Google propels Nasdaq to another record high close

NEW YORK - A major rally in Google pushed the Nasdaq to a second straight record high on Friday while weak energy stocks weighed on the Dow and S&P 500.

Google surged 16.26 percent to end at an all-time high of $699.62, a day after reporting strong ad revenue growth. It was Google's largest one-day percentage gain since April 2008.

Facebook rose 4.53 percent to a record high of $94.97 on hopes that it could mirror Google's ad growth. Etsy spiked 30 percent thanks to a nod from Google during its conference call.

But a drop in oil prices limited gains on the broader stock market, with the S&P 500 energy index down 1.07 percent to its lowest level since January 2013. Chevron lost 1.4 percent. The utilities index dropped 1.06 percent.

Wall Street insiders were cautiously optimistic about upcoming quarterly reports after some results this week came in above expectations.

“It’s going to be better than what the consensus numbers were pointing to,” said Kurt Brunner, a portfolio manager at Swarthmore Group in Philadelphia. “Our economy is doing okay. We’re not growing at 5 percent but we have slow, steady growth and I think that continues.”

The Nasdaq Composite added 46.96 points, or 0.91 percent, to end at 5,210.14, its second straight record high close.

The S&P 500 gained 2.35 points, or 0.11 percent, to end at 2,126.64, just shy of its record high of 2,130.82.

The Dow Jones industrial average fell 33.8 points, or 0.19 percent, to end at 18,086.45.

Boeing fell 1.11 percent and was the biggest drag on the Dow after it said it will take a second-quarter charge related to problems with its KC-46 aerial refueling tanker aircraft program.

General Electric shares rose 0.74 percent after raising its 2015 outlook for its industrial manufacturing businesses.

The technology index was the sole gainer among the 10 major S&P 500 indexes, up 1.75 percent, mostly because of Google.

For the week, the Dow gained 1.8 percent, the S&P added 2.4 percent and the Nasdaq rose 4.3 percent, its largest weekly gain since October 2014.

The dollar saw its biggest weekly gain in two months due to expectations of a Federal Reserve rate hike this year. However, a strong dollar reduces the value of U.S. companies' overseas income.

U.S. companies have been expected to post their worst sales decline in nearly six years in the second quarter, in part due to the strong dollar. Profit is expected to have fallen 2.9 percent, according to Thomson Reuters estimates.

Declining issues outnumbered advancing ones on the NYSE by 2,000 to 1,076, for a 1.86-to-1 ratio; on the Nasdaq, 1,676 issues fell and 1,115 advanced for a 1.50-to-1 ratio favoring decliners.

The S&P 500 posted 21 new 52-week highs and 25 new lows; the Nasdaq saw 107 new highs and 87 new lows.

Volume was a bit light, with about 6.1 billion shares traded on U.S. exchanges, below the 6.6 billion average so far this month, according to BATS Global Markets.

source: interaksyon.com

Wall St falls as Greek deadline looms; indexes up for week

NEW YORK - U.S. stocks fell on Friday ahead of a summit next week that could decide whether Greece will need to print its own currency and ditch the euro.

Euro zone leaders are scheduled to meet on Monday night in a last-ditch effort to reach a deal with Athens. As bank withdrawals across Greece ballooned to about 4.2 billion euros this week, the European Central Bank boosted its emergency funding for Greek banks.

Friday's decline in stocks "has to do with the meeting on Monday," said King Lip, chief investment officer at Baker Avenue Asset Management in San Francisco. "It's sort of the last lifeline they are going to throw out to Greece and people are selling ahead of that because of the uncertainty."

Lip said, however, that any sharp selling because of developments on Monday could be yet another buying opportunity for investors in U.S. stocks.

"If Greece leaves the union, that removes an uncertainty and is actually good for the markets over the long run; if there is a resolution, that is also good," said Lip. "In some way, whatever happens on Monday is a win-win and (a market selloff) is a buyable dip."

The Dow Jones industrial average fell 101.56 points, or 0.56 percent, to 18,014.28, the S&P 500 lost 11.48 points, or 0.54 percent, to 2,109.76 and the Nasdaq Composite dropped 15.95 points, or 0.31 percent, to 5,117.00.

For the week, the Dow gained 0.6 percent, the S&P added 0.7 percent and the Nasdaq, which had closed at a record high on Thursday, rose 1.3 percent.

Utilities led the S&P 500 decline in percentage terms, down 1 percent as a group after gaining 2.7 percent over the previous three sessions.

