles with actor Sidney Poitier at a press conference in Cape Town in 1996. Poitier played Mandela in the film "One Man, One Vote" (AP Photo / Sasa Kralj)
South African President Nelson Mandela waves to crowds as he sits next to Queen Elizabeth II in a an open carriage on the way to Buckingham Palace.(AP/Louisa Buller)
Chairman of the Constitutional Assembly Cyril Ramaphosa, left, holds up a copy of the country's constitution which was signed by President Nelson Mandela, in December 1996. (AP Photo / Adil Bradlow / POOL)
Nelson Mandela at a news conference in Johannesburg in February 2000. (AP Photo / Denis Farrell)
South African rugby captain Francois Pienaar, right, received the Rugby World Cup trophy from President Nelson Mandela also wearing a South African rugby shirt, after South Africa defeated New Zealand in the Rugby World Cup , in 1995. (AP Photo / Ross Setford)