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Stocks Fall Sharply, Then Cut Losses

June 23, 2011 by Leave a Comment

Analysts could point to no single reason for the wide swing, but signs of a sluggish American economy and continued European debt troubles have unsettled investors for months. On Thursday, investors got an added surprise when the International Energy Agency announced its members would release oil into the market from reserves.

In the oil market, crude oil prices fell in the wake of the announcement by the I.E.A. that the United States would provide half of the 60 million barrels of petroleum reserves being released to world markets, with other nations releasing the rest, to replace some of the oil production lost due to the conflict in Libya. On Wall Street, shares in energy companies stocks in the broader market took a hit, declining more than 2.5 percent in late afternoon trading.

By day’s end, the Dow Jones industrial average closed off 59.67 points, a loss of 0.49 percent, to 12,050.00. The Standard Poor’s 500-stock index ended at 1,283.50, off 3.64 points, or 0.28 percent, while the Nasdaq composite index actually rose by the close of trading, adding 17.56 points, or 0.66 percent, to 2,686.75.

While some analysts attributed the declines to developments related to the economy in the United States, others said the I.E.A announcement had made the market nervous about the reasons behind it.

“It shocked the market,” said Doug Cote, the chief market strategist for ING Investment Management. “What it indicates to me was that the problems were worse than my data suggests. My data suggests we are in a relatively normal recovery.”

In recent months, statistics have trickled out suggesting the challenges to the United States economy, including a slowdown in hiring in May and a housing sector that is still trying to recover.

On Wednesday, the Federal Reserve said the economy was not expanding as quickly as predicted and forecast a growth rate of 2.7 percent to 2.9 percent this year and 3.3 percent to 3.7 percent next year, below previous forecasts.

The nation’s central bank also said it would complete the planned purchase of $600 billion in Treasury securities next week, then pause in its economic rescue efforts, doing nothing new for now to push forward growth.

Mr. Cote said the markets had already priced in the pace of the economic growth in the United States and the euro zone problems, and that the reason for the market declines, which lasted most of the day, could be the uncertainty behind the I.E.A. statement.

“This looks like thinly veiled stimulus,” Mr. Cote said. “The big question weighing on the market is why now?”

The energy secretary, Steven Chu, said in a statement that the action was being taken “in response to the ongoing loss of crude oil due to supply disruptions in Libya and other countries and their impact on the global economic recovery.”

But several analysts said that the market had already responded to the lack of Libyan oil.

“The market had already been moving lower in terms of price,” said Mark Routt, a senior consultant for KBC Energy Economics. “All these questions come to the point of ‘Why now?’”

European markets were down, in some cases more than 2 percent. Concerns about Greek debt troubles have continued to weigh on the markets, and bank stocks were down nearly 2 percent in the United States.

Jean-Claude Trichet, president of the European Central Bank, said late on Wednesday that the link between the debt problem and banks was “the most serious threat” to financial stability in the European Union, according to Bloomberg News.

“Investors are worried about the same things that have been worrying them for some months,” said Adrian Darley, head of European equities at Ignis Asset Management in London. “It’s the weak U.S. data, a consensus of overheating in China and concerns about Europe. The Greek situation is still unsolved and markets are going to remain very nervous.” 

Stanley Nabi, the chief strategist at Silvercrest Asset Management Group, said the Europe debt troubles were only one of the factors affecting the market on Thursday.

Julia Werdigier contributed reporting from London.

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Stocks and Bonds: Shares Eke Out Increase After 6 Weeks of Losses

June 14, 2011 by Leave a Comment

Transatlantic Holdings, the reinsurer formerly owned by the American International Group, surged 9.5 percent after agreeing to merge with Allied World Assurance Company Holdings of Switzerland. Timberland, the footwear maker, rallied 44 percent as the VF Corporation announced plans to buy it for $1.8 billion. Halliburton and Freeport-McMoRan Copper and Gold slumped at least 1.2 percent amid falling commodity prices.

The Standard Poor’s 500-stock index rose 0.85 of a point, or 0.07 percent, to 1,271.83. The Dow Jones industrial average climbed 1.06 points, or 0.01 percent, to 11,952.97 after sliding for six straight weeks, the longest stretch since 2002. The Nasdaq composite index average fell 4.04 points, or 0.15 percent, to 2,639.69.

“Corporate managers are more positive on their prospects than investors, which we see expressed in the deals today,” said Timothy A. Hoyle, director of research at Haverford Trust in Radnor, Pa. “People came in this morning and saw these good deals,” Mr. Hoyle said.

