The major U.S. index futures are pointing to a higher opening on Wednesday, with successful European bond auctions once again serving to lift sentiment. Goldman Sachs (GS) reported better than expected earnings, although earnings from other banking stocks were mixed. Meanwhile, reports suggest that the International Monetary Fund is looking to boost its lending resources. A industrial production report and the results of a housing market survey may also give direction to the markets.
U.S. stocks overlooked some disconcerting earnings reports and advanced solidly on Tuesday after economic data and a Spanish debt auction offered encouragement.
The major averages opened higher after data from around the globe came in stronger than expected, reinforcing the view that the global economic recovery is on a solid footing. Reports on Chinese fourth quarter GDP, German economic sentiment and New York manufacturing activity all served to strengthen the optimism even as Citigroup (C) and a few other companies reported disappointing results.
The averages consolidated the gains throughout the morning before gradually giving back some ground over the rest of the session. Nonetheless, the averages closed moderately higher. The Dow Industrials added 60.01 points or 0.48 percent before closing at a nearly 6-month high of 12,482 and the Nasdaq Composite ended at 2,728, up 17.41 points or 0.64 percent. Meanwhile, the S&P 500 Index closed up 4.58 points or 0.36 percent at 1,294.
Twenty-three of the thirty Dow components closed higher, with Cisco Systems (CSCO), Merck (MRK), United Technologies (UTX), Kraft Foods (KFT) and Exxon Mobil (XOM) advancing strongly. On the other hand, JP Morgan Chase (JPM) and American Express (AXP) fell 2.81 percent and 1.97 percent, respectively.
Oil and retail stocks advanced, while financial stocks came under selling pressure.
On the economic front, the New York Federal Reserve's manufacturing survey showed that conditions among manufacturers in the region continued to improve in January. The headline business conditions index rose to 13.5 in January from a revised reading of 8.2 for December, reaching the highest level since April 2011. The new orders index rose to 13.7 from 6, while the order backlogs index improved to -5.5 from -15.1.
The employment indexes also increased, with the number of employees index rising to 12.1 from 2.3, while the average workweek index improved 4.3 points to 6.6. The 6-month outlook index also climbed, climbing from 45.6 to 54.9, the highest levels since January 2011.
Commodity, Currency Markets
Crude oil futures are rising $0.83 to $101.54 a barrel after advancing $2.01 to $100.71 a barrel on Tuesday. Gold futures are currently receding $5.70 to $1,649.90 an ounce. In the previous session, the precious metal rose $24.80 to $1,655.60 an ounce.
Among currencies, the U.S. dollar is trading at 76.82 yen compared to the 76.8313 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.2828 compared to yesterday's $1.2737.
Asia
The major Asian averages moved about in a lackluster fashion after the previous session's advance, as traders digested a report from World Bank showing that global economic growth may be lower than it had originally forecast. Japan's Nikkei 225 average ended up 84.18 points or 0.99 percent at 8,551 and Australia's All Ordinaries added 2.90 points or 0.07 percent before closing at 4,281.
Hong Kong's Hang Seng Index ended at 19,687, up 59.17 points or 0.30 percent. Meanwhile, China's Shanghai Composite Index fell 31.99 points or 1.39 percent before closing at 2,266.
Europe
After advancing in early trading, European stocks are currently trading mixed. Tech stocks received a boost after ASML (ASML) reported a drop in its fourth quarter profit and revenues, which however was not as steep as analysts had expected. The company also expects a healthy start to 2012 and sees a sequential improvement in booking for the first quarter.
U.S. Economic Reports
Falling prices for food and energy drove an overall drop in U.S. producer prices for December, according to figures released by the Department of Labor. Overall, the producer price index for finished goods fell 0.1 percent for December on a seasonally adjusted basis.
Most economists had expected producer prices to hold level or increase modestly following a 0.3 percent increase in November. The decline in producer prices can be largely attributed to declines in costs of foods and energy, both of which indexes fell by 0.8 percent. The "core" producer price index, which excludes the volatile food and energy sectors, actually rose by 0.3 percent. The Treasury Department is due to release a report on the flows of financial instruments into and out of the U.S. for November at 9 am ET.
