Stock Market News for November 11, 2010 - Market News

Stocks managed to close in the positive territory on Wednesday even as investors remained jittery ahead of the Group of 20 meeting in Seoul. There are speculations some nations would question the rationale behind the Federal Reserve's bond-buying program as they see the move lowering the value of the dollar and giving U.S. exports an upper hand over those from other countries.

The Dow Jones industrial average, after rising as much as 92 points during the session, closed with a gain of 10 points, or 0.1%, at 11357.04. The broader S&P's 500-stock index gained 5.31 points, or 0.4%, to 1218.71 and the technology-focused Nasdaq Composite index advanced nearly 16 points, or 0.6%, to 2578.78. On the New York Stock Exchange, declining issues beat those that fell in price by a two-to-one margin. Gains in the stocks were led by energy and financial shares.

Crude prices, meanwhile, jumped to $87.81, their highest level in two years. Shares in Exxon Mobil XOM gained 0.7% to $71 and Chevron CVX jumped 1.9% to $85.17. ConocoPhillips COP gained 1.9%. Gold prices retreated a little. Oil and gas shares were the leading gainers among the S&P's ten industry sectors, rising 1.9%.

Treasurys rose in price, sending corresponding yields lower. The yield on the benchmark 10-year note edged down to 2.65% from 2.66% late Tuesday. 

Financial shares were also in the green yesterday, with the sector, as a group, advancing 1.3%. Shares in Bank of America BAC advanced 2.4%, sending the stock to the top of the DJIA's list of gainers. Citigroup C jumped 2.8%, JP Morgan JPM advanced 1.8%, and Wells Fargo WFC rose 1.6%.

Boeing BA shares, however, were on top of the DJIA's list of losing shares, dropping 3.2% on the day. The heavily delayed Dreamliner program suffered another jolt after the company said it had decided to suspend all test flights until causes for Tuesday's cabin fire could be found. Goldman Sachs GS removed the shares from its Conviction Buy List, but kept its "buy" rating on the shares and an $88 price target intact.

Meanwhile, a closely-watched, $16 billion auction of 30-year US Treasury bonds disappointed with a yield of 4.32% versus estimates of 4.25% and a bid-to-cover ratio of 2.31 versus a recent average of 2.7.

Meanwhile, Moody's Investor Service MCO raised China debt to Aa3 from A1, and increased Hong Kong's rating to Aa1 from Aa2. Chinese inflation rose above Beijing's target of 3%, coming in at 4.4% in October, boosting speculations further tightening measures would be in the offing.

 
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