Stock Market News for September 10, 2010 - Market News

Some optimism on the jobs front and a report that said the trade deficit had dropped in July helped stocks continue their September rally even as traders remained circumspect about European banks’ financials.

A drop in first-time claims for unemployment benefits helped send the Dow average up 90 points earlier in the session but the rally fizzled out after reports emerged that Deutsche Bank DB is planning to raise $10.2 billion to $11.4 billion in fresh equity to meet tougher regulatory requirements. The reports reignited eurozone concerns.

The Dow Jones Industrial Average closed with a gain of 28 points or 0.3%. The Standard & Poor’s 500-stock index advanced 5.31 points, or 0.5%, to 1,104.18. The Nasdaq composite index edged up 7 points, or 0.3%, to 2,236.20. On the New York Stock Exchange, three stocks rose in price for every one that advanced. Volume remained light as some traders took off for the Jewish New Year.

The yield on the 10-year Treasury note rose to 2.76% from 2.66%. Gold prices also fell. The euro fell against the dollar. Sectors considered defensive such as healthcare, utilities and telecommunications services were among the top gainers. McDonald's Corp. MCD was the Dow average's biggest decliner, off 2.3%, after the fast-food chain reported a lower-than-expected increase in August sales.

Meanwhile, a report from the Commerce Department said the US trade deficit narrowed to $42.8 billion from $49.8 billion in June, as exports increased 1.8% and imports dropped 2.1%.

The Japanese yen turned lower as demand for the safety-linked currency eased. However, the Japanese government in its efforts to control the nation’s economic perils issued another $10.9 billion surplus package.  Most analysts were of the view that any moves by Japan to control the yen's recent bullish trend will likely not succeed unless other central banks follow suit.

Shares in Goldman Sachs GS rose 1.6% after U.K. authorities announced that the company had agreed to pay a $27 million fine. Financials led a rally in stocks after banking analyst Richard Bove of Rochdale Securities noted that at least 17 U.S. banks with assets worth more than $10 billion could be possible takeover targets.

 
DEUTSCHE BK AG (DB): Free Stock Analysis Report
 
GOLDMAN SACHS (GS): Free Stock Analysis Report
 
MCDONALDS CORP (MCD): Free Stock Analysis Report
 
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