AnMaster.com

Alexkid · 01-12-2011, 02:40 PM

Stocks head higher as worries about Europe ease
CHIP CUTTER - The Associated Press

05:40:22PM (ET) Wednesday,January 12,2011.

NEW YORK (AP) — Stocks rose broadly Wednesday after a successful bond auction in Portugal eased worries about Europe's debt crisis. Financial stocks jumped on hopes that banks would start raising their dividends this year.

Portugal borrowed $1.6 billion at a lower long-term interest rate than many expected. That helped reassure investors concerned that Portugal may become the third European country to require a bailout after Greece and Ireland.

Analysts cautioned that it's still possible Portugal could need a financial lifeline if its economy slips back into recession this year.

"Things are not resolved completely here," said Rob Lutts, president and chief investment officer of Cabot Money Management.

Banks led the market higher after an analyst at Wells Fargo Securities issued a report saying their earnings should grow much faster than other companies this year. He also said banks were likely to distribute more of their earnings to shareholders as dividends.

JPMorgan Chase & Co. rose 3 percent to $44.87 after the company's CEO, Jamie Dimon, told CNBC late Tuesday that the bank hopes to raise its dividend in the second quarter. JPMorgan's stock led the 30 large companies that make up the Dow Jones industrial average.

Other banks also rose. Bank of America gained 1.8 percent to $14.97. U.S. Bancorp rose 2.9 percent to $26.80.

The Dow rose 91 points, or 0.8 percent, to 11,763 in afternoon trading.

The Standard & Poor's 500 index gained 11, or 0.9 percent, to 1,285.

The Nasdaq composite rose 18, or 0.7 percent, to 2,735.

ITT Corp. jumped 15 percent to $60.83 after the defense contractor said it would split itself into three publicly traded companies. ITT plans to separate its defense and information, water technology and industrial products divisions. That should make it easier for investors to understand the company's various businesses, said Robert Pavlik, chief market strategist with Banyan Partners.

American International Group Inc. slipped 0.8 percent to $58.54 after the company agreed to sell its stake in Taiwan's third-largest insurer for $2.16 billion. The deal is part of AIG's plan to raise money to repay the $182 billion it received in government bailout funds.

Bond prices fell, pushing their yields higher. The yield on the 10-year Treasury note inched up to 3.35 percent from 3.34 percent late Tuesday. The yield is used to set interest rates on many kinds of loans including mortgages.

----------------------------------------------------------------------
* I'm taking this as good news for now. *

01-12-2011, 02:40 PM	#1
Alexkid Your World & Experience Join Date: Jan 2009 Location: Eastern Time Zone Posts: 6,859 Rep Power: 10	Stocks head higher as worries about Europe ease Stocks head higher as worries about Europe ease CHIP CUTTER - The Associated Press 05:40:22PM (ET) Wednesday,January 12,2011. NEW YORK (AP) — Stocks rose broadly Wednesday after a successful bond auction in Portugal eased worries about Europe's debt crisis. Financial stocks jumped on hopes that banks would start raising their dividends this year. Portugal borrowed $1.6 billion at a lower long-term interest rate than many expected. That helped reassure investors concerned that Portugal may become the third European country to require a bailout after Greece and Ireland. Analysts cautioned that it's still possible Portugal could need a financial lifeline if its economy slips back into recession this year. "Things are not resolved completely here," said Rob Lutts, president and chief investment officer of Cabot Money Management. Banks led the market higher after an analyst at Wells Fargo Securities issued a report saying their earnings should grow much faster than other companies this year. He also said banks were likely to distribute more of their earnings to shareholders as dividends. JPMorgan Chase & Co. rose 3 percent to $44.87 after the company's CEO, Jamie Dimon, told CNBC late Tuesday that the bank hopes to raise its dividend in the second quarter. JPMorgan's stock led the 30 large companies that make up the Dow Jones industrial average. Other banks also rose. Bank of America gained 1.8 percent to $14.97. U.S. Bancorp rose 2.9 percent to $26.80. The Dow rose 91 points, or 0.8 percent, to 11,763 in afternoon trading. The Standard & Poor's 500 index gained 11, or 0.9 percent, to 1,285. The Nasdaq composite rose 18, or 0.7 percent, to 2,735. ITT Corp. jumped 15 percent to $60.83 after the defense contractor said it would split itself into three publicly traded companies. ITT plans to separate its defense and information, water technology and industrial products divisions. That should make it easier for investors to understand the company's various businesses, said Robert Pavlik, chief market strategist with Banyan Partners. American International Group Inc. slipped 0.8 percent to $58.54 after the company agreed to sell its stake in Taiwan's third-largest insurer for $2.16 billion. The deal is part of AIG's plan to raise money to repay the $182 billion it received in government bailout funds. Bond prices fell, pushing their yields higher. The yield on the 10-year Treasury note inched up to 3.35 percent from 3.34 percent late Tuesday. The yield is used to set interest rates on many kinds of loans including mortgages. ---------------------------------------------------------------------- * I'm taking this as good news for now. * __________________ Yeah...Do That.

Thread Tools
Show Printable Version Email this Page
Display Modes
Switch to Linear Mode Switch to Hybrid Mode Threaded Mode

AnMaster.com

Investing Thread About, Stocks head higher as worries about Europe ease