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 >