By Steven Russolillo
NEW YORK (MarketWatch) -- U.S. stocks opened higher Thursday,
propelled by encouraging weekly jobless claims data and a plethora
of corporate earnings reports.
The Dow Jones Industrial Average (DJI) gained 43 points, or
0.4%, to 11170, fueled by Exxon Mobil (XOM) , which was one of the
biggest gainers in the blue-chip index.
The oil giant's third-quarter earnings rose a
bigger-than-expected 55% as it benefited from stronger commodities
prices and refining margins in the first full quarter that included
its June acquisition of natural-gas producer XTO Energy. Shares
rose 1.1%.
3M (MMM) was the Dow's worst performer, falling 3.2% after its
earnings report disappointed investors. The consumer and industrial
manufacturer's third-quarter profit jumped 16% on higher sales at a
bulk of its operating divisions. But 3M merely narrowed its 2010
profit target due to the impact of acquisitions made in recent
months.
The Standard & Poor's 500-share index (SPX) rose 0.5% to
1189, led by the materials and health care sectors. The
technology-heavy Nasdaq Composite (RIXF) gained 0.4% to 2512.
Thursday's economic data helped drive the market's move. Initial
unemployment claims declined by 21,000 to 434,000 in the week ended
Oct. 23, the Labor Department said in its weekly report Thursday.
That brings claims down to levels last seen since the week ended
July 10. Economists surveyed by Dow Jones Newswires had expected
claims would rise slightly by 3,000.
A slew of corporate quarterly reports also helped deliver the
gains, which came after stocks dropped Wednesday in a jittery
trading session. Stocks have surged over the last few months, but
investors began to fret on Wednesday over the scope and potential
for another round of quantitative easing by the Federal Reserve,
which holds its key meeting next week.
Dow Chemical (DOW) shares rose 1.9% after the chemicals company
reported a 25% drop in third-quarter profit because of the impact
from divestitures. Results from continuing operations topped
analysts' expectations as sales improved across the board.
Eastman Kodak's (EK) third-quarter loss narrowed on fewer
charges and much higher margins. The camera maker's results topped
Wall Street's expectations and shares jumped 9.1%.
Colgate-Palmolive's (CL) third-quarter earnings rose a
bigger-than-expected 4.9% on lower overhead and interest-expense
costs. Chief Executive Ian Cook said the consumer products company
anticipates "mid-single digit earnings per share growth" for next
year as it plans to strengthen its volume and market share. Colgate
shares edged up 0.1%.
Las Vegas Sands (LVS) swung to a third-quarter profit on record
revenue resulting from strong growth at its casinos in the China
gambling enclave of Macau and the first full quarter of operations
at its Singapore casino. Shares surged 11%.
Potash Corp. of Saskatchewan (POT) said its third-quarter
earnings surged by more 60%, as strong demand for potash, phosphate
and nitrogen fertilizer products on the back of rising crop prices
lent support for the company's view that BHP Billiton PLC's (BHP)
hostile $38.6 billion bid significantly undervalues the company.
Potash shares slipped 2.2%.
In the currency markets, the dollar weakened against both the
euro and the yen. The euro traded recently at $1.3885, up from
$1.3768 late Wednesday in New York. The U.S. Dollar Index (DX),
which tracks the currency against a basket of six others, fell
0.6%.
European stocks rose, lifted by Royal Dutch Shell (RDSA), which
reported a profit that beat forecasts, and drug maker
Sanofi-Aventis (SNY). The Stoxx Europe 600 Index gained 0.9%.
Asian markets were mixed. Strong bank earnings pulled Hong Kong
and Australian stocks higher, while resources shares turned lower
in Tokyo and Shanghai after a drop in commodity prices.
Demand for Treasurys rose, pushing the yield on the 10-year note
(UST10Y) down to 2.68%. Crude-oil prices rose 67 cents to $82.60 a
barrel, while gold futures edged up.
Crude oil for December delivery
Gold for