Market Review By TraderXP:
Options traders are the most bullish from May to Teva Pharmaceutical Industries Ltd (TEVA) as chief executive Jeremy Levin is preparing to submit a plan of development to reverse the rout that made the margin of the cheapest global pharmaceutical manufacturers.
Levin, former Executive Bristol-Myers Squibb Co, is scheduled to meet with investors today in New York to present plans for the product line cutting andcost expansion. Petach Tikva, Israel-based Teva is seeking new sources of income as its best-selling multiple sclerosis treatment Copaxone faces competition from new oral medication.
"There is, of course, the optimism about the ability of Levin will continue to grow the company through the development of business," Kevin Kedra, an analyst at Gabelli & Co. in Rye, New York, which has buyrating on the shares, said by telephone. "There's concern about dependence Teva on Copaxone but Levin knows that a plan to diversify the business of Copaxone would be very good for stocks."
Market News
WallStreet gets a little lift from the technology and McDonald
Stocks rose on Monday, as technology stocks bounced back after recent weakness, and McDonald's posted a strong monthly sales.
Technology stocks led by Hewlett-Packard Co, which rose 2.6 percent to $ 14.16 on rumors that activist investor Carl Icahn builds stake PC manufacturer. Shares down 44.5 percent for the year and is the worst Dow. S & P technology index rose 0.3 percent.
Technology has also been supported by Cisco Systems, which received 2.4 percent to $ 19.79 after the company announced its medium-term strategy of growth on Friday.
McDonald gave the Dow Corporation push getting 1.1percent to $ 89.41, and in November sales were stronger than expected, and showed to recover from the fall in October.
There was little news Monday that talks about the "financial cliff", a series of automatic tax increases and spending cuts that could damage economic growth in the next year. Fears that the legislators will not broker deals rein in optimism in the stock market.
"There is a general feeling that if a deal was struck, we could further advance in the market at the end of this year and the first part of next year," said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut.
Upside breakout on a cliff deal may take S & P 500 back to 1474, but from 2012 high for the index, said Elliot Spar, Stifel Nicolaus option market strategist at Shrewsbury, New Jersey.
Test S & P 500 index has not seen play is more than 0.5 percent in either direction, on any day in December, and did not move more than 1 percent in any case, at any session from November 23. However, the market recovered most of the losses incurred after the election, as investors refocused on the financial rocks.
U.S. President Barack Obama met with Republican House Speaker John Boehner on Sunday to discuss the budget deal. Boehner aide said on Monday that negotiations continue.
Index Dow Jones Industrial Average rose 14.75 points, or 0.11 percent, to 13,169.88 at the close. 500 Standard & Poor's Indexinched to just 0.48 points, or 0.03 percent, to 1,418.55. The Nasdaq Composite Index advanced 8.92 points, or 0.30 percent, to close at 2,986.96.
News from Italy kept sentiment in check, as Prime Minister Mario Monti said he would resign after the approval of the budget in 2013. The move added uncertainty about the progress made in addressing the debt problems of the eurozone and drove borrowing Italy is more expensive.
US-listed shares of Nexen jumped 13.8 percent to $ 26.77, while shares was the second most actively traded on the New York Stock Exchange. On Friday, Canada approved $ 15.1 billion bid by CNOOC Ltd for energy company Nexen.
S & P materials rose 0.7 percent and led S & P 500 earnings sectorindex as mining shares rose in sync with copper and goldprices. Shares of Freeport-McMoRan gained 1.1 percent to $ 32.04.
Volume was about 5.3 billion shares traded on the NYSE, Nasdaq and NYSE MKT, compared to the year before the date of closing of the average daily volume of about 6.5 billion dollars.
Advanced outnumbered decliners on the NYSE in the ratio of 17 to 13, and on the Nasdaq, seven stocks rose for every five that fell. Reuters.com
Currencies
Eurosteadies from a two-week low, the Fed will next focus
The euro stabilized near two-week low on Tuesday, as the nerves calm down on the recent political turmoil in Italy and as a perspective more stimulus from the Fed pinned to the dollar.
Single currency reached $ 1.2938, flat from late U.S. levels, but above the low near $ 1.2880 on Monday pipes.
He got up about 0.5 percent from a two-week trough around $ 1.2876 on Friday. The nearest resistance is seen at $ 1.2973, representing 38.2 per cent of the level of recovery of its December 5-7 in the fall.
Euro found support after Italian Prime Minister Mario Monti has played down market concerns about his decision to step down, saying there is no danger of vacuum before elections in the spring.
"The failure of the euro below $ 1.2900 was short-lived," said Vassili Serebriakov, strategist at BNP Paribas. "FX markets are showing some remarkable resilience after the news of the imminent resignation Monty."
Progress Monty came after former Prime Minister Silvio Berlusconi abruptly withdrew support from the government technocrat Monti, accusing the reform and austerity steps Monty dragging Italy "to the edge of the abyss."
"There's no doubt that Monty's resignation has raised some concerns, but it is not, as Berlusconi has strong public support," said Katsunori Kitakura, deputy director of the market making at Sumitomo Mitsui Trust Bank.
While Italian bonds and stocks hit by the news that does not grow-off sentiment in broader financial markets, and partly on the fact that the debt buyingprogram European Central Bank may hold back sales in the Italian debt, if their output continues to grow.
Another factor in maintaining the euro from the lows was the reluctance of investors to buy the dollar aggressively, given the expectation that the Fed will change its program expires on "Operation Twist" on the other Treasury bond purchase plan for December 11-12 policy meeting.
Many economists believe that the U.S. central bank will announce monthly purchases of bonds in the amount of $ 45 billion, although some think it may surprise a lot of push borrowing costs lower. Such an outcome could see the dollar come under pressure later.
The dollar index fell 0.1 percent to 80.311, retreating from two-week high of 80.658 set on Monday.
Dollar buying 82.37 yen, still not far from the eight-month peak of 82.84 set last month, although sales for hedging option is switched on 83 yen is likely to cap the dollar.
The prospect of fresh stimulus from the Fed and growing expectations that the Bank of Japan may expand its asset purchases and credit programs at a meeting next week had higher-yielding currencies and rates, despite fears that the bullish positions were already stretched.
The New Zealand dollar held near a ten-week high hit on Monday, receiving $ 0.8351, just shy of Monday's high of $ 0.8355, flat from late U.S. levels.
The Australian dollar fell sharply, however, after an unexpected sharp decline in business confidence in Australia.
Aussie slipped 0.15 percent to $ 1.0472, while it is still within easy reach of the 11-week high of $ 1.0515 set last week.
There are no major economic data from Asia on Tuesday. In Europe, the focus will likely be on a monthly survey of German analyst and investor sentiment from the Mannheim-based ZEW think tank. Reuters.com
