Markets Higher, Closing News 9/13/11

Markets closed higher following Cisco Systems’ updated forecasts and reports of a conference call between European leaders tomorrow to address the debt crisis issues. The Dow closed 44 points higher, marking the second consecutive day of gains.

The Euro traded higher against the US dollar today after two German officials confirmed that Greek, German and French leaders will hold a conference call tomorrow to discuss avoiding a Greek default. There had been rumors that French President Nicolas Sarkozy and German Chancellor Angela Merkel would make an announcement today, but any statement from the two leaders will be delayed until after tomorrow’s call.

Italy issued €6.5 billion in bonds today, however the ten-year yield was up 9 basis points to 5.67%, the highest yield since Italy joined the European Union. There is concern that yields could reach 6% if bailout efforts for Greece and Italy are not successful.

The International Energy Agency cut its demand forecast for both 2011 and 2012 today, revising its 2011 outlook down 160k barrels to 1.04 million barrels per day, and the 2012 forecast down 190k to 1.42 million barrels per day.  Brent crude fell $0.40 to $111.85 in trading today.

Miss Angola, Leila Lopes, won Miss Universe last night in the pageant held in Sao Paolo, Brazil. Lopes beat out Olesia Stefanko (Miss Ukraine) and Priscilla Machado (Miss Brazil) to become the first Miss Universe to hail from Angola. Alyssa Campenella, Miss USA, was unable to become the first American to win the title since 1997.

Market Indices/Statistics:

  • Dow closed up 44.73 pts/+0.40% to 11,105.85
  • S&P closed up 10.60 pts/+0.91% to 1,172.87
  • Nasdaq closed up 37.06 pts/+1.49% to 2,532.15
  • 23 of the 30 Dow stocks closed higher / 7 closed lower
  • All 10 S&P 500 sectors closed higher
  • Industrials was the best performing sector (+1.90%)
  • The VIX was down 1.68 points to 36.91
  • Oil is up $1.58 to $89.89
  • Nat Gas is up $0.091 to $4.057
  • Gold is up $23.20 to $1,837.40
  • Euro vs. Dollar up $0.0017 to $1.3684
  • Dollar vs. Yen down $0.27 to $76.88

Companies in the News:

Airlines traded higher after announcing plans to cut capacity for 2012 in order to maintain fare increases at the Deutsche Bank investor conference.  United Continental Holdings (+7.35% to $19.28), US Airways (+16.29% to $5.64), and Delta Airlines (+8.27% to $7.99) were all higher on the day.

Morgan Stanley announced today that it has hired former Federal Reserve economist Vincent Reinhart to be the Chief U.S. economist effective October 1. Reinhart will be replacing Richard Berner, who left in April to work as a counselor to Treasury Secretary Tim Geithner.

Cummins Inc. traded higher (+5.90% to $92.90) after President and Chief Operating Officer, Tom Linebarger, announced to investors that the company expects to grow at an annual growth rate of 14% , and hit a $30 billion sales target.

Earnings:

Best Buy Co. slipped (-6.45% to $23.35) following the release of its Q2 earnings report.  The retailer reported earnings per share of $0.47 on $11.3 billion, coming in lighter than the analyst forecasts of $0.53 per share on $11.47 billion.  Best Buy also announces they see FY earnings per share (ex-buyback) to be $3.15-3.40 vs. estimates of $3.46.

Shares of Aetna Inc. traded higher (+5.44% to $40.53) after saying it sees FY earnings per share exceeding the previously announced range of $4.60-4.70, and ahead of the $4.70 earnings per share that analysts are forecasting.

Coming Wednesday:

Economic Reports: Producer Price Index (expected to be flat) and Retail Sales (expected to be +0.2%) at 8:30 am and Business Inventories (expected to be +0.5%) at 10:00; Earnings from Clarcor Inc. and Pall Corp.