Holiday Cheer as Stocks Rise the Most in 2-Weeks

Stocks gained the most in two weeks, with strength coming from the technology and financial sectors. Research in Motion gave a boost to tech stocks, after the company reported much better than expected earnings yesterday. Meanwhile, Merrill Lynch appeared to be the latest U.S. bank to receive a capital infusion from an sovereign wealth fund.

The Federal Reserve and European Central Bank pumped another $30 billion into the money markets today as part of their ongoing efforts to ease the credit crunch. While the almost daily operations are designed to provide liquidity and prevent a collapse of the banking system, the amount of capital required, and its frequency, continues to worry investors.

The Wall Street Journal reported that Merrill Lynch
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may receive a $5 billion cash infusion from Singapore state-owned investment company Temasek Holdings (read more).

Shares of Research in Motion
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rose more than 10%, helped by a number of analyst upgrades that were issued after the company reported impressive results (read more).

Respironics
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gained nearly 23% after the company agreed to be acquired by Royal Philips Electronics
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for $5.1 billion in cash (read more).

Circuit City Stores
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lost nearly 28% after reporting a wider than anticipated loss for the third quarter (read more).

Despite today’s broad market gains, Washington Mutual
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fell to an 11-year low after the SEC launched an investigation into how the company handled and reported on mortgage loans that may have been based on inflated home appraisals (read more).

Market Snapshot

Dow

205.01 13450.65

NASDAQ

51.13 2691.99

S&P 500

24.34 1484.46

Strongest/Weakest Industry Groups

Strongest Industries

% Change

Weakest Industries

% Change
Silver
+7.42%
Printed Circuit Boards
-2.75%
Trucks & Other Vehicles
+4.60%
Semiconductor – Memory Chips
-2.18%
Diversified Communication Services
+4.33%
Foreign Regional Banks
-2.12%

Economic
News

Personal Income (Nov): Actual 0.4%, Consensus 0.5%

Personal Spending (Nov): Actual 1.1%, Consensus 0.7%