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Facebook Upgrades Continue Stock's Rally

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Today's financial recap and tomorrow's financial outlook.

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MINYANVILLE ORIGINAL What started off as a big down day was quickly recovered in the opening moments. The S&P 500 closed marginally lower, but the NDX-100 was better on the day. European finance ministers met in Brussels today to continue hammering out solutions to the financing gap that faces Greece. By the US equity market's close, there were no definitive agreement or headlines. Later in the day, there were headlines suggesting that the ECB was prepared to do whatever it takes with regards to Greece and preventing a collapse of the monetary union. However, German government officials were completely against any official sector participation and that means that any effort to move forward would mean a German exit from the eurozone.

Trading activity was lower than normal today on the back of post-holiday action. Natural gas futures came under significant pressure, falling more than 5% on updated forecasts calling for warmer weather over the next six to 10 days. Natural gas had peaked near the technical resistance of $3.96 before falling to a price of $3.73/BTU at today's close of floor trading.

Facebook (NASDAQ:FB) rallied more than 8% after receiving favorable upgrades from both BTIG and Bernstein. BTIG's upgrade was notable as the company had issued dire forecasts in the prior few months, but now sees Facebook beating estimates for the coming quarter on the back of increasing mobile ad revenues.

On the regulatory front, SEC Chairman Mary Schapiro resigned and Director Elisse Walter was chosen to take over this position. Also, the Bank of England nominated current Bank of Canada governor Mark Carney to become its new governor. While current BoC minutes are not published, Carney has come across as a more moderate economist, somewhat less dovish than the sitting Governor Mervyn King.

Tomorrow's Financial Outlook

Tomorrow will be much more active on the economic data front. Durable goods orders will be released in the morning. Following a noticeable decline, without the negative effects of Hurricane Sandy in industrial production, this volatile gauge of US manufacturing is expected to decline 1% on a monthly basis after rising 9.1% last month. The S&P/Case-Shiller index of urban and residential home prices is also forecast to show an annualized gain of 2.90% from last month's gained of 2.03%.

In global economic data, China will release data on leading economic indicators and industrial profits. Earlier this month, the HSBC Manufacturing PMI index showed a slight increase to 50.4 from last month's 49.45. Additionally, the UK will release the preliminary estimate of GDP data. Economists expect that the UK will grow at an annual rate of 1%, unchanged from last month. However, the Bank of England already forecast this rise in an earlier release this month.

Earnings releases include Green Mountain Coffee Roasters (NYSE:GMCR) and ADT (NYSE:ADT).

Twitter: @Minyanville

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No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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