Thursday, May 10, 2012

--DJIA, S&P 500 rise; investors eye possible end to political stalemate in Greece

--DJIA snaps six-session streak of declines

--Cisco Systems shares fall on downbeat outlook

(Updates closing prices throughout) 


 
   By Chris Dieterich 
   Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)--The Dow industrials broke a six-session losing streak as a potential breakthrough by Greek political leaders eased immediate concerns about the country's exit from the euro zone.

The Dow Jones Industrial Average gained 19.98 points, or 0.2%, to 12855.04. Blue chips briefly turned negative in the final minutes, but survived the swoon to end their longest string of declines since August.

The Standard & Poor's 500-stock index advanced 3.41 points, or 0.3%, to 1357.99, as utility and telecommunications stocks led the market higher.

But the technology-heavy Nasdaq Composite fell 1.07 points, or less than 0.1%, to 2933.64 as Cisco Systems (CSCO) slumped $1.97, or 11%, to $16.81. The networking-equipment company gave a downbeat outlook for the quarter ahead, warning that big customers were exercising caution with technology spending.

U.S. stocks followed gains in Europe, where hopes rose that Greece might cobble together a government and prevent a fractious election. The Stoxx Europe 600 rose 0.6%, its first gain in three days, after declining as much as 0.7% early in the session.

"At minimum, we're in a period where the market is tempering its expectations," said Bruce McCain, chief investment strategist at Key Private Bank in Cleveland. "We'll see whether there's an outright explosion that turns things really bad in Europe. They've been playing with explosives and the fuse continues to burn."

In economic news, a weekly labor-market report beat expectations. Claims for unemployment benefits fell slightly last week versus expectations for claims to rise, though a reading on the previous week was revised slightly higher. Separately, the U.S. trade deficit widened in March, as a wave of oil imports and Chinese goods overwhelmed record exports.

Asian markets were mostly lower after Chinese trade data showed activity slowed in April. China's Shanghai Composite inched up 0.1%, breaking a three-session slide. Japan's Nikkei Stock Average fell 0.4%, losing ground for the second-straight session.

Crude-oil futures rose 0.3% to $97.08 barrel, breaking a six-day streak of declines. Gold futures rose 0.1% to $1595.10 a troy ounce. The U.S. dollar slipped against the euro but gained ground against the yen. The yield on the 10-year U.S. Treasury bond rose to 1.884%.

In corporate news, Priceline.com (PCLN) fell 37.84, or 5.3%, to 681.11 after the online-travel booker reported first-quarter earnings that exceeded forecasts but provided a cautious outlook for the second quarter.

Avon Products (AVP) fell 71 cents, or 3.3%, to 20.89 after Coty boosted its bid to buy the company to $24.75 a share, disclosing Warren Buffett's Berkshire Hathaway (BRK.A) is participating in its bidding group.

Kohl's (KSS) fell 2.20, or 4.3%, 48.66 after the department-store operator reported first-quarter results that beat analysts' estimates, but provided a second-quarter earnings outlook that was below projections.

Monster Beverage (MNST) surged 5.86, or 9%, to 71.17 after the energy-drink maker reported first-quarter results that exceeded expectations as volume and gross margin increased.

Costco Wholesale (COST) rose 1.26, or 1.5%, to 83.88 after raising its quarterly dividend 15%.

Employee benefit administrator WageWorks (WAGE) surged 3.60, or 40%, from its public offering price to close at 12.60.

Another public offering, mobile audio-technology firm Audience (ADNC), jumped 2.10, or 12%, to 19.10.

-Chris Dieterich, Dow Jones Newswires; 212-416-2611; christopher.dieterich@dowjones.com

(END) Dow Jones Newswires

May 10, 2012 16:48 ET (20:48 GMT)