Russell 2000 rises on earnings
The Russell 2000 (NYSE: IWM) and the Dow ended the day and the week in positive territory following news of strong earnings from major players. The small-cap index added 3.35 points, or 0.41%, to 813.11. The Dow Jones Industrial Average (INDU) gained 53.49 points, or 0.39%, to 13,820.19.
For the entire week, the small-cap index added 29.62 points, or 3.79%. The Dow moved up 377.67 points, or 2.81%.
Futures today were pointing up before the opening and equities rose out of the gate.
Nike Inc. (NYSE: NKE) helped set the positive sentiment this morning when it reported a 51% increase in its fiscal first-quarter profit, beating Wall Street’s forecasts.
The Beaverton, Ore-based company had a net income of $569.7 million, or $1.12 per share, for the quarter ended Aug. 31, while 13 analysts polled by Thomson Financial were expecting earnings of $0.87 per share. A year earlier, the maker of athletic shoes booked a profit of $377.2 million, or $0.74 per share.
The tech sector also contributed to the bullish sentiment.
Redwood City, Calif.-based software maker Oracle Corp. (Nasdaq: ORCL) announced better-than-expected fiscal first-quarter results, while mobile-phone chip maker Texas Instruments Inc. (NYSE: TXN) increased its dividend and raised its budget for stock buybacks by $5 billion.
The bulls got behind the steering wheel and kept pressing the gas throughout the trading session.
Investors’ enthusiasm was not tempered by news after the start of trading that banking giant HSBC will close its U.S. subprime mortgage business, incurring costs of $945 million and leaving 750 employees without a job. HSBC, one of the largest subprime lenders in the United States,
The worst U.S. housing slump in more than a decade has caused more than 110 companies to suspend operations or exit the mortgage business in the past 18 months.
