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business newsMarket Halftime Report: Global Manufacturing Picks Up
By
Vincent Trivett
Feb 01, 2012 1:05 pm
Lots of bullish data out today.
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European stocks are at their highest in six months on positive manufacturing data in Europe, in line with similar reports in the US and China. Today, the ISM reported that its index of industrial activity in the US in January rose to 54.1 from 53.1 in December. German industry reversed a three-month contraction in January. German PMI for last month rose to 51 points, a six-month high, up from 48.4 points in December. Eurozone inflation is steady at 2.7%.
The Commerce Department showed us a wind of change in the housing market. Construction spending rose 1.5% in December after gaining just 0.4% in November.
Portugal eased concerns about the necessity for another bailout today when it succeeded in selling 1.5 billion euros in a bond auction. Yields on the short-term Portuguese bonds sold today averaged at 4.07% for three-month bills and 4.46% on six-month bills. These yields are lower than last month's despite S&P's recently downgrade of Portuguese debt to junk.
US stocks have been rallying all day.
- The Dow (^DJI) is up 144.1 pts (1.14%) with all but one of the 30 components up today.
- The S&P 500 (.IND) is up 16.16 pts (1.23%).
- The Nasdaq (^IXIC) is up 35.98pts (1.28%).
Amazon (AMZN) is still getting clobbered for its earnings fail yesterday. Amazon's stock is down 9%, the biggest loser in the tech sector today.
The once mighty America Online (AOL) reported a 10% gain in advertising revenue. The company's earnings came in at $0.23 a share, far less than the $0.61 per share in the last quarter of 2010, but still better than the $0.16 that analysts expected. AOL is now trading at 18.52, up 14.13% for the day.
Corinthian Colleges, Inc (COCO), a for-profit educator, is up 33% after reporting EPS of $0.04 per share, shattering expectations of $0.01 per share.
Whirlpool (WHR) is up 16% despite flagging demand. The producer of Maytag and Kitchen Aid appliances projects 2012 earnings that easily beat expectations.
Morgan Stanley (MS) is rallying thanks to its role in Facebook's IPO filing. Facebook will use the ticker symbol (FB). Still no word on which index it will list on. This IPO is like the Super Bowl for NYSE (NYX) and Nasdaq (NDAQ).
Bankrupt American Airlines (AAMRQ.PK) might cut up to 15,000 jobs in its reorganization.
Ford (F) reported that sales increased 7% in January. Chrysler, owned by Fiat, expects profits to increase by 88% in 2012. These are some good signs for the economy as well as a bullish preview ahead of this afternoon's release of domestic vehicle sales and total vehicle sales data.
Twitter: @vincent_trivett
No positions in stocks mentioned.
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