More than $1 trillion has been erased from United States markets since the S. P. 500-stock index peaked on April 29, leaving the measure trading at about 12.8 times its companies’ estimated earnings for 2011. That is the cheapest valuation since last August.

The S. P. 500 fell 6.8 percent from the end of April through June 10 as sales of used homes unexpectedly declined, the unemployment rate rose and concern about the European debt crisis increased.

Transatlantic rallied 9.5 percent, to $48.19 Monday after agreeing to merge with Allied World Assurance in a $3.2 billion deal that creates a reinsurer with operations in 18 countries.

Timberland climbed 44 percent, to $43.20, after agreeing to be bought for $43 a share.

Graham Packaging jumped 17 percent, to $25.63. Graham, a maker of plastic containers controlled by the Blackstone Group, said it had received an unsolicited proposal from an unidentified bidder to acquire all of its shares for $25 a share in cash. The company agreed in April to be bought by Silgan Holdings for about $4.1 billion including debt.

Ness Technologies, a computer services provider based in Israel, rose 14 percent, to $7.60, after agreeing to be acquired by Citi Venture Capital International for $307 million in cash.

Energy shares fell 1.4 percent, the most among 10 S. P. 500 industry groups. Materials makers lost 0.6 percent, the second most in the benchmark index.

Crude oil for July delivery fell 2 percent, to $97.30 a barrel on the New York Mercantile Exchange, after declining to $96.13, the lowest intraday level since May 20. The Thomson Reuters/Jefferies CRB Index of commodities slipped 1 percent.

Stocks retreated before rebounding and oil extended losses as Standard Poor’s cut Greece’s credit rating to the world’s lowest debt grade.

Greece’s credit rating was cut by three levels to CCC, and S. P. said on Monday that Greece was “increasingly likely to restructure its debt.” That probably would “result in one or more defaults under our criteria,” S. P. said. Moody’s Investors Service decided this month to grade Greece only one level higher.

The European Central Bank president, Jean-Claude Trichet, and the German finance minister, Wolfgang Schäuble, remained at odds over investors’ role in the second Greek rescue in 14 months. The dispute turns on how politicians keep a promise to push creditors to pay some of the cost, a step that Mr. Trichet said on June 9 could be an “enormous mistake.”

Finance ministers have called a meeting for Tuesday as they try to avoid what Olli Rehn, the European economic and monetary affairs commissioner, called a “Lehman Brothers catastrophe on European soil.”

Interest rates were steady. The Treasury’s benchmark 10-year note fell 3/32, to 101 7/32, and the yield rose to 2.98 percent, from 2.97 percent last Friday.

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Shares Eke Out Increase After 6 Weeks of Losses

June 14, 2011 by Leave a Comment

Transatlantic Holdings, the reinsurer formerly owned by the American International Group, surged 9.5 percent after agreeing to merge with Allied World Assurance Company Holdings of Switzerland. Timberland, the footwear maker, rallied 44 percent as the VF Corporation announced plans to buy it for $1.8 billion. Halliburton and Freeport-McMoRan Copper and Gold slumped at least 1.2 percent amid falling commodity prices.

The Standard Poor’s 500-stock index rose 0.85 of a point, or 0.07 percent, to 1,271.83. The Dow Jones industrial average climbed 1.06 points, or 0.01 percent, to 11,952.97 after sliding for six straight weeks, the longest stretch since 2002. The Nasdaq composite index average fell 4.04 points, or 0.15 percent, to 2,639.69.

“Corporate managers are more positive on their prospects than investors, which we see expressed in the deals today,” said Timothy A. Hoyle, director of research at Haverford Trust in Radnor, Pa. “People came in this morning and saw these good deals,” Mr. Hoyle said.

More than $1 trillion has been erased from United States markets since the S. P. 500-stock index peaked on April 29, leaving the measure trading at about 12.8 times its companies’ estimated earnings for 2011. That is the cheapest valuation since last August.

The S. P. 500 fell 6.8 percent from the end of April through June 10 as sales of used homes unexpectedly declined, the unemployment rate rose and concern about the European debt crisis increased.

Transatlantic rallied 9.5 percent, to $48.19 Monday after agreeing to merge with Allied World Assurance in a $3.2 billion deal that creates a reinsurer with operations in 18 countries.

