Stock Market News for September 13, 2010 - Market News

Stocks held on to the September rally and closed higher for the week but volume remained low as investors kept a lid on their enthusiasm and refrained from making big moves. The Dow industrials advanced 47 points. The index has gained in seven of the last eight sessions.

The tech-heavy Nasdaq Composite index advanced more than 6 points, or 0.3%, to 2242.48. The S&P 500 index added 5 points, or 0.5%, to 1109. Volume dropped considerably on the New York Stock Exchange where two stocks rose in price for every one that fell. However, on the week, the indexes could manage only modest advances. The holiday-shortened week saw the Dow up 0.1% and the S&P 500 index up 0.5%. The tech-heavy Nasdaq added 0.4% on the week. U.S. markets were closed on Monday for the Labor Day holiday.

A 3.1% surge in fuel prices on reports of a shutdown at the biggest pipeline supplying oil to the Midwest refineries and to a key Oklahoma storage hub also helped Friday's gains. Supply issues aside, strong economic data also helped send crude oil prices higher. Bond prices dipped. The yield on the 10-year Treasury note, which moves opposite its price, rose to 2.79 percent from 2.76 percent late Thursday.

Meanwhile, over the weekend, Beijing reported industrial production jumped 13.9% y/y, beating expectations of a 13% rise. There was encouragement on the retail sales front too, with reports saying comps were up 18.4%. New yuan loans reported higher for the first time in four months during August. Financials were under pressure amid reports that Deutsche Bank DB was considering a stock sale to raise capital.

Shares in mobile phone maker Nokia NOK jumped 2% after the company named a Microsoft MSFT executive as its chief executive officer. Nokia said Stephen Elop will replace the company's current CEO Olli-Pekka Kallasvuo. 

A weekend meeting of top central bankers from 27 countries promised more effective capital requirements to help prevent the recurrence of another financial crisis. Reports emerged Sunday that the world's banks must effectively triple their reserves against potential losses, lifting the capital ratio from 2% currently required to an effective floor of 7%, to be phased in from January 2013 to January 2019.

Today Asian shares closed up with gains, with the Hang Seng in Hong Kong rising 1.9%, the Shanghai Composite up 0.9%, and the Nikkei up 0.9%. European exchanges followed their Asian counterparts into the green, amid reports the Basel III requirements were less stringent than previously thought. The Dax rose 1.1% and the FTSE 1.2%.

 
DEUTSCHE BK AG (DB): Free Stock Analysis Report
 
MICROSOFT CORP (MSFT): Free Stock Analysis Report
 
NOKIA CP-ADR A (NOK): Free Stock Analysis Report
 
Zacks Investment Research