Equities Update: Greece Rumors Lift Stocks

by: Midnight Trader

4:21 PM, Feb 9, 2010 --

  • NYSE up 121.29 (1.8%) to 6,835.16.
  • DJIA up 150 (1.5%) at 10,059.
  • S&P 500 up 13.8 (1.3%) to 1,071.
  • Nasdaq up 24.8 (1.2%) to 2,151.


Hang Seng up 1.22%

Nikkei down 0.19%

FTSE up 0.01%


(+) CTIC gains after NDA meeting update.

(+) CERS jumps on positive trial results.

(+) CS gains as Koor reportedly boosts stake.

(+) MCD says Jan. same-store sales up 2.6%.

(+) KO tops year-ago earnings.

(+) CAT gets analyst upgrade.


(-) ERTS disappoints with guidance.

(-) UBS turns lower; swings to profit, rest of results mixed.

(-) PHM turns lower despite improved quarter, beats with revenue.

(-) ESLR reports wider loss.


The U.S. averages rebound some 1% or better Tuesday.

More confidence for a bailout for Greece, the most troubled of a handful of debt-strapped European nations, rallied global stocks. Industrial bellwether Caterpillar (NYSE:CAT) propelled the blue-chip DJIA higher after an upgrade for the stock.

Financial Times Deutschland first reported the news on its Web site, and work on a rescue plan was confirmed by Michael Meister, deputy leader of the Christian Democratic Union/Christian Social Union in the Bundestag, MarketWatch said.

The DJIA average closed below 10,000 on Monday for the first time since November.

Crude oil also rallied on the Greece rescue news. March futures closed up 2.5% at $73.75 a barrel. Gold for April delivery finished up $11, or 1%, at $1,077.20 an ounce at the New York Mercantile Exchange.

In company news, Electronic Arts (ERTS) fell in continued negative reaction to its evening earnings. The company beat with Q3 earnings but offered several quarters and FY guidance that's mostly below the Street view.

Cell Therapeutics (NASDAQ:CTIC) soared after the company announced the FDA informed them that, due to severe weather conditions in the Washington, D.C. area, the FDA is postponing the Oncologic Drugs Advisory Committee meeting that was to be held on Wednesday, February 10, 2010 to discuss the pixantrone New Drug Application. The FDA indicated that it intends to reschedule the meeting as soon as the FDA can determine a schedule that will allow them to reconvene the advisory panel.

Coca-Cola (NYSE:KO) gained after it reports Q4 earnings of $0.66 per share, up 53% from year ago levels. After considering items impacting comparability, earnings per share for the quarter were $0.66, an increase of 3%. Earnings per share for the quarter were positively impacted by the relative weakness of the U.S. dollar versus other currencies around the world as compared to the prior year. Revenue was $7.51 bln, up from $7.12 bln last year. The Street view was $0.66 per share in earnings on revenue of $7.21 bln.

Industrial shares were generally higher after Morgan Stanley raised its rating on the sector to attractive from in-line. It raised its rating on Caterpillar to Overweight.

Airlines were mostly higher amid sector news. UAL (UAUA) said late Monday January traffic rose 2.4% to 8.77 billion revenue passenger miles from 8.57 billion a year ago. It also said total capacity fell 2% to 11.17 billion available seat miles while load factor, or the percentage of available seats, rose 3.4 percentage points to 78.5%.

AMR (AMR), parent of American Airlines, won a contest over inclusion in Japan Airlines' (OTC:JALSY) Oneworld Alliance. JALSY said it will keep its partnership with AMR rather than switch to Delta Air Lines (NYSE:DAL).