Dow Finishes Up 100

NEW YORK ( TheStreet) -- Stocks rallied late Monday after getting a boost from FedEx's ( FDX) increased guidance, as the Dow finished with a 100-point gain.

The Dow Jones Industrial Average added 101 points, or 1%, to 10,525. The S&P 500 gained 12 points, or 1.1%, to 1115, and the Nasdaq went ahead by 27 points, or 1.2%, at 2296.

"The FedEx earnings guidance in conjunction with the positive report from UPS ( UPS) last week and the recent clarity from the European stress tests really helped propel markets," said Benny Lorenzo, chairman and chief executive of Kaufman Bros.

"A couple of weeks back, when markets were really getting hammered, the concern was whether earnings would come through, and so far they have. I suspect that we'll continue to see upside earnings surprises," he said, adding that he sees additional room to run higher on earnings momentum."We'll likely see some seasonal weakness in August on the dearth of information, and some people may start to worry again about a double dip, but we're not of that camp."

Overseas on Monday, Hong Kong's Hang Seng rose 0.1% and Japan's Nikkei gained 0.8%. The FTSE in London added 0.7%, and the DAX in Frankfurt was advanced 0.5%.

The Economy

New-home sales jumped 23.6% to 330,000 in June, which was nearly in line with the 338,000 sales that economists had been projecting, according to May's level, however, was downwardly revised to 267,000 from 300,000.

Company News

Shares of FedEx ( FDX) surged 5.6% after the shipper said it expects fiscal first-quarter earnings to be at least 80% higher than a year ago. FedEx is now anticipating earnings in the range of $1.05 to $1.25 a share, up from between 85 cents and $1.05 a share previously.

The news bolstered shares across the transport sector, which was showing the best performance of the session. Rival UPS gained 1.9%, while shipping companies like Horizon Lines ( HRZ), Covenant Transportation ( CVTI) and Genesee & Wyoming ( GWR) advanced 6.2%, 7.1% and 6.4%, respectively.

Pfizer ( PFE), Bank of America ( BAC) and General Electric ( GE) topped the Dow, while Wal-Mart ( WMT) was the only blue-chip component to finish in negative territory.

The European Commission began formal antitrust investigations against IBM ( IBM) in two alleged infringement cases. IBM's stock finished modestly higher by 3 cents to $128.41.

According to a report on The Wall Street Journal's Web site, BP ( BP) will name managing director Bob Dudley as its new chief executive if the company's board approves a negotiated departure plan for CEO Tony Hayward. A later report from The Associated Press and others said the ouster will be made effective in October.

Goldman Sachs ( GS) will face increased scrutiny from the Financial Crisis Inquiry Commission, which wants to bring in outside accountants to examine the bank's systems for data on its derivatives business, according to the Financial Times.

Besides Sanofi-Aventis ( SNY), Genzyme ( GENZ) could also see interest from GlaxoSmithKline ( GSK) and Johnson & Johnson ( JNJ), according to a Wall Street Journal report.

Apple's ( AAPL) iPhone 4 will be making their debut in 17 additional countries on Friday, according to a statement from the company.

Citigroup ( C) also discovered a security flaw in its mobile banking iPhone application, though said personal data wasn't breached.

After the closing bell, global asset management company Legg Mason ( LM) reported earnings of 30 cents a share vs. consensus forecasts provided by for 31 cents a share.

Commodities and the Dollar

Crude oil for August delivery finished unchanged, settling at $78.98 a barrel.

Elsewhere in commodity markets, the August gold contract settled $4.70 lower at $1,183.10 an ounce.

The dollar was trading lower against a basket of currencies, with the dollar index down by 0.5%.


The benchmark 10-year Treasury was unchanged, as the yield held at 3%.

The two-year note dipped 1/32, strengthening the yield to 0.601%. The 30-year bond was down by 2/32, increasing the yield to 4.024%.

--Written by Melinda Peer and Sung Moss in New York.

If you liked this article you might like

Dropbox Exec: How We Added $1 Billion in Sales With Amazon and Google Lurking

Dropbox Exec: How We Added $1 Billion in Sales With Amazon and Google Lurking

Tech Stocks That Look Fairly Cheap Following the Rout

Tech Stocks That Look Fairly Cheap Following the Rout

Tech Stocks That Look Fairly Cheap Following the Rout

Tech Stocks That Look Fairly Cheap Following the Rout

Cramer: Today Was Just Awful

Cramer: Today Was Just Awful

Facebook Leads Sharp Decline of FANG Stocks This Week