Stocks rose on Thursday, as strong earnings reports, a sharp drop in oil prices and positive economic data encouraged investors.
The Dow Jones Industrial Average edged up 71.50, or 0.7 percent, at 10,628.89, its highest level since March 16. The S & P; 500 Index rose 3.21, or 0.3 percent, to 1,226.50, its best showing since July 3, 2001. The Nasdaq Composite Index climbed 8.71, or 0.4 percent, to 2,152.82, its best close since Dec. 31.
Shares of Apple Computer Inc. jumped 5.2 percent to $40.31 after the company beat profit forecasts. And Southwest shares climbed 3.9 percent to $14.52 after its quarterly report.
Crude futures fell by more than $2 a barrel after the International Energy Agency predicted global demand would ease. A barrel of light crude settled at $57.80, down $2.21, on the New York Mercantile Exchange.
And the latest reading of the Labor Department’s Consumer Price Index was unexpectedly flat for June, while “core” CPI with food and fuel costs removed edged 0.1 percent higher.
Among local movers, shares of Guess Inc. sank 5.3 percent to $19.53 after the L.A.-based casual apparel company’s stock rating was cut as part of a downgrade of a number of apparel retailers by Morgan Keegan analyst Holly Guthrie due to concerns over the impact and outlook on the retail sector of China’s embargo of some apparel categories. Guthrie cut Guess to “market perform” from “outperform” and City Of Industry-based mall retailer Hot Topic Inc.’s stock to “underperform” from “market perform.” Hot Topic’s shares fell 2.5 percent to $19.68. Guthrie also downgraded Bebe Stores Inc. and Urban Outfitters Inc.
Countrywide Financial Corp. slipped 0.2 percent to $38.53 after the Calabasas-based independent mortgage lender said its second-quarter profit may not meet investors’ expectations because the amount of loans it retained in its own portfolio and didn’t sell to investors nearly doubled.
And NetSol Technologies Inc. gained 10.9 percent to $1.93 after the Calabasas-based software products company announced that revenue for fiscal 2005 ended June 30 is expected to exceed $11 million, an estimated 93 percent increase over the prior year.
