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U.S. stocks edge higher amid Italy, U.S. concerns; Dow Jones up 0.12%

Published 12/10/2012, 09:49 AM
Updated 12/10/2012, 09:50 AM
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Investing.com - U.S. stocks opened slightly higher on Monday, although investors remained cautious amid concerns over the handling of Italy's financial crisis and ongoing U.S. budget talks.

During early U.S. trade, the Dow Jones Industrial Average added 0.12%, the S&P 500 index inched up 0.03%, while the Nasdaq Composite index rose 0.26%.

Investors remained cautious after Mario Monti announced that he will resign as soon as he has passed a key budget law, as members of former Prime Minister Silvio Berlusconi’s party withdrew their support for the government.

Markets were also jittery after data showed that Chinese exports rose just 2.9% year-on-year in November, after an 11.6% increase in October, fuelling concerns over a slowdown in demand.

Meanwhile, investors continued to focus on talks aimed at avoiding the U.S. fiscal cliff continued in Washington, amid concerns that the automatic tax hikes and spending cuts due to take effect in the New Year could derail the U.S. recovery.

Financial stocks were broadly on the downside, as U.S. lenders tracked their European counterparts lower. Shares in Goldman Sachs fell 0.25% and JP Morgan dropped 0.35%, while Bank of America and Citigroup slumped 0.47% and 0.72% respectively.

Apple added to losses, with shares tumbling 1.36%, after Jefferies slashed its price target on the iPhone maker to USD800 from USD900.

In the insurance sector, American International Group plunged 2.34% as it was expected to sell nearly all of ILFC, the world's second-largest airplane leasing business, to a Chinese consortium for up to USD4.8 billion, giving the fastest growing aviation market easier and cheaper access to planes.

Separately, AIC said Hurricane Sandy will cost the company about USD1.3 billion.

Elsewhere, Delta Airlines lost 1.38% amid reports it and Virgin Atlantic will agree on a partnership on transatlantic flights once the U.S. carrier seals a deal to buy Singapore Airlines' 49% stake in the British airline.

On the upside, Ingersoll-Rand jumped 1.75% as it was expected to announce later Monday that it will spin off its security division, as the industrial conglomerate cedes to pressure from activist investor Nelson Peltz to unlock more shareholder value.

Across the Atlantic, European stock markets were steady to lower. The EURO STOXX 50 fell 0.29%, France’s CAC 40 inched up 0.02%, Germany's DAX eased 0.04%, while Britain's FTSE 100 slipped 0.02%.

During the Asian trading session, Hong Kong's Hang Seng Index rose 0.39%, while Japan’s Nikkei 225 Index inched 0.07%.


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