Stocks closed higher, lifting the Nasdaq Composite back into the black for the week, after the European Central Bank said it would take further steps to ease loan collateral for banks. Facebook rose 3.8% to close after Nomura Equity Research initiated coverage of the social-networker with a buy rating and $40 price target. Zynga, which depends on Facebook for the majority of its revenue, gained 4.8%. Also, Electronic Arts added 2.2% after Citigroup cut its rating to neutral from buy, citing “limited” catalysts for EA’s stock. EA also said that DreamWorks acquired the movie rights to EA’s “Need For Speed” racing-game franchise. The global economy will be in focus next week as concerns over Spain's banking system continue to fuel investor anxiety. Eurozone leaders announced that they agreed on a set of growth-enhancing policies equal to about €125 billion, or 1% of eurozone GDP, ahead of a key two-day summit for European Union leaders, which will bring together the leaders of all 27 members of the EU. Also, investors will monitor U.S. data, including the Case-Shiller home-price index for April, consumer-confidence figures for June, May durable-goods orders, pending home-sales figures, weekly jobless claims, first-quarter GDP figures, the Chicago PMI and UMich consumer-sentiment gauge for June. Also, Google will hold its annual developers conference in San Francisco on Wednesday, the co. is rumored to be working on its own tablet. Implied volatility inched below the 17.5 level on light trading volumes.
Monday, June 25, 2012
Europe to remain in focus
Stocks closed higher, lifting the Nasdaq Composite back into the black for the week, after the European Central Bank said it would take further steps to ease loan collateral for banks. Facebook rose 3.8% to close after Nomura Equity Research initiated coverage of the social-networker with a buy rating and $40 price target. Zynga, which depends on Facebook for the majority of its revenue, gained 4.8%. Also, Electronic Arts added 2.2% after Citigroup cut its rating to neutral from buy, citing “limited” catalysts for EA’s stock. EA also said that DreamWorks acquired the movie rights to EA’s “Need For Speed” racing-game franchise. The global economy will be in focus next week as concerns over Spain's banking system continue to fuel investor anxiety. Eurozone leaders announced that they agreed on a set of growth-enhancing policies equal to about €125 billion, or 1% of eurozone GDP, ahead of a key two-day summit for European Union leaders, which will bring together the leaders of all 27 members of the EU. Also, investors will monitor U.S. data, including the Case-Shiller home-price index for April, consumer-confidence figures for June, May durable-goods orders, pending home-sales figures, weekly jobless claims, first-quarter GDP figures, the Chicago PMI and UMich consumer-sentiment gauge for June. Also, Google will hold its annual developers conference in San Francisco on Wednesday, the co. is rumored to be working on its own tablet. Implied volatility inched below the 17.5 level on light trading volumes.
