U.S. stocks hit five month high on Chinese optimism, earnings; Dow up 0.52%
Published Jan 10, 2012 04:21PM ET
At the close of U.S. trade, the Dow Jones Industrial Average advanced 0.56%, the S&P 500 climbed by 0.84% and the Nasdaq Composite added 0.97%.
China's reported a drop in import growth triggering speculation that monetary easing is right around the corner adding to the worldwide stock rally.
Alcoa reported solid results with sales climbing 6% and matching analyst's loss estimates. Interestingly, the S&P 500 has ended the earning season higher 75% of the time when Alcoa climbs in the session it reports results. Shares slipped from their highs giving back 0.16% at the close.
Jack Albin of Harris Private Bank explained the rally to Bloomberg, "Earnings don’t have to knock the ball out of the park to push equities higher. Expectations are low."
Yesterday, was the unofficial start of the earnings season increased the optimistic stock sentiment on the session.
All 10 sectors in the S&P 500 advanced with financial, commodity and industrial shares leading the way higher.
Bank of America and Caterpillar climbed at least 2.6% during the session and Eastman Kodak surged 43% on cost cutting measures.
On a bearish note, Tiffany's, a jewelry company, dropped 10% on Asian customers curtailing purchases of high priced items.
After the close of European trade, the EURO STOXX 50 gained 2.67%, France's CAC 40 soared 2.66%, while Germany's DAX 30 closed higher by 2.42%. Meanwhile, in the U.K. the FTSE 100 advanced 1.50%.
Investors are awaiting UK trade balance and euro zone GDP on Wednesday.
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Written By: Investing.com
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