US Stocks Up After Portugal Bond Auction – Dow Jones News

Published on 08 September 2010 by cwhornsby in Hornsby Energy Trading

U.S. stock futures rose on Wednesday, as Portugal successfully conducted a bond auction, easing short-term concerns about euro-zone sovereign debt.

Futures on the Dow Jones Industrial Average gained 25 points to 10363 after earlier trading down 25 points. S&P 500 futures gained 3 points to 1094.20 and Nasdaq 100 futures rose 9.5 points to 1867.

Futures on the Dow Jones Industrial Average gained 25 points to 10363 after earlier trading down 25 points. S&P 500 futures gained 3 points to 1094.20 and Nasdaq 100 futures rose 9.5 points to 1867.

The blue-chip Dow index dropped 1% on Tuesday, snapping a four-session winning streak.

The blue-chip Dow index dropped 1% on Tuesday, snapping a four-session winning streak.

”Given that the markets are focused so much on fear at the moment, every bit of good news produces a small comeback in risk,” said Mads Koefoed, market strategist at Saxo Bank. “When Portuguese bonds are sold, then it’s [the market] simply rallying on everything that can be interpreted as good news.”

”Given that the markets are focused so much on fear at the moment, every bit of good news produces a small comeback in risk,” said Mads Koefoed, market strategist at Saxo Bank. “When Portuguese bonds are sold, then it’s [the market] simply rallying on everything that can be interpreted as good news.”

The Portuguese government sold EUR661 million ($839 million) of three-year debt and EUR378 million of 10-year bonds. Demand was solid and boosted market sentiment.

The Portuguese government sold EUR661 million ($839 million) of three-year debt and EUR378 million of 10-year bonds. Demand was solid and boosted market sentiment.

European stock markets also turned higher, erasing losses, with the Stoxx Europe 600 index rising 0.7% in intraday trade.

European stock markets also turned higher, erasing losses, with the Stoxx Europe 600 index rising 0.7% in intraday trade.

The Portuguese auction offset weaker-than-expected German economic data.

The Portuguese auction offset weaker-than-expected German economic data.

Germany’s exports dropped in July from the previous month, while industrial production edged up only 0.1%, much less than economists expected.

Germany’s exports dropped in July from the previous month, while industrial production edged up only 0.1%, much less than economists expected.

The Federal Reserve will release its Beige Book at 2 p.m., EDT. Consumer credit for July and a speech by Narayana Kocherlakota, president of the Federal Reserve Bank of Minneapolis, are also on the calendar.

The Federal Reserve will release its Beige Book at 2 p.m., EDT. Consumer credit for July and a speech by Narayana Kocherlakota, president of the Federal Reserve Bank of Minneapolis, are also on the calendar.

The Bank of Canada is expected to announce its decision on interest rates.

The Bank of Canada is expected to announce its decision on interest rates.

In the energy sector, shares of BP PLC (BP) rallied 3.2% in premarket trading. In its internal report released on Wednesday, the firm said that “a sequence of failures involving a number of different parties” led to the explosion and fire that killed 11 people and caused an environmental disaster in the Gulf of Mexico earlier this year.

In the energy sector, shares of BP PLC (BP) rallied 3.2% in premarket trading. In its internal report released on Wednesday, the firm said that “a sequence of failures involving a number of different parties” led to the explosion and fire that killed 11 people and caused an environmental disaster in the Gulf of Mexico earlier this year.

”It is evident that a series of complex events, rather than a single mistake or failure, led to the tragedy,” said BP’s outgoing chief executive, Tony Hayward. “Multiple parties, including BP, Halliburton Co. (HAL) and Transocean Ltd. (RIG), were involved.”

”It is evident that a series of complex events, rather than a single mistake or failure, led to the tragedy,” said BP’s outgoing chief executive, Tony Hayward. “Multiple parties, including BP, Halliburton Co. (HAL) and Transocean Ltd. (RIG), were involved.”

Shares of Halliburton Co. and Transocean Ltd. were little changed in premarket trading.

Shares of Halliburton Co. and Transocean Ltd. were little changed in premarket trading.

Shares of Talbots Inc. (TLB) dropped 10% in premarket trade after the firm reported quarterly results that disappointed investors.

Shares of Talbots Inc. (TLB) dropped 10% in premarket trade after the firm reported quarterly results that disappointed investors.

Most Asian stock markets ended lower on Wednesday, with Japan’s Nikkei Stock Average index dropping 2.2%.

Most Asian stock markets ended lower on Wednesday, with Japan’s Nikkei Stock Average index dropping 2.2%.

U.K. mobile telecoms giant Vodafone Group PLC (VOD, VOD.LN) said it’s selling its entire 3.2% stake in China Mobile Ltd. (CHL) in a deal that will generate 4.3 billion pounds ($6.6 billion) before taxes and costs.

U.K. mobile telecoms giant Vodafone Group PLC (VOD, VOD.LN) said it’s selling its entire 3.2% stake in China Mobile Ltd. (CHL) in a deal that will generate 4.3 billion pounds ($6.6 billion) before taxes and costs.

The British pound gained 0.7% to $1.5446, buoyed by a report showing U.K. housing prices unexpectedly rose in August.

The British pound gained 0.7% to $1.5446, buoyed by a report showing U.K. housing prices unexpectedly rose in August.

The dollar index, which tracks the performance of the greenback against a basket of other major currencies, was little changed at 82.797.

The dollar index, which tracks the performance of the greenback against a basket of other major currencies, was little changed at 82.797.

In the commodity markets, gold for December delivery touched an intraday high of $1,262.30 an ounce in electronic trading on Globex. Gold futures surged to a new settlement high on Tuesday, fueled by safe-haven demand.

In the commodity markets, gold for December delivery touched an intraday high of $1,262.30 an ounce in electronic trading on Globex. Gold futures surged to a new settlement high on Tuesday, fueled by safe-haven demand.

Crude-oil futures dropped 17 cents to $73.92 a barrel in electronic trading on Globex. The American Petroleum Institute will report data on oil supplies this afternoon, a day later than usual because of Labor Day. Analysts polled by Platts expect declines in oil and gasoline stockpiles.

Crude-oil futures dropped 17 cents to $73.92 a barrel in electronic trading on Globex. The American Petroleum Institute will report data on oil supplies this afternoon, a day later than usual because of Labor Day. Analysts polled by Platts expect declines in oil and gasoline stockpiles.