Stocks Rally After Central Banks Add Liquidity

  • August 13, 2007
  • Darren Wong

U.S. stocks are showing strength Monday morning following
encouraging news from Europe’s Central Bank.

The European Central Bank announced the addition of $65 billion to
the credit markets on Monday after injecting over $135 billion on
Friday. The ECB started the worldwide trend last Thursday, as the
bank saw liquidity within the credit market hit crisis levels. The
ECB also announced that it now views the market as normalized,
reassureing nervous investors worldwide.

Monday, mortgage lender Accredited Home
Lenders Holding Co.
(
LEND |
Quote |
Chart |
News |
PowerRating) revealed it has filed a
lawsuit against Lone Star Fund V, L.P. and two of its affiliates
seeking the private equity firm to close its tender offer for
Accredited shares and complete the $400 million acquisition. (full
story). LEND shares fell 32%.

Crude oil futures for September delivery
added 2.1% to $72.98 a barrel on speculation that the injection of
money into credit markets may prevent economic slowdown, thus
adding to fuel demand. Gold futures for December
delivery fell 0.1% to $681.20 an ounce on dollar strength.


Around Asia, Shanghai’s Composite rallied 1.5% to 4,820.06, Hong
Kong’s Hang Seng index added 0.5% to 21,891.10, and Tokyo’s Nikkei
rose 0.2% to 16,800.05.

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Stocks in Motion

Blackstone
(
BX |
Quote |
Chart |
News |
PowerRating) Q2 Profit More Than Triples On Strong Segmental
Revenues (full
story). BX shares gained 6%.

Goldman Sachs
(
GS |
Quote |
Chart |
News |
PowerRating), Investors To
Invest $3 Bln In Global Equal Opportunities Fund (full
story). GS shares added 1%.

Sears Holdings
(
SHLD |
Quote |
Chart |
News |
PowerRating)
Tightens Q2 EPS Outlook, Plans Addl. Share Repurchase (full
story). SHLD shares rose 3.7%.

RF Micro
(
RFMD |
Quote |
Chart |
News |
PowerRating) To Buy Sirenza Microdevices
(
SMDI |
Quote |
Chart |
News |
PowerRating)
For $900 Mln (full
story). RFMD shares fell 2%, while SMDI shares added 8%.

For more stories as they happen, go to our
Breaking News section.


Market Snapshot

Dow

 +70.32 13,309.86

NASDAQ

 +15.26 2,560.15

S&P 500

 +9.33 1,462.97

NYSE NASDAQ

Volume

 1,496,191,000 911,860,000

Advances

 2011 1701

Declines

 1146 1246

Up Volume

 938 516

Down Volume

 400 316

New Highs

 21 37

New Lows

 137 71




Strongest/Weakest Industry Groups

Strongest Industries

Weakest Industries
Computer Hardware Chemicals
Telecom
Airlines-National
Internet
Insurance Brokers



Economic
News

Retail Sales ex-auto +0.4% vs +0.4%
consensus

Retail Sales +0.3% vs +0.2% consensus

Business Inventories +0.4% vs +0.4% consensus

 

Darren Wong

Associate Editor

darrenw@tradingmarkets.com

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