Timberland climbed 44 percent, to $43.20, after agreeing to be bought for $43 a share.

Graham Packaging jumped 17 percent, to $25.63. Graham, a maker of plastic containers controlled by the Blackstone Group, said it had received an unsolicited proposal from an unidentified bidder to acquire all of its shares for $25 a share in cash. The company agreed in April to be bought by Silgan Holdings for about $4.1 billion including debt.

Ness Technologies, a computer services provider based in Israel, rose 14 percent, to $7.60, after agreeing to be acquired by Citi Venture Capital International for $307 million in cash.

Energy shares fell 1.4 percent, the most among 10 S. P. 500 industry groups. Materials makers lost 0.6 percent, the second most in the benchmark index.

Crude oil for July delivery fell 2 percent, to $97.30 a barrel on the New York Mercantile Exchange, after declining to $96.13, the lowest intraday level since May 20. The Thomson Reuters/Jefferies CRB Index of commodities slipped 1 percent.

Stocks retreated before rebounding and oil extended losses as Standard Poor’s cut Greece’s credit rating to the world’s lowest debt grade.

Greece’s credit rating was cut by three levels to CCC, and S. P. said on Monday that Greece was “increasingly likely to restructure its debt.” That probably would “result in one or more defaults under our criteria,” S. P. said. Moody’s Investors Service decided this month to grade Greece only one level higher.

The European Central Bank president, Jean-Claude Trichet, and the German finance minister, Wolfgang Schäuble, remained at odds over investors’ role in the second Greek rescue in 14 months. The dispute turns on how politicians keep a promise to push creditors to pay some of the cost, a step that Mr. Trichet said on June 9 could be an “enormous mistake.”

Finance ministers have called a meeting for Tuesday as they try to avoid what Olli Rehn, the European economic and monetary affairs commissioner, called a “Lehman Brothers catastrophe on European soil.”

Interest rates were steady. The Treasury’s benchmark 10-year note fell 3/32, to 101 7/32, and the yield rose to 2.98 percent, from 2.97 percent last Friday.

Article source: http://www.nytimes.com/2011/06/14/business/14markets.html?partner=rss&emc=rss

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Stocks Slightly Higher Despite Weak Economic News

May 26, 2011 by Leave a Comment

The Labor Department said more people applied for unemployment benefits last week, the first increase in three weeks. The number of people seeking benefits rose by 10,000 to 424,000, more than analysts were expecting.

Applications are above the 375,000 level that is consistent with sustainable job growth. Applications peaked at 659,000 during the recession. Employers stepped up hiring this spring, but some economists worry that rising applications for unemployment benefits indicate hiring is slowing.

The Commerce Department said the economy grew at a sluggish 1.8 percent annual rate in the January-to-March quarter as surging gasoline prices and sharp cuts in government spending overshadowed strong corporate earnings. Consumer spending grew at just half the rate of the previous quarter, less than previously estimated. A surge in imports widened the United States trade deficit.

Economists believe the economy is doing only slightly better in the current April-to-June quarter. Consumers remain squeezed by gas prices near $4 a gallon and renewed threats from Europe’s debt crisis.

At the close of trading, the Dow Jones industrial average was up 8.10 points, or 0.07 percent. The Standard Poor 500-stock index was up 5.22 points, or 0.40 percent. The Nasdaq composite index was up 21.54 points, or 0.78 percent.

The weak economic news drew investors toward safer assets. The yield on the 10-year Treasury note fell to 3.11 percent, near its lowest level of the year. It was trading at 3.15 percent shortly before the economic reports came out. Bond yields fall when their prices rise.

Microsoft rose 2 percent after a hedge-fund manager called for the company’s board to replace its chief executive officer, Steven Ballmer. Tiffany jumped 8 percent after reporting that higher sales lifted earnings. Concerns about the European debt crisis continue to weigh on markets. Stocks fell for three days before Wednesday’s gains, which came as higher oil prices lifted energy stocks.

Greece’s government and opposition party failed late Tuesday to reach agreement on how to pare the country’s debts, adding to the uncertainty surrounding Greece’s financial future. Many analysts believe Greece will eventually have to restructure its debt, possibly by extending interest payments or lowering interest rates.

Analysts are also concerned about how much of an impact the supply disruptions stemming from the March earthquake and tsunami in Japan will have on manufacturing in the United States, especially on factories making cars and electronic products that depend on component parts from Japan.

Some analysts think Japan’s supply chain problems could shave as much as one-half a percentage point from growth in the April-to -June period.

