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Friday, February 11, 2011

Wall Street Edge Higher as Events in Egypt Unfold

Wall Street Edge Higher as Events in Egypt Unfold : Indexes regained lost ground Friday after President Hosni Mubarak of Egypt finally relinquished power. Exchanges had been lower as Mr. Mubarak tried to cling to office, but markets turned as news of his resignation began to trickle out.

Traders were also encouraged by an increase in consumer sentiment.

At noon on Wall Street, the Dow Jones industrial average gained 17.67 points, or 0.14 percent. The Standard & Poor’s 500 index added 4.07 or 0.31 percent, and the Nasdaq rose 10.15, or 0.36 percent.

In Europe, the FTSE 100 in London was rose 0.71 percent while the DAX in Frankfurt fell 0.42 percent. The CAC-40 in Paris was 0.15 percent lower.

Many traders have been worried that the political turmoil could spread to other countries in the Middle East or impact oil prices, said Tony Zabiegala, vice president of Strategic Wealth Partners.

Egypt is not a major producer of oil, but it plays a crucial role in the industry because it controls the Suez Canal, a major route for oil tankers and cargo ships. Crude oil prices were down 30 cents at $86.43 a barrel in New York trading.

In economic news, the Commerce Department reported that the United States trade deficit widened in December. The trade gap for all of 2011 also increased by the largest amount in a decade. Economists believe the trade deficit will keep widening in 2011 as Americans import more goods as the economy recovers.

And the Reuters/University of Michigan preliminary index of consumer sentiment for February rose to 75.1 from 74.2 in January, essentially in line with expectations.

The Obama administration, in a separate report, also laid out three options for overhauling the mortgage lending system.

In corporate news, Kraft Foods fell 1.8 percent after the company softened its full-year earnings forecast, saying weak consumer confidence and higher ingredient costs could hurt its results.

The Ford Motor Company rose 2,7 percent after the company said late Thursday that it planned to reduce its debt by another $3 billion.

And shares of the Nokia Corporation fell 13.6 percent in American trading after the company revealed a strategic alliance with Microsoft to build smartphones that can compete with its rivals, Apple and Google. Analysts said the deal, which was more of a win for Microsoft, showed how desperate Nokia is to get back into the lucrative market. The company also warned its profits would be hurt in coming quarters as it adjusted and restructured. Microsoft were down about 1 percent. For the latest updates PRESS CTR + D or visit Stock Market news Today

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