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Daily Analysis – US Stocks Gain, Bonds Fall on Bailout Progress

By Binary Options StrategyStock MarketsOct 27, 2011 04:23AM ET
www.investing.com/analysis/daily-analysis-%E2%80%93-us-stocks-gain,-bonds-fall-on-bailout-progress-103672
Daily Analysis – US Stocks Gain, Bonds Fall on Bailout Progress
By Binary Options Strategy   |  Oct 27, 2011 04:23AM ET
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Equities

Asian markets traded mixed, shrugging off Tuesday’s steep drop in US shares.  The Nikkei settled down .2%, the Kospi gained .3%, and Australia’s ASX 200 rose .4%.  Modest inflation figures from Australia helped the index reverse from early losses, on hopes of an interest rate cut.  The Shanghai Composite rallied .7%, and the Hang Seng rose .5%.

A similar performance was seen in Europe ahead of the European Summit.  The FTSE rose .5%, while the DAX fell .5% and the CAC40 slipped .2%.  Germany’s parliament approved an expansion of the EFSF bailout fund.  Banks swung in a wide range, closing down nearly 1% after rising more than 1% earlier in the day.

US markets rallied with the Dow gaining 162 points to 11869.  The S&P 500 climbed 1.1%, and the Nasdaq advanced .5%, as progress from Europe helped lift sentiment.



Dow Rallies 162 Points

Boeing gained 4.5% after beating earnings forecasts.  Meanwhile, Ford shares slumped 4.5% even though it beat analyst forecasts.  Sprint dropped 7% after reporting a loss in subscribers that was more than expected.  Amazon shares closed down 12.7% on a weak outlook which prompted several brokerages to cut their price targets on the stock.

Currencies


The Canadian Dollar rallied 1.2% to 1.0045, reversing Tuesday’s losses.  The Euro ended flat at 1.3908, while the Pound and Australian Dollar both slipped 2%.  The Yen touched another record high against the dollar, before settling down .2% to at 76.23.

Economic Outlook


Investors are anxiously waiting for a deal regarding Greece’s debt.  The market is looking for a 50% haircut on the debt.

Wednesday’s reports were upbeat, as new home sales rose, and durable goods orders jumped.

Daily Analysis – US Stocks Gain, Bonds Fall on Bailout Progress
 

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Daily Analysis – US Stocks Gain, Bonds Fall on Bailout Progress

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