A market debut fizzled, with shares of 8point3 Energy Partners down 2.4 percent at $20.49. It offered 20 million shares that priced at $21, the top-end of the filed range.

ConAgra Foods' shares jumped 10.9 percent to $43.37 after activist hedge fund Jana Partners took a stake in the company. ConAgra's peer Pinnacle Foods rallied 8.6 percent to $46.81 after earlier hitting a record high of $47.21.

Macerich slumped 6.8 percent to $76.87. Sources told Reuters Simon Property Group was selling its ownership stake in the No. 3 U.S. mall operator. Simon fell 1.3 percent to $179.48.

KB Home rose 9.4 percent to $16.37 after the homebuilder's quarterly results beat estimates.

Declining issues outnumbered advancing ones on the NYSE by 1,788 to 1,257, for a 1.42-to-1 ratio on the downside; on the Nasdaq, 1,557 issues fell and 1,254 advanced for a 1.24-to-1 ratio favoring decliners. The S&P 500 posted 29 new 52-week highs and 2 new lows; the Nasdaq recorded 161 new highs and 40 new lows.

About 7.9 billion shares changed hands on U.S. exchanges, above the 6.03 billion daily average so far this month, according to BATS Global Markets.

source: interaksyon.com

Wall Street little changed but S&P hits record

NEW YORK - U.S. stocks were little changed in thin trading on Monday as the S&P 500 notched its latest record high, but gains were curbed when an early rally in energy prices lost momentum.

Equities have trended to the upside of late, buoyed by data showing an improving economy and the U.S. Federal Reserve's commitment to be "patient" about raising interest rates. After the S&P 500 gained nearly 6 percent over the prior eight sessions, it notched its 53rd record close of the year on Monday.

The S&P energy index advanced 0.3 percent, pulling back from a gain of more than 1 percent as Brent and U.S. crude oil turned lower. Brent settled down $1.57 at $57.88 and U.S. crude settled down $1.12 at $53.61 a barrel.

In contrast to the fall in oil prices, consumer discretionary names were among the day's best performers, up 0.7 percent. General Motors rose 2.6 percent to $34.60. The S&P 500 retail sector rose 0.8 percent as Macy's Inc advanced 1.8 percent to $65.22 and Amazon.com was up 1 percent to $312.04.

"The nearer-term picture is, consumers are enjoying lower gas prices, it’s almost as if it is an alleviation of taxes," said Andre Bakhos, managing director at Janlyn Capital LLC in Bernardsville, New Jersey.

"Someone is getting hurt in this while the consumer is benefiting, and at some point it could come back to bite the market and the economy."

The Dow Jones industrial average fell 15.48 points, or 0.09 percent, to 18,038.23, the S&P 500 gained 1.8 points, or 0.09 percent, to 2,090.57 and the Nasdaq Composite added 0.05 points to 4,806.91.

The speed and scale of the rally could cap further upside, especially in the final trading week of the year, when many market participants are out on holiday and catalysts are limited. Volume is expected to remain light, which could exacerbate volatility. The stock market will be closed on Thursday for New Year's Day.

About 4.78 billion shares traded on U.S. exchanges on Monday, well below the 7.18 billion average this month, according to BATS Global Markets.

Gilead Sciences Inc rose 3.7 percent to $97.30 as one of the S&P 500's biggest percentage gainers after Morgan Stanley upgraded the stock to "overweight" from "equal-weight."

LiveDeal Inc jumped 19.1 percent to $3.92 on volume of 13.6 million shares, to dwarf its 50-day average of about 455,000 shares, after the company reported 2014 results.

NYSE advancing issues outnumbered decliners 1,800 to 1,299, for a 1.39-to-1 ratio; on the Nasdaq, 1,438 issues rose and 1,320 fell for a 1.09-to-1 ratio favoring advancers.

The S&P 500 posted 68 new 52-week highs and 5 new lows; the Nasdaq Composite recorded 160 new highs and 39 new lows.

source: interaksyon.com

Oil slump leads Wall Street to worst week in 2-1/2 years

NEW YORK - U.S. stocks fell sharply on Friday, leaving the benchmark S&P 500 with its worst weekly performance since May 2012, as investors pulled back from the markets in response to oil's free-fall and more weak data out of China.

Oil's declines have underscored concerns about global demand, and with the S&P 500 having hit a record high only last week, investors were loath to fight the downward pressure on stocks, which accelerated in the final minutes of trading. The S&P dropped 3.5 percent on the week after seven straight weeks of gains.

