Referenced Stocks

Mid-Day Update: Markets Soar on Positive News from Europe

By Midnight Trader June 29, 2012, 12:02:30 PM EDT

Stocks today took a sharp turn upwards on positive news from the EU Summit. Policymakers agreed to relax repayment conditions for Spanish banks, which had formally requested assistance right before the Summit. EU Officials also agreed to lower the bar to allow Italy receive aid and proposed a $149 billion economic growth plan for the region. The program is called the Troubled Country Relief Program, or TCRP, and is an offshoot of the EU's Troubled Asset Relief Program (TARP).

The gains seen in domestic markets on the news were very strong. For every stock that went down in price, four gained on the NYSE, even amidst weak reports on the domestic economy.

Soft income and spending news pushed the focus on the consumer and the jobs market. Reports of personal income and outlays disappointed across the board. Personal income was at 0.2%, meeting the prior period's level but missing consensus estimates of 0.3%. Consumer spending was even worse, coming in at 0.0%. While this did match consensus estimates, spending is still down from 0.3% the previous period. The core price index held at 0.1%, the same as the previous period, but short of analyst predictions of 0.2%.

The Chicago PMI was reported today as well. The Business Barometer Index came in at just 52.9. This was a modest increase from the prior period's 52.7 but short of consensus estimates of 53.1 (range 50.0 to 55.1).

Consumer sentiment also disappointed as the Index measuring the same dipped to new 2012 lows, at 73.2 for the final June reading. In comparison, the Consumer Sentiment Index had stood at 74.1 in the previous period. Analysts had estimated 74.1 for the June period, on a range of 73.5 to 79.0.

The Dow Jones Industrial Average is up 219.22 (+1.74%) at 12,820.26.

The S&P 500 is up 25.39 (+1.91%) at 1,354.38.

The NASDAQ Composite is up 67.29 (+2.36%) at 2,916.69.

In Europe, the markets were even more positive. The FTSE 100 index is up 94.51 (+1.72%) to 5,587.12. The DAX is up 4.0% (-246.54) to 6,396.52 and the CAC 40 is at 3,186.41, up 4.43% (+135.05). The DOW Global is at 1825.77, up 47.61 (+2.7%).

Crude oil prices are at $82.24 a barrel, up 4.55. Natural gas is up 6.4 cents to $2.798 per 1 million BTU. Gold is up 48.5 to $1,598.90 an ounce, while silver is up 1.183 to $27.43 an ounce. Copper is up 0.15 to $3.48 a pound.

Among energy ETFs, the United States Oil Fund ( USO ) is up 4.6% to around $30.90 with the United States Natural Gas ( UNG ) fund losing earlier gains. Among precious-metal funds, the Market Vectors Gold Miners ETF (GMI) is up 2% and has hit new year highs while SPDR Gold Shares ( GLD ) are up 2.5% to around $155. The iShares Silver Trust ( SLV ) is up 4% to $26.65.

Here's where the markets stand at mid-day:

NYSE Composite Index up 2.2% (+168.38) to 7,765.90

Dow Jones Industrial Index up 1.8% (+221.86) to 12,824.12

S&P 500 up 2.0% (+26.25) to 1,355.32

Nasdaq Composite Index up 2.4% (+69.14) to 2,918.67

GLOBAL SENTIMENT

Nikkei 225 up 1.5% (+132.67) to 9,006.78

Hang Seng Index up 2.2% (+416.19) to 19,441.46

Shanghai China Composite Index up 1.4% (+29.59) to 2,225.43

FTSE 100 is up 1.84% (+101.26) to 5,593.25

NYSE SECTOR INDICES

NYSE Energy Sector Index up 0.3% (+39.01) to 13,623.20

NYSE Financial Sector Index up 0.1% (+4.25) to 4,619.85

NYSE Healthcare Sector Index up 0.35% (+25.09) to 7,256.75

UPSIDE MOVERS

TAHO (+15%): Received assurances from the Guatemalan government that the state would not be acquiring an interest in its Escobal silver mine there as part of its mining reforms.

SSN (+10.2%): Provided operational updates on its current projects, reporting encouraging results from the Spirit of America #2 well project. The company said that the operational success in the well was demonstrated by the capability of the drilling and casing of the location.

THM (+6%): Appointed Jeffrey A. Pontius as the company's interim chief executive officer until a new candidate is selected by the board of directors. The board expects to announce a new CEO within the next two months.

DOWNSIDE MOVERS

UNIS (-14.9%): Priced its underwritten offering of 6,154,000 shares of common stock at a price of $3.25 per share.

ULGX (-13.2%): Priced its registered follow-on firm commitment underwritten public offering of 5.2 million shares of its common stock at a public offering price of $0.75 per share.

NKE (-7.5%): Posted a Q4 earnings miss Thursday night. Shares are at $85.18 on a 52-week range of $76.98 - $114.81.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Commodities

Referenced Stocks: GLD, SLV, UNG, USO



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