Dow Jones:11,190.69 (+146.83) Nasdaq:2,546.83 (+30.14) S&P 500:1,175.38 (+12.43 )
US STOCKS rose for a third day yesterday on efforts by euro zone officials to solidify the region’s rescue fund and alleviate a sovereign debt crisis, boosting optimism.
Equities however ended off their highs for the day after a report suggested cracks were emerging in a previously agreed deal to tackle the crisis.
A successful solution to Europe’s sovereign debt crisis would take the pressure off banks worried about funding and remove a threat to economic growth. Rising hopes for an agreement have helped push the S&P 500 up more than 4 per cent since Thursday’s close.
That’s the biggest three-day percentage gain by the S&P 500 since mid-August. So far this week, he CBOE volatility index is down more than 10 per cent.
Market volatility could remain high as traders react to headlines and attempt to gauge the commitment of governments and institutions as they work to prevent a Greek default. US equities have been highly sensitive to Europe’s debt issues in recent weeks.
The S&P has gained 3.4 per cent so far this week, after losing 6.5 per cent on European-led fears the previous week. That week was also the Dow’s worst since October 2008 during the thick of the financial crisis.
Accenture, a tech services company, rose 3.5 per cent to $55.55 in extended trading after the market’s close and it reported quarterly earnings that beat expectations. The company gave a 2012 outlook that topped consensus forecasts.
Payroll processor Paychex rose 1.9 per cent to $27.20 after the closing bell following stronger-than-expected earnings.
US-listed shares of Research in Motion surged on market speculation that investor Carl Icahn had taken a stake in the BlackBerry maker. The stock was one of the top gainers in the Nasdaq 100, climbing 4.5 per cent to $22.65.
Walgreen fell 6.3 per cent to $33.77 after it signalled that it would not budge in its battle with Express Scripts over what the pharmacy benefits manager will pay for prescriptions. Express Scripts rose 0.9 per cent to $39.68.
About 9.04 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, above last year’s daily average of 8.47 billion.– (Reuters)