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Stocks and Bonds: Europe’s Debt Problems Send Shares Lower

May 25, 2011 by Leave a Comment

Oil rose $1.89, to $99.59 a barrel, after major banks raised their forecasts for crude prices. Goldman Sachs, JPMorgan and Morgan Stanley analysts predicted a rise in global demand would drive oil prices higher later this year. Goldman analysts said oil prices could reach $135 a barrel by the end of 2012.

Stocks swung between gains and losses throughout the day, with Chevron and other energy firms posting the largest gains.

The Dow Jones industrial average fell 25.05 points, or 0.20 percent, to 12,356.21. The Standard Poor’s 500-stock index dropped 1.09 points, or 0.08 percent, to 1,316.28. The Nasdaq composite index declined 12.74 points, or 0.46 percent, to 2,746.16.

Stocks had been lifted in the first four months of the year by stronger earnings reports, an improving job market and other signs of economic recovery. But all three major indexes have lost more than 3.5 percent this month, even as earnings remain strong. Widespread optimism has been offset by a host of concerns, especially the effect of higher oil prices on consumer spending and the risk that debt troubles in Europe could get worse.

Markets faced more troubling news about Europe on Tuesday, when Greece’s main opposition party said it opposed the government’s latest endeavors to reduce debt. The news further reduced hopes that the country might be able to repair its finances enough to get another loan package from the International Monetary Fund.

The ratings agency Moody’s also warned that a restructuring of Greece’s debt would be considered a default. That would cause borrowing costs for other debt-burdened European countries to soar.

Uri Landesman, president of the hedge fund manager Platinum Partners, said a Greek default could start a chain reaction affecting larger countries like Spain, wreaking havoc on the global economy. “If you had a Spanish default, there wouldn’t be a single world bank not affected,” Mr. Landesman said.

United States banks had $187 billion at stake in Spain as of the end of last September, according to the most recent data from the Bank for International Settlements. The amount includes holdings of government debt, derivative contracts and other commitments.

The Commerce Department reported that sales of new homes rose slightly in April, but at a rate far below what would be normal in a healthy housing market. New home sales rose to an annual rate of 323,000, from 300,000 in March.

The energy company El Paso rose 6.53 percent, to $20.22, after saying it planned to split itself into two publicly traded businesses by the end of this year.

AutoZone rose 6 percent, to $293.30, after the specialty retailer’s earnings jumped 12 percent on strong sales of its Duralast auto parts.

Medtronic fell 1 percent, to $40.88, after its earnings fell short of forecasts.

The Treasury’s 10-year note rose 4/32 to 100 3/32. The yield fell to 3.11 percent, from 3.13 percent late Monday.

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Stocks Retreat on Concern About Industrial Slowdown

May 24, 2011 by Leave a Comment

Crude oil and Brent futures rose after Goldman Sachs raised its forecast for oil, citing growh in demand for fuel.

The energy sector, which was one of the weakest Monday because of anxiety about Europe’s debt crisis, led the day’s gainers, while industrials pushed the market down for a second day.

Financial stocks also pressured the market.

“There isn’t much for the market to get excited at this point, especially going into summer months and the QE coming to an end soon,” said Randy Frederick, director of trading and derivatives at the Schwab Center for Financial Research in Austin, Tex.

The Dow Jones industrial average was down 12.86 points, or 0.10 percent, at 12,368.40. The Standard Poor’s 500-stock index was down 1.43 points, or 0.11 percent, at 1,315.94. The Nasdaq composite index was down 10.06 points, or 0.36 percent, at 2,748.84.

Stocks closed on Monday at their lowest level in a month.

Following weaker-than-expected New York and Philadelphia Fed manufacturing surveys last week, the Richmond region reported on Tuesday an outright contraction as its index fell, the first negative reading since September, according to Peter Boockvar, equity Strategist at Miller Tabak + Company in New York.

“The Richmond survey is never market moving as it’s not widely followed. But it’s another piece in the anecdotal puzzle of the moderation seen in manufacturing in May, with the obvious hope that it’s just a mid-cycle misstep before the next acceleration,” he said.

Occidental Petroleum rose 3.4 percent to $102.33.

On the Nasdaq, shares of the Russian Internet company Yandex NV surged as much as 68 percent in their debut.

Yandex raised $1.3 billion in its Initial public offering on Monday by selling 52.2 million shares for $25 each. The offering valued the overall company at about $8 billion.

