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US Market Commentary

Stocks Mostly Positive But Dow Remains In The Red - U.S. Commentary

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2/15/2012 12:04 PM ET
(RTTNews) - Stocks have moved mostly higher over the course of the trading day on Wednesday, although buying interest has remained somewhat subdued amid lingering uncertainty about the financial situation in Europe. The major averages continue to turn in a mixed performance on the day.

While the Nasdaq and the S&P 500 have climbed more firmly into positive territory, the narrower Dow remains in the red. The Dow is down 18.96 points or 0.2 percent at 12,859.32, while the Nasdaq is up 26.11 points or 0.9 percent at 2,957.94 and the S&P 500 is up 4.99 points or 0.4 percent at 1,355.49.

Remarks from Chinese officials have contributed to the generally positive sentiment on Wall Street, with China's Premier Wen Jiabao saying his country will continue to invest in European government debt to help resolve the debt crisis.

People's Bank of China Governor Zhou Xiaochuan echoed the remarks made by Wen and expressed confidence that the challenges faced by Europe can be resolved.

However, traders continue to keep a close eye on the latest developments in Greece amid indications that the second bailout for the debt-plagued nation will be delayed.

In U.S. economic news, the New York Federal Reserve released a report showing that regional manufacturing activity continued to expand in the month of February, with the index of activity in the sector rising to its highest level in more than a year.

The New York Fed said its general business conditions index rose to 19.5 in February from 13.5 in January, with a positive reading indicating an increase in regional manufacturing activity. Economists had expected the index to edge up to a reading of 14.8.

A separate report from the Federal Reserve showed that U.S. industrial production came in unchanged in January, as an increase in manufacturing output was offset by declines in mining and utilities output.

The National Association of Home Builders also released a report showing that homebuilder confidence increased for the fifth consecutive month in February, with the index of homebuilder confidence jumping to its highest level in more than four years.

Among individual stocks, shares of Kellogg (K) are up by 5.4 percent after the cereal maker announced that it has entered into an agreement to acquire Procter & Gamble's (PG) Pringles business for $2.7 billion in cash. At its high for the session, Kellogg was at a three-month intraday high.

Life insurer MetLife (MET) is also trading higher after reporting fourth quarter operating earnings that came in ahead of estimates.

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