US Stocks Open Higher After Spain Bank Deal, Alcoa Earnings -- FEC

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Date Posted: 07:02:05 07/11/12 Wed
Author: 10/07/2012 11:55PM
Subject:

US Stocks Open Higher After Spain Bank Deal, Alcoa Earnings

US Stocks Open Higher After Spain Bank Deal, Alcoa Earnings
10/07/2012 11:55PM

--Stocks rise as Spain's aid package boosts sentiment

--Alcoa falls after reporting earnings loss, though revenue tops expectations

--Europe rallies as agreement reached on aid for Spanish banks

--Small business optimism falls; job openings, turnover data on tap

By Chris Dieterich and Tomi Kilgore

NEW YORK--An agreement on aid to Spanish banks stoked investor enthusiasm and fueled a rebound rally in stocks.

The Dow Jones Industrial Average advanced 82 points, or 0.6%, to 12818 in early-Tuesday trading. Blue chips are looking to snap a three-session streak of declines. The Standard & Poor's 500-stock index gained eight points, or 0.6%, to 1360, and the Nasdaq Composite tacked on 19 points, or 0.7%, to 2951.

All 10 of the S&P 500's sectors rose, lead by financials stocks. American Express notched the Dow's biggest advance, climbing 1.9%.

Shares of Alcoa fell 1% after the blue-chip aluminum producer reported a quarterly loss, though its adjusted earnings and revenue topped analyst expectations, kicking off earnings season as the first Dow component to reveal its results.

In economic news, the National Federation of Independent Business's small-business optimism index fell in June to its lowest reading since October, missing expectations.

Also on tap is data on job openings and labor turnover for May, due at 10 a.m. EDT.

European markets were broadly higher. The Stoxx Europe 600 rallied 1.2%, after euro-zone finance ministers agreed to make EUR30 billion ($36.94 billion) in aid available for Spain's banking industry and gave the country an extra year to meet its deficit targets. Spain's IBEX-35 stock index jumped 1.6% and yields on 10-year Spanish bonds eased.

Also boosting sentiment, U.K. industrial production jumped 1% from May to April, the biggest monthly increase in more than two years, and much better than expectations of a 0.2% decline.

Meanwhile, Asian markets fell after data showed China's trade surplus widened in June as import growth slowed more than expected. China's Shanghai Composite slipped 0.3% to a six-month low and Japan's Nikkei Stock Average lost 0.4% to suffer its fourth-consecutive decline.

Crude-oil futures slipped 0.7% to $85.40 a barrel, while gold futures tacked on 0.6% to $1,598 a troy ounce. The U.S. dollar edged higher against the euro but slipped against the yen. The yield on 10-year U.S. Treasury bonds rose to 1.522%.

Advanced Micro Devices slumped 5.2% after the semiconductor maker cut its second-quarter revenue outlook, citing weaker-than-expected business conditions in China and Europe.

Mako Surgical tumbled 38% after the medical device company lowered its 2012 outlook for product sales and procedures, citing a slower-than-expected start to the year.

Shaw Group rose 2.5% after the technology and engineering company's quarterly loss narrowed across businesses that range from restoration of contaminated land to construction of military housing.

Helen of Troy fell 9.4% after reporting earnings that fell 4.6% as the housewares and personal-care products company saw an increase in tax expense from its acquisitions, though it reported a double-digit increase in revenue.

MagicJack VocalTec rallied 16% after the phone-services company raised its fiscal second-quarter and full-year earnings and revenue outlook as strong sales have continued despite reduced spending on advertising.

Write to Chris Dieterich at christopher.dieterich@dowjones.com

(END) Dow Jones Newswires

July 10, 2012 09:55 ET (13:55 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

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