The S&P energy sector .SPNY was down 2.2 percent on the day. It is down 16.5 percent this year, the worst performing of 10 S&P sectors. Dow components Exxon Mobil and Chevron Corp both hit 52-week lows as U.S. crude oil fell below $58 a barrel, hitting five-year lows, on expectations of reduced worldwide energy demand.

"Certainly as midday came the market did not stabilize at all, so sellers knew that," said Kenny Polcari, director of the NYSE floor division at O’Neil Securities in New York. "Energy is at the top of the list in terms of the names getting crushed."

The Dow Jones industrial average fell 315.51 points, or 1.79 percent, to 17,280.83, the S&P 500 lost 33 points, or 1.62 percent, to 2,002.33 and the Nasdaq Composite dropped 54.57 points, or 1.16 percent, to 4,653.60.

Disappointing data that suggested China's economy softened in November pushed the materials sector  down 2.9 percent, making it the worst-performing S&P sector on the day.

The drop in oil and weakness in China overshadowed strong U.S. consumer sentiment, which hit an eight-year high.

Some investors hope declining gas prices will boost consumer spending enough to offset the energy sector's woes.

However, there is concern that rising volatility in the energy market will migrate to equities as investors worry about slack demand worldwide. The CBOE Volatility Index rose 5 percent to 21.08 on Friday as investors paid up to hedge against losses.

Polcari, however, noted that the S&P 500's declines came to within a whisper of the 50-day moving average at 2,000, where he expects to see buyers emerge next week.

Adobe Systems rose 9 percent to $76.02, making it the biggest gainer on the S&P 500 after it announced plans to buy stock photography company Fotolia, along with a stronger quarterly report.

Declining issues outnumbered advancing ones on the NYSE by 2,468 to 647, for a 3.81-to-1 ratio on the downside; on the Nasdaq, 1,949 issues fell and 790 advanced for a 2.47-to-1 ratio favoring decliners.

The broad S&P 500 index posted 15 new 52-week highs and 35 new lows; the Nasdaq Composite recorded 52 new highs and 160 new lows.

About 7.6 billion shares were traded on U.S. exchanges on Friday, compared to the 6.9 billion daily average so far this month, according to BATS Global Markets data.

source: interaksyon.com

China rate cut, European stimulus hints lift markets

NEW YORK - World stock markets and oil prices rallied on Friday, fueled by hopes for global growth after China rolled out a surprise interest rate cut and the European Central Bank indicated it would step up asset purchases to boost the euro zone economy.

The jump in oil prices took beaten-down Brent back above $80 a barrel. U.S. interest rates eased as the dollar gained, and the euro declined.

Wall Street's Dow Jones industrial average and the S&P 500 ended at new record highs, with each rising more than 1 percent on the week in the fifth straight week of gains for U.S. equities.

"This is a one-two punch for global growth," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

The Dow Jones rose 91.06 points, or 0.5 percent, to close at 17,810.06 on Friday. The S&P 500 gained 0.52 percent to 2,063.50 and the Nasdaq Composite added 0.24 percent to 4,712.97. The Nasdaq rose 0.5 percent for the week.

European shares, oil and other growth-sensitive commodities all leapt on China's move to cut rates to 5.6 percent, following recent data that showed its huge economy was heading for its worst year in almost a quarter of a century.

China's rate reductions were its first in more than two years. They came as ECB head Mario Draghi spoke of his determination to use more aggressive measures, such as large scale asset purchases, to ensure the euro zone does not slump into a new crisis.

Both the euro zone and China have lagged the momentum of the United States, stimulus-driven Japan and faster-growing Britain over the last month, but a ramping up of the ECB's rhetoric and Beijing's actions will stoke hopes of a turnaround.

Germany's DAX and France's CAC rose nearly 3 percent. The FTSE Eurofirst 300 added 2.1 percent.

The MSCI world equity index, which tracks shares in 45 nations, was up 0.76 percent.

The dollar index was up 0.82 percent, as the euro gave up more than 1 percent and was last at $1.2385.

The yen was up against the dollar. Japanese Finance Minister Taro Aso said on Friday the yen's fall over the past week was "too rapid." It was one of the strongest warnings against a weak yen since the aggressive stimulus efforts began two years ago, and saw the currency leap off a 7-year low to 117.72.

