Thursday, January 19, 2012

The US Stocks rise but when will the Indian Government Start to act? Are they still  Coma? 
US stocks rose on Wednesday on optimism the International Monetary Fund (IMF) would be able to raise additional funds to help combat Europe's debt crisis and after Goldman Sachs' earnings beat estimates.
The IMF is estimating it needs to raise up to $600 billion to lend to countries struggling with the fallout from the growing Eurozone debt crisis, IMF sources said.
Greece and its creditors were to resume negotiations on all terms of a planned debt swap, hoping to overcome an impasse in talks and stave off a painful default.
"Overall the European situation has shown remarkable stability so far this year in light of the downgrades and now the story percolating around Greece," said Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois.
Goldman Sachs Group Inc managed to beat fourth-quarter earnings expectations through cost cutting and lower taxes. Its shares rose 5.1% to $102.73.
"Goldman Sachs is kind of a mixed bag because they beat on earnings quite substantially but missed on revenues so it will be interesting to see what the market's final take is on that. At the end of the day it will probably end up being a positive," said Jankovskis.
The S&P 500 has risen 3.3% for the year, helped by gains in financials. Investors have focused on improving US economic data and a stabilization of the Eurozone crisis.
The S&P financial index was up 0.7% and has advanced nearly 6% for the year. The sector fell over the last two sessions after lackluster earnings from JPMorgan Chase & Co and Citigroup Inc.
The Dow Jones Industrial Average rose 58.54 points, or 0.47%, at 12,540.61. The Standard & Poor's 500 Index was up 7.26 points, or 0.56%, at 1,300.93. The Nasdaq Composite Index put on 22.39 points, or 0.82%, at 2,750.47.
The benchmark S&P 500 once again bumped against the 1,300 level, a key resistance point that analysts said could trigger more selling if it is convincingly pierced.
Bank of New York Mellon Corp dipped 4.1% to $20.39 after the world's No. 1 custody bank said fourth-quarter earnings fell.
Another big custody bank, State Street Corp slumped 7.1% to $39.73 after it said it accelerated an expense control programme, a sign it still sees continued weakness in global capital markets.
Amid a flurry of economic data, US industrial output rose in December as manufacturing rebounded at its strongest pace in a year, further evidence the economy ended 2011 on a firmer footing.
Other data showed inflation pressures remained in check, with wholesale prices slipping last month.
Also, US homebuilder sentiment unexpectedly jumped in January to its highest level in 4-1/2 years. The PHLX housing index climbed 2%.
Yahoo Inc was up 2.2% to $15.77 after co-founder Jerry Yang severed all formal ties with the company he started in 1995. Shareholders had blasted Yang for impeding investment deals that could have transformed the Internet media group.

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