U.S. Stocks Rise After Two-day Rout, Fed

By Kate Gibson, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks retained about half of Wednesday's strong gains after the Federal Reserve held interest rates as is and data had companies adding more jobs than expected in October.
While not making any further moves to ease monetary policy, Fed policy makers said in a statement that the economy has improved, although significant downside risks remain.
"While much of November's statement is identical to September's, the FOMC [ Federal Open Market Committee] is clearly inching towards easing further," noted Dan Greenhaus, chief global strategist at BTIG LLC.
"Today's press conference is going to shed some light on this subject in terms of how universal is the belief that what ails the economy can be aided by further steps from the FOMC," Greenhaus added of Bernanke's news conference slated for 2:15 p.m. Eastern.
After rising nearly 220 points, the Dow Jones Industrial Average (DJI) was lately up 124.12 points to 11,782.08, with all but four of its 30 components in the green.
The blue-chip benchmark lost 573 points -- nearly 4.7% -- in the prior two sessions.
The S&P 500 Index (SPX) rose 13.07 points to 1,231.35, with financials leading gains that included all 10 of its major industry groups.
MasterCard Inc. (MA) shares gained 6.9% after the payments processor reported quarterly results that exceeded Wall Street's expectations.
The Nasdaq Composite (RIXF) added 16.70 points to 2,623.66.
For every stock that fell, four rose on the New York Stock Exchange, where 397 million shares traded as of 1:15 p.m. Eastern.
U.S. stocks started the session sharply higher after Automatic Data Processing (ADP) reported U.S. companies added 110,000 workers in October, with the bulk of the increase in private payrolls coming in the service sector. ADP also revised higher its count for September.
"The labor market is in better shape than we thought two months ago, which is good news for the economy, corporate earnings and the stock market," said Phil Orlando, chief equity market strategist at Federated Investors.
European leaders planned emergency talks with Greek Prime Minister George Papandreou in France, a day before the Group of 20 summit.
Papandreou rattled global markets earlier this week by calling for a national vote on Europe's bailout package for the country.

  (END) Dow Jones Newswires
  11-02-111321ET
  Copyright (c) 2011 Dow Jones & Company, Inc.

World Stock Market Updates : TOKYO; HONG KONG; SEOUL; CHINA; LONDON; US MARKET UPDATES

Source : economictimes

 Nikkei hits 9-mth high on weaker yen, foreign buying
TOKYO: Japan's Nikkei stock average climbed to a nine-month high above 10,800 on Wednesday helped by a softer yen, with the benchmark's strong run encouraging foreign investors to broaden their buying to financial shares.

It was a third straight day http://www.blogger.com/post-create.g?blogID=8843738645395069893of gains for the Nikkei, which has climbed some 18 percent since November when foreigners began snapping up lagging Tokyo stocks, with recent momentum coming from a big shift in market focus to developed economies from emerging ones.

The gains were underscored by high volume with the day's total set to come in above last week's daily average of 2.2 billion shares. The Tokyo stock exchange's first section has seen more than 2.0 billion shares change hands for seven consecutive sessions.

"Looking at trading volumes in banking, securities or property sectors we can see a clear pattern of systematic, sector-wide buying of these shares from foreign investors that has at last emerged."

The dollar climbed against the yen to its highest in eight weeks on Tuesday, boosted by the recent rise in U.S. Treasury yields, with more gains seen likely if bond markets continue to factor in inflation.

By mid afternoon, the Nikkei average was up 0.5 percent, or 56.91 points at 10,803.57, after hitting an intraday high of 10,842.31, its highest level since May 6, 2010.

Immediate resistance now lies at the May 6 intraday high of 10,847.90, traders said.

The broader Topix rose 0.6 percent to 968.16.

Hong Kong shares gain 0.62% in morning

HONG KONG: Hong Kong shares rose 0.62 percent in the morning session on Wednesday, in line with most regional markets, boosted by upbeat economic data out of the United States.

The benchmark Hang Seng Index added 141.30 points to 23,041.08 on turnover of HK$36.85 billion ($4.72 billion).

