Referenced Stocks

Mid-Day Update: Markets Up on Hopes of Economic Stimulus and Strong Domestic Data

By Midnight Trader June 19, 2012, 12:05:18 PM EDT

Rallies aren't what they used to be. As investors grow weary and skeptical of big momentum movements in stock and market pricing, rallies are getting shorter and shorter. Like yesterday's - that lasted for roughly one hour. But that is not to say that general enthusiasm isn't returning to the markets. Whether it stems from a belief that the economy is on the mend or from hope that things will get bad enough to necessitate quantitative easing and other measures, the markets in the US and Europe are on the rise today.

This enthusiasm was firmed by speculation that the Federal Open Market Committee may be considering further U.S. economic stimulus. Housing data and store sales helped fuel some optimism. Housing starts were down, coming in at 0.708M on consensus estimates of 0.720M and prior levels of 0.717M, but permits topped estimates, coming in at 0.780M over predictions of 0.736M and prior levels of 0.715M. Meanwhile, store sales at chain stores improved, increasing 2.4% from the same week last year.

Increases were felt across the board. MarketWatch reports that for every stock that decreased this morning, more than four experienced gains of some level.

The Dow Jones Industrial Average is up 109.78 (+0.86%) at 12,851.45.

The S&P 500 is up 12.54 (+0.93%) at 1,357.31.

The NASDAQ Composite is up 31.18 (+1.08%) at 2,926.60.

In Europe, the markets were somewhat depressed. The FTSE 100 index is up 100.30 (+1.83%) to 5,591.47. The DAX is up 1.82% (+112.85) to 6,361.25 and the CAC 40 is at 3,113.97, up 1.54% (+47.78).

Crude oil prices are at $83.98 a barrel, up 0.71. Natural gas is down 3.9 cents to $2.660 per 1 million BTU. Gold is down 0.3 to $1,626.70 an ounce, while silver is down -0.216 to $28.455 an ounce. Copper is up 0.04 to $3.44 a pound.

Among energy ETFs, the United States Oil Fund ( USO ) is up 1% to around $31.60 with the United States Natural Gas ( UNG ) fund is down -2.2% to around $17.90. Among precious-metal funds, the Market Vectors Gold Miners ETF (GMI) has hit year lows while SPDR Gold Shares ( GLD ) are down 0.5% to around $157.20. The iShares Silver Trust ( SLV ) is down 1% to around $27.56.

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

NYSE Composite Index up 1.30% (+99.51) to 7,761.80

Dow Jones Industrial Index up 0.94% (+119.58) to 12,861.40

S&P 500 up 1.02% (+13.90) to 1,358.69

Nasdaq Composite Index up 1.19% (+34.29) to 2,929.66

GLOBAL SENTIMENT

Hang Seng Index down 0.06% (-11.14) to 19,416.67

Nikkei 225 down 0.75% (-65.15) to 8,655.87

Shanghai China Composite Index down 0.66% (-15.26) to 2,300.80

FTSE 100 is up 1.77% (-97.29) to 5,588.38

NYSE SECTOR INDICES

NYSE Energy Sector Index up 0.29% (+39.01) to 13,623.20

NYSE Financial Sector Index up 0.09% (+4.25) to 4,619.85

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

UPSIDE MOVERS

ZLCS (+10.3%) Successfully completed a Phase 1 single ascending dose (SAD) clinical study with Z944, its novel, oral, T-type calcium channel blocker.

TI (+8.2%) Speculation it will hold talks with state-backed financing body CDP about spinning off its fixed-line network, as the country moves to improve its broadband access, according to Reuters.

DOWNSIDE MOVERS

JCP (-10%, has hit new year lows) Company announced its president, Michael Francis, resigned.

MDGN (-5.8%) Raised gross proceeds of approximately $9.5 million through the sale of 1,944,734 units, each sold at $4.90 to institutional and other accredited investors in a private placement transaction.




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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