Dow Visits 13K, But Rally Fades

Includes: DIA, QQQ, SPY
by: Midnight Trader
  • Dow Jones Industrial Average up 15.82 (+0.12%) to 12,965.69
  • S&P 500 up 0.98 (+0.07%) to 1,362.21
  • Nasdaq Composite down 3.21 (-0.11%) to 2,948.57


  • Hang Seng Index up 0.25%
  • China Shanghai Composite Index up 0.75%
  • FTSE 100 down 0.18%

After a bullish day, stocks lost their steam on the approach to the closing bell, but did manage to rally and end slightly higher. Earlier, stocks surged, with the S&P 500 index crossing a key technical level in early trading and the Dow Jones Industrials index briefly crossing 13,000 for the first time since May 2008 after Greece received a second rescue package, averting a threatened default on its national debt.

European finance ministers late Monday approved a 130-billion-euro ($173 billion) aid package for the debt-heavy country, assisted by the addition of certain profits from the European Central Bank and more concessions by bond-holders at the last minute to seal a deal.

While there was no precise reason to explain why stocks reversed their direction, markets were spooked today by oil's sudden rally on the back of Iran's announcement that it would cut oil exports to France and Britain. Traders also blamed fading enthusiasm over the Greek debt deal as reason for the fading rally.

In company news, Wal-Mart (NYSE:WMT) slid after the retailer reported disappointing fiscal Q4 results along with less than upbeat outlooks for Q1 and FY12. It said earnings were $1.51 a share on $123.17 billion in net revenues. A survey of analysts by FactSet Research produced consensus estimates of $1.46 a share of profit on $123.92 billion of revenue. For the fiscal 2013 Q1, the company estimates that continuing operations will generate profit of $1.01 to $1.06 a share. FactSet's survey is looking for $1.05.

Shares of AsiaInfo-Linkage Inc. (NASDAQ:ASIA) rallied following a report by Reuters that a few global private equity firms, including KKR & Co LP and TPG Capital, are lining up potential bids for the company. The deal is expected to be worth more than $1 billion.

Crude-oil futures ended at their highest level since May, advancing by $2.60, or 2.5%, to end at $105.84 a barrel on the New York Mercantile Exchange. Gold for April delivery advanced $32.60, or 1.9%, to end at $1,758.50 an ounce on the Comex division of the New York Mercantile Exchange, a two-week high.


(+) THLD, Phase II-b study for experimental pancreatic cancer drug results in 63% improvement.

(+) CORT, FDA approves Korlym tablets as once-daily treatment for hyperglycemia.

(+) TATT, Board Approves Buy-BAck


(-) GTXI, FDA shuts down trial for prospective cancer drug due to blood-clot risks.

(-) CDXS, CEO quits late last week.

(-) RSH, Tumbles Despite Meeting Earnings Expectations