Mid-Day Update: Stocks Rally Despite Disappointing Jobs Data; Trade Deficit Narrows

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Here's where markets stand at mid-day:

-NYSE up 77.52 (+0.96%) to 8,158.87

-DJIA up 117.76 (+0.98%) to 12,166.70

-S&P 500 up 12.18 (+0.95%) to 1,291.93

-Nasdaq up 12.04 (+0.45%) to 2,687.38

GLOBAL SENTIMENT

Nikkei up 0.2%.

Hang Seng down 0.2%.

Shanghai Composite down 1.7%.

FTSE-100 flat.

MID-DAY NYSE INDEX WATCH

NYSE Energy down 7.08% at 13,376.23

NYSE Financial up 0.86% at 4,824.73

NYSE Health Care up 6.9% at 7,294.69

NYSE Arca Tech 100 up 0.52% at 1,135.48

UPSIDE MOVERS

(+) AIG (+3.6%) gets favorable analyst coverage.

(+) GM (+1.6%) reportedly considering putting up Opel for sale.

(+) TXN (+0.8%) improves after initial drop on Q2 warning.

(+) M (+1.9%) upgraded.

(+) OAS (+3.5%) upgraded.

(+) TITN (+7.9%) beats with earnings.

(+) ELN (+6.1%) upgraded.

(+) CBAK (+9.9%) reports strong demand for e-Bike battery.

(+) CSTR (+0.3%) inks kiosk deal with Safeway.

(+) HWD (+2.0%) misses with Q1 results.

DOWNSIDE MOVERS

(-) VRTX (-9.1%) says drugs show promise in Cystic Fibrosis.

(-) RPC (-12.3%) reports weaker Q1 than year ago.

(-) WLL (-1.0%) downgraded.

(-) ITG (-1.6%) downgraded.

(-) V (-0.3%) makes acquisition.

MARKET DIRECTION

Stocks are rallying at mid-day, with the Dow up more than 100 points after a six-day slide, as despite disappointing weekly jobless figures were offset by the prospect of an interest rate hike in Europe, which is lifting banking stocks. Investors may also be shopping for bargains.

Weighing on the market early, applications for unemployment increased by 1,000 to a seasonally adjusted 427,000 in the week ended June 4, according to the Labor Department. Economists surveyed by MarketWatch had expected new requests to decline to 419,000. But on the positive side, the four-week rolling average of new claims, which smooths out volatility, dipped 2,750 to 424,000.

The U.S. trade deficit narrowed sharply in April after imports from Japan were curtailed due to the earthquake, the Commerce Department reported. The trade deficit narrowed 6.7% in April to $43.7 billion from a revised $46.8 billion in March.

In company news:

Citigroup Inc. ( C ) is showing little downside from a report this morning that hackers were able to phish credit card information on North American customers. The major online security breach affects about 200,000 accounts, according to the Financial Times, which broke the story. Citi has more than 21 million credit card customers in North America, according to its 2010 annual report. Hackers reportedly reaped names, account numbers and contact information, but did not get access to social security numbers, birth dates, card expiry dates or card security codes.

Nokia (NOK) is up 1% after shaking off a Standard & Poor's downgrade of its credit in the face of what is expected to be weaker financial results. On the heels of a Fitch Ratings cut yesterday, S&P analyst Matthias Raab dropped Nokia's borrower rating to b BBB+/A-2b3 from b A-/A-1b3, and placed the firm's ratings on b CreditWatch with negative implications.

Shares of Abbott Laboratories ( ABT ) are higher after the company reported on the interim efficacy and safety results from its long-term, 54-week, Phase III study of its investigational treatment of Parkinson's disease.The treatment is for patients with levodopa-carbidopa intestinal gel, or LCIG. The study showed that patients treated for 12 weeks with LCIG showed decreased "off" times, when re-emergence of the disease results in loss of mobility, and increased "on" times, periods wherein the disease is manageable, without dyskinesias, the company said.

Shares of Microsoft (MSFT) have turned higher at mid-day, following a Wall Street Journal reported that the US Supreme Court upheld a patent-infringement verdict worth $290 million against the company, rejecting the software firm's effort to make it more difficult to sue it for patent claims. The case stems from a case against Toronto technology company i4i Inc. Microsoft argued the company should not have won a verdict involving a patent claim related to document editing in its Word word processing software. the report said.

Radient Pharmaceuticals ( RPC ) is sharply lower after it said late Wednesday Q1 sales fell to $30,655, from $36,842 a year ago. Net loss was $0.13 per share, wider than the $0.11 loss a year earlier. Its quarterly report includes a "going concern" explanatory disclosure which expresses doubt, based upon current financial resources, as to whether RPC can meet its continuing obligations without access to additional working capital. It says it intends to raise additional capital and pursue expense reductions to ensure its ongoing financial viability.

General Motors ( GM ) shares are higher after the company considers putting its European arm Opel up for sale again. According to Auto Bild and Spiegel Online, possible buyers could be Chinese carmakers or Germany's Volkswagen, Reuters reports.

Commodities are higher. August gold contracts are up 0.66%, to $1,549 an ounce while July crude oil contacts are up 1.58% to $102.33 a barrel.

In energy ETFs, the United States Oil Fund (USO) is up 1.2% to $40.33 and the United States Natural Gas fund (UNG) is down 1.46%, to $12.14.

In precious metal ETFs, the SPDR Gold Trust ( GLD ) is UP 0.63% at $150.76. Market Vectors Gold Miners (GDX) is up 2.17% to $54.69. iShares Silver Trust (SLV) is up 1.55% to $36.59.



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.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

Referenced Stocks: ABT , C , GLD , GM , RPC

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