Stocks Rise as Financial Services Sector Extends Rally
Confidence in the banking sector lifted stocks as the U.S. trade gap narrowed for a sixth straight month. The Dow rose 20 points to 7190 while Nasdaq was flat at 1425.
Stec (Nasdaq: STEC) posted a breakeven 4th quarter, but the flash memory storage products maker expected strong demand for its products in 2009.
Drug developer Dendreon (Nasdaq: DNDN) reported a much smaller loss than expected for the 4th quarter. The company is developing a prostrate cancer drug treatment.
On the downside
Auditors warned that American Axle & Manufacturing (NYSE: AXL) may not be able to stay in business as automakers cut back on spending.
Shares of Compass Minerals (NYSE: CMP) pulled back after the possibility of a takeover of the salt producer by German fertilizer company K&S was put on hold.
Sports apparel and equipment retailer Zumiez (Nasdaq: ZUMZ) posted a 4th quarter decline in earnings and warned of a 1st quarter loss.
On the upside
Citigroup (NYSE: C) announced that it may not need additional government bailout funds. Shares of Bank of America (NYSE: BAC) and Wells Fargo (NYSE: WFC) joined the rally in the banking sector.Stec (Nasdaq: STEC) posted a breakeven 4th quarter, but the flash memory storage products maker expected strong demand for its products in 2009.
Drug developer Dendreon (Nasdaq: DNDN) reported a much smaller loss than expected for the 4th quarter. The company is developing a prostrate cancer drug treatment.
On the downside
Auditors warned that American Axle & Manufacturing (NYSE: AXL) may not be able to stay in business as automakers cut back on spending.
Shares of Compass Minerals (NYSE: CMP) pulled back after the possibility of a takeover of the salt producer by German fertilizer company K&S was put on hold.
Sports apparel and equipment retailer Zumiez (Nasdaq: ZUMZ) posted a 4th quarter decline in earnings and warned of a 1st quarter loss.
In the broad market, advancing issues outpaced decliners by a margin of more than 2 to 1 on the NYSE and by 5 to 3 on Nasdaq. The Russell 2000 which tracks small cap stocks rose 3 points to 393.
