Thursday, 17 January 2013
FKLI Related News
Stocks rallied following encouraging news on the U.S. economy, potential progress over the debt ceiling, and talk of central-bank stimulus in Japan. The Dow Jones Industrial Average rose 84.79 points, or 0.6%, to 13596.02. The blue chips neared a five-year closing high but fell just short ahead of the session's close. The Standard & Poor's 500-stock index added 8.31 points, or 0.6%, to 1480.94. The Nasdaq Composite Index advanced 18.46 points, or 0.6%, to 3136.
Indexes churned higher in afternoon trading after House Budget Committee Chairman Paul Ryan said Republicans are discussing whether to support a short-term increase in the debt ceiling. "We've got a relief rally today, but this just pushes back the rancorous debate," said John Canally, investment strategist and economist with LPL Financial. Earlier, the rally revved up as Japanese news outlet Nikkei reported the Bank of Japan is planning further action to stimulate the economy. In the U.S., housing starts jumped in December more than economists had expected. Building permits also rose in December, mostly in line with expectations. Consumer-discretionary stocks, which include home builders, led the S&P 500 higher. Toll Brothers TOL +3.58%rose $1.25, or 3.6%, to $36.16, D.R. Horton DHI +2.52%advanced 53 cents, or 2.5%, to 21.53, and PulteGroup PHM +5.33%gained 1.03, or 5.3%, to 20.37.
In other economic news, jobless claims fell more than expected in the latest week, and a reading indicated business conditions for mid-Atlantic manufacturers unexpectedly contracted. Bank shares in the S&P 500 posted the only sector decline Thursday. "Financial shares had a pretty good year last year, and earnings expectations for this year and next are pretty mundane," said Paul Atkinson, head of North American equities for Aberdeen Asset Management, ADN.LN -1.71%which oversees $300 billion in assets.
FKLI opened higher this morning at 1,688 following the bullish momentum on Wall Street as encouraging economic data and potential progress over the debt ceiling brought back some investor confidence. Today’s Support and Resistance for January contract is located around 1,680 and 1,692 respectively.