This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stocks Rise on Fed Stimulus Hopes

"The bottom line: Despite last week's disappointing employment report, the latest ISM and NFIB data suggest momentum is more up than down," said Jim O'Sullivan, chief U.S. economist at High Frequency Economics . "Of course, slightly better does not mean good. The trend still looks weak enough to encourage the Fed to ease again this week."

Also, the Census Bureau reported the U.S. trade deficit increased to $42 billion in July from a downwardly revised $41.9 billion in June. Economists expected the trade deficit to widen to $44 billion.

"July's U.S. trade figures are not as good as they look and it won't be long before the deficit widens more significantly as the global slowdown takes a greater toll on U.S. exports," said Paul Dales, senior U.S. economist at Capital Economics.

Moody's, however, warned it would likely downgrade the U.S.'s government's debt rating to Aa1 from Aaa if budget negotiations during the 2013 congressional legislative session failed to produce specific policies that would produce a stabilization and then downward trend in the ratio of federal debt to GDP over the medium term.

The FTSE in London pared losses, slipping 0.12%, while the DAX in Germany added 1.09%. The Hong Kong Hang Seng index closed up 0.15% and the Nikkei in Japan finished down 0.7%.

Traders are also looking ahead to the German Constitutional Court's ruling on the legality of the permanent bailout fund Wednesday. The decision will then be followed by a meeting of European finance ministers in Cyprus on Friday for talks about banking supervision and possible extra aid for Spain and Greece.

The benchmark 10-year Treasury fell 12/32 Tuesday, raising the yield to 1.699%, while the greenback dove 0.64%, according to the dollar index.

October crude oil futures edged up 63 cents to settle at $97.17 and December gold futures settled up $3.10 at $1,734.90 an ounce.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
SNSS $2.24 -2.60%
UNFI $67.84 -0.70%
TSLA $233.53 1.30%
YHOO $41.39 -1.50%
AAPL $126.99 -1.30%

Markets

DOW 18,047.81 -22.59 -0.12%
S&P 500 2,113.16 -1.33 -0.06%
NASDAQ 5,003.0120 -13.9170 -0.28%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs