Wednesday, October 12, 2011
NEW YORK (AP) -- Stock futures are rising on hopes that a solution will be
found to expand Europe's financial rescue program.
Slovakia rejected a bill Tuesday that would have increased the powers of the regional rescue fund. The 16 other countries that use the euro have already signed off on the bill, but the measure requires unanimous support. Still, there are ways around Slovakia's opposition, and investors expect the bill to ultimately pass before a meeting of European leaders next week.
About 90 minutes before the opening bell Wednesday, Dow Jones industrial average futures are up 86 points, or 0.8 percent, at 11,416. Standard & Poor's 500 index futures are up 8, or 0.7 percent, at 1,198. Nasdaq 100 index futures are up 21, or 0.9 percent, at 2,310.
Slovakia rejected a bill Tuesday that would have increased the powers of the regional rescue fund. The 16 other countries that use the euro have already signed off on the bill, but the measure requires unanimous support. Still, there are ways around Slovakia's opposition, and investors expect the bill to ultimately pass before a meeting of European leaders next week.
About 90 minutes before the opening bell Wednesday, Dow Jones industrial average futures are up 86 points, or 0.8 percent, at 11,416. Standard & Poor's 500 index futures are up 8, or 0.7 percent, at 1,198. Nasdaq 100 index futures are up 21, or 0.9 percent, at 2,310.
Tuesday, October 11, 2011
BANGKOK (AP) -- Asian stocks opened lower Wednesday after Slovakia blocked a
measure to expand Europe's financial rescue program for heavily indebted
countries.
The move sent markets south as worries intensified that a failure by Europe to contain its debt crisis could lead to a massive debt default by the Greek government.
Japan's Nikkei 225 index dropped 0.7 percent to 8,716.13. South Korea's Kospi fell 0.3 percent to 1,790.30, while Hong Kong's Hang Seng fell 1.4 percent to 17,894.31. Benchmarks in Australia, Taiwan, Singapore and mainland China were also lower.
Slovakia's parliament rejected a bill Tuesday that would have strengthened the powers of a regional rescue fund to help bail out strapped economies in the eurozone.
The 16 other countries that use the euro have already signed off on the bill, but the measure requires unanimous support.
There are ways around Slovakia's opposition, but the move temporarily sets back efforts to address Europe's debt jam, which has been the most important issue for financial markets for months.
Greece has been on the brink of defaulting on its debt for months. If that happens, it would hurt European and U.S. banks by decimating the value of Greek government bonds they own. Those banks would then be less likely to lend to each other and to businesses. That could plug up an already weak global economy, with implications for everything from bank stocks to international trade.
The decision came after U.S. stock markets closed. The Dow Jones industrial average ended down 17 points after moving between small gains and losses throughout the day.
The Dow lost 0.1 percent to close at 11,416.3. The Standard & Poor's 500 index rose 0.1 percent to 1,195.54, and the Nasdaq composite rose 0.7 percent to 2,583.03.
Many market watchers think the volatility will continue until heavily indebted countries like Greece, Spain and Italy have established a clear path out of their current debt mess.
The move sent markets south as worries intensified that a failure by Europe to contain its debt crisis could lead to a massive debt default by the Greek government.
Japan's Nikkei 225 index dropped 0.7 percent to 8,716.13. South Korea's Kospi fell 0.3 percent to 1,790.30, while Hong Kong's Hang Seng fell 1.4 percent to 17,894.31. Benchmarks in Australia, Taiwan, Singapore and mainland China were also lower.
Slovakia's parliament rejected a bill Tuesday that would have strengthened the powers of a regional rescue fund to help bail out strapped economies in the eurozone.
The 16 other countries that use the euro have already signed off on the bill, but the measure requires unanimous support.
There are ways around Slovakia's opposition, but the move temporarily sets back efforts to address Europe's debt jam, which has been the most important issue for financial markets for months.
Greece has been on the brink of defaulting on its debt for months. If that happens, it would hurt European and U.S. banks by decimating the value of Greek government bonds they own. Those banks would then be less likely to lend to each other and to businesses. That could plug up an already weak global economy, with implications for everything from bank stocks to international trade.
The decision came after U.S. stock markets closed. The Dow Jones industrial average ended down 17 points after moving between small gains and losses throughout the day.
The Dow lost 0.1 percent to close at 11,416.3. The Standard & Poor's 500 index rose 0.1 percent to 1,195.54, and the Nasdaq composite rose 0.7 percent to 2,583.03.
Many market watchers think the volatility will continue until heavily indebted countries like Greece, Spain and Italy have established a clear path out of their current debt mess.
Monday, October 10, 2011
Reuters) - Stocks jumped 3 percent on Monday, extending gains into a second week
as a pledge by German and French leaders boosted hopes that the euro-zone debt
crisis may be resolved.
The gains lifted the S&P 500 above its 50-day moving average for the first time since late July, a bullish technical signal. The S&P 500 is now up about 11 percent since its low on Tuesday, when it briefly fell into bear-market territory.
Financials, the most beaten-down stocks during the recent slide, led the rally. The KBW bank index jumped 5.3 percent, with JPMorgan Chase & Co up 5.2 percent at $32.30 and Bank of America up 6.4 percent at $6.28.
