💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

US STOCKS-Wall St flat on debt woes linger; S&P 500 near high

Published 12/06/2010, 02:05 PM
Updated 12/06/2010, 02:08 PM
GC
-

* Euro falls as euro zone finance ministers meet

* Gains in tech shares limit declines

* Bernanke says Fed could buy more bonds

* Indexes: Dow off 0.04 pct, S&P off 0.1 pct, Nasdaq up 0.01 pct (Updates to early afternoon)

By Caroline Valetkevitch

NEW YORK, Dec 6 (Reuters) - U.S. stocks were little changed on Monday as investors were cautious before moves by euro zone officials to keep a debt crisis contained, but the S&P 500 stood within points of a new high for the year.

Euro zone finance ministers were under pressure as they met to increase the size of a 750 billion euro safety net for debt-stricken members. But Germany rejected any such move.

Despite the day's dip, analysts see the S&P 500 soon breaking out of its recent range and surpassing its current intraday high for the year just above 1,227 reached on Nov. 5.

"We're at the April highs. We're backing and filling, and we've been doing that since Nov. 3. The presumption is a little bit longer, not that much, and then it will be free to break out," said Carter Worth, chief market technician at Oppenheimer & Co in New York.

"The objective would be 1,280 (on the S&P 500)...something between a 4 to 5 percent advance from the breakout jump here."

Analysts view key resistance for the benchmark index at 1,228 because it's just above the year's high and coincides with the 61.8 percent Fibonacci retracement of the 2007-2009 bear market slide.

"There are a lot of near-term things going in the market's favor," said John Kosar, director of research at Asbury Research in Chicago, noting that the VIX volatility index trading near 18 "indicates complacency, fearlessness."

Also looking ahead in equities, Goldman Sachs Asset Management Chairman Jim O'Neill, speaking at the Reuters 2011 Investment Outlook Summit in New York, gave a bullish view on stocks, saying global equity markets are likely to see gains of up to 20 percent through 2011.

A decline in the euro added to the pressure on stocks. Stocks and the euro have moved in tandem of late, with the euro view as a proxy for debt concerns.

The Dow Jones industrial average was down 4.39 points, or 0.04 percent, at 11,377.70. The Standard & Poor's 500 Index was down 1.44 points, or 0.12 percent, at 1,223.27. The Nasdaq Composite Index was up 0.22 points, or 0.01 percent, at 2,591.68.

Technology shares limited declines after positive brokerage comments on Cisco Systems Inc and Cognizant Technology Solutions Corp. Cisco rose 2.4 percent to $19.52 after Oppenheimer raised the stock to "outperform," and Cognizant gained 0.8 percent to $69.89 after Goldman Sachs boosted it to "buy."

U.S. Federal Reserve Chairman Ben Bernanke over the weekend told the CBS television program "60 Minutes" the Fed could increase its program of buying $600 billion in U.S. government bonds if the economy fails to respond or unemployment stays too high. (Additional reporting by Leah Schnurr; Editing by Kenneth Barry)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.