US midday: Wall Street follows Europe higher

Date: Wednesday 06 Jun 2012

- US stocks up on ECB comments
- Third straight day of gains

Dow: +1.74%
S&P 500: +1.81%
NASDAQ: +2.07%

US stocks took their cue from Europe as comments from the President of the European Central Bank implied it may provide stimulus to the faltering Eurozone economy, sooner or later. In fact, at least at first glance the central bank seems to have given markets at least as much as was expected, although less than what some were clamouring for.

Mario Draghi told reporters: “We monitor all developments closely and we stand ready to act”. His words came on the same day the ECB decided to leave Eurozone interest rates on hold at 1%, the lowest since the beginning of the single currency.

In Brussels today the European Commission published proposals on more coordinated rules for banks operating within the euro area. Analysts appear to like some of the ideas but have cautioned they provide no short term relief for Spain, currently the epicentre of the crisis.

It is against that backdrop that investors on Wall Street are awaiting the publication, later today, of the closely watched “Beige Book” which assesses business sentiment across the US.

Bank of America moves higher

The seed producer, Monsanto, gained 2% in early trading after announcing a share buyback program.

Bank of America gained 7.5% by midday as the banks benefited from the perception that Europe may find a way out of its current agonies.

Labour costs undershoot forecasts (but so does productivity)

Unit labour costs rose by 1.3% in the first three months of the year, well below the 2.2% pace expected by the consensus.

Labour productivity contracted at an 0.9% quarter-on-quarter pace (Consensus: 0.7%).

Crude futures bounce back (as do yields)

Front month West Texas crude futures are rising by $1.86 to the $85.89/barrel mark on NYMEX.

Yields on 10 year Treasuries are higher by 8 basis points now, at 1.66%, with prices falling 25/32 dollars.

S&P 500 - Risers
MEMC Electronic Materials (WFR) $1.69 +9.76%
Iron Mountain Inc. (IRM) $31.10 +9.51%
First Solar Inc. (FSLR) $13.71 +8.42%
Apollo Group Inc. (APOL) $35.17 +7.60%
Chesapeake Energy Corp. (CHK) $18.25 +7.35%
Bank of America Corp. (BAC) $7.61 +7.25%
PulteGroup Inc. (PHM) $8.72 +6.86%
Genworth Financial Inc. (GNW) $5.44 +6.67%
Morgan Stanley (MS) $13.65 +6.14%
Pioneer Natural Resources Co. (PXD) $94.79 +5.89%

S&P 500 - Fallers
Edwards Lifesciences Corp. (EW) $86.04 -1.30%
Quest Diagnostics (DGX) $54.15 -0.95%
Sherwin-Williams Co. (SHW) $127.24 -0.81%
GameStop Corp. (GME) $19.40 -0.72%
PPL Corp. (PPL) $27.47 -0.47%
General Mills Inc. (GIS) $37.74 -0.17%
CMS Energy Corp. (CMS) $23.25 -0.06%
Public Service Enterprise Group Inc. (PEG) $31.29 -0.06%
Centerpoint Energy Inc. (CNP) $19.92 -0.05%
Target Corp. (TGT) $57.30 -0.03%

Dow Jones I.A - Risers
Bank of America Corp. (BAC) $7.61 +7.25%
JP Morgan Chase & Co. (JPM) $33.15 +3.63%
Caterpillar Inc. (CAT) $86.26 +3.12%
United Technologies Corp. (UTX) $72.93 +2.89%
Hewlett-Packard Co. (HPQ) $22.30 +2.86%
Chevron Corp. (CVX) $98.96 +2.56%
Cisco Systems Inc. (CSCO) $16.52 +2.51%
Alcoa Inc. (AA) $8.65 +2.43%
Home Depot Inc. (HD) $50.08 +2.37%
American Express Co. (AXP) $55.24 +2.33%

Dow Jones I.A - Fallers

Nasdaq 100 - Risers
First Solar Inc. (FSLR) $13.71 +8.42%
Apollo Group Inc. (APOL) $35.17 +7.60%
Foster Wheeler AG (FWLT) $18.15 +5.89%
Autodesk Inc. (ADSK) $32.86 +5.08%
Sandisk Corp. (SNDK) $34.97 +4.67%
Citrix Systems Inc. (CTXS) $77.07 +4.60%
Electronic Arts Inc. (EA) $13.68 +4.11%
Sears Holdings Corp. (SHLD) $49.80 +4.08%
Infosys Technologies Ltd. (INFY) $45.02 +3.98%
Broadcom Corp. (BRCM) $34.00 +3.98%

Nasdaq 100 - Fallers
Vodafone Group Plc ADS (VOD) $26.15 -2.58%
Vertex Pharmaceuticals Inc. (VRTX) $58.21 -0.60%

BS

« Go back to news channel

..

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE