Wall Street makes another last minute surge thanks to tech and financials
Wall Street traded mixed but by the day’s end, gains in financials and an announcement by Kraft that it expects a higher profit forecast helped lift the market up. The food company, which launched a bid on English candy maker Cadbury in late 2009, announced that anticipates 2009 earnings of at least $2 per share, compared with a prior forecast for a profit of at least $1.97 per share.
Much of the news today came from the questioning of the big banks by congress on the causes of the financial crisis. Heads from Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley and Bank of American Corp. all testified before the Financial Crisis Inquiry Commission. The Financial Crisis Inquiry Commission is a 10 member panel of both republicans and democrats whose task is to investigate what caused the near collapse of the financial system in the fall of 2008.
Google was making noise on Wednesday as well, as it stock slipped as it threatened to pull all operations out of China on allegations that the government had compromised users email accounts. Those allegedly targeted are the accounts of human rights activists. The company said it is one of at least 20 companies that have been attacked. Yahoo (NASDAQ GS:YHOO) said it is “aligned with Google” in condemning the kinds of cyber attacks the company had experienced from China, but did not say if it had experienced a similar attack.
The Dow rose from a hit yesterday to gain 53.51 points, to close at 10,680.77. The S&P 500 index rose 9.46, to close at 1,145.68 and the
Gold rose $7.80 to $1,137.20 an ounce while oil dropped $1.14 to end at $79.65 a barrel on the New York Mercantile Exchange. This caused a selloff in commodities with Exxon Mobile (NYSE:XOM) and Chevron (NYSE:CVX) both taking the brunt with stock drops.
Volume traded on the NYSE came to 754.3 million shares.
In Europe, Britain’s