Benchmark 10-year U.S. Treasury notes were up 6/32 in price to yield 2.31 percent from 2.34 percent late Thursday.

The rate cut by China added to a positive mood among oil traders, many of whom expect the Organization of the Petroleum Exporting Countries to trim production at what looks to be a landmark meeting in Vienna on Nov. 27. Brent traded above $80 a barrel and was last up $1 to $80.35.

Copper and gold also got a lift, with the red metal up 0.50 percent. Spot gold climbed back over $1,200 and was last traded at $1,200.80 an ounce, ahead nearly $7, as traders cheered the prospect of more global stimuli.

source: interaksyon.com

Bonds rally, stocks fall as global economy fears mount

NEW YORK - Stocks took a pounding on Wednesday, although Wall Street managed to peddle back from its steepest lows, and safe-haven government debt prices rose after U.S. and Chinese inflation data fanned worries about a global slowdown.

A key gauge of Wall Street anxiety hit its highest level since November 2011 as investors rushed to buy protection against further losses, and options activity surged as investors reevaluated their strategies in light of the latest signs that the global economy may be losing its footing.

The S&P 500 fell as much as 3 percent, briefly turning negative for the year, while European equities finished 3.2 percent lower and marked their biggest one-day slide in almost four years.

Popular trades that have worked for most of the year, including heavy bets on the dollar, more gains in stocks, and on an eventual rise in yields, are unraveling.

A fall in China's inflation rate to a five-year low and a decline in U.S. producer prices for the first time in over a year were worrisome signs to investors already skittish about the path of the global economy and caused them to reassess their views on when the U.S. Federal Reserve might hike interest rates.

"There's concern about an absence of aggregate demand in the world, and that's really what's weakening the market. The big fear out right now is we're not immune from that," said David Joy, chief market strategist at Ameriprise Financial in Boston.

"If you look at the lows of the day, maybe we've put in a little bit of a trading bottom here. But I don't think it makes these concerns go away."

The latest news on the spread of Ebola added to a climate of fear, with Texas officials reporting that another healthcare worker in Dallas tested positive for the deadly virus. Almost 4,500 people have died of the disease, mostly in West Africa.

An MSCI gauge of stocks in major markets was down 1 percent. The CBOE Volatility Index closed at 26.25, up 15.2 percent, after earlier hitting 31.06, the highest level since November 2011.

The Dow Jones industrial average fell 173.45 points, or 1.06 percent, to 16,141.74, the S&P 500 lost 15.21 points, or 0.81 percent, to 1,862.49, and the Nasdaq Composite dropped 11.85 points, or 0.28 percent, to 4,215.32.

Trading volume in the options market was the busiest of the year, according to Trade Alert data, while equities volume on Wall Street was near 12 billion shares, a nearly 50 percent increase from the average daily volume so far this month.

It was also the heaviest trading day for on-the-run 10-year Treasury note contracts since May 2008.

Bonds rally, oil falls further

Flight from risk resulted in a massive rally in U.S. Treasuries, pushing the benchmark 10-year note's yield as low as 1.865 percent, its lowest level since May 2013.

Benchmark yields retraced a large part of the downward move in late trading, but ended lower on the day, with prices up 22/32 to yield 2.1288 percent, compared with 2.206 percent in late trading on Tuesday.

Ten-year Bund yields hit a record low of 0.719 percent before edging up to 0.757 percent.

Rate futures now show the market does not expect the Fed to raise rates until early 2016, a dramatic change from a few weeks ago, which could keep downward pressure on yields.

"Everyone's animal spirit is dead. This is a pretty dramatic move when everyone was expecting higher rates," said George Goncalves, head of U.S. interest rates strategy at Nomura Securities International in New York. "It's all about capital preservation at this point. All the crowded trades are being tested, which is why I’m not sure this is over."

The spread of high-yield corporate bond spreads over the benchmark U.S. Treasuries, which represents the premium paid to investors to compensate for the risky corporate debt, rose to match the high hit in September 2013, at 483 basis points. The spread had bottomed at 335 bps in June.

A repricing of Fed expectations fueled a selloff in the dollar, which has been rising recently on bets on policy tightening at the Fed while other central banks continue easing.

The soft data "paired with the decline in Treasury yields and declines in energy prices, are all raising concern regarding the timing of the Fed's next move," said Sireen Harajli, currency strategist at Mizuho Corporate Bank in New York.

Although U.S. September retail sales had been expected to decline, the weakness was surprising because it was broad-based.