Seoul shares dip as autos, refiners fall

SEOUL: Seoul shares slipped after volatile trade on Wednesday, pressured by a second straight session of foreign selling and falls in automakers and crude refiners like SK Innovation.

The Korea Composite Stock Price Index (KOSPI) finished down 1.06 percent or 21.41 points at 1,989.11 points. 

China shares end up 0.9 per cent, supported on steel firms

SHANGHAI: China's main stock index closed up 0.9 per cent on Wednesday, after trading mostly rangebound near a crucial psychologically level.

The benchmark Shanghai Composite Index was at 2,924.2 points, breaking above a key psychologically level of 2,900 points. 

European stocks firm at open, London up 0.19%

LONDON: European stock markets rose in opening trade on Wednesday, with London's benchmark FTSE 100 index up 0.19 per cent at 6,049.43 points.

In Paris, the CAC 40 gained 0.34 per cent to 4,124.26 points while Frankfurt's DAX 30 added 0.19 per cent to 7,414.23 points.

US markets open higher on earns, M&A

NEW YORK: U.S. stocks opened higher on Wednesday after strong results from Dell and a burst of merger and acquisition activity.

The Dow Jones industrial average was up 18.77 points, or 0.15 percent, at 12,245.41. The Standard & Poor's 500 Index rose 4.10 points, or 0.31 percent, at 1,332.11. The Nasdaq Composite Index gained 10.55 points, or 0.38 percent, at 2,814.90.

S&P 500 ends lower after recent gain

 The S&P 500 index ended lower on Wednesday, with charts suggesting the index's five-month rally was growing long in the tooth.

Based on the latest available data, the Dow Jones industrial average was up 2.27 points, or 0.02 percent, at 12,042.43. The Standard & Poor's 500 Index was down 3.58 points, or 0.27 percent, at 1,304.01. The Nasdaq Composite Index was down 1.03 points, or 0.04 percent, at 2,750.16.

The index is starting to look overbought again after touching 2-1/2-year highs Tuesday. A key measure of the rally's strength suggests stocks are vulnerable to a correction, analysts said.

The PHLX Semiconductor Index is running into resistance around 450, a level not surpassed since 2007. Chips are considered a leading indicator for the broader market.

 ET

Dow Jones above 12k after 2 years

NEW YORK: The Dow Jones Industrial Average closed above 12,000 for the first time since June 2008, after American and Chinese manufacturing expanded and United Parcel Service Inc beat analysts' earnings estimates.

UPS, the package-delivery company considered a proxy for economic growth, advanced 4.2%. The S&P 500 rose 1.7%, the most since December 1, to 1,307.59. The benchmark gauge for US equities has rallied 2.5% in the past two days, erasing the January 28 slump that was driven by Egyptian riots. The Dow added 148.23 points, or 1.3%, to 12,040.16.

The S&P 500 has risen 4% this year, extending a 13% advance in 2010, on government stimulus measures and higher-than-estimated corporate profits. About 74% of the 204 companies that reported earnings since January 10 topped analysts' projections, according to data compiled by Bloomberg.

Shares extended gains on Tuesday after the ISM's factory index rose to 60.8 in January, beating the median economist projection of 58.

US gross domestic product growth accelerated to 3.2% in the fourth quarter from 2.6% during the prior three months, the Commerce Department said on January 28. On Monday, reports showed American businesses expanded at the fastest pace since 1988 and consumer spending beat economist estimates.

The last time the S&P 500 closed above 1,300 was in August 2008.

The Dow Jones Transportation Average of 20 stocks had the biggest gain in two months, rallying 2%.

An index of raw-materials producers in the S&P 500 added 2.8%, the biggest gain among 10 industries.

Commodities beat stocks for three months, the longest stretch since June 2008. The S&P GSCI Total Return Index of 24 raw materials gained 3.1% in January and rose for a fifth month, the longest streak since 2004, according to data compiled by Bloomberg. The MSCI All-Country World Index of equities climbed 1.6% including dividends. The Global Broad Market Index for corporate and government bonds lost 0.3%, Bank of America Merrill Lynch data show.

source : Bloomberg