Stocks rally as Consumer Sentiment Index increases to its pre-recession level.
Concerns about the fiscal cliff were brushed aside on Friday as the preliminary Thompson Reuters / University of Michigan Consumer Sentiment Index for November rose to 84.9 from 82.6 in October. It was the highest level reached by the index since July of 2007. Economists had been expecting a more modest increase to 83. The news had a particularly strong impact on oil futures, which had been hard-hit as a result of Hurricane Sandy. On London’s ICE Futures Europe Exchange, January futures for Brent crude oil advanced by $1.57 (1.48 percent) to $108.03/bbl. (NYSEARCA:BNO, NYSEARCA:USO). Chart courtesy of Stockcharts.com
As of 1:01 EST, the Dow Jones Industrial Average advanced by 70 points (0.55 percent) to 12,881. The S&P 500 Index climbed 0.86 percent to 1,389 – staying below its 50-day moving average of 1,433.70 (NYSEARCA:SPY). The Nasdaq Composite surged 1.14 percent to 2,928 (NASDAQ:QQQ). The Russell 2000 Index rose 0.83 percent to 800 (NYSEARCA:IWM). Follow-Through Friday – How Low Can We Go?
The “Dollar Bull” Index ETF (NYSEARCA:UUP) advanced by 5 cents (0.23 percent) to 22.18 as of 12:11 EST.
As of 12:13 EST, the S&P 500 Volatility Index – or VIX – declined 3.68 percent to 17.81, and the VIX Short-Term Futures ETN made a 2.80 percent decline to 36.15 (NYSEARCA:VXX). ECRI Weekly Leading Index: Off Its Interim High
The major European stock indices spent the day climbing out of negative territory after the markets had an opportunity to respond to a report that the European Union will delay its decision whether to release the next bailout tranche to Greece until the end of November. News of the disclosure from the EU source concerning a delay in payment had not been reported until after the close of the European markets on Thursday. The Euro STOXX 50 Index finished Friday’s trading session with a 0.03 percent gain to 2,479 (NYSEARCA:FEZ). The FTSE 100 Index dipped 0.11 percent to 5,769 (NYSEARCA:EWU). The German DAX Index fell 0.58 percent to 7,163 (NYSEARCA:EWG). France’s CAC 40 Index climbed 0.47 percent to 3,423 (NYSEARCA:EWQ). Spain’s IBEX 35 Index advanced 0.16 percent to 7,636 (NYSEARCA:EWP). Italy’s FTSE MIB Index declined 0.09 percent to 15,181 (NYSEARCA:EWI).
As of 12:45 EST, the euro declined 0.18 percent against the dollar, trading at $1.2724 (NYSEARCA:FXE).
December Gold futures advanced by $8.10 (0.47 percent) to $1,734.10 per ounce (NYSEARCA:GLD).