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Comments on Low Rates Keep Investors Happy
Monday November 16, 4:52 pm ET
By the tickerspy.com Staff

Stocks started the week on a strong note, buoyed early by solid retail numbers and later spurred on by comments from Ben Bernanke that interest rates would remain low for "an extended period." The Fed Chief's comments helped drive the dollar lower, which in turn gave stocks a boost. With about a month and a half left in 2009, equities may close the year strong given the low rate, weak dollar, and recovering economic environment.

The Platinum and Palladium Stocks Index was the top performing tickerspy Index on the day, led by Stillwater Mining Co (NYSE: SWC - News) with a 17% gain.

Stocks rallied on the day, with the Dow up 137 points to 10,407. The S&P climbed 16 points to 1,109, while the Nasdaq jumped 30 points to close at 2,198. Oil zoomed $2.55 higher to $78.90 a barrel, while gold rose $22.70 to $1,139.40 an ounce.

On the economic front, the Commerce Department announced that retail sales in October climbed 1.4%, helped by strong auto demand. Economists were expecting a 1.0% gain.

In earnings news, automaker General Motors said it lost -$1.2 billion from the time it left bankruptcy protection through September 30th, better than the -$6 billion loss it reported in Q1, the last full quarter for which its numbers met accounting standards. Revenue was $26.4 billion, up from $22.4 billion in Q1. The company plans to begin repaying $6.7 billion in loans it received from the government, beginning with a payment of $1.2 billion in December and completing repayment in 2010.

Lowe's Companies (NYSE: LOW - News) reported that its Q3 profit dropped -30%, but said it expects Q4 to be stronger than the same quarter last year. The stock inched down -0.5%. For the period ended October 30th, the home-improvement retailer earned $344 million, or 23 cents per share, down from $488 million, or 33 cents per share, last year. Adjusted EPS was 24 cents, matching analyst estimates. Revenue slipped -3% to $11.38 billion, while same-store sales dropped -7.5%. Looking forward, Lowe's expects Q4 EPS of 9-13 cents versus the 10-cent consensus. For FY09, the company guided for EPS of $1.16-$1.20. Wall Street expects EPS of $1.20. Shares of Illinois Tool Works (NYSE: ITW - News) gained 4.2% after the industrial products maker reaffirmed its Q4 outlook of 54-66 cents per share. Revenue during Q4 is expected to be down -1% to up 5%, or in the range of $3.64-$3.86 billion. Analysts are expecting Q4 EPS of 62 cents on revenue of $3.68 billion. Thirty-five Pro investors counted the stock among their top-15 holdings at the start of Q3.

Cisco Systems (Nasdaq: CSCO - News) raised its bid for Norway's Tandberg ASA to 170 kroner ($30.46) from 153.5 kroner. This move came after Tandberg shareholders offered up less than 10% of the company's shares as the offer period approached its deadline. Cisco said this was its final offer, which values Tandberg at $3.4 billion, and that it will withdraw its bid if it doesn't get enough acceptances. Cisco shares inched up 0.7%. Over 550 Pro investors counted Cisco among their top-15 holdings at the start of Q3.

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