DJ U.S.

Stocks Rally to Fresh Highs Page 1 of 2

DJ U.S. Stocks Rally to Fresh Highs

18-7-2013

By Chris Dieterich and Tomi Kilgore

NEWYORK--Stocksclimbedfurtherintorecordterritoryafterstrongreadingsfromthelaborandmanufacturing
sectorsandasinvestorstookabrightviewofquarterlyresultsfromahandfulofbluechips.

TheDowJonesIndustrialAveragerose105points,or0.7%,to15576inmiddaytrade.TheStandard&Poor's500-
stockindextackedon10points,or0.6%,to1691.TheNasdaqCompositeIndexclimbedsixpoints,or0.2%,to
3616.TheDowindustrialsandS&P500hitfreshintradayrecordhighs.

ThebulkoftheDow'sprice-weightedgainwasattributabletostronggainsinUnitedHealthGroupandInternational
BusinessMachines.

UnitedHealthjumped5.6%afterbeatingearningsestimatesandaffirmingitsrevenueoutlookfortheyear.

IBMadvanced1.3%afterthetechnologygianttoppedsecond-quarterearningsestimatesandraiseditsfull-year
outlook.

Butsofarinthesecondquarter,theearningspicturehasbeenmuted,withcorporationsstrugglingtomatchWall
Street'srevenueforecasts.Theearnings-growthrateforthesecondquarter,includingactualresultsandestimates,
is1.4%,accordingtoFactSet.Throwingoutfinancials,thegrowthratedropsto-3.0%,worsethanwasexpectedat
theendofJune.

"Ithasbeenthisverymodest,slowandsluggishimprovement,"saidRandyFrederick,managingdirectorofactive
tradingandderivativesatCharlesSchwabCorp."Thebarhasbeenloweredforthisquarter.There'sgrowth,but
lessthangrowththanwhatwesawlastquarter,whichisdisconcerting."

Economicreportsshowedtwostrongnumbers.Initialclaimsforjoblessbenefitsfell24,000toaseasonallyadjusted
334,000inthelatestweek,morethanexpected.Elsewhere,businessconditionsformid-Atlanticmanufacturers
unexpectedlyadvancedthismonthtoitshighestreadingsinceMarch2011.

Financialsprovidedthebiggestgains.MorganStanleyjumped4.7%afterexceedingearningsandrevenue
forecasts.Traderssaidtherehasbeenaflurryofactivityinfinancialstocks,theyearandmonth'sbest-performing
sector.

"Peopleseemtobelookingatfinancialsasaplacetostorecash,"saidRickFier,directorofequitytradingatConifer
Securities."Youcan'tdiscountthemomentum."

TechnologystockslaggedafterIntellowereditsfull-yearrevenueoutlookonthegroundsofaslumpinpersonal-
computersales.Sharesdeclined3.9%

AmericanExpressfell2.8%afterthecredit-cardcompanytoppedearningsestimatesbutcameupabitshorton
revenue.

EBayslumped6.4%aftertheonlineretailermatchedearningsforecasts,butprovidedathird-quarteroutlookthat
wasbelowcurrentprojections.

StocksheldgainsduringFederalReserveChairmanBenBernanke'sreturntoCapitolHillfortestimony.Mr.
BernanketoldSenatelawmakersThursdaythattherehasbeennodecisiononwhetherthecentralbankwillreduce
its$85billion-per-monthbond-buyingprogramatitsSeptembermeeting.StocksroseWednesdayafterMr.
BernankestressedthatdecisionsfortheFedtotrimstimuluseffortswillhingeonU.S.economicgrowth.

Europeanmarketsgainedground,withtheStoxxEurope600up0.9%,asbetter-than-expectedU.K.retail-sales
dataforJunelentsupport.

InAsia,Japan'sNikkeiStockAverageclimbed1.3%topostafifth-straightgain,withthedollar'sriseagainstthe
yentoabovetheY100levelhelpingboostexportershares.Meanwhile,China'sShanghaiCompositefell1.1%amid
concernsoverslowingeconomicgrowth.

Augustcrude-oilfuturesgained1.3%to$107.83abarrel,whileJulygoldfuturesrose0.5%to$1,284atroyounce.
Thedollargainedagainstboththeyenandtheeuro.

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DJ U.S. Stocks Rally to Fresh Highs Page 2 of 2

Thedollargainedagainstboththeyenandtheeuro.

WritetoChrisDieterichatchristopher.dieterich@dowjones.comandtoTomiKilgoreattomi.kilgore@dowjones.com

(END)DowJonesNewswires

July18,201312:48ET(16:48GMT)

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