Stocks ended higher on Thursday as a strong government oil inventory report helped investors look past oil prices at four-month highs and unimpressive economic data.
The Dow Jones Industrial Average rose 75 points, or 0.7 percent, to 10,748.79. The Standard & Poor’s 500 Index rose 9.40 points, or 0.8 percent, to 1,200.20. The Nasdaq Composite Index rose 20.45 points, or 1 percent, to 2,051.70.
The Energy Department’s weekly inventory report showed strong reserves in gasoline, heating oil and other distillates. The report helped to slow the surge in oil prices seen this week. A barrel of light crude closed at $51.39, up 22 cents, on the New York Mercantile Exchange.
Combined with run-of-the-mill economic data showing a slight rise in unemployment and a drop-off in orders for durable goods, the fact that the markets did not slide further earlier in the session boosted investors’ confidence.
Among local companies, shares of Fremont General Corp. jumped 10.8 percent to close at $25.49 after the Santa Monica-based bank holding company announced quarterly earnings. Fremont General Corp. reported fourth-quarter net income of $90.6 million ($1.22 per diluted share), compared with $68.1 million (94 cents) for the like period a year earlier.
And Computer Sciences Corp. gained 2.1 percent to $45.86 after the El Segundo-based technology services provider announced that it formed an alliance with Symantec Corp. to offer integrated end-to-end managed security services to customers globally. Symantec will provide elements of its security monitoring services to enhance Computer Sciences’ security offerings.
Shares of Gemstar-TV Guide International Inc. fell 10.7 percent to close at $4.85. The L.A.-based provider of television program guides released quarterly earnings after market close Wednesday, and was downgraded on Thursday. Gemstar-TV Guide reported fourth-quarter net income of $1.6 million (breakeven), compared with a net loss of $491.4 million ($1.18) for the like period a year earlier. Revenue rose to $186.6 million from $176.3 million in the comparable period of the prior year.
On Thursday, the company’s stock rating was downgraded to “hold” from “buy” by Smith Barney Citigroup on concerns about its near-term results.
