GE profits boost Wall street stocks


The Dow Jones industrial average rose 49 points to close on Friday at 11,872

Strong profits at General Electric have sent industrial stocks higher.

General Electric gained 7.1%, leading the 30 stocks that make up the Dow Jones industrial average. The conglomerate’s earnings rose 52% on growth in equipment orders and lending.

The company’s results helped send industrial companies in the Standard and Poor’s 500 index up 1.2%. 3M, another industrial conglomerate, gained 1.4% and Textron rose 2.2%.

The Dow rose 49.04 points, or 0.4%, to close at 11,871.84.

Bank of America lost 2%, making it the weakest Dow stock. The country’s largest bank reported a 1.6 billion dollar loss in the fourth quarter after setting aside more money to buy back faulty home loans from investors.

The Standard & Poor’s 500 index gained 3.09 points, or 0.2%, to 1,283.35.

Technology companies in the S&P 500 fell 0.3%, the worst of any of the 10 company groups that make up the index. Apple lost 1.8% and Microsoft fell 1.2%, while the technology-focused Nasdaq composite index slid 14.75 points, or 0.5%, to 2,698.54.

Chip maker Advanced Micro Devices sank 6%. AMD’s fourth-quarter profit shrank compared with a year ago, when a big legal settlement it won from arch-rival chip maker Intel lifted its earnings.

Google reported a 29% rise in income after the market closed yesterday. The internet search giant said that co-founder Larry Page will take over as chief executive, replacing Eric Schmidt. Google’s stock fell 2.4%.

Bond prices rose slightly, sending their yields down to 3.41% from 3.43%, while rising and falling shares were about even on the New York Stock Exchange. Volume came to 1.3 billion shares.

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