Stocks closed higher in moderate trading as investors continued to keep a close eye on events in Europe and geared up for the start of fourth-quarter corporate earnings announcements. Angela Merkel and Nicolas Sarkozy said that progress has been made on a proposed intergovernmental pact to increase fiscal discipline across the eurozone, which could be signed ahead of the Jan. 30 EU summit and go into effect as early as March. Meanwhile, yields on 10-year Italian bonds reached 7.16%, after the government announced plans to sell €8.5 worth of 12-month bills Thursday. Tech stocks also edged up boosted by gains in semiconductors and networking stocks which got a lift from a Deutsche Bank upgrade and upbeat reviews from Stifel Nicolaus. Also Netflix jumped 13.8% after hedge fund manager Whitney Tilson told CNBC that he considers the digital media company a potential buyout target. Google was off 4.2% after Stifel Nicolaus trimmed revenue and earnings estimates for the co. citing “weakness in end demand from key European territories may depress overall growth rates.” After the close Alcoa said its disappointing fourth-quarter results reflected weak demand, especially in Europe, but forecasted a 7% increase in global aluminum demand and a global deficit in primary aluminum supply in 2012. Implied volatility inched higher in light trading.
Tuesday, January 10, 2012
Edged higher on profit hopes
Stocks closed higher in moderate trading as investors continued to keep a close eye on events in Europe and geared up for the start of fourth-quarter corporate earnings announcements. Angela Merkel and Nicolas Sarkozy said that progress has been made on a proposed intergovernmental pact to increase fiscal discipline across the eurozone, which could be signed ahead of the Jan. 30 EU summit and go into effect as early as March. Meanwhile, yields on 10-year Italian bonds reached 7.16%, after the government announced plans to sell €8.5 worth of 12-month bills Thursday. Tech stocks also edged up boosted by gains in semiconductors and networking stocks which got a lift from a Deutsche Bank upgrade and upbeat reviews from Stifel Nicolaus. Also Netflix jumped 13.8% after hedge fund manager Whitney Tilson told CNBC that he considers the digital media company a potential buyout target. Google was off 4.2% after Stifel Nicolaus trimmed revenue and earnings estimates for the co. citing “weakness in end demand from key European territories may depress overall growth rates.” After the close Alcoa said its disappointing fourth-quarter results reflected weak demand, especially in Europe, but forecasted a 7% increase in global aluminum demand and a global deficit in primary aluminum supply in 2012. Implied volatility inched higher in light trading.