The gains, however, came on the second-lightest day of trading since July and may not be indicative of a long-term trend. The advance has been driven by short-covering and managers buying stocks as they try to catch up to the sharp rally built on headlines out of Europe.
"There's basically a rally coming off deeply oversold levels," said Fred Dickson, chief market strategist at The Davidson Cos. in Lake Oswego, Oregon.
"What's happening is traders are shorting the dollar, and using funds there, and piling into risk-based assets," including equities, he said. The euro, with which the S&P 500 has had a strong correlation, rose the most in 15 months against the dollar.
German Chancellor Angela Merkel and French President Nicolas Sarkozy promised on Sunday to unveil a comprehensive new package to ease the euro zone's debt crisis.
Earnings season is set to begin with Alcoa's report tomorrow after the closing bell and will likely become a driver for stocks in coming weeks.
The Dow Jones industrial average surged 330.06 points, or 2.97 percent, to end at 11,433.18. The Standard & Poor's 500 Index climbed 39.43 points, or 3.41 percent, to 1,194.89. The Nasdaq Composite Index shot up 86.70 points, or 3.50 percent, to close at 2,566.05.
The S&P 500's next resistance levels are 1,200 and 1,230.
Adding to optimism that there may be a resolution of the euro zone's problems, a move to nationalize Franco-Belgian bank Dexia was seen as an indication that governments would step in and keep large lenders from failing.
The energy and materials sectors also ranked among the day's strongest-performing sectors, while the Dow Jones Transportation Average gained 3.9 percent. Tech provided another source of strength, with the Philadelphia semiconductor index up 2.8 percent.
The materials and energy sectors are forecast to have had the highest earnings growth rates for the third quarter, Thomson Reuters data showed. Shares of aluminum company Alcoa, which is one of the 30 Dow industrials, jumped 3.9 percent to $10.09.
Volume was lighter than average, possibly affected by the U.S. Columbus Day holiday. Government offices and the Treasury bond market were closed for the holiday.
About 6.82 billion shares were traded on the New York Stock Exchange, NYSE Amex and Nasdaq for the day, below the year's daily average so far of 8.03 billion.
Advancing stocks outnumbered declining ones on the NYSE by a ratio of nearly 11 to 1, while on the Nasdaq, advancers beat decliners by nearly 5 to 1.
The gains lifted the S&P 500 above its 50-day moving average for the first time since late July, a bullish technical signal. The S&P 500 is now up about 11 percent since its low on Tuesday, when it briefly fell into bear-market territory.
Financials, the most beaten-down stocks during the recent slide, led the rally. The KBW bank index jumped 5.3 percent, with JPMorgan Chase & Co up 5.2 percent at $32.30 and Bank of America up 6.4 percent at $6.28.
The gains, however, came on the second-lightest day of trading since July and may not be indicative of a long-term trend. The advance has been driven by short-covering and managers buying stocks as they try to catch up to the sharp rally built on headlines out of Europe.
"There's basically a rally coming off deeply oversold levels," said Fred Dickson, chief market strategist at The Davidson Cos. in Lake Oswego, Oregon.
"What's happening is traders are shorting the dollar, and using funds there, and piling into risk-based assets," including equities, he said. The euro, with which the S&P 500 has had a strong correlation, rose the most in 15 months against the dollar.
German Chancellor Angela Merkel and French President Nicolas Sarkozy promised on Sunday to unveil a comprehensive new package to ease the euro zone's debt crisis.
Earnings season is set to begin with Alcoa's report tomorrow after the closing bell and will likely become a driver for stocks in coming weeks.
The Dow Jones industrial average surged 330.06 points, or 2.97 percent, to end at 11,433.18. The Standard & Poor's 500 Index climbed 39.43 points, or 3.41 percent, to 1,194.89. The Nasdaq Composite Index shot up 86.70 points, or 3.50 percent, to close at 2,566.05.
The S&P 500's next resistance levels are 1,200 and 1,230.
Adding to optimism that there may be a resolution of the euro zone's problems, a move to nationalize Franco-Belgian bank Dexia was seen as an indication that governments would step in and keep large lenders from failing.
The energy and materials sectors also ranked among the day's strongest-performing sectors, while the Dow Jones Transportation Average gained 3.9 percent. Tech provided another source of strength, with the Philadelphia semiconductor index up 2.8 percent.
The materials and energy sectors are forecast to have had the highest earnings growth rates for the third quarter, Thomson Reuters data showed. Shares of aluminum company Alcoa, which is one of the 30 Dow industrials, jumped 3.9 percent to $10.09.
Volume was lighter than average, possibly affected by the U.S. Columbus Day holiday. Government offices and the Treasury bond market were closed for the holiday.
About 6.82 billion shares were traded on the New York Stock Exchange, NYSE Amex and Nasdaq for the day, below the year's daily average so far of 8.03 billion.
Advancing stocks outnumbered declining ones on the NYSE by a ratio of nearly 11 to 1, while on the Nasdaq, advancers beat decliners by nearly 5 to 1.
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