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U.S. stocks edge higher with Greece in focus; Dow up 0.1%

Published 02/08/2012, 09:57 AM
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Investing.com - U.S. stock markets edged modestly higher after the open on Wednesday, as investors continued to monitor developments surrounding talks on a debt restructuring deal for Greece.

During early U.S. trade, the Dow Jones Industrial Average eased up 0.1%, the S&P 500 index added 0.2%, while the Nasdaq Composite index rose 0.25%.

Investors remained wary in the absence of any signs of a breakthrough in Greece but risk appetite remained supported  by underlying expectations that a deal to pave the way for a default-saving bailout was getting closer.

Greek Prime Minister Lucas Papademos was to hold talks with the leaders of Greece's three political parties later in the day to discuss the terms of new austerity measures being demanded in return for a second bailout worth EUR130 billion.

Shares in the financial sector were mixed, with Bank of America and Citigroup shares gaining 1.3% and 1.1% respectively, while Morgan Stanley saw shares retreat 0.5%. U.S.-listed shares of National Bank of Greece traded down 2.7%.

Meanwhile, investors turned their attention to a flurry of earning reports. Buffalo Wild Wings saw shares surge 14.1% after reporting fourth quarter earnings that beat expectations by the biggest margin in the last eight quarters. The company also raised its full-year outlook, boosted by a strong start to 2012.

Polo Ralph Lauren saw shares soar 11.3% after reporting better-than-expected holiday quarter results, boosted by increased business with department stores and growth at its own stores.

Time Warner saw shares gain 2.3% after reporting stronger-than-expected fourth quarter earnings, as advertising revenues from its television networks improved. The media giant also announced a new share buyback program of USD4 billion and raised its quarterly dividend by 11%.

On the downside, Western Union saw shares tumble 7.8% after forecasting full-year earnings that fell short of market expectations. The world’s largest payment transfer company said that profit surged 86% in the fourth quarter, as transaction volume grew and the company recorded a one-time benefit from a tax agreement.

Cognizant Technologies saw shares drop 2.75% after its fourth quarter earnings missed analysts’ expectations for the first time in more than two years. The IT services provider also forecast weaker-than-expected first quarter sales.

Meanwhile, Groupon shares shed 0.7% as investors readjusted positions in the stock ahead of the company’s earnings report due later in the day.

Cisco Systems shares dipped 0.4% as it too was scheduled to report earnings results after Wednesday’s closing bell.  

Across the Atlantic, European stocks were up, but off their earlier highs. The EURO STOXX 50 rose 0.55%, France’s CAC 40 added 0.5%, Germany's DAX gained 0.55%, while Britain's FTSE 100 eased up 0.1%.

During the Asian trading session, Hong Kong's Hang Seng Index rallied 1.55%, while Japan’s Nikkei 225 Index jumped 1.1%.

Later in the day, the U.S. was to publish a government report on crude oil stockpiles.

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