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Stocks Continue to Post Solid Gains at Midday
By Knobias, July 09, 2013, 01:29:00 PM EDT
U.S. markets remain higher at midday after Alcoa ( AA ) kicked off the earnings season late Monday with better than expected quarterly revenue and earnings. Asian markets closed higher overnight following Alcoa's results. Japan's Nikkei rallied 2.5% for its highest finish in six weeks. Hong Kongs Hang Seng gained 0.5%, while China's Shanghai Composite Index gained 0.4%. Consumer prices in China rose 2.7% in June from a year earlier. That was higher than the 2.5% rise that economists had expected, but remains well below the Chinese governments 3.5% target for this year. On a monthly basis, June consumer prices were flat after falling 0.6% in May and rising 0.2% in April. Producer prices in China continued to deflate for the 16th straight month in June, dropping 2.7% year-over-year. That result matched economists forecast. Compared to May, producer prices were 0.6% lower, identical to the drops seen in April and May. European markets ended higher after euro zone finance ministers agreed on an aid tranche for Greece and better-than-expected earnings results from Alcoa. Euro zone finance ministers will provide 3 billion euros ($3.86 billion) in aid to Greece on condition the country meets the goals laid out under the second international bailout. Economic data in the U.S. was light today. The National Federation of Independent Business's small-business optimism index fell 0.9 points to 93.5 after two months of gains. Six of the ten components of the index were lower. The U.S. Labor Department reported today that job openings at U.S. workplaces rose to 3.83 million in May from 3.8 million in April. Compared with same period in the prior year, May's job openings rose 1.4%. The International Monetary Fund cut its estimate of U.S. and world economic growth. The IMF lowered its global outlook by 0.2 percentage points this year and next, forecasting 3.1% growth in 2013 and 3.8% growth in 2014. The IMF now sees U.S. growth of 1.7% in 2013 and 2.7% in 2014, a reduction of 0.2 points both years. The U.S. is higher versus the euro. Oil is modestly higher and above $103 a barrel. Gold is up more than $12. Treasury yields are mixed following a $32 billion auction of 3-year notes this afternoon that resulted in a high yield of 0.719% with a bid-to-cover of 3.35. The sector leaders for stocks at midday are Industrials and Materials. The sector laggard is Telecom. The Dow leaders are Caterpillar ( CAT ), Cisco ( CSCO ), Chevron ( CVX ), GE ( GE ), United Technologies ( UTX ), Bank of America ( BAC ), Hewlett-Packard ( HPQ ), Procter & Gamble ( PG ), Home Depot ( HD ) and Pfizer ( PFE ). The Dow losers are IBM ( IBM ), Alcoa ( AA ), Verizon ( VZ ) and McDonald's( MCD ). The biggest gainers in the S&P 500 are FedEx ( FDX ), D.R. Horton ( DHI ), PulteGroup ( PHM ), Netflix ( NFLX ), Cliffs Natural Resources ( CLF ), Lennar ( LEN ), Allegheny Technologies ( ATI ), ADT Corp. ( ADT ), Masco ( MAS ), Vulcan Materials ( VMC ) and Jabil Circuit ( JBL ). The biggest losers are Intuitive Surgical ( ISRG ), Quest Diagnostics ( DGX ), Micron ( MU ), Laboratory Corporation ( LH ), Varian Medical ( VMC ), CareFusion ( CFN ), Cerner ( CERN ), JDS Uniphase ( JDSU ) and Estee Lauder ( EL ).
Read more: http://www.nasdaq.com/article/stocks-continue-to-post-solid-gains-at-midday-20130709-00783#ixzz2YZvsay5f