U.S. Stocks Open Higher on Bernanke Comments

Nichole Harper
26 Mar, 2012
New York City

U.S. stocks traded higher after three days of declines in broader market averages. Crude oil and copper prices eased and German business confidence was better than expected. Spain and Italy were in focus ahead of general strikes this week.

[R]10:10 AM New York – U.S. stocks traded higher after three days of declines in broader market averages. Pending home sales index increased less than expected in February. Crude oil and copper prices eased and German business confidence was better than expected. Spain and Italy were in focus ahead of general strikes this week.[/R]

U.S. stocks traded higher after a three-session losing streak on the optimism that European leaders will find a way to devise ways to strengthen financial firewall at a meeting later in the week.

Federal Reserve Chairman Ben Bernanke said at a gathering that it is not still clear that the recent gains in jobs markets are sustainable.

Bernanke told to a group at National Association for Business Economics that the central bank is ready to pursue “accommodative” monetary policies to support the process of “rapid expansion” in production and demand for “significant improvements in unemployment rate.”

Pending home sales index increased 0.5% to 97 in February less than expected increase of 1% after rising 2% in January surging 9.2% from a year ago. The index published by the National Association of Realtors is a forward looking indicator based on contract signings.

European indexes gained after German confidence improved slightly in March but indexes were on the defensive in early trading after Italian Prime Minister Mario Monti raised doubts on Spain's financial situation and warned that the debt crisis may resurface.

Monti pushed a labor reform bill in the parliament on March 23 but pointed difficulties faced by Spain in trimming its public spending and highlighted it does not take a long start a contagion.

Finance ministers of the euro area are to meet in Copenhagen this Friday and decide on raising the euro-zone bailout fund from its current size of €500 or merge two separate rescue funds with a total committed capital of €940 billion.

Stock Movers

AstraZeneca plc fell 0.2% to 2,833.50 pence after the biopharmaceutical company said that the US District Court denied the company's request for a preliminary injunction application against the drug regulatory agency and dismissed the lawsuit without prejudice.

BATS Global Markets said that the third largest exchange operator has no plans in the “foreseeable future” to revive its failed public offering after the computer system malfunctioned on the first day as a public company.

Cal-Maine Foods declined 2% in New York trading after the egg farmer reported fiscal third quarter earnings ahead of expectations but missed revenues and margins guidance.

Lions Gate Entertainment Corp added 4% after “the Hunger Games” opened strong and grossed globally $214 million over the weekend.

UK based Monitise Plc edged lower 2.1% to 34.25 pence in London trading after the technology and services company agreed to acquire Clairmail Inc., a U.S. provider of mobile banking and payments solutions for $173 million or £109 million.

Pfeiffer Vacuum Technology AG soared 3.2% to €82 in Frankfurt after the providers of vacuum solutions reported full-year 2011 total sales surged 135.6% to €519.5 million from €220.5 million in the previous year. Net income for the year gained 8.6% to €41.6 million compared to €38.3 million last year. Earnings per share declined to €4.19 from €4.40 a year earlier.

Verenium soared more than 35% after the industrial biotech company sold its oilseed processing unit for $37 million to DSM Food Specialties.