By allowing ads to appear on this site, you support the local businesses who, in turn, support great journalism.
US stocks close mixed on uneven economic signals
Placeholder Image
Staff Report
Updated: Jan 28, 2013, 9:56 PM
Published: Jan 28, 2013, 9:58 PM

U.S. stocks meandered between small gains and losses Monday, cooling off after a rally that had pushed the Standard & Poor's 500 index above 1,500 for the first time since December 2007. Encouraging news about manufacturing provided an early boost, but stocks fell later after a report on the pace of home sales fell short of expectations.

The government said before trading began that orders for long-lasting goods rose in December by 4.6 percent, helped by a 10 percent gain in orders for new aircraft. The report was a sign of strength for the manufacturing sector, a crucial driver of economic growth.

Heavy equipment maker Caterpillar said separately that its fourth-quarter net income exceeded analysts' expectations, after adjusting for the cost of a soured deal to buy a Chinese maker of roofing supports for mines. Caterpillar said it took a big charge in the quarter because the Chinese company had misrepresented its finances.

Caterpillar Inc. said it expects growth in China to improve without regaining the levels seen in 2010 or 2011. The stock was the biggest gainer in the Dow Jones industrial average, closing up $1.87, or 2 percent, at $97.45.

The Dow Jones transportation index, a proxy for future economic activity, edged higher, notching its tenth straight increase and its twelfth gain in the past 13 trading days.

A half-hour after trading began, the National Association of Realtors said that its index of pending home sales fell in December, suggesting that sales of previously occupied homes may slow in the coming months. The report, which was weaker than many economists had expected, helped push stocks lower for much of the morning. They were roughly flat by midday, and spent the afternoon swapping small bumps and dips.

The Dow closed down 14.05 points, or 0.1 percent, at 13,881.93. The S&P 500 fell 2.78, or 0.2 percent, to 1,500.18. The Nasdaq composite index added 4.59, or 0.2 percent, to 3,154.

The Dow and the S&P 500 are rapidly approaching their all-time closing highs, reached on Oct. 9, 2007. The Dow is about 282 points below its high of 14,164.53; the S&P 500 is 65 points shy of its record of 1,565.

Economic data may be less likely to boost the indexes because traders have become harder to impress as the data have strengthened in recent weeks, said Bill Stone, chief investment strategist with PNC Asset Management Group.

"Before, even if you came in just at expectations, that was like a victory," he said. Because of the market's recent upturn, he said, "you get less of a pop for just making the numbers."

Among companies in the S&P 500 that reported earnings Monday, Biogen Idec Inc. said its fourth-quarter net income slipped nearly 3 percent because of a tax charge and higher expenses. Still, the biotech drug maker rose $3.79, or 2.6 percent, to $149.99.

Roper Industries Inc., which makes medical and industrial equipment, said its fourth-quarter net income rose 18 percent. But the company issued mixed guidance for the current quarter and full year 2013. It fell 33 cents to $118.50.

Oil company Hess Inc. was the biggest gainer in the S&P 500, adding 6.1 percent after the company said it plans to sell its U.S. terminal network, shutter its New Jersey refinery and continue shifting its focus to exploration and production. Hess also said that the hedge fund Elliott Associates plans to seek regulatory approval to buy a major stake in the company. Hess rose $3.58 to $62.48.

Several big tech companies reported their results after the market closed and saw big price swings in after-hours trading:

— Web portal Yahoo Inc. rose 81 cents, or 4 percent, to $21.12 after saying its fourth-quarter earnings topped analyst estimates as an upturn in its international investments helped end a three-year revenue slump.

— Hard disk maker Seagate Technology PLC said it beat analysts' estimates in its results for the fiscal second quarter ended Dec. 28. It rose 69 cents, or 1.8 percent, to $38.10 after hours.

— Cloud computing provider VMWare Inc. said its net income edged higher, but the company announced guidance that was far weaker than analysts had expected. VMWare lost $10.83, or 11 percent, to $87.49 after hours.

Strong corporate earnings helped push the S&P 500 through the 1,500 milestone Friday after several calm, relatively news-free weeks. In addition to companies' performance, traders have been encouraged by signals that housing market is improving steadily and hiring is picking up, albeit slowly.

There will plenty of fresh data to drive trading this week, including retail sales, economic growth and the government's report on hiring and employment in January, which is due out Friday. More than one-fifth of the companies in the S&P 500 will report fourth-quarter earnings this week.

Stone said stocks are trading sideways in part because many investors are awaiting economic reports later this week, especially the employment report. There is agreement among economists and analysts that the economy slowed in the fourth quarter, he said, and this week's numbers will help answer the question of "how slow, and how much did it impact employment."

