Market-friendly data on the U.S. job market and upbeat earnings
from Dow component Walt Disney Cos. (
) has been fueling an impressive rally in the stock market today
with the Dow Industrials Average posting a triple-digit gain and
trading back above its 200-day moving average.
Although the Nasdaq Composite index is weighed down by a free
fall for shares of Twitter (
) despite the micro-blogger posting Q4 earnings and revenue that
topped analyst expectations, much of that pressure is mitigated by
strong gains by Green Mountain Coffee (
) after it announced a 10-year partnership with Coca-Cola (
) to develop home soft-drink dispensers, leaving the tech-laden
market index with a modest gain. Homebuilders, meanwhile, were
supporting gains for the S&P 500 as falling Treasury yields are
expected to translate into more attractive mortgage rates.
Ahead of the Labor Department tomorrow issuing January payrolls,
investors were encouraged by a greater-than-expected decline in new
unemployment claims, with first-time applications for unemployment
insurance falling by 20,000 claims to 331,000 during the week ended
Feb. 1. The median forecast of economists surveyed by Bloomberg
called for a decrease to 335,000.
Other positive news included a 3.2% rise in Q4 non-farm
productivity over an upwardly revised 3.6% increase in Q3. Unit
labor costs fell by more than double the 0.7% decline the Street
had been expecting and followed a downward revision for Q3
Also today, the U.S. trade deficit widened in December to $38.7
billion from an upwardly revised deficit of $34.6 billion in
November, the Commerce Department reported. That was slightly wider
than the $36.0 billion deficit in the market consensus.
Europe's equity markets were all higher as well, following the
lead of their counterparts on the other side of the Atlantic. The
European Central Bank and Bank of England both opted to keep their
key lending rates unchanged at 0.25% and 0.50%, respectively. ECB
President Mario Draghi also gave European stocks a boost after
dismissing any signs of deflationary pressure, thus reducing odds
for further rate cuts and boosting demand for equities.
Crude oil was up $0.88 to $98.27 per barrel. Natural gas was up
$0.04 to $5.08 per 1 million BTU. Gold was down $0.40 to $1,256.50
an ounce, while silver was up $0.09 to $19.91 an ounce. Copper was
up $0.04 to $3.23 per pound.
Among energy ETFs, the United States Oil Fund was up 1.04% to
$35.05 with the United States Natural Gas Fund was down 1.38% to
$24.96. Amongst precious-metal funds, the Market Vectors Gold
Miners ETF was down 0.60% to 23.14 while SPDR Gold Shares was down
0.12% to $121.14. The iShares Silver Trust was up 0.63% to
Here's where the markets stand at mid-day:
NYSE Composite Index up 108.28 (+1.10%) to 9,917.31
Dow Jones Industrial Average up 153.01 (+0.99%) to 15,593.24
S&P 500 up 18.23 (+1.04%) to 1,769.87
Nasdaq Composite Index up 42.74 (+1.08%) to 4,054.30
Nikkei 225 Index down 0.18%
Hang Seng Index up 0.72%
Shanghai China Composite Index down 0.82%
FTSE 100 Index up 1.55%
CAC 40 up 1.71%
DAX up 1.54%
NYSE SECTOR INDICES
NYSE Energy Sector Index up 1.36%
NYSE Financial Sector Index up 1.02%
NYSE Healthcare Sector Index up 0.35%
(+) GMCR (+30.0%) Coca-Cola (
) buys 10% equity stake in the coffee company after signing 10-year
agreement to collaborate on a home beverage-dispensing system.
(+) AKAM (+18.7%) Earns $0.55 per share in Q4, beating the
analyst consensus on Capital IQ by $0.03.
(+) USG (+13.0) Posts a quarterly profit for the first time
since 2007, also topping Wall Street expectations for Q4 earnings
by $0.09 per share.
(-) TWTR (-20.6%) Shares slump despite better-than-expected Q4
earnings and revenue after decelerating user growth and engagement
metrics disappointed investors.
(-) OCN (-7.2%) New York state regulators reportedly table the
company's $2.7 bln deal to buy mortgage-servicing rights from Wells
), citing concerns over its ability to handle more loan business,
according to the Wall Street Journal.
(-) P (-13.2%) Q4 revenue narrowly misses Street view; guides
Q1, FY14 per-share earnings below analyst estimates.