Please ensure Javascript is enabled for purposes of website accessibility

Earnings and an Upgrade Had a Few Dow Stocks Soaring Today

By Matt Thalman - Apr 23, 2013 at 8:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Even though the markets briefly crashed today, the Dow managed a triple-digit win.

Investors got a lot of good news this morning, which helped push the markets higher today. The Dow Jones Industrial Average (^DJI 0.03%) rose by 152 points, or 1.05%, and closed at 14,719. The S&P 500 fared just slightly worse, gaining 1.04%, while the Nasdaq was the big winner today, after it climbed higher by 1.11%.

In addition to a number of positive earnings reports that came out before the market opened, the new-home sales report helped reinforce investors' confidence that the economy is strengthening. The Commerce Department said that new-home sales increased by 1.5% to a seasonally adjusted rate of 417,000 homes. Analysts were expecting 420,000 units, so the results were in line with expectations.

Two of the companies that announced earnings were Travelers (TRV -0.63%) and DuPont (DD), whose shares rose by 2.09% and 4.13%, respectively, after both reported better-than-expected earnings for the first quarter.

Travelers reported $2.33 per share in earnings, while analysts were expecting only $2.02. Revenue also beat expectations, coming in at $6.33 billion, while analysts had been estimating only $6.23 billion in sales. The company noted that a drop in natural disaster claims in addition to higher premiums during the quarter allowed the company to outpace expectations, leading to an 11% year-over-year gain in earnings. In addition, Travelers raised its quarterly dividend by 9% to $0.50 per share.

DuPont also announced a dividend increase, which amounts to a 5% increase, and the company beat on the bottom line, while meeting expectations on the top line. Earnings were expected to hit $1.52 per share on revenue of $10.41 billion, but the company managed to stretch that amount of revenue to EPS of $1.56. DuPont also reaffirmed its previous full-year earnings guidance of $3.85 to $4.05 per share, an increase of 2% to 7% over what the company posted for 2012. To read more about DuPont's earnings release, click here.  

Shares of Bank of America (BAC -1.71%) rose 2.99% today, after an analyst at Morgan Stanley upgraded the stock from "equal weight" to "overweight." Cited as reasons for the change, the analyst believes that Bank of America will continue to cut costs and that the bank will be finished with all of its negative legal issues by the end of the year.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
$31,261.90 (0.03%) $8.77
The Travelers Companies, Inc. Stock Quote
The Travelers Companies, Inc.
$168.24 (-0.63%) $-1.06
Bank of America Corporation Stock Quote
Bank of America Corporation
$33.86 (-1.71%) $0.59
E. I. du Pont de Nemours and Company Stock Quote
E. I. du Pont de Nemours and Company

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/22/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.