Stocks got a modest lift on Tuesday as minutes from a Fed meeting fuelled hopes that the central bank would soon undertake measures to stimulate economic growth.
All major indexes rose, with the tech-heavy Nasdaq leading the advance. The index gained 0.7% to 2417.92. The Dow Jones industrial average added more than 10 points or 0.1% to close at 11020.4. On the New York Stock Exchange, about four stocks rose in price for every three that declined. The CBOE Vix, the market’s measure of volatility, fell below 19.
This morning’s stock futures suggest traders are gearing up for an upbeat session buoyed by Intel’s (NASDAQ:INTC) numbers and guidance. JP Morgan’s (NYSE:JPM) numbers this morning have also helped boost sentiments. Ahead of the opening bell, the Dow Jones industrial average futures are up 71 points, or 0.7%, to 11,028. The broader S&P 500 stock-index futures are up nearly 9 points, or 0.7%, to 1,172.90, while Nasdaq 100 index futures are up 15 points, or 0.7%, to 2,051.75.
Yesterday, gains on the DJIA were led by Bank of America (NYSE:BAC), up 2.8%, Alcoa (NYSE:AA), up 2.1%, and JP Morgan (NYSE:JPM), up 1.7%.
This morning JP Morgan (NYSE:JPM) came out with better-than-anticipated earnings. However, revenue fell short of analyst projections. Earnings of $1.01 a share beat Street estimates of $0.88, even as revenues of $23.82 billion fell below the expected $24.48 billion.
Asian markets jumped this morning as risk-on sentiment gained prominence. Asian markets closed the day broadly higher, with Hong Kong’s Hang Seng Index up 1.5%, China’s Shanghai Composite up 0.7%, and Japan’s Nikkei up 0.2%.
As demand for equities increased, US Treasury prices declined Tuesday, with the 10-year falling 11/32 in price as its yield increased to 2.433%. An auction of $2.1 billion new 10-years is scheduled for today.
According to Goldman Sachs (NYSE:GS) the Federal Reserve will likely announce plans for about $500 billion in Treasury purchases by mid-2011. However, the central bank could increase that program depending on economic conditions.
Leading the S&P500 industry sectors higher were financial sector shares, up 1.1% and tech shares, up 0.9%. Consumer goods (+0.5%), health care (+0.3%), consumer services (+0.2%), basic materials (+0.1%) and oil and gas (+0.03%) were the other gainers. Utilities (-0.3%), telecommunications (-0.04%) and industrials (-0.03%) led on the downside.
ALCOA INC (AA): Free Stock Analysis Report
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