By midday, Yandex shares were up 41.4 percent at $35.35.

The United States Treasury is expected to sell 15 percent of its stake in the American International Group when the insurer prices its stock offering after the market closes. A.I.G. was down 1.2 percent at $29.63.

Data showed new single-family home sales in the United States rose unexpectedly in April to notch their second straight month of gains, but analysts said home builders still have a bumpy ride ahead.

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Stocks & Bonds: Fears About Consumers Send Shares Tumbling

May 21, 2011 by Leave a Comment

The retailers Gap Inc. and Aeropostale each lost more than 14 percent after cutting their profit forecasts for the year, in part because of higher costs for raw materials. Gap’s sales have been sluggish, a worrying sign for investors who are counting on shoppers to lead a recovery in consumer spending.

Gap’s results pushed down other clothing companies that have been hit hard by the rising price of cotton and the reluctance of shoppers to splurge. Polo Ralph Lauren and J. C. Penney each dropped over 4 percent, while Urban Outfitters fell more than 3 percent.

The Dow Jones industrial average fell 93.28 points, or 0.74 percent, to 12,512.04. The Standard Poor’s 500-stock index fell 10.33 points, or 0.77 percent, to 1,333.27. The Nasdaq composite index fell 19.99 points, or 0.71 percent, to 2,803.32.

One exception to the gloom among retailers was the bookseller Barnes Noble, which jumped nearly 30 percent after Liberty Media offered to buy the company for $1 billion in cash.

A stronger dollar also hurt stocks. The dollar rose against the euro after the Fitch ratings agency downgraded Greece’s debt three notches further into junk status, escalating worries about the European debt crisis.

For the week, the major indexes each declined less than 1 percent.

In recent months, markets have fallen when the dollar rises against the euro because the stronger American currency has signaled that European countries are still struggling to get their debt under control.

“A stronger dollar and a stronger U.S. market can coincide, but not when the U.S. economic data are weak,” said Quincy Krosby, chief market strategist for Prudential Financial. “This has been a stronger dollar that has come because of another currency weakening, not a stronger U.S. economy.”

Concerns about the strength of the economy pushed government bond prices higher as investors sought out safer assets. The Treasury’s benchmark 10-year note rose 7/32, to 99 26/32, and the yield fell to 3.15 percent from 3.17 percent late Thursday.

Oil prices settled at $99.49, up $1.05, after trading lower most of the day on new signs that demand for gasoline is falling. Even as most energy stocks fell, Anadarko Petroleum jumped 4 percent on hopes that the company would owe less than expected to the oil giant BP for its part in the Deepwater Horizon disaster.

BP said it would receive a $1 billion payment from Moex, which owned a 10 percent stake in the Macondo oil well in the Gulf of Mexico. The settlement was for a smaller amount than Moex investors feared, and suggested that Anadarko, which owned 25 percent of the well, would also pay less to BP.

BP’s stock rose more than 2 percent on expectations that other companies will share costs related to the Gulf of Mexico oil spill.

There were two notable exceptions to the downward trend. The software company Salesforce.com rose almost 8 percent after its first-quarter profit beat expectations. Netflix, the movie rental and streaming company, gained 1.3 percent. In Europe, shares moved lower late in the session. The FTSE 100 index of leading British shares ended 0.1 percent lower, and Germany’s DAX was off 1.2 percent. The CAC 40 in France was down 0.9 percent.

The euro fell on Friday 0.75 percent to $1.4203.

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Stocks & Bonds: Earnings Optimism Checked by Oil Prices

April 12, 2011 by Leave a Comment

Worries increased over the costs of raw materials and the effects from Japan’s earthquake.

“Companies are going to be trying to dampen expectations for the second quarter,” said Subodh Kumar, chief investment strategist at Subodh Kumar Associates in Toronto. “The market focus is more internal as to whether it’s gone up too fast.”

After the bell, the aluminum maker Alcoa reported a first-quarter profit that beat estimates and said its outlook for the rest of 2011 and beyond remained positive. But revenue of Alcoa, the first Dow component to report quarterly results, missed forecasts. Shares fell less than 1 percent in regular trading, to $17.77, then fell more than 3 percent in after-hours trading.

Shares of energy companies dropped as oil prices slid on profit-taking. Occidental Petroleum fell 3.2 percent, to $100.42, while the Standard Poor’s energy index was down 1.9 percent.

