Stock Market News for January 6, 2012 - Market News
January 06 2012 - 4:00AM
Zacks
A slew of better than expected
economic reports helped the indices to close flat, after fresh
eurozone worries weighed on the markets which opened lower. For the
very first time this year, the Dow closed in the red, while the
Nasdaq and the S&P 500 index registered small gains to end in
the green.
The Dow showed its strength by
recuperating its triple digit loss to close flat to negative. The
Dow Jones Industrial average (DJIA) dropped 0.02% or 2.72 points to
close at 12,415.70. The blue chip index’s biggest laggard was
Boeing (NYSE:BA), which fell 1.1% to $73.53., while banking giant,
Bank of America (NYSE:BAC) was the biggest gainer, increasing by
8.6%. The tech-laden Nasdaq Composite Index increased 21.50 points,
or 0.81% to end at 2,669.86. The Standard & Poor 500 moved up
0.3% or 3.76 points to finish at 1,281.06, marking its highest
close since Oct 28. For the S&P 500, energy sector stocks
fared the worst and financial stocks emerged as clear gainers. The
CBOE Volatility Index, widely considered to be the fear gauge of
the market, closed below 22. Advancing stocks outshined the
declining stocks by a ratio of 3:2.
Banking stocks in Europe fell after
Italy’s biggest bank UniCredit’s share prices once again dropped,
by 17%, after shedding 14% on Wednesday. The bank said its rights
issue worth 7.5 billion euros ($9.7 billion) would be discounted
further. Commerzbank and Deutsche Bank of Germany fell 4.5% and
5.6% after UniCredit’s announcement sparked off panic, since both
these banks need large capital infusion. Meanwhile, a French debt
auction received a lackluster response with yields shooting up,
indicating that the country could lose its AAA credit rating.
Meanwhile, the euro settled below the $1.28 mark for the first time
since September 2010. The Italian market closed 3.7% lower after
the 10 year bond yield jumped up to 7%, while Spain’s IBEX 35
declined 2.9%. Spanish banking stocks fell after the Spanish
Government said the banking segment will be required to raise an
additional 50 billion euro in order to deal with bad property
assets.
On the economic front, the U.S.
Department of Labor reported that jobless claims data came in
better than expected, with initial claims dropping by 15,000 in the
last week of 2011 to 372,000. The prior-week’s tally was raised by
6,000 to 387,000 from 381,000. The four-week average dropped by
3,250 to 373,250. In a separate report, the Automatic Data
Processing (ADP) results came in significantly better than
expected, with 325,000 private jobs created in December, almost
double than the expected level of 178,000. The prior month's tally
was modestly revised downwards to 204,000 from the originally
reported 206,000 level. The continuing drop in jobless claims in
recent weeks and yesterday’s strong ADP data provide unmistakable
evidence of an improving U.S. labor market. In another report, ISM
Services Index increased marginally in December to 52.6.
Moving on to sectoral stocks,
banking and technology stocks were the major gainers in Thursday’s
trade, Banking majors like Bank of America Corp. (NYSE:BAC)
Citigroup Inc. (NYSE:C) and Morgan Stanley (NYSE:MS) advanced 8.6%,
1.2% and 2.1% respectively to close at $6.31, $28.51 and $16.28.
Among tech stocks, shares of Oclaro Inc. (NASDAQ:OCLR) gained 15.7%
after the optical network company’s fourth quarter revenue figures
topped estimates. The company is expecting that sales for the
quarter will rise to $85 million. Another tech company, LSI Corp’s
(NYSE:LSI) shares rose more than 7% after an analyst from Wedbush
upgraded the shares of the chip maker from neutral to outperform
rating. Other technology companies to gain yesterday includes Apple
(NASDAQ:AAPL), Seagate Technology (NASDAQ:STX), Oracle Corp
(NASDAQ:ORCL), Dell Inc (NASDAQ:DELL) and Microsoft (NASDAQ:MSFT)
which increased by 1.1%, 6.4%, 2.2%, 1% and 1.02% to close at
$418.03, $17.90, $26.59, $15.17 and $27.68 respectively.
APPLE INC (AAPL): Free Stock Analysis Report
BOEING CO (BA): Free Stock Analysis Report
BANK OF AMER CP (BAC): Free Stock Analysis Report
CITIGROUP INC (C): Free Stock Analysis Report
DELL INC (DELL): Free Stock Analysis Report
LSI CORP (LSI): Free Stock Analysis Report
MORGAN STANLEY (MS): Free Stock Analysis Report
MICROSOFT CORP (MSFT): Free Stock Analysis Report
OCLARO INC (OCLR): Free Stock Analysis Report
ORACLE CORP (ORCL): Free Stock Analysis Report
SEAGATE TECH (STX): Free Stock Analysis Report
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