Stocks Open Slightly Higher as Investors Await European Developments

Strategic Insights -

Investors are keeping a close eye on the European region as talks about providing funds to troubled nations continue. This comes as the Dow Jones Industrial Average, S&P 500, and Nasdaq indices show resilience, with the Dow gaining 43 points, the S&P 500 adding 4 points, and the Nasdaq rising 14 points. The French government is selling at least €7 billion worth of debt, and its 10-year bond yields are increasing. Meanwhile, Fitch Ratings has cut its outlook for France's credit rating from stable to negative.

Key Takeaways:

  • The Dow Jones Industrial Average rose 43 points, or 0.4%, to 11,909, while the S&P 500 was adding 4 points, or 0.3%, to 1,224, and the Nasdaq was up 14 points, or 0.5%, to 2,568.
  • Yields on French 10-year bonds were increasing, with the government planning to sell at least €7 billion worth of debt.
  • Fitch Ratings has cut its outlook for France's credit rating from stable to negative.
  • Investors are concerned about the succession of power in North Korea, potential risks to South Korea, and the European debt crisis.
  • The National Association of Home Builders' housing market index is expected to hold steady at 20 in December.
  • Small-cap stocks may outperform large-cap stocks in December, known as the "January Effect."
  • Lawmakers are gearing up for a battle over extending a payroll tax break and unemployment insurance.
  • Exxon Mobil has approached Gulf Keystone Petroleum about a takeover bid of £7 billion, while AT&T's talks on asset sales to help win court approval for its acquisition of T-Mobile USA have gone cold.

Statistics:

  • 43 points, or 0.4%, increase in the Dow Jones Industrial Average to 11,909.
  • 4 points, or 0.3%, increase in the S&P 500 to 1,224.
  • 14 points, or 0.5%, increase in the Nasdaq to 2,568.
  • €7 billion worth of debt to be sold by the French government.
  • Fitch Ratings cut its outlook for France's credit rating from stable to negative.
  • 20: expected National Association of Home Builders' housing market index in December.
  • 7 billion pounds: the approach value of Exxon Mobil's takeover bid.
  • 8 pounds a share: the estimated offer from Exxon Mobil.
  • £7 billion: the estimated offer from other companies to acquire Gulf Keystone Petroleum.
  • $94.03 a barrel: January oil futures price.
  • $1601.70 an ounce: February gold futures price.

Sources:

  • TheStreet
  • Dow Jones Industrial Average
  • S&P 500
  • Nasdaq
  • Fitch Ratings
  • Thomson Reuters
  • BTIG
  • The Independent
  • The Wall Street Journal
  • Exxon Mobil
  • AT&T
  • Deutsche Telekom
  • U.S. Department of the Treasury