10-Feb-2012 - Stock Market Hits Pause

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By JONATHAN CHENG U.S. stocks treaded water as investors awaited Greek political negotiations over a debt-restructuring deal that would allow the troubled European nation to avoid a default. The Dow Jones Industrial Average was edged up four points, or less than 0.1%, at 12883 in morning trading, after closing Tuesday at its highest level since May 19, 2008. The Standard & Poor's 500-stock index tacked on three points, or 0.2%, to 1350 and the Nasdaq Composite nike nfl jerseys added 12 points, or 0.4%, to 2916. Pulling on the upside were financial and materials stocks. Bank of America gained 2.3%, J.P. Morgan Chase rose 1% and Alcoa added 1.5%. Faring worse were stocks in less economically-sensitive sectors, like utilities and health care. European markets gained ground, with the Stoxx Europe 600 edging up 0.2% amid those same hopes that Greece was close to reaching a debt-restructuring deal. The Wall Street Journal reported that the European Central Bank is ready to make key concessions regarding its Greek bond holdings by exchanging its holdings with the European Financial Stability Facility at a discounted price. This would help reduce Greece's debt burden, which would smooth the path for the country to receive bailout funds and avoid default. But uncertainty remained. Greek Prime Minister Lucas Papademos was still looking to secure the approval of party leaders backing his government on a raft of painful reforms that are required needed to win the bailout. "There seems to be a degree of hope that things in Europe will have to work themselves out, but that may turn out to be a little overoptimistic," said Ron Altman, portfolio manager for the Aston/M.D. Sass Enhanced Equity Fund. NFL JERSEYS Though the market is focused again on developments in Athens, Mr. Altman said: "Greece is a sidebar. The major issue is what happens if there's another run on Italy. In the next few months, there is a lot of debt needs to be rolled over. This thing is not going away." Asian bourses were broadly higher. China's Shanghai Composite led the way with a 2.4% gain after the China's central bank said it would help support first-time home buyers. Japan's Nikkei Stock Average rose 1.1%. Gold futures were flat at about 1,745 an ounce, while crude-oil futures gained 1.2% to above 99.50 a barrel. The U.S. dollar lost ground against the euro, but edged up against the yen. Treasurys fell, sending the yield on the benchmark 10-year note up to 1.9913%. Walt Disney gained 1.9% after the blue-chip entertainment company reported fourth-quarter earnings that topped estimates but revenue that fell short. In other Dow components, 3M inched up 0.2% after raising its quarterly dividend by 7% to 59 cents a share. Elsewhere, Time Warner tacked on 2.2% after the media company reported fourth-quarter earnings and revenue that were above forecasts, and increased the quarterly dividend by 11% to 26 cents a share. Sprint Nextel fell 5.7% after the wireless carrier reported a wider fourth-quarter loss on some charges, though the carrier posted a rare gain in contract subscribers due in part because it offered the popular Apple iPhone for the first time on its network. Ralph Lauren surged 11% after the upscale retailer forecast continuing strong sales, calling for an increase of 20% in the current year. IntercontinentalExchange gained 6.9% after the exchange operator said it expects 2012 revenues to NFL jerseys wholesale grow by at least 10% on rising demand for the derivatives exchange operator's commodity markets. Atlanta-based ICE also reported a 28% rise in fourth-quarter earnings. Teekay Tankers slumped 12% after the oil tanker company said it was planning a public offering of 15 million common shares. Buffalo Wild Wings shot up 13% after the company's fourth-quarter results topped estimates, and same-store sales growth so far in the current quarter was well above the fourth-quarter growth rate. CVS Caremark gained 0.9% after the company reported fourth-quarter earnings that matched estimates and raised its full-year earnings outlook. Write to Jonathan Cheng at jonathan.cheng@wsj.com

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