FKLI Related News

U.S. stocks rose for a second day as Apple Inc. rebounded from its biggest drop in four years and investors weighed prospects for a budget deal in Washington. Apple advanced 1.6 percent, reversing an earlier loss. The Standard & Poor’s 500 Index increased 0.3 percent to 1,413.94 at 4 p.m. New York time. The Dow Jones Industrial Average advanced 39.55 points, or 0.3 percent, to 13,074.04. More than 5.7 billion shares changed hands on U.S. exchanges, or 8.9 percent below the three-month average.

“Apple stock is taking a breather after a sharp selloff and that’s helping the overall market,” said Alan Gayle, senior strategist at RidgeWorth Capital Management in Richmond, Virginia, which oversees about $47 billion. “In addition, the jobless claims were better than expected. The data suggest the U.S. economy continues to heal and that will be the case as long as we don’t fall off the fiscal cliff.” Fewer Americans than projected filed applications for unemployment benefits last week as disruptions caused by superstorm Sandy waned.

Equities fell earlier as the European Central Bank forecast the economy will shrink 0.5 percent this year, more than the 0.4 percent contraction it predicted in September. The ECB cut its 2013 forecast to a contraction of 0.3 percent, and projected expansion of 1.2 percent in 2014. Risks to the outlook remain on the downside, ECB President Mario Draghi said. “Weak activity is expected to extend into next year,” Draghi said at a press conference in Frankfurt after policy makers left the benchmark rate at a record low of 0.75 percent. “Later in 2013, economic activity should gradually recover as global demand strengthens and our accommodative monetary-policy stance and significantly improved financial market confidence work their way through to the economy.”

 “The market is showing not much conviction,” said Stephen Carl, head equity trader at Williams Capital Group LP in New York. “Fiscal cliff is on the forefront, stalling any moves at the moment. If there is a disparity one way or the other from tomorrow’s jobs report, you will probably see a move in the market.” Data tomorrow is forecast to show U.S. payrolls rose by 85,000 workers last month, the smallest gain since June, according to the median forecast of economists. Apple (AAPL) rose 1.6 percent to $547.25, reversing an earlier decline of as much as 3.7 percent. It plans to spend more than $100 million next year on building Mac computers in the U.S., shifting a small portion of manufacturing away from China, the country that has handled assembly of its products for years.

FKLI opened slightly higher this morning at 1,618 following gains in the U.S. stocks which was boosted by Apple’s upside reversal. Today’s  Support and Resistance for December contract is located around 1,615 and 1,625 respectively.