Stock Market News for November 3, 2010 - Market News

Stocks advanced broadly on Tuesday as investors turned their focus toward the results of mid-term elections and a two-day Federal Reserve meeting that is expected to unveil more measures to revive the economy.  The advance sent the Dow average to its highest close in more than six months as most of its components marked gains on the day. Interest rate hikes from central banks of India and Australia also had a part in yesterday's rally.

The 30-share blue-chip average advanced 64 points, or about 0.6%, to 11,188.72, its highest level since April 26. The broader S&P's 500-stock index climbed more than 9 points, or nearly 0.8%, to 1193.57 and the technology-focused Nasdaq rose more than 28 points, or 1.1%, to 2533.52. On the New York Stock Exchange, three stocks rose in price for everyone that fell as only 913 million shares exchanged hands.

The dollar continued its recent slump as the guessing game over the size and length of the expected bond-buying program continued. Yesterday, the greenback fell 0.7% against a basked of currencies. The weakness in dollar sent shares in resource-related companies higher, with Alcoa AA, Freeport-McMoRan FCX and ExxonMobil Corp. CVX each advancing at least 1%. Crude prices advanced $1.15 to $83.90, their highest close in 6 months. Gold ended $6.30 higher at $1,356.90.     

As investors stay glued to this afternoon's announcement from Bernanke & Co, market watchers believe that monetary easing could be the last resort for the administration which, post the election results, finds itself on a sticky ground for larger fiscal measures. Street polls suggest $500 billion a likely number, but experts do not rule out a $1 trillion “shock and awe” package.

On the DJIA, gains were led by Home Depot HD, which rose 2.6%, and American Express AXP, which climbed 2.0%. Microsoft MSFT gained 1.6% and Alcoa AA rose 1.5%. All ten S&P500 sectors recorded gains on the day, led by oil and gas (+1.2%), utilities (+1.2%), consumer services (+1.1%), tech (+0.9%), telecom (+0.9%), industrials (+0.9%), health care (+0.8%), basic materials (+0.8%), consumer goods (+0.5%), and financials (+0.4%).

Deal-making once again witnessed activity, this time among techs. Oracle ORCL said it had agreed to acquire Art Technology Group ARTG for $1 billion cash, or $6 per share. Dell DELL said it plans to acquire cloud-computing service firm Boomi but did not say how much it will pay for the firm. Also, Comforce CFS said it had agreed to be acquired by private-equity firm ABRY Partners for $84.8 million, or $2.50 per share.

Shares in regional banks took a beating after Moody's MCO lowered ratings on these shares, noting, the government "had signaled its intent to limit support for individual banks." Shares in Regions Financial RF shares fell 1.8%, SunTrust STI dropped 1%, and Zions Bancorporation ZION declined 1.3%.

Marathon Oil MRO shares fell 4.3%, despite its earnings beat, as the company set a lower-than-expected full-year production guidance.

MasterCard MA shares advanced 2.9% after the firm posted estimate-topping interims 15% above the year-ago quarter, as businesses and consumer spending increased, especially in overseas markets.

Shares in US Steel X jumped 3.6% after UBS UBS added the company to its short-term "buy" list.

Companies reporting their numbers today include: Time Warner TWX, AOL AOL, CVS CVS and WellPoint WLP. News Corp. NWSA is slated to report after the close.

 
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