Day Traders Diary
12/26/11U.S. stocks opened higher on Wednesday on reports that German lawmakers had approved a measure effectively granting Chancellor Angela Merkel permission to work towards a plan to boost the lending power of the regional rescue fund. The vote came as European leaders readied for another crisis summit to talk about a second bailout for Greece and the recapitalization of regional banks. The Dow Jones Industrial Average surged 160 points to 11,867. The S&P 500 Index added 14 points to 1,243. The Nasdaq Composite Index jumped 27 points to 2,665. It's a morning of the haves and have nots. Stocks trading up on earnings include F5 Networks, Corning, Praxair, Wyndham Worldwide, WellPoint, Allegheny Tech, Boeing, Itron, Tupperware, Roger Communication, and Medco Health Solutions. F5 Networks is jumping 13% while Boeing is leading the Dow higher up 5%. Plenty of stocks however are trading lower this morning following earnings. JetBlue, Nabors, Southern Union, Brinker, Dr. Pepper Snapple, Hess, Automatic Data, Ford, Broadcom, Lockheed Martin, Amazon, and TJX are all lower on earnings news. Amazon is down 11% following a disappointing report while Ford is down 5%. After the first hour the rally started to dissipate with news out of Europe that any deal announced today will not be enough to appease investors. Following the first hour the Nasdaq was solidly in the red while the Dow gave up most of its gains. Through the morning the Dow rebounded while the Nasdaq remained stuck in the red. The financials are trading higher for the most part. The commodities are rebounding as well. In the afternoon the averages pushed higher once again. No new news out of Europe, but investors seem to be expecting good things. Plenty of stocks that traded sharply lower this morning have reversed course. MetLife opened down 4%, but is going to finish in the green. The financials have improved. Goldman Sachs is trading up 6%. In the last hour the averages pushed higher. Nice reversal. The Dow Jones Industrial Average finished up 162 points, or 1.4%, at 11,869. Boeing Co. (BA) shares led gainers, up 4.5%, after the aircraft maker reported quarterly results. The S&P 500 rose 12 points, or 1.1%, to 1,242, led by energy and financial stocks. The Nasdaq Composite gained 12 points, or 0.5%, to 2,650.
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