Stock Market News for September 13, 2012 - Market News
September 13 2012 - 5:06AM
Zacks
Markets got an initial upward push
after a German court allowed the nation to ratify the Euro region’s
rescue fund. However, cautiousness about the Fed’s upcoming meeting
kept gains in check. The blue-chip and S&P 500 indexes touched
new multi-year highs during the initial hour. Eventually,
benchmarks chose to end just a tad higher as apprehensions about
further monetary measures dominated sentiment. Separately, the
long-awaited iPhone 5 was finally launched by tech-bellwether
Apple.
The Dow Jones Industrial Average
(DJI) edged up 0.1% and ended the day at 13,333.35. The Standard
& Poor 500 (S&P 500) added a paltry 3 points or 0.2% to
finish Wednesday’s trading session at 1,436.56. The tech-laden
Nasdaq Composite Index gained 0.3% to close at 3,114.31. The
fear-gauge CBOE Volatility Index (VIX) dropped 3.7% and settled at
15.80. Consolidated volumes on the New York Stock Exchange, the
American Stock Exchange and Nasdaq were roughly 6.15 billion
shares, lower than last year's daily average of 7.84 billion
shares. For every two stocks that gained on the NYSE, one stock
moved in the other direction.
Trading action on Tuesday was
largely dependent on investors’ apprehension over the outcome of
two key events. Germany's Constitutional Court was to announce if
it approved of the European Stability Mechanism on Wednesday and US
policy makers were slated to reveal the proceedings of their two
day meet a day later. The German court did allow the nation to
ratify a €500 billion permanent rescue fund, termed as the European
Stability Mechanism and the so-called Fiscal Pact. However, the
parliament was given veto power if the bailout fund’s size
increases. The German court stated: “No provision of this treaty
may be interpreted in a way that establishes higher payment
obligations for the Federal Republic of Germany without the
agreement of the German representative”.
The development sparked off the
initial cheer and helped the markets clock up gains. Investors were
happy to note that the first key event of this week, on which they
had their eyes fixed, had taken a positive turn. The development
was almost in tune with their expectations and they now patiently
await for the second event to be favorable as well – Fed approving
the third round of quantitative easing (QE3).
The policy makers two-day meet will
come to a close on Thursday, following which investors would be
anxiously waiting for what the policy makers have to
announce. The US Federal Reserve is expected to keep interest rates
low. But the Street will anxiously await any announcement regarding
QE3. Benchmarks have been rallying higher over the past few days on
hopes that the US central bank will finally announce additional
economic measures. A report by Reuters noted that economists
predict there is a 65% chance that policy makers will announce QE3.
Investors preferred to adopt a cautious stance, which restricted
benchmarks’ gains yesterday.
Separately, Apple Inc.
(NASDAQ:AAPL) finally unveiled the long-awaited iPhone 5. The
latest launch is not just great news for smartphone lovers, but
will help Apple strengthen its position in the smartphone market.
iPhones have played a significant role in Apple’s success story and
iPhone 5 is expected to do the same. On the day when the device was
unveiled, shares of Apple jumped by a decent 1.4%.
Among other technology shares,
Yahoo! Inc. (NASDAQ:YHOO), SINA Corp (NASDAQ:SINA), Cisco Systems,
Inc. (NASDAQ:CSCO), Juniper Networks, Inc. (NYSE:JNPR), Ingram
Micro Inc. (NYSE:IM), Silicon Graphics International Corp
(NASDAQ:SGI), Computer Sciences Corporation (NYSE:CSC) (0.5%) and
Hewlett-Packard Company (NYSE:HPQ) gained 1.6%, 1.2%, 0.2%, 4.3%,
1.1%, 0.8%, 0.5% and 0.2%, respectively.
APPLE INC (AAPL): Free Stock Analysis Report
COMP SCIENCE (CSC): Free Stock Analysis Report
CISCO SYSTEMS (CSCO): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
INGRAM MICRO (IM): Free Stock Analysis Report
JUNIPER NETWRKS (JNPR): Free Stock Analysis Report
SILICON GRAPHIC (SGI): Free Stock Analysis Report
SINA CORP (SINA): Free Stock Analysis Report
YAHOO! INC (YHOO): Free Stock Analysis Report
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