US midday: Greece bailout hopes lift shares
Feb 09, 2010
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Growing speculation that Greece's European neighbours are about to bailout the beleaguered Mediterranean economy has helped US shares build on their early gains.
The Dow Jones 30-share industrial average raced to post a triple digit rise and is up 209 points at 10,118, while the broader based S&P 500 is 20 points higher at 1,076. The tech-heavy NASDAQ is 35 higher at 2,161.
In earnings news, McDonald's saw same-store sales rise by 2.6% thanks to strong overseas sales. Pundits had been tipping a 1.4% improvement in like for like sales. A 0.7% decline in sales in the US was more than offset by strong performances from Europe and the Asia and Middle East region, both of which saw sales advance 4.3%.
Things are going better for Coca Cola after it revealed fourth quarter earnings per share in line with the market's expectations of 66 cents. Revenue topped expectations at $7.5bn. Only one stock in the Dow Jones 30 is outstripping Coca Cola and that's Caterpillar, which is boosted by Morgan Stanley upgrading the stock to 'overweight' from 'underweight'.
Computer services provider Cognizant is also going well after it said adjusted full year earnings per share (EPS) will be around $2.19, compared to market consensus of $2.08.
Computer games publisher Electronic Arts crashed, however, after issuing profits guidance for fiscal 2011 that disappointed the market.
Virgin Media, long seen as a natural merger partner for UK terrestrial broadcaster ITV, was firmer after pay TV rival BSkyB reduced its stake in ITV to 7.5% from 17.9%.
S&P 500 - Risers
Harman International Inds (HAR) $41.12 +15.83%
Cameron International Corp. (CAM) $39.82 +7.88%
Caterpillar Inc. (CAT) $54.09 +6.52%
S&P 500 - Fallers
Electronic Arts Inc. (ERTS) $15.84 -9.43%
Gamestop Corp. (GME) $18.91 -3.96%
Hartford Fin Svc (HIG) $22.66 -3.41%
Dow Jones I.A - Risers
Caterpillar Inc. (CAT) $54.09 +6.52%
Coca-Cola Co. (KO) $54.94 +4.35%
Boeing Co. (BA) $59.85 +3.39%
Nasdaq 100 - Risers
Cognizant Technology Solutions Corp. (CTSH) $46.33 +5.92%
Nii Holdings Inc. (NIHD) $34.47 +5.12%
Joy Global Inc. (JOYG) $46.74 +5.01%
Nasdaq 100 - Fallers
Electronic Arts Inc. (ERTS) $15.84 -9.43%
Baidu Inc. (BIDU) $441.69 -0.35%
Apollo Group Inc. (APOL) $59.24 -0.07%
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