The yield in the benchmark 10-year Treasury note rose to 1.97 percent from 1.95 percent late Friday, reflecting lower demand for ultra-safe investments. After Monday's factory orders report, the yield rose briefly above 2 percent for the first time since April. A bond's yield rises as demand for it decreases.

___
Raging wildfires in South force evacuations in Tennessee
1204Fire1
Fires blaze on the hills above Dollywood’s DreamMore Resort in Pigeon Forge, Tenn. Tuesday morning. Bruce McCamish Photography | The Covington News
Staff Report
Updated: Nov 29, 2016, 2:44 PM
Published: Nov 29, 2016, 2:45 PM

ATLANTA (AP) — Raging wildfires fueled by high winds forced the evacuation of thousands of people and damaged hundreds of buildings in a popular resort town on the border of the Smoky Mountains National Park as National Guard troops arrived early Tuesday to help overwhelmed firefighters.

Rain had begun to fall in some areas, but experts predicted it would not be enough to end the relentless drought that has spread across several Southern states and provided fuel for fires now burning for weeks in states including Tennessee, Georgia and North Carolina.

The storms appeared to be taking aim at the nearly 28,000-acre Rough Ridge Fire in north Georgia and the nearly 25,000-acre Rock Mountain Fire that began in Georgia and then spread deep into North Carolina.

In Gatlinburg, Tennessee, officials said hundreds of homes and other buildings, including a 16-story hotel, were damaged or destroyed by flames. And preliminary surveys indicated that Westgate Resorts, with more than 100 buildings, and Ober Gatlinburg were both likely destroyed, according to a news release Tuesday morning.

Emergency officials ordered evacuations in downtown Gatlinburg and Pigeon Forge and in other areas of Sevier County near the Smoky Mountains while crews continue to battle the blaze, which also had crept to the edge of the Dollywood theme park. About 14,000 residents and visitors were evacuated from Gatlinburg alone, officials said.

No deaths have been reported, though several people were hospitalized with burns, emergency officials said in the news release.

Officials say there are about 1,200 people sheltering at the Gatlinburg Community Center and the Rocky Top Sports Park. Several other shelters have opened to house those forced from their homes. TV broadcasts showed residents streaming out of town just as rain started to wet roads.

Workers at an aquarium evacuated because of the wildfires were concerned about the thousands of animals housed there. Ryan DeSears, general manager of Ripley's Aquarium of the Smokies, told WBIR-TV the building was still standing and all workers had been evacuated late Monday. However, he said workers were anxious to return to check on the well-being of the 10,518 animals.

The rain forecast "puts the bull's-eye of the greatest amounts right at the bull's-eye of where we've been having our greatest activity," said Dave Martin, deputy director of operations for fire and aviation management with the southern region of the U.S. Forest Service.

The projected rainfall amounts "really lines up with where we need it," Martin said Monday. "We're all knocking on wood."

After weeks of punishing drought, any rain that falls should be soaked up quickly, forecasters said. It will provide some relief but won't end the drought — or the fire threat, they said.

Drought conditions will likely persist, authorities said. The problem is that rainfall amounts have been 10 to 15 inches below normal during the past three months in many parts of the South, authorities said.

"I think we racked up deficits that are going to be too much to overcome with just one storm system," said Mark Svoboda, director of the National Drought Mitigation Center in Lincoln, Nebraska.

"I would say it's way too early to say 'Yes, this drought is over,'" Svoboda said. "Does it put a dent in it? Yes, but we have a long ways to go."

The rain also brings danger because strong winds at the leading edge of the storms can topple trees and limbs that can kill and injure firefighters, he said.

In Mississippi, trees were reported downed Monday in nearly 20 counties across the state. Sustained winds of 30 to 40 mph with gusts of more than 50 mph were reported and more than 2 inches of rain fell in some areas.

Power outages peaked at more than 23,000 statewide in Mississippi. Powerlines downed by winds sparked grass fires in four counties, said Greg Flynn, a spokesman for the Mississippi Emergency Management Agency.

The storms moved across Alabama on Monday night and fell on Georgia during the overnight hours. High wind warnings were issued for mountainous areas in northern parts of Georgia.

In South Carolina, the stormy forecast was giving hope to firefighters battling a blaze in the northwest corner of the state. The South Carolina Forestry Commission hopes to contain the Pinnacle Mountain fire by the middle of next week.
More rain was expected Tuesday night and Wednesday morning in parts of Louisiana, Mississippi and Alabama.
___
Fuller reported from New Orleans. Associated Press writers Rebecca Yonker in Louisville, Kentucky; Jeff Amy in Jackson, Mississippi; Beth Campbell in Louisville, Kentucky; and Jack Jones in Columbia, South Carolina, contributed to this report.