Profits for companies in the Standard Poor’s 500-stock index are likely to be up 11.4 percent from a year ago, according to Thomson Reuters data, but much of that may be priced into shares.

Optimism over earnings contributed to recent gains, despite turmoil in oil-producing regions and the disasters in Japan. Despite the S. P. 500’s gains this year, light trading volume has prompted questions about the strength of the rally.

The Dow Jones industrial average rose 1.06 points, or 0.01 percent, to 12,381.11. The Standard Poor’s 500-stock index fell 3.71 points, or 0.28 percent, to 1,324.46. The Nasdaq composite index lost 8.91 points, or 0.32 percent, to close at 2,771.51.

Oil futures ended lower after a recommendation from Goldman Sachs to take profits after the recent rally led to a sell-off.

In corporate news, Tenet Healthcare said it had sued a rival hospital operator, Community Health Systems, claiming that Community had admitted patients for unneeded stays to overbill insurers, including Medicare. Shares of Tenet sank 14.7 percent, to $6.44, while Community slumped 36 percent to $25.89.

NYSE Euronext on Sunday rejected a joint buyout bid from Nasdaq OMX Group and Intercontinental Exchange and said it was sticking with an earlier bid from Deutsche Börse. Nasdaq reaffirmed that its offer was higher than Deutsche Börse’s offer.

NYSE shares fell 2.9 percent, to $37.59, while Nasdaq OMX fell 1.5 percent, to $28.03.

Endo Pharmaceuticals, meanwhile, said that it would buy American Medical Systems Holdings for about $2.6 billion while Level 3 Communications agreed to buy Global Crossing for $1.9 billion in stock.

Endo rose 0.5 percent, to $41.06, while American Medical jumped 32 percent, to $29.50. Level 3 rose 18.1 percent, to $1.70, and Global Crossing surged 69 percent, to $24.97.

Biogen Idec rose 7.2 percent, to $78.55, and was the top percentage gainer on the Nasdaq 100 after the company’s experimental multiple sclerosis drug met the main goal in the first of two important late-stage studies.

The dollar firmed against the euro after Congress reached a last-minute budget deal Friday night that avoided a government shutdown. However, a focus on the debt ceiling could limit any gains, traders said.

“The euro’s drop is nothing more than white noise and the pullback should prove shallow,” said Jessica Hoversen, foreign exchange and fixed-income analyst at MF Global in New York.

The Treasury’s 10-year note fell 1/32, to 100 11/32. The yield was unchanged from Friday at 3.58 percent.

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Stocks Higher in Late Trading, Helped by Jobs Report

March 30, 2011 by Leave a Comment

The ADP National Employment Report said 201,000 new private sector jobs were added in March. That is roughly in line with the 210,000 analysts had expected, but investors were encouraged by a strong gain in small-business hiring.

While not a huge surprise, the ADP report “helped the realization that things are not as bleak as they seemed a few weeks ago,” said Ryan Detrick, a strategist at Schaeffer’s Investment Research.

The report is seen as a precursor to the government’s March payrolls report due Friday, but the two reports do not always match. Traders are looking for any clues about how strong the job market is as they try to figure out how soon the Federal Reserve will start raising interest rates.

Cephalon surged 28 percent after Valeant Pharmaceuticals International offered to take over the biopharmaceutical company for $5.7 billion in cash. Valeant, based in Canada, rose 10 percent. The takeover bid is the latest in a string of deal-related news, another positive sign for investors.

“It shows that companies still think there are some good deals out there,” said Mr. Detrick. “If they are willing to pay a premium, that’s a good sign for the overall stock market.”

The Dow Jones industrial average rose 80 points, or 0.7 percent, to 12,359. The broader Standard and Poor’s 500-stock index rose 10 points, or 0.8 percent, to 1,329. The Nasdaq composite index rose 19 points, or 0.7 percent, to 2,776.

The yield on the 10-year Treasury note edged down to 3.46 percent from 3.49 percent late Tuesday.

The market plodded higher against a backdrop of unsettling international news. Concerns about European debt loomed as Portugal moved closer to needing a bailout and Spain’s central bank forecast a lower growth rate and higher deficit than previously predicted.

Seawater near Japan’s crippled nuclear plant tested at its highest radiation levels yet and the plant’s owner publicly acknowledged that four of six nuclear reactors would have to be decommissioned. In Libya, NATO forces initiated a new wave of airstrikes against forces loyal to Col. Muammar el-Qaddafi.

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