The euro rose 1.4 percent against the dollar at $1.2836, just below a three-week high of $1.2885 hit earlier. The greenback lost 1 percent against the yen at 105.93.

Spot gold prices rose 0.7 percent, up for the sixth time in the last eight sessions with the help of the weaker dollar, but copper prices tumbled 2.3 percent.

The crude trampling

Brent and U.S. crude futures fell, a day after posting their biggest daily drop in years, with more production, less demand and deflation expectations weighing heavily.

Brent lost 2 percent to $83.36 a barrel while U.S. crude fell 1 percent to $81.02.

Emerging markets were also hit with a fall in Russia's rouble to its weakest level on record, while Russian government 10-year yields hovered near a five-year high, and shares in Moscow closed near a seven-month low hit last week.

source: interaksyon.com

US stocks tumble on news of Malaysia Airlines crash

NEW YORK - US stocks fell sharply Thursday following reports that a Malaysia Airlines passenger plane crashed over Ukraine and that it may have been shot down.

At 1604 GMT, the Dow Jones Industrial Average dropped 82.31 (0.48 percent) to 17,055.89.

The broad-based S&P 500 slumped 14.40 (0.73 percent) to 1,967.17, while the tech-rich Nasdaq Composite Index tumbled 42.87 (0.97 percent) to 4,383.10.

Prior to the reports of the crash, US stocks were modestly lower.

But all three indices moved decisively lower as reports of the crash spread and were followed by statements by Malaysia Airlines that it lost contact with the plane and by the Ukrainian president, who said the plane may have been shot down.

Briefing.com said the drop in US equities coincided with a shift in money to gold, Treasuries and other lower-risk assets.

"The flight to safety occurred following reports from Ukraine indicating a Malaysian passenger jet from Amsterdam to Kuala Lumpur has crashed near the border with Russia," Briefing said in a note at 1530 GMT.

"At this time, the cause of the crash remains unknown."

source: interaksyon.com

World equity indexes up on US data, gold slumps

NEW YORK - World equity markets rallied on Tuesday, with the S&P 500 ending at a new record following strong US economic data, while the euro softened against the dollar on expectations of more rate cuts from the European Central Bank.

Stronger-than-expected figures pressured safe-haven assets, including gold, which touched a 3-1/2 month low. Platinum also fell after South Africa's mining minister pledged to mediate in a long-running strike.

Wall Street was led by gains in financials, utilities and tech stocks. Data showed orders for long-lasting US manufactured goods unexpectedly rose in April while US single-family home prices also rose in March, beating expectations.

"People move out of one sector and into a different equity sector - there's always a sector picking up the slack, so that’s driving you higher," said Dennis Dick, proprietary trader at Bright Trading LLC in Las Vegas. "People don't want to be out of equities."

The Dow Jones industrial average rose 69.23 points, or 0.42 percent, to 16,675.5, the S&P 500 gained 11.38 points, or 0.6 percent, to 1,911.91 and the Nasdaq Composite added 51.26 points, or 1.22 percent, to 4,237.07.

ECB chief Mario Draghi on Monday bolstered views that the bank will cut euro zone interest rates again next week, boosting appetite for risky assets. Other policymakers, including Austrian ECB board member Ewald Nowotny, drove home the message on Tuesday.

MSCI's all-world share index rose 0.2 percent to within two percentage points of its 2007 record.

Investors kept a wary eye on Ukraine, which launched air strikes and a paratroop assault against pro-Russian rebels who seized an airport on Monday. The escalation was tempered by a decisive win for billionaire Petro Poroshenko in Ukraine's weekend presidential election, which many hope will help stabilise the situation.

U.S. Treasury prices inched lower. The 10-year note fell 3/32 in price to yield 2.522 percent. The 30-year bond rose 19/32 to drop its yield to 3.365 percent, but light volume and the presence of month-end buying reduced the significance of the move.

The euro lost ground against the greenback on the better-than-expected U.S. data. The euro fell 0.1 percent to $1.3635, nearly touching Monday's three-month low of $1.3614. The dollar index slipped 0.05 percent.

Gold slumps

Spot gold fell 1.9 percent at $1,264.80 an ounce, its worst daily loss in two months. U.S. gold futures dropped 2 percent to $1,265.40 an ounce.

Platinum fell 1 percent to $1,456.20 after South Africa's mining minister pledged to mediate in a strike now in its fifth month. The metal reached its highest since September at $1,493.90 last week.

