Stocks Push Higher As Data Spark Optimism

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 |  Includes: DIA, QQQ, SPY
by: Midnight Trader
  • Dow Jones Industrial Index up 32.01 (+0.26%) to 12,534.67
  • S&P 500 up 6.27 (+0.48%) to 1,319.99
  • Nasdaq Composite Index up 17.90 (+0.63%) to 2,854.06

GLOBAL SENTIMENT

  • Nikkei 225 down 0.81% (-70.63) to 8,663.99
  • Hang Seng Index up 0.45% (+84.39) to 18,981.84
  • Shanghai China Composite Index down 0.09% (-2.05) to 2,222.07
  • FTSE 100 is up 0.07% (+3.97) to 5,454.71

U.S. stock indexes climbed on Tuesday as data showing domestic home prices fell less than expected in April overshadowed concerns over Europe's debt crisis.

The housing price data was the one bright spot today, other readings on the U.S. economy fell short of expectations. According to the Conference Board, a preliminary reading on consumer confidence fell for the fourth month in a row. Also, manufacturing activity in the central-Atlantic region contracted in June, according to the Federal Reserve Bank of Richmond's manufacturing general-business index.

In Europe, EU officials unveiled a plan that would have an entity, possibly the European Central Bank, oversee the banks within the eurozone in exchange for the ability to use bailout funds to insure deposits. The plan could also require EU countries to get approval from other member countries for budget deficits and monetary plans.

Earlier today markets were briefly rattled after Reuters reported German Chancellor Angela Merkel told politicians in her ruling coalition that Europe would not have shared total debt liability "as long as I live." Investors remain wary of the European debt crisis ahead of a gathering of European leaders later in the week.

In company news, shares of News Corp. (NASDAQ:NWS) rose after the company confirmed rumors that it is considering spinning off its publishing businesses and emphasizing its larger, faster-growing television and film units. According to Bloomberg, News Corp. has hired Goldman Sachs (NYSE:GS) as an advisor.

In commodities energy prices climbed, crude-oil futures staged a last-minute rally advancing 0.2%, to end at $79.36 a barrel on the New York Mercantile Exchange. Natural gas surged 2.7% to end at $2.77 per million British thermal units. Metals, on the other hand, slid. Gold for August delivery fell 0.9%, to $1,574.90 an ounce on the Comex division of the New York Mercantile Exchange. Silver slid 1.8% to finish at $27.04 per ounce.

UPSIDE MOVERS

(+) ROSG, New York State Department of Health Approves miRview Lung Assay for Testing

(+) APOL, Earnings, Revs Top Analyst Estimates

(+) BSPM, Signs LOI with Chinese University for Joint Trials of Viacom Pine II

DOWNSIDE MOVERS

(-) STP, Price Target Slashed at Goldman Sachs

(-) RBN, Adds 2 Mln Shares to Buy Back, Q3 Results Top Estimates