Monday, November 19, 2012
U.S. stocks continued their rally from Friday on the same positive view of a potential resolution to the "fiscal cliff"; the market was also extremely oversold as of late last week and was set for a relief rally at some point. The S&P 500 gained 2.0% and the NASDAQ 2.2%. These were the first back to back gains in the market since the election. Leading stock Apple (AAPL) roared ahead 7.2% after falling well over 20% in the previous two months.
- Existing home sales rose 2.1% to an annual rate of 4.79 million in October. That compares with analysts' estimates for a rate of 4.70 million.
- The National Association of Home Builders' sentiment index rose for a seventh straight month to 46, its highest level since May 2006. Analysts were expecting a reading of 42.
Oil rose 2.7% to $89.28 a barrel. Gold gained $19.70, or 1.2%, to $1,734.40 an ounce while silver added 2.5% to $33.19.
Britain's FTSE 100 rose 2.4%, France's CAC 40 added 2.5%, while the DAX in Germany gained 2.9%.
- Moody's Investors Service downgraded France's sovereign rating by one notch to Aa1 from Aaa, the agency said on Monday, citing the country's uncertain fiscal outlook as a result of "deteriorating economic prospects." Moody's said it is maintaining a negative outlook on the country due to structural challenges and a "sustained loss of competitiveness" in the country.
The Shanghai Composite added 0.1% while Japan's Nikkei rallied 1.4%.