The Federal Reserve's industrial production report is due out at 9:15 am ET. Economists estimate 0.5 percent growth in industrial production for December.
Industrial output fell 0.2 percent in November, with the drop coming about mainly due to a 3.4 percent decline in motor vehicle/parts production. Computer/electronics output also fell. The softness stemmed from supply disruptions due to the floods in Thailand. Capacity utilization edged down 0.2 points to 77.8 percent.
The National Association of Home Builders is scheduled to release the results of its January survey on homebuilders' confidence at 10 am ET. The consensus estimates call for the index to remain unchanged at 21.
The housing market index rose 2 points to 21 in December. This marked the third straight month of growth, with the index rising to its highest level since May 2010. The current sales conditions index rose 2 points compared to a 1 point-increase by the sales expectations index, while the index of prospective buyer traffic climbed 3 points.
Stocks in Focus
Earnings
ADTRAN (ADTN) reported a decline in fourth quarter earnings to 48 cents per share from 56 cents per share despite sales rising to $175.29 million from $165.33 million. The results exceeded estimates.
Linear Technology's (LLTC) second quarter earnings fell to 38 cents per share from 62 cents per share last year. Revenues fell 23 percent to $294.3 million. Analysts estimated earnings of 39 cents per share on revenues of $293.10 million.
Fulton Financial (FULT) reported fourth earnings of 18 cents per share, up from 16 cents per share last year. The results trailed estimates.
Cree (CREE) reported second quarter non-GAAP earnings of 25 cents per share, sharply lower than 55 cents per share last year. However, revenues rose 18 percent to $304.1 million. For the third quarter, the company expects non-GAAP earnings of 18-25 cents per share on revenues of $290 million to $310 million. The results as well as the guidance were below estimates.
Goldman Sachs (GS) reported fourth quarter earnings of $1.84 per share, lower than $3.79 per share last year. Net revenues came in at $6.05 billion. The earnings were better than expected, while revenues were about in line with estimates.
State Street's (STT) fourth quarter earnings missed estimates by a penny, while revenues trailed estimates. PNC Financial (PNC) reported fourth quarter earnings that trailed estimates. Bank of New York Mellon's (BK) is fourth quarter profit and revenues declined from the year-ago quarter.
eBay (EBAY), Clarcor (CLC), F5 Networks (FFIV), HB Fuller (FUL), Sanmina-SCI (SANM), Sealy (ZZ), SLM (SLM) and Xilinx (XLNX) are among the companies due to report their quarterly results after the markets close.
Other Corporate News
Yahoo (YHOO) announced the resignation of Jerry Yang, one of its co-founders, from its board and all other positions with the company, effective yesterday. Yang also resigned from the boards of Yahoo Japan and Alibaba.
Lockheed Martin (LMT) said it has acquired Procerus Technologies, a specialist in autopilot and other avionics for micro unmanned aerial systems. The company did not reveal the terms of the deal.
E.W. Scripps (SSP) said it expects television revenues to increase by more than 50 percent in 2012, including $100 million in revenues expected from the stations acquired from McGraw-Hill Broadcasting Company on December 30th, 2011. The company expects newspaper revenues to be slightly down to about $400 million.
Cash America (CSH) expects full year earnings of $4.25 per share, up 16 percent from the year-ago period but lower than the low-end of its earlier guidance of $4.28-$4.48 per share. Additionally, the company sees 25 percent year-over-year revenue growth for its fourth quarter. Analysts estimate earnings of $4.41 per share for the year and 16.10 percent revenue growth for the fourth quarter.
Utility American Water Works (AWK) pre-announced 2011 adjusted earnings of $1.75 to $1.82 per share. The company also announced 2012 ongoing earnings guidance of $1.90-$2 per share. The guidance surrounded the consensus estimates.
Gilead Sciences (GILD) announced the completion of its previously announced deal to buy Pharmasset (VRUS) for $137 per share in cash or about $11.2 billion.
Target (TGT) announced its decision to temporarily suspend its efforts to sell its credit card receivables portfolio.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.