Reuters Insider - At the Close: 2011 Likely Less Bearish for Stocks-Kozey

First Hydrogen

13/06/2016 10:58

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 Source:             Thomson Reuters                                   
                                                                       
 Description:        U.S. stocks ended flat on a low volume day with   
                     the S&P snapping a 5-day winning streak. Reuters  
                     Equities Analyst John Kozey expects 2011 to be a  
                     better year for equities.                         
 
 
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Transcript (May be auto-generated)

                 Let's go Inside the News at 4PM. US stocks ended flat on a low volume day with 
the S&P snapping a five-day win streak. Still, it was a busier day than usual 
pre-Christmas trading periods as the market was fully open. One stock of note- 
satellite radio provider Sirius XM Radio that attracted heavy call volume with 
shares peaking at a New Year high of $1.69. The stock is up 20% this week. 
Rating agencies have been weighing in on Europe. S&P affirmed France's AAA 
credit rating, citing the depth of its economy and the stable political 
environment. But it is a much different story for Portugal. Fitch downgraded 
Portugal's credit rating to A+ with a negative outlook. 

It said the country's budget target for 2011 is extremely challenging. Reuters 
Equities Analyst John Kozey has been looking at market activity for this month, 
and he says 2011 should be less bearish for stocks. John. That's right, Rhonda. 
In fact, we've seen a quiet week this week. We really expected this to happen 
and that really supports the case for a stronger mentality moving into 2011. We 
haven't seen the risk off-trade since the end of August, and I think that's 
gonna change the attitude of investors from being afraid of being in stocks to 
being afraid not to be in stocks. But looking forward, I think that the sectors 
like finance, which we've seen a lot of accumulation this month, are going to 
start leading investors back into the markets and less nervous about what we've 
seen with the activity in 2010. All right, John. Thank you. 

A White House official told Reuters President Obama will re-nominate Economist 
Peter Diamond to the Fed board. The Senate scuttled the Nobel Prize winner's 
nomination on Wednesday by failing to vote on it before adjourning. Reuters 
Economics Correspondent Dave Lawder says Obama's setting himself up for a 
potential clash with Republicans. Senator Shelby, the Republican for Alabama, 
had put a hold on Diamond's nomination, arguing that he was not well-qualified 
from a monetary standpoint. Diamond has been a big advocate for more fiscal 
stimulus of the economy which does not sit well with Republicans. 

Crude oil closed above $91, its highest level since late 2008. Prices are being 
driven by cold weather in the US and shrinking stock piles. This comes as OPEC 
ministers meet in Cairo to discuss production targets. Reuters Commodities 
Specialist Christopher Henwood says look for crude to test resistance at $93.05.
Now, let's look at what's likely to move markets in Asia on Friday. Singapore 
reports its manufacturing output for November. India announces its latest forex 
reserves. And Taiwan releases its money supply for November. And in the 4:30 
Week Ahead, we preview the upcoming $99 billion worth of treasury auctions. I'm 
Rhonda Schaffler. This is Reuters Insider