Global oil prices fell. Brent was down 26 cents at $111.06 a barrel and U.S. light crude oil was down 22 cents at $104.13.

source: interaksyon.com

Asian shares on defensive, hoping for China stimulus plan

TOKYO - Asian shares were in a defensive mode on Tuesday after Wall Street fell overnight, though still-vague hopes of a new stimulus plan in China could improve investor sentiment.

U.S. Treasuries prices fell, with the benchmark two-year yield hitting a six-month high as investors grew nervous that the Federal Reserve may raise interest rates sooner than expected. Bond yields rise when prices fall.

MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.1 percent as Australian shares fell 0.5 percent, while Japan's Nikkei dropped 0.5 percent.

On Wall Street, the Nasdaq Composite Index led the losses with a fall of 1.2 percent to five-week low, as investors took some money off recent top performers such as biotech shares. The S&P500 Index fell 0.5 percent to 1,857.44.

Concerns over Ukraine and soft U.S. manufacturing were cited as possible catalyst, though market players noted the selling could also reflect unwinding of positions ahead of the quarter-end.

The survey on U.S. manufacturing by financial data firm Markit also showed U.S. manufacturing activity slowed in March.

U.S. President Barack Obama and major industrialized allies warned Russia on Monday it faces additional economic sanctions if President Vladimir Putin takes further action to destabilize Ukraine following the seizure of Crimea.

"In short, there's nowhere to put money at this point. Investors are generally upbeat on the U.S. but they want to see more evidence that the weakness in some of the recent data is due to a bad weather," said Tohru Yamamoto, chief fixed income strategist at Daiwa Securities.

Yet short-term U.S. bond prices are under pressure after Federal Reserve Chair Janet Yellen said the Fed could raise rates six months after its current bond-buying program ends - potentially as soon as spring 2015.

Even as the U.S. 30-year yield fell to 3.56 percent, near this year's low of 3.525 percent, short-dated debt yields moved in the opposite direction, flattening the yield curve sharply.

The U.S. two-year yield shot to six-month high of 0.4655 percent also due in part to caution over the two-year debt sale on Tuesday, the first leg of U.S. government issuance this week totaling $96 billion.

Rising U.S. short-term rates were undermining the attraction of precious metals, with gold was fetching $1,308.91 per ounce, close to Monday's near one-month low of $1,307.54.

Silver tumbled to a six-week low of $19.84 and last stood at $19.89.

In contrast, emerging markets were generally resilient after weak Chinese manufacturing data on Monday sparked expectations the Chinese government could unveil stimulus measures following Monday's weak survey of manufacturing.

source: interaksyon.com

Dollar, global stocks rise as U.S. jobs data boosts taper talk

NEW YORK - Global equity markets surged and the dollar rose against the yen on Friday after stronger-than-expected U.S. jobs data gave investors confidence the economy is strong enough to withstand an expected reduction in Federal Reserve stimulus.

The Labor Department's monthly report on the main U.S. employment indicator -- nonfarm payrolls -- bolstered the view that the jobs market in the world's biggest economy is on the mend and that the Fed will soon begin reducing its stimulus.

The debate over when the Fed will start to reduce the flow of cheap money has dominated markets worldwide for months.

A total of 203,000 jobs were added in November, beating expectations for 180,000, while the unemployment rate dropped three-tenths of a percentage point to a five-year low of 7 percent.

The dollar jumped to session highs against the yen and stocks on Wall Street surged, with the Nasdaq setting a record intraday high for the year and the Dow and S&P rising more than 1 percent.

"I don't think the Fed is in a big rush to do anything drastic in the absence of inflation. A few strong jobs numbers do not mean we are out of the woods," said Michael Marrale, head of research, sales and trading at ITG in New York.

"That said, we are in a very good spot and we can offset growth with tapering and we come out of this in one piece."

Tom Porcelli, chief U.S. economist at RBC Capital Markets in New York, said that rising incomes stand out as even more important than the job gains.

"Wages are strongly driving consumption in this cycle more than any other time. Overall wage gains were the most compelling news in this data," Porcelli said.

The dollar index, which tracks the greenback versus a basket of six currencies, rose 0.05 percent to 80.277.

Against the yen, the dollar was last up 1.06 percent at 102.86 yen. The dollar's gains versus the euro were short-lived, as the euro zone common currency was boosted by rising short-term interest rates a day after the European Central Bank dampened hopes for an imminent easing move.

