US Market Updates
11/9/2009 12:45 PM ET
(RTTNews) -
Stocks have built on their earlier gains and are seeing considerable strength in early afternoon trading on Monday, as the strong likelihood of low interest rates and government commitment to stabilizing the economy has boosted the markets.
Indications from G20 finance ministers that economic stimulus measures would remain in place until the global economic recovery is assured, including record low interest rates in the U.S., helped to spark the rally among stocks.
Amid a light day on the economic front, traders have also looked to some corporate news to guide some of their moves.
British chocolate giant Cadbury Plc (CBY) rejected the latest purchase offer from Kraft Foods (KFT), calling the proposal 'derisory' and noting it is worse than a previous offer due to the drop in the Kraft share price since September.
Earlier in the day, Dish Network (DISH) reported third quarter net income of $81 million, compared with $92 million in the corresponding period in 2008. Total revenue was $2.892 billion, down 1.5 percent from $2.937 billion in the year-ago quarter.
In other news, defense contractor Northrop Grumman (NOC) announced that it has agreed to sell its advisory services business TASC, Inc. to consortium led by General Atlantic LLC and affiliates of Kohlberg Kravis Roberts for $1.65 billion in cash.
The major averages have moved roughly sideways in recent trading, hovering firmly in positive territory. The Dow is currently up 150.24 at 10,173.66, the Nasdaq is up 30.68 at 2,143.12 and the S&P 500 is up 17.21 at 1,086.51.
Sector News
Resource stocks continue to turn in strong performances in early afternoon trading, with the upward moves by oil service stocks resulting in a 3.1 percent gain by the Philadelphia Oil Service Index. The index is further recouping its losses, moving back towards last month's one-year closing high.
A jump in the price of crude oil for December delivery has contributed to the upward move in the oil service sector, with the price of oil rising to $79.31 a barrel, up $1.89 for the session.
Semiconductor stocks are also on the rise, with the Philadelphia Semiconductor Index posting a gain of 2.8 percent. With the gain, the index is moving further off last week's two and a half month closing low.
Electronic storage, banking and commercial real estate stocks are also posting notable gains, although they remain in a range as they recover from the losses posted in late October.
1
2
Next Page
|
|