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The Dow Now: Hewlett-Packard Up Nearly 10% in Past Week


Bank of American and Travelers were also up on the day.

MINYANVILLE ORIGINAL After falling into the red in the morning over continued fiscal cliff worries, US stocks turned green by midday thanks to a financial stock rally.

The Dow Jones Industrial Average (INDEXDJX:.DJI) was up 0.83% to 13,059.68 points as of 12:16 p.m. EST.

Hewlett-Packard (NYSE:HPQ) continued its bullish run. After having gained close to 10% in the last week, shares of the PC giant jumped 4.29%. The stock, which has had a topsy-turvy run since the reveal of its $8.8 billion writedown on its Autonomy acquisition, could likely have received a confidence boost after Goldman Sachs upgraded PC rival Dell (NASDAQ:DELL) on Monday.

Bank of America (NYSE:BAC) also advanced 3.84% to $10.28, crossing the landmark $10-per-share level. Investors likely viewed fellow big bank Citigroup's (NYSE:C) cost-cutting announcement of 11,000 job cuts as a good move and hoped that Bank of America could follow suit to become more operationally efficient.

Travelers (NYSE:TRV) also increased 4.38% to $73.62 after offering its estimates of losses from Superstorm Sandy. Travelers forecasts losses of $1.135 billion from Sandy, though the figure would likely be reduced to about $650 million after accounting for reinsurance policy reimbursements and taxes. The insurance giant also said it would restart stock buybacks.

Among leading laggards was Intel (NASDAQ:INTC), which slid 0.45% to $19.88 after the company was downgraded to Underperform from Market Perform by Raymond James' Hans Mosesmann on gross margin worries as rivals ARM Holdings (NASDAQ:ARMH) and Advanced Micro Devices (NYSE:AMD) gained ground.

"We believe mid 50% (and potentially low 50% over time) gross margins [compared with the 62-%-65% gross margins over the past three years] are an increasing reality as opposed to a downside scenario, and investors should brace for lower estimates," said Mosesmann in a note. Earlier in the day, Intel also announced a $6 billion senior notes offering.

Boeing (NYSE:BA), one of the other two Dow stocks in the red at midday, dropped 0.04% to $74.02 on news that the FAA ordered inspections of Boeing's new 787 Dreamliners after the agency received reports of fuel leaks, which were linked to "improperly assembled" fuel couplings on in-service and production airplanes.

Twitter: @sterlingwong
No positions in stocks mentioned.
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