Eurozone fears halt rise on good fundamentals
US stocks rose slightly yesterday, but with the outcome of discussions on a bailout package for Greece uncertain, investors are unlikely to make big bets in coming days.
The Dow Jones industrial average was up 33.07 points, or 0.26 per cent, at 12,878.20. The Standard & Poor’s 500 Index was up 2.72 points, or 0.20 per cent, at 1,347.05. The Nasdaq Composite Index was up 2.09 points, or 0.07 per cent, at 2,904.08.
The S&P has gained almost seven per cent in 2012 on better-than-expected economic figures, boosting bellwethers such as Microsoft to yearly highs and Apple to a record high.
In a sign of underlying confidence, the 10-day moving average of stocks posting 52-week highs on the NYSE is at 203, the highest level since May 2010, according to Thomson Reuters Datastream.
The 10-day moving average of stocks hitting 52-week lows has dropped to just eight.
Still, the market continues to watch the Eurozone for any sign of a setback in resolving the sovereign debt crisis.
“There’s a tug of war between fundamentals, which are improving, and the macro backdrop of geopolitical risk from Europe,” said Andrew Goldberg, market strategist at JP Morgan Funds in New York. “We’re still waiting on Greece, but at the same time we’re almost being forced to pay attention to the improving data.”
Greece’s government is preparing a document with a list of painful reforms needed to clinch a new, €130bn bailout financing package that is critical to the country avoiding a disorderly default. Political parties last night again delayed making a decision on accepting the reforms.
Boosting the Dow, however, Coca-Cola rose 0.8 per cent to $68.55 after it reported better-than-expected quarterly results.