girls celebrating

Photo: theqspeaks/Flickr

Sure, stocks gained less than a per cent.  But this was on the tail of yesterday’s big gains.  Also, some bad reads from Europe and a gloomy note from PIMCO’s Bill Gross couldn’t keep the stock markets down for too long.  First, the scoreboard:

Dow: 12,418.4, +21.0, +0.2%
S&P 500: 1,277.3, +0.2, +0.0%
NASDAQ: 2,648.4, -0.4, -0.0%

And now, the top stories:

  • It’s not news that Europe’s troubles are still unresolved.  On one hand, Germany had a very successful debt auction this morning.  The country boasts a 10-year yield, which is on par with US Treasuries.  Elsewhere in Europe, things got worse.  Spain’s borrowing costs rose on speculation that the debt-laden country would seek financial aid from the IMF and European Union.  Hungary’s currency fell to new lows as the country runs low on cash, which could ultimately turn into a major problem for neighbouring Austria.  Italian bank UniCredit saw its shares plummet after it raised a massive amount of capital at a huge discount to its recent share price.  Here’s Why The Pain Is Slowly Returning To Spain >
  • European stocks sold off with Italy closing down 2%.  U.S. stocks fell during early trading and only fell further on some disappointing economic data.  November factory orders climbed 1.8% month-over-month, missing expectations for 2.0% growth.  October’s numbers, however, were revised upwards.
  • Markets then staged a big rally.  Throughout the day, we got monthly auto sales data, and the Detroit three all beat expectations.  Chrysler sales jumped 37%.  Ford sales increased 10%.  GM sales climbed 4.7%. 
  • Some leaders in the stock market included consumer-related momentum names. Earlier this morning, Goldman Sachs added yoga-pants maker Lululemon and burrito assembler Chipotle to the brokerage firm’s exclusive Conviction Buy list.  Lululemon jumped 8.8% and Chipotle climbed 2.2%.
  • Another beat-up momentum name that soared today was Netflix.  The company said its subscribers streamed 2 billion minutes worth of content in the last quarter.  This announcement was followed by an extremely bullish note from BTIG analyst Rich Greenfield.  The stock closed up 11.4%.
  • Shares of Eastman Kodak on the other hand dived 28.2%.  The WSJ reports that the beleaguered film maker is preparing to file for bankruptcy.  The company was also alerted by the New York Stock Exchange that it could get de-listed if the stock continued to trade below $1 per share.
  • Yahoo announced that Scott Thompson, the President of PayPal, would be taking over as CEO.  However, this new direction wasn’t welcomed by investors, who sent the stock lower by 3.1%.
  • Don’t Miss: How To Protect Yourself From The Biggest Risks Of 2012 >

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