The euro was up 0.25 percent against the dollar to $1.3701.

Other data also was bullish for stocks. Consumer spending increased 0.3 percent in October, or one-tenth of a percentage point more than expected, after rising 0.2 percent in September.

The Thomson Reuters/University of Michigan's preliminary reading on the overall index on consumer sentiment jumped to 82.5 for December, up from a final reading of 75.1 in November. This was the highest reading for the index since July and topped analysts' forecasts for a reading of 76.

MSCI's all-country world equity index, which tracks shares in 45 nations, rose 0.81 percent, while the pan-European FTSEurofirst 300 index gained 0.72 percent to close at 1,270.38.

The Dow Jones industrial average rose 198.69 points, or 1.26 percent, to 16,020.2. The S&P 500 gained 20.06 points, or 1.12 percent, to 1,805.09 and the Nasdaq Composite added 29.356 points, or 0.73 percent, to 4,062.521.

U.S. Treasury yields, a benchmark for borrowing costs around the world, briefly climbed above 2.9 percent, and later the 10-year note was up 2/32 in price to yield 2.8553 percent.

Bund futures settled up 22 ticks at 140.11 euros.

U.S. gold futures for February delivery underperformed spot prices, to settle down $2.90 at $1,229.

Brent crude settled up 0.63 percent at $111.61 a barrel. U.S. crude settled up 27 cents at $97.65 a barrel.

source: interaksyon.com

S&P 500 ends at record high on Fed hopes

NEW YORK - The S&P 500 closed at another record high on Monday as expectations were high that the Federal Reserve will keep its stimulus in place when it meets this week.



But the overall market was little changed, with the Dow and Nasdaq ending down slightly, after the recent sharp run-up in the stock market lost some momentum.



The S&P 500 has risen 6.4 percent since October 8, when it hit its lowest point during the U.S. government's partial shutdown and the debate over raising the debt ceiling. The benchmark index is up 23.6 percent for the year so far.

Relief over the end of the political impasse and investor expectations that the Fed will keep stimulus measures in place for at least several months because of the 16-day shutdown have propped up prices. Fed policymakers will meet on Tuesday and Wednesday.



"I would like to say it's all about people waiting for the Fed, but I don't know what they're waiting for because I don't expect any change in Fed policy this week, given the fact they pointed out repeatedly the fiscal issues they're cognizant of," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.



"My concern with the market at this level is that without signs eliciting some evidence the economy is actually strengthening from the pace we've had, the multiple expansion doesn't seem rational."



Shares of Apple Inc rose 0.7 percent to $529.88 ahead of the release of its earnings, expected after the bell. While Apple's advance helped the S&P 500, the consumer staples sector index .SPLRCS, up 1.2 percent, gave the S&P its biggest boost.



A number of traders appeared to be picking up call options on the Consumer Staples Select Sector SPDR fund, which rose 1.3 percent, on hopes that the sector will continue to perform well through the end of the year.



The Dow Jones industrial average dipped 1.35 points, or 0.01 percent, to end at 15,568.93. The Standard & Poor's 500 Index gained 2.34 points, or 0.13 percent, to finish at a record 1,762.11. The S&P 500 also posted another lifetime intraday high at 1,764.99.


The Nasdaq Composite Index slipped 3.23 points, or 0.08 percent, to close at 3,940.13.

In extended-hours trading, Apple's shares were flat after recovering from a 5 percent drop following the tech bellwether's results. Wall Street had hoped for a stronger beat on quarterly sales after the iPhone maker predicted in September that its revenue and margins would come in at the high end of its own forecasts.

Apple's stock price has climbed 8.8 percent since the end of August.

Among the latest signs that the economy's momentum may be easing, U.S. manufacturing output barely rose in September and contracts to buy previously owned homes recorded their largest drop in nearly 3-1/2 years, according to economic data released on Monday.

On the down side, Dow component Merck & Co fell 2.6 percent to $45.35 and was one of the biggest drags on the Dow after the company reported a decline in sales of its Januvia diabetes treatment, raising concerns about growth prospects for its biggest product.

Biogen Idec posted a rise in its third-quarter profit and boosted its full-year earnings and revenue outlook, sending the U.S. biotech company's stock up 0.9 percent to $254.43.

Based on Thomson Reuters data through Monday morning, S&P 500 earnings are expected to have risen just 3.4 percent in the third quarter over the year-ago period.

