The National  Memo Logo

Smart. Sharp. Funny. Fearless.

Monday, December 09, 2019

U.S. Stocks Rise On Better Data From China And Europe

@AFP

NEW YORK (AFP) – U.S. stocks Tuesday moved higher after a holiday weekend helped by solid economic data from China and Europe and Washington’s pullback from its threat of an imminent strike on Syria.

About 35 minutes into trade, the Dow Jones Industrial Average gained 92.09 (0.62 percent) to 14,902.40.

The broad-based S&P 500 picked up 15.91 (0.97 percent) at 1,648.88, while the tech-rich Nasdaq Composite Index rose 43.23 (1.20 percent) to 3,633.10.

Markets resumed trading after Monday’s Labor Day holiday. Over the weekend, HSBC’s China purchasing managers’ index (PMI), a key benchmark of manufacturing activity, rebounded to 50.1 in August, its first month of expansion since April.

Also, the eurozone PMI compiled by Markit Economics jumped to 51.4 points in August from 50.3 in July.

Anxiety among investors also ebbed as the prospects for an immediate U.S. strike on Syria sank with the Obama administration’s decision to seek congressional approval for the action.

Dow component Verizon fell 4.4 percent one day after announcing a $130 billion deal to buy out Vodafone’s 45-percent stake in the two companies’ Verizon Wireless joint venture. Vodafone dropped 2.5 percent.

Microsoft, another Dow component, dropped 4.4 percent after announcing a $7.2 billion deal to acquire Nokia’s mobile phone unit. U.S.-traded shares of Nokia soared 36.9 percent.

CBS jumped 4.9 percent after resolving a contract dispute with Time Warner that had led to a programming blackout in New York City and some other markets. Time Warner rose 1.7 percent.

Bank of America, also a Dow member, rose 1.8 percent on reports that it is selling its shares in China Construction Bank for about $1.5 billion.

Other large banks also advanced, including Citigroup (up 2.9 percent) and JPMorgan Chase (up 2.1 percent).

Technology shares were strong, led by Apple (up 1.9 percent), Amazon (up 2.6 percent), Google (up 2.0 percent) and Cisco (up 1.5 percent).

Bond prices fell. The yield on the 10-year Treasury jumped to 2.84 percent from 2.75 percent Friday, while the 30-year rose 3.78 percent from 3.68 percent. Prices and yields move inversely.

Advertising

Start your day with National Memo Newsletter

Know first.

The opinions that matter. Delivered to your inbox every morning

Leopard 2 tanks

This is the latest report in my months-long coverage of the war in Ukraine. For more reporting like this, and to read my screeds about the reprehensible Republican Party, please consider becoming a paid subscriber.

Keep reading...Show less
Youtube Screenshot

With Republicans once again setting the stage for gridlock in Congress over raising the U.S. Treasury's statutory debt limit, and using interviews to push disingenuous analogies comparing the federal government’s budgeting practices to that of an average American household. The real danger is that mainstream media could fall for this misleading comparison and pressure Democrats into enacting painful cuts to popular social programs, while also letting Republicans off the hook for their role in manufacturing this crisis in the first place.

These comparisons between federal and household budgets go back many years, and they ignore some glaring differences: Unlike a household or business, the U.S. government issues its own currency and can roll over its own debt. The political utility of this comparison, however, is that it has enabled conservatives to target social programs, while they avoid answering for their own role in running up the public debt through unfunded tax cuts under Republican administrations.

Keep reading...Show less
{{ post.roar_specific_data.api_data.analytics }}