Stocks still in doldrums, drift higher
Stocks drifted higher yesterday in a fourth consecutive listless session. Traders waited for corporate financial results to start rolling in so they could look for clues about the economy.
In the unofficial kickoff to earnings season, Alcoa, considered an economic bellwether because so many companies use its products, said it lost $34 million from October through December because of lower demand for aluminum.
The results were released after the market closed for the day. Alcoa stock finished up 27 cents, or 2.89 percent, at $9.43, the biggest gain of the 30 companies in the Dow Jones industrial average.
The Dow closed up 32.77 points, or 0.27 percent, at 12,392.69. The broader Standard & Poor's 500 index gained 2.89 points, or 0.23 percent, to 1,280.70. The Nasdaq composite index rose 2.34, or 0.09 percent, to 2,676.56.
Stock trading has been subdued in recent days. The Dow's high and low were only 75 points apart Monday. In all of 2011, trading was that narrow on only 26 days. In the final five months the average daily swing was 249 points.
Analysts think profit growth slowed for U.S. multinational companies from October through December because of weaker demand overseas. Quarterly profits for S&P 500 companies will probably only grow at half the rate of the previous three quarters, said Sam Stovall, chief equity strategist at S&P's Capital IQ.
The United States is in a "half-speed recovery, and that probably isn't enough to offset the weakness in Europe and Asia," Stovall said.
'It's depressing, it's frustrating' A Newsday investigation revealed that Grumman Aerospace knew toxic chemicals were leaking into the ground in Bethpage. Newsday Associate Editor Paul LaRocco and Deputy Editor David Schwartz explain.
'It's depressing, it's frustrating' A Newsday investigation revealed that Grumman Aerospace knew toxic chemicals were leaking into the ground in Bethpage. Newsday Associate Editor Paul LaRocco and Deputy Editor David Schwartz explain.
