Not So Much Doom And Gloom For The Markets

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Stock markets in the USA closed Tuesday at the highest level in five months, driven by more encouraging news about the health of the global economy.

The trend was supported by the publication of a strong demand for metals from China and by the rather favorable outlook unveiled Monday by the aluminum giant Alcoa (+0.1%) which are quarterly publications considered a good barometer of global growth.

In addition, the market was somewhat reassured by the statements of an official of Fitch notes that the “AAA” from France should not be lowered in 2012.

The Dow Jones gained 0.56% (69.78 points) to 12,462.47 points. The S & P 500, wider, took 0.89% (11.38 points) to 1,292.08 points while the Nasdaq composite market was up 0.97% (25.94 points) to 2,702.50 .

The S & P has completed over 1285.09 points, the highest closing level since August 1, and important technical threshold that heralds a continued rise.

“The real economy outside the financial markets, seems to be doing well and there is a broad consensus among (investors who specialize in) consumption values ​​that they have nothing to fear,” Judge Sean Darby, head of global policy actions at Jefferies.

The values ​​of industry and raw materials, highly cyclical, are among the best performances of the session. Caterpillar, the main contributor to the rising Dow gained 2.94%. The bank sued the bouncing motion that allowed the KBW index of the sector to earn more than 8% since the beginning of the year. It took 1.85% Tuesday, while the S & P financial sector was up 1.97%. As for the value of raw materials, they showed a gain of 1.78%.

“The materials were one of the most weakened so the valuations are quite extraordinary if you think that the recovery will help to drive up prices,” Judge Robert Lutts, president of Cabot Money Management.

Symbol of an appetite for risk returned, the Vix volatility index, considered the “barometer of fear”, fell 1.8% to 20.69, approaching the psychological barrier of 20 points .

Against the current trend, Tiffany’s has dropped by more than 10%. The jeweler announced a lowering of its annual profit forecast after reporting a fall “significantly” in sales in the U.S. and Europe during the holiday season.

No Optimism For The Markets As The Debt Crisis Is Contained

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Wall Street closed sharply lower Monday’s session, investors were skeptical about the ability of the Europe Agreement negotiated last week to effectively contain the debt crisis.

The Dow Jones Industrial 30 closed down 1.34%, yielding 162.87 points to 12,021.39 points.

The S & P-500, wider, lost 18.72 points, or 1.49% to 1236.47 points.

The Nasdaq Composite fell on its side of 34.59 points (-1.31%) to 2612.26 points.

Fitch has heightened concerns in the market believing that economic growth in major advanced economies expected to slow to 1.3% this year and 1.2% in 2012 before accelerating to 1.9% in 2013.

Moody’s announced it would review the notes of the countries of the European Union in the first quarter 2012, the top of last week have not produced a sense of decisive result and leaving the euro area exposed to new shocks.

The chief economist at S & P Europe for its part, should be considered other EU summits to resolve the debt crisis and that time was short, even if the agreement announced last week was an important step towards the resolution of a “crisis of confidence”.

Values​​, the title gives Bank of America Corp. 4.72%, JP Morgan Chase and Citigroup 3.43% 5.38%.

The title Boeing lost 1.43% on the session. The board of directors of the group approved an increase in the quarterly dividend by 5%.

Intel closed down 4.04% after announcing that its quarterly revenue would be lower than initially expected because of supply problems hard disks and their impact on the IT market.