Market Closing: Stocks, Oil, Gold Rally On Improved Optimism After Australia Raises Rates
Stocks and commodities gained after the Bank of Australia became
the first Group of 20 central bank to raise interest rates and ahead of
a fresh round of earnings reports that bulls are betting will show
better revenues confirm an improving corporate climate.
Financial shares fronted broad-market gains after an upbeat analyst
note Monday and are contributing again on Tuesday. CIT Group (CIT)
gained on news the company is in talks with Goldman Sachs to amend the
terms of a $3 billion loan, according to the Wall Street Journal. UBS
has resumed coverage of AIG (AIG) with a Neutral rating and a $44 price
target, according to a report on MarketWatch.
Deal news continues and remains a supportive factor for stock trading.
Emerson (EMR) and Avocent Corporation (AVCT) announced they have
reached agreement for Emerson to acquire Avocent. The Avocent Board of
Directors unanimously endorsed the terms of an all-cash tender offer of
$25 per share, or approximately $1.2 billion.
Analyst moves also are giving some shares a boost. General Mills
(GIS) firms on an upgrade to overweight from equal weight at Morgan
Stanley. Family Dollar (FDO) is raised to outperform from market
perform at BMO Capital, and Select Comfort (SCSS) is raised to
outperform from market perform at Raymond James.
On the downside, Mannkind (MNKD) fell after the company says in a
SEC filing it won't enter a marketing partnership for AFRESA before the
end of 2009.
Harris & Harris (TINY) fell after it says it priced 4.25 million shares at $4.75 each in a follow-on public offering.
Crude futures finished higher, pushed up as the dollar fell after
Australia's hike. Oil for November closed up $0.47, or 0.7%, to $70.88
a barrel. Earlier, the contract had topped $71 a barrel in but it pared
gains as the dollar came off its lows. Gold closed at a new record of
$1,039 an ounce.
Exxon Mobil (XOM) was among the leading Dow gainers.
Yum! Brands (YUM) and AngioDynamics (ANGO) are among the few companies due to report earnings after the bell.
-NYSE up 104.54 (1.5%) to 6,899.67.
-DJIA up 131.50 (1.4%) to 9,731.
-S&P 500 up 14.26 (1.4%) to 1,055.
-Nasdaq up 35.4 (1.7%) to 2,104.
GLOBAL SENTIMENT
Hang Seng up 1.87%
Nikkei up 0.18%
FTSE up 2.04%
UPSIDE MOVERS
(+) NTRI continues sharp evening advance seen on pact with Wal-Mart (WMT) to sell introductory diet plan.
(+) ACAD says still committed to Pimavanserin.
(+) ALU tapped by Equinix for first carrier-neutral ethernet exchange.
(+) COF JP Morgan raises earnings view for stock.
(+) CIT in talks with Goldman to amend loan terms.
(+) AIG restarted with Neutral rating.
(+) VZ Verison Wireless, Google (GOOG) in android platform pact.
(+) AVCT sold to Emerson for $25 a share.
(+) FONR swings to FY profit.
(+) FDO gets upgrade.
DOWNSIDE MOVERS
(-) MI turns lower; reports larger-than-expected loss.
(-) CVM down as Street.com questions H1N1 flu drug.
(-) STJ guides for Q3 miss.
(-) BA details charge related to 747-8 program.
Related Stories
The above story is the opinion of the author only and it does not reflect
iStockAnalyst opinion. Further, the author is not personally advising you
regarding the suitability of the story for your investment needs. In no event
iStockAnalyst will be liable for any loss or damage including without
limitation, indirect or consequential loss or damage, or any loss or damage
whatsoever arising from or arising out of, or in connection with the use of this
information. Please consult your investment advisor before making any investment
decision.