Of the 249 companies in the S&P 500 that have reported earnings so far, 69.1 percent beat analysts' expectations, above both the 63 percent beat rate since 1994 and the 66 percent rate for the past four quarters.


Revenue has been lackluster, however, with growth seen at 2.2 percent for the quarter. Just 53.9 percent have beaten sales estimates, below the 61 percent rate since 2002, but above the 49 percent rate for the past four quarters.

On the acquisition front, Mosaic Co agreed to buy CF Industries Holdings Inc's phosphate mining and manufacturing business for $1.2 billion in cash. Shares of CF climbed 4.2 percent to $218.36 while Mosaic gained 1.6 percent to $46.67.

source: interaksyon.com

Dow, S&P 500 end modestly higher on hopeful signs in fiscal impasse

NEW YORK - The Dow and S&P 500 rose on Wednesday as Republicans and Democrats in Congress showed early signs of a possible break in the impasse, and U.S. President Barack Obama invited both sides for talks about ending the government shutdown, now in its ninth day.



Wall Street rebounded in the afternoon after the Nasdaq fell as much as 1 percent, with defensive sectors such as telecommunications and utilities rising on the day.



The Nasdaq, however, closed lower for a third day, pressured as investors sold this year's winning tech stocks including Netflix Inc and Fastenal Co.



"With the uncertainty over the government shutdown and the shaving away of the GDP each day, unfortunately, some investors will start selling these things that were good for the year rather than pulling off the laggards. And tech has been performing very highly," said Michael Matousek, head trader at U.S. Global Investors in San Antonio, Texas.



In the latest Washington developments, Republicans and Democrats floated the possibility of a short-term increase in the debt limit to allow time for broader negotiations on the budget.



At the same time, Obama began inviting lawmakers from both parties to the White House for meetings to discuss the government shutdown and raising the debt limit.



The slight shift in tone was aided by a column by House Budget Committee Chairman Paul Ryan of Wisconsin, who urged a negotiated end to the stalemate but did not mention Republican demands for linking changes in the federal healthcare law with government funding.



The market was also relieved that Obama nominated Federal Reserve Vice Chairwoman Janet Yellen to run the world's most influential central bank, providing some relief to markets that would expect her to tread carefully in winding down economic stimulus.



Yellen, an advocate for aggressive action to stimulate U.S. economic growth through low interest rates and large-scale bond purchases, would succeed Fed chairman Ben Bernanke, whose second term ends on January 31.



The Dow Jones industrial average ended up 26.45 points, or 0.18 percent, at 14,802.98. The Standard & Poor's 500 Index rose 0.95 point, or 0.06 percent, at 1,656.40. The Nasdaq Composite Index was down 17.06 points, or 0.46 percent, at 3,677.78.



The CBOE Volatility Index, a measure of investor anxiety, continued to rise, hitting 21.34, before retreating to 19.60. A level above 20 is generally associated with increasing concern about the near-term direction of the market.



A poll by Reuters showed Wall Street strategists expect the market to rebound toward the end of the year.



The S&P 500 dropped 1.2 percent on Tuesday, its worst decline since August 27, sending the benchmark index to its lowest level since September 6 as traders cashed in gains in some of the year's highest performing tech stocks.



The Federal Reserve's shock decision last month not to reduce its support for the U.S. economy was a "relatively close call" for policymakers, according to minutes of the meeting that also suggested there was still broad support to trim bond-buying this year. Since last month's meeting, the outlook for scaling back bond purchases has grown cloudier.



"Between slow growth and the shutdown, it's clear we're in troubled times. I wouldn't expect any tapering for quarters from now," said Todd Schoenberger, managing partner at LandColt Capital in New York.



In company news, Darden Restaurants Inc shares jumped 7.1 percent to $49.57 after the Wall Street Journal, reported hedge fund Barington Capital LP had taken a 2.8 percent stake in the owner of the Olive Garden and Red Lobster restaurants.



Shares of Hewlett-Packard Co rallied nearly 9 percent to $22.60 after Chief Executive Meg Whitman said she expects revenue to stabilize in 2014 with "pockets of growth" before the business accelerates again in 2015.



Yum! Brands Inc fell 6.8 percent to $66.48 after the KFC parent warned it will take longer than expected for restaurant sales to rebound in China, which accounts for more than half the company's overall operating profit.



Volume was light, with about 5.9 billion shares changing hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average so far this year of about 6.1 billion shares.

source: interaksyon.com