Stock Market News for Feb 09, 2011 - Market News

On Tuesday, markets gained points with the Dow closing higher for the seventh consecutive session, the longest run of gains since July, helped by strong sales figures posted by Mc Donald’s. However, the gains were limited by falling energy prices which were hit by China’s interest rate increase intended to control rising inflation. Fast-food giant McDonald’s (NYSE:MCD) has reported strong sales for the month of January around the world except for the US. Reacting to this news, share prices of McDonald’s increased 2.6%.

The Dow rose by 0.59% and closed at 12,233.15. The S&P 500 gained 0.42% and ended the day at 1,324.57. The Nasdaq composite edged up 0.47% and closed at 2,797.05. On the New York Stock Exchange, breadth of the market was marginally on the positive side but limited to only 6.99 billion shares traded at the New York Stock Exchange, well below the daily average of 8.47 billion year-over-year.

Coming to the economic front, there were no major economic releases that could sway the markets on either side. Treasury prices fell after the government’s sale of $32 billion of 3 year debt aroused little demand from bidders including the likes of the Central Bank.

On the international front, gains made by the market were limited by losses from the energy sector. The world’s second-largest energy consumer China has decided to hike its interest rates, the second such hike in the past six weeks to curb inflation. The commodity sector also sustained losses on grounds of demand tightening from China.

On a sectoral basis, financial stocks trimmed their losses to end higher on the news of hike of interest rates by China. Key shares in the financial sector to gain include Capital One Financial Corp (NYSE:COF), which rose 4.14% after news of a possible hike in its dividends. Other commercial banks may also receive early approval to raise dividends. Reacting to the news, share prices of Bank of New York Mellon Corp (NYSE:BK), JP Morgan (NYSE:JPM), PNC Financial Services Group Inc (NYSE:PNC) and U.S. Bancorp (NYSE:USB) gained 1.13%, 0.53%, 2.49% and 0.97% to close at $32.20, $45.74, $64.31 and $28.22 respectively.

On to news about earnings and estimates, Toyota (NYSE:TM) reported a drop of 47.6% in its quarterly profits but raised its forecasts. The car-maker’s share prices increased 4.04% to close at $88.57. World’s largest steel-maker ArcelorMittal’s (NYSE:MT) share prices gained 4.16% to $38.31 after the company reported a loss in quarterly profits but projected a better 2011. Walt Disney’s (NYSE:DIS) share prices increased 3.2% after the company reported its first quarter earnings results beating expectations. Share prices of cosmetic company Avon (NYSE:AVP) slid 3% after the company reported lower quarterly profits. The share prices of the company closed at $28.47. Similarly, Teva Pharmaceuticals’ (NASDAQ:TEVA) share prices also slid 5.4% after the generic drug-maker reported quarterly earnings results that came in below expectations.

Coming to mergers and acquisitions news, share prices of military-communication gears provider Herley Industries (NASDAQ:HRLY) gained 16.25% to reach $18.89 after the company said it was being acquired by Kratos Defense and Security Solutions Inc (NASDAQ:KTOS) for $270 million. Share prices of Kindred Healthcare (NYSE:KND) rocketed 28.34% after the company announced plans to acquire Rehabcare Group (NYSE:RHB) to form a post-acute healthcare services company. RehabCare’s (NYSE:RHB) share prices gained 45.47% to close at $37.05.

Stock Market News for Feb 09, 2011 – Market News

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