Wall Street Addict

Stocks surged in early trading Tuesday, lifting the Dow Jones industrials more than 100 points, as strong earnings from General Motors Corp. and Sun Microsystems Inc. helped Wall Street extend its recovery from last week's plunge.
Investors' inflationary fears were also alleviated after the Commerce Department reported that in June, year-over-year core personal consumption expenditures -- one the Federal Reserve's preferred gauges of inflation -- was up 1.9 percent. That rate is within the Fed's comfort zone.
The tame core PCE appeared to offset some disappointment that June personal spending rose 0.1 percent, weaker than expected and below May's 0.6 percent jump. High gasoline prices and the housing market slump dampened consumer spending to the slowest pace in nine months.
Investors remained optimistic after quarterly results from server and software maker Sun Microsystems and automaker GM, which both posted better-than-expected profits.
Merger and acquisition activity also helped lift the stock market, which rebounded Monday following a sharp plunge last week on worries that a deteriorating lending environment would dampen dealmaking and growth. Billionaire investor Nelson Peltz's Triarc Cos. said he is willing to offer $37 to $41 a share to buy Wendy's International Inc., while the Wall Street Journal reported that its parent company, Dow Jones & Co., and Rupert Murdoch's News Corp. are getting closer to a deal.
In early trading, the Dow Jones industrial average rose 104.53, or 0.78 percent, to 13,462.84, after gaining more than 100 points at the market's open.
Broader stock indicators also rose. The Standard & Poor's 500 index was up 10.23, or 0.69 percent, at 1,484.14, and the Nasdaq composite index was up 16.77, or 0.65 percent, at 2,600.05.
Bonds were little changed, and the 10-year Treasury note's yield was at 4.81 percent, the same as late Monday.
The stock market slipped only slightly after the Chicago purchasing manager's index indicated weaker-than-expected growth in July than in June. The report is considered a precursor to the Institute for Supply Management's national manufacturing index, which will be released Wednesday.
Published by AP

Labels: DJ, GM, NWS, SUNW, WEN