Stocks rallied, encouraged by economic data from Germany and China, in the absence of U.S. economic data. Germany’s Ifo business-climate index rose to 101.4 in November from 100 in October, beating expectations for a decline. The HSBC PMI showed that China’s manufacturing sector expanded in November for the first time in 13 months, indicating that growth will pick up in the fourth quarter. Wal-Mart and Target gained 1.9% and 1.2% respectively on Black Friday sale’s hopes. Tech stocks outperformed with Research In Motion soaring 13.7% after an analyst for National Bank in Toronto raised his price target to $15 from $12, reflecting an increased shipment target for the new BlackBerry 10 smartphone handsets expected to launch in February. Solid gains also came from Hewlett-Packard, Microsoft, Cisco, Intel and Dell. In the coming week investors will focus on Congress negotiations on fiscal cliff. Also, data on durable-goods orders for October, FHFA home-price index and Case-Shiller home price index for September, November consumer-confidence data, Fed’s Beige Book, Q3 GDP revision and new-home sales data are due. Euro-zone finance ministers resume talks with the IMF on conditions for giving Greece its next installment of 31.5 billion euros. Implied volatility inched lower on light trading volumes.
