Stock Market News For Dec 9, 2010 - Market News

by Web Master, Benzinga Editor
December 9, 2010 9:09 AM | 3 min read |

On Wednesday, markets closed slightly higher and the S&P 500 index surged to its highest level since September 2008. A rally in financial stocks coupled with investors' optimism about the extension of Bush-era tax cuts helped the markets turn green. Investors' concerns about the rising interest rate in the Treasury market could not weigh the markets down.

The Dow Jones Industrial Average rose 0.12% to 11,372.48. Standard & Poor's 500 Index was up 0.37% to 1,228.28. The tech-laden Nasdaq Composite Index increased 0.41 % to 2,609.16. On the New York Stock Exchange, the advance decline ratio was 2:3 with a volume of 1.1 billion shares. 
 
US President Barack Obama said extending tax cuts was in the best interests of the economy. According to some analysts, though the agreement might add to the deficit for two more years, it will boost an economic recovery and fuel job creation. Investors' turned optimistic, as the deal extended the 15% rate on dividends and analysts opine that it would enable companies to raise or issue dividends.

 

Expectations of an increase in dividends were the driving force behind the financial sector surge. The Financial Select Sector SPDR Fund gained 1.6%. U.S. Bancorp USB rose 3.3% to $25.17 as it reported it would restart dividends in early 2011. Other key financial stocks, such as, MorganStanley MS moved up 3.2%. Bank of America BAC surged 3.7%, Goldman Sachs GS was up 2.8% and JP Morgan JPM increased 2.6%. However, American International Group AIG plunged 3.9% after a report that the US government will sell off $15 billion of its shares early next year.

Among other sectors that closed in the green, stocks from the technology sector recorded modest gains. Texas Instruments TXN inched up 1% to close at $33.75 on solid outlook. Novellus Systems NVLS increased 2% to $32.40.
 
Coming to some individual stocks, Fortune Brands FO gained 1%, Home Depot HD rose 1.4% and Safeway SWY was up 2.3% in Wednesday's trade. Stocks on the declining side include Costco Wholesale COST, down 0.6%, Netflix NFLX, which slipped 0.8% and McDonald's MCD which fell by 2%.

 
AMER INTL GRP (AIG): Free Stock Analysis Report
 
BANK OF AMER CP (BAC): Free Stock Analysis Report
 
COSTCO WHOLE CP (COST): Free Stock Analysis Report
 
FORTUNE BRANDS (FO): Free Stock Analysis Report
 
GOLDMAN SACHS (GS): Free Stock Analysis Report
 
HOME DEPOT (HD): Free Stock Analysis Report
 
JPMORGAN CHASE (JPM): Free Stock Analysis Report
 
MORGAN STANLEY (MS): Free Stock Analysis Report
 
NETFLIX INC (NFLX): Free Stock Analysis Report
 
NOVELLUS SYS (NVLS): Free Stock Analysis Report
 
SAFEWAY INC (SWY): Free Stock Analysis Report
 
TEXAS INSTRS (TXN): Free Stock Analysis Report
 
US BANCORP (USB): Free Stock Analysis Report
 
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