By Kate Gibson
Buoyed by earnings that are proving better than dire forecasts,
U.S. stocks on Thursday climbed toward solid April gains, with the
Standard & Poor's 500 index poised for one of its strongest
months in years.
"If we were to rally a bit today and close up 10% for the month,
that would make April 2009 among one of the best months for the
S&P in the post-war era," said Dan Greenhaus, an analyst with
Miller Tabak & Co., in a note.
At noon Eastern, stocks remained higher but a rally had lost
about half of its steam, with the Dow Jones Industrial Average
(DJI) standing at 8,251.99, up 66.26. The S&P 500 Index (SPX)
rose 8.27 points to 881.91, while the Nasdaq Composite (RIXF)
gained 31.14 points to stand at 1,743.08.
Materials and consumer discretionary shares fronted the broad
market advance, fueled by results from companies including Newell
Rubbermaid Inc. (NWL). Its shares surged 25% after the maker of
plastic storage containers said its first-quarter profit declined
41%, but still beat expectations.
Energy and utilities weighed on the market as afternoon trade
commenced, with crude-oil futures erasing earlier gains to trade 9
cents lower at $50.88 a barrel. .
"While the best 20 post-war months for the S&P saw gains of
11.79% in the year following, April 2009 is on the verge of being
one of the top 10 months and the average gain after those 10 months
has been more than 13%. There is, of course, no guarantee, but both
March and April 2009 would rank among the top months for the
S&P and 85% of the time the index is higher one year later"
said Greenhaus.
Historical trends bode well for the U.S. stock market in looking
10-12 months ahead, yet Greenhaus also cautions the shorter-term
picture remains a choppy one, given "low earnings visibility,
macroeconomic uncertainty and a volatile political
environment."