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Wall Street mixed on Spanish hopes, U.S. data:Dow up 0.58%

Published 10/01/2012, 04:44 PM
Updated 10/01/2012, 04:45 PM
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Investing.com - U.S. stocks closed mixed Monday, as hopes for progress in tackling the debt crisis in the euro zone lifted market sentiment, while mixed U.S. data counteracted the bullish environment.

At the close of  U.S. trade, the Dow Jones Industrial Average rose 0.58%, the S&P 500 index advanced 0.27%, while the Nasdaq Composite index climbed 0.09%.

Sentiment improved after Spain's finance minister said the country is reviewing a financial aid proposal by the European Central Bank. 

Earlier in the day, EU Commissioner Olli Rehn said that he doesn't expect the Spain's bank recapitlization to affect the structural deficit and added that Spain's 2012 deficit target is within reach. 
Investors remained cautious however, as Moody's rating agency's was to give its latest review of Spain's sovereign rating, which may see it downgraded to junk status.

Helping lift shares, the U.S. ISM manufacturing PMI rose more-than-expected last month, industry data showed on Monday.

In a report, the Institute for Supply Management said that the ISM manufacturing PMI rose to 51.5, from 49.6 in the preceding month.

Analysts had expected the ISM manufacturing PMI to rise to 49.7 last month. 

In bearish news, U.S. construction spending fell unexpectedly last month, official data showed on Monday.

In a report, Census Bureau said that U.S. Construction Spending fell to a seasonally adjusted -0.6%, from -0.4% in the preceding month whose figure was revised up from -0.9%.

Analysts had expected U.S. Construction Spending to rise to 0.5% last month. 


Separately, data earlier showing that manufacturing activity in China contracted for the second consecutive month in September, falling to the lowest level since November 2011, sparked fresh concerns over the outlook for growth in the world's second largest economy.

Financial stocks were sharply higher, led by Goldman Sachs, up 3.43%, and followed by Bank of America, whose shares jumped 1.93%, while Citigroup and JP Morgan rallied 2.02% and 1.51% respectively.

Over the weekend, Barron's said the Goldman Sachs' shares could rise 25% in the next year as capital markets improve, while, Guggenheim initiated coverage of Citigroup with a "buy" rating and a USD45 price target. 

Meanwhile, Finnish phonemaker Nokia saw its U.S. traded shares climb 2.91%, after saying that it will allow Oracle's customers access to mapping services. Shares in Oracle advanced 0.86% following the news.

Also on the upside, Apple added 0.23%, even as the tech giant reported opening weekend sales for the iPhone 5 that missed some analysts’ estimates. 

Last Friday, CEO Tim Cook apologized for releasing mapping software that provided wrong directions and the wrong locations of landmarks. 

At the close of European trade, the EURO STOXX 50 surged 1.84%, France’s CAC 40 rallied 2.39%, while Germany’s DAX 30 jumped 1.53%.

Traders are awaiting the Australian rate statement  and Spanish unemployment change on Tuesday.




 

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