Stock Market News for December 15, 2009 - Market News
Abu Dhabi’s bailout of a Dubai World unit and a big acquisition by Exxon Mobil sent stocks higher Monday, as investors grew confident the economy is on a positive path. Investors were particularly pleased after the Middle Eastern city-state of Abu Dhabi came forward with a $10 billion financing to save cash-starved Dubai from plunging into a deeper crisis.
Back home, activity on the mergers and acquisitions front gained momentum as Exxon Mobil (NYSE:XOM) announced that it will buy XTO Energy (NYSE:XTO) in a $31 billion all-stock deal. Exxon shares failed to advance on the announcement and retreated 4.3%. Financials rose after Citigroup (NYSE:C) said it struck a deal with the government to pay back $20 billion in bailout money. Nevertheless, sentiment was cautious, as it has been for weeks.
This morning's premarket futures suggest a lower opening on the Wall Street as the Federal Reserve begins a two-day policy meet on interest rate policies. The latest round of positive economic data in mind, traders wonder if the Fed will adopt a hawkish tone this time.
Yesterday, shares of metal and energy firms, as well as of those companies that derive a major chunk of their revenue from overseas sales, helped the Dow Jones industrial average top 10,500 for the first time in fourteen months. Yesterday's gains were broad-based, with only five of the thirty DJIA components closing lower, 415 of the S&P500 finishing higher, and 90 of the NASDAQ ending the day in the green.
The Standard & Poor's 500 Index rose 0.7& to 1,114.11. The Dow Jones Industrial Average added 29.55 points, 0.3%, to 10,501.05. The Nasdaq composite index rose 21.79, or 1%, to 2,212.10. On the New York Stock Exchange, nine stocks advanced for every two that declined in price. The US dollar eased against the yen and the euro, generating a 0.3% drop in the dollar index against a basket of currencies and sending commodity prices higher. The Dubai news weakened interest in safe-haven US Treasuries, sending the 10-year off 1/32 and the yield higher to 3.554%.
Financials closed up 0.8% as JP Morgan (NYSE:JPM) led the DJIA's advance with its almost 2% gain. Shares in Citigroup (NYSE:C) fell more than 6% after it announced plans to pay back the bailout money. Analyst Dick Bove cautioned the decision to pay back the money was not in the best interest of its shareholders. Charles Schwab (NASDAQ:SCHW) shares fell 3.7%, after the firm said it sees lower fourth-quarter earnings due to lower interest rates and light trading volume. Wells Fargo (NYSE:WFC) also said it will pay back its $25 billion TARP bailout funds.
Among the S&P500 ten sector groups, basic material shares (+1.5%), industrials (+1.1%), tech and health care (+0.9%), financials (+0.8%), consumer goods (+0.7%), consumer services (+0.6%), utilities (+0.5%) recorded gains. Only telecommunication shares finished lower, off 0.1%.
The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
