For the 16 eurozone countries, the combined deficit more than trebled in 2009 to 6.3 per cent of output from 2 per cent in 2008, hitting more than twice the level permitted under the bloc’s budgetary rules.

Ireland was the worst offender, at 14.1 per cent, followed by Greece, Spain on 11.1 per cent and Portugal with 9.4 per cent. AGENCIES

Stocks seesaw on mixed earnings

The Dow Jones industrial average (INDU) added 8 points, or less than 0.1%, to end at 11,124.92. The S&P 500 index (SPX) fell 1 point, or 0.1%, to settle at 1,205.93, and the Nasdaq composite (COMP) rose 4 points, or 0.2%, to close at 2,504.61.

"As we get beyond earnings, attention is going to turn right back to the housing and job markets," said Dave Hinnenkamp, chief executive of KDV Wealth Management. "The downturn has left a really big scar, and investors who got burned will be cautious for some time."

Stocks finished Tuesday's session in positive territory, thanks to better-than-expected earnings from Goldman Sachs and several consumer companies.

"Investors were holding their breath for this earnings season, and it looks like it's going to be decent," Hinnenkamp said. "This makes people comfortable saying we're in a recovery process, but it's going to be a slow one."

Tech earnings: Late Tuesday, iPod and Mac maker Apple (AAPL, Fortune 500) posted a record quarter that blew past Wall Street's estimates. Apple shares ended more than 6.1% higher.

Yahoo (YHOO, Fortune 500) also delivered earnings that beat expectations, but its sales came in below estimates. Shares closed down 4.9%.

"The tech sector leads out of the recession," Hinnenkamp said. "After that we'll be looking for the industrial and material sectors to rise -- and once we move forward, attention will turn to the energy sector."

Financial earnings: Earlier Wednesday, Morgan Stanley (MS, Fortune 500) said it swung to a $1.8 billion profit in the first quarter Wednesday before the bell, as strong trading revenue boosted the Wall Street firm's latest results. Shares of Morgan ended 4.2% higher.

Wells Fargo (WFC, Fortune 500) reported a $2.5 billion profit before the bell, beating Wall Street expectations. The company said that credit conditions have "turned the corner" from the weakness of the financial crisis. Still, Wells shares fell almost 2% by the end of trading.

Overall, the finance sector ended 10.8% higher Wednesday.

"We're not unreasonably priced at these levels, considering earnings," Hinnenkamp said, "but it's not a deep-value market, either."

Other corporate results: In addition to banks, investors digested quarterly results from several Dow components:

-- AT&T (T, Fortune 500) beat estimates on a boost from strong sales of Apple's iPhone;

-- Boeing (BA, Fortune 500)'s profit and revenue dropped amid fewer airplane deliveries;

-- McDonalds (MCD, Fortune 500)' earnings rose above predictions as sales rose across all its markets, especially Europe and Asia;

-- United Technologies (UTX, Fortune 500) also beat estimates.

Also, Chrysler announced that it earned its first operating profit since exiting bankruptcy on June 10, 2009. The profit follows nearly $4 billion of losses logged by the automaker during that time.

The results continued after the markets closed, with Starbucks (SBUX, Fortune 500) and other major names reporting results after the bell. The coffee chain handily beat profit and sales estimates, and the company lifted 2010 guidance. Shares were up 2% in after-hours trade.

In other company news, General Motors announced Wednesday morning that it had made a final payment of $5.8 billion late Tuesday to the U.S. and Canadian governments, paying off the last of its $6.7 billion in loans.

Outlook: "Psychological issues will continue to drive the markets," said KDV's Hinnenkamp.

He expects a slow but continued higher trend, with the S&P around 1,200 in the coming weeks, and the Dow around 11,250.

"The economy is improving, but slowly," Hinnenkamp said. "Thus recovery wont come as quickly hoped for, and a sustained bounceback can come only once housing and jobs kick in."

But even negative news outside of the real estate and employment sectors could put a damper on the uptick, Hinnenkamp added.

"Any piece of bad news, people worry there's an Armageddon," he said. "But there's always good and bad news out there -- it depends where you choose to focus."

World markets: European shares, including the FTSE 100 in Britain, France's CAC 40 and Germany's DAX, ended lower.

Asian markets ended the session mixed. Japan's Nikkei rallied 1.7% and the Shanghai Composite surged 1.8%. The Hang Seng in Hong Kong lost 0.5%.

Other markets: The dollar edged higher against the euro but remained weak versus the Japanese yen and the U.K. pound.

The price of oil fell 17 cents to settle at $83.68 a barrel. Wednesday marked the first day of the June contract.

COMEX gold for June delivery prices rose $9.60 to settle at $1,148.20 an ounce.

Treasury prices were higher, with the yield on the benchmark 10-year note at 3.78%. Bond prices and yields move in opposite directions. 

EYEONTHEMARKET

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Stocks rise on earnings

Dow pulls out a gain

Stocks soar to major milestones

The Dow Jones industrial average (INDU) surged 104 points, or 0.9%, to end at 11,123.11, the highest level since September 2008. Financial and tech shares led the advance.

The S&P 500 index (SPX) gained 13 points, or 1.1%, to close at 1,210.65, marking the first time the index has closed above the 1,200 mark in almost 19 months.

The Nasdaq composite (COMP) added 39 points, or 1.6%, to end at 2,504.86. It was the first time since June 2008 that the index has ended above 2,500.

Year-to-date, the Dow is up 6.7%, the S&P has gained 8.6% and the Nasdaq has soared 10.4% as of Wednesday's close.

The S&P is up 77% from its March 9, 2009 low. However, the index remains 23.5% below the record high set Oct. 9, 2007.

"We were bumping against the 1,200 mark, as close as 1,199, and then backing down," said Art Hogan, chief market strategist at Jefferies & Co. "Crossing that barrier was notable."

The blue-chip Dow and Nasdaq touched fresh 18-month highs Tuesday after slight gains.

"We had an embarrassment of riches today as far as good news goes," Hogan said.

Earnings: JPMorgan Chase (JPM, Fortune 500) reported a $3.3 billion profit for the first quarter, though the bank continued to suffer losses in its consumer loan portfolio.

The New York City-based bank said it earned 74 cents a share during the quarter, up 55% from a year earlier. Analysts surveyed by Thomson Financial were expecting earnings of 64 cents a share.

Shares of JPMorgan ended more than 4% higher.

JPMorgan kicked off the reporting period for big banks, most of which are expected to post a profitable quarter.

"We'll be hearing from 125 S&P 500 companies next week, so we haven't gotten into the meat of it quite yet," said Jefferies' Hogan.

After U.S. markets closed Tuesday, chipmaker Intel (INTC, Fortune 500) reported earnings and revenue that topped Wall Street's estimates. Shares closed 3.3% higher on Wednesday.

"During the worst of the recovery, we were satiated by cost-cutting that boosted bottom-line net income," said Paul Radeke, vice president at KDV Wealth Management. "Now the market is looking for strong top-line revenue, and today it got some of that."

This week's earnings reports are tech heavy, Hogan said, and Intel's results could bode well for companies such as Google (GOOG, Fortune 500) that will report later this week. He expects the technology sector to continue rising in the coming weeks, and energy shares could be a "dark horse" gainer.

Economy: The government's monthly retail sales report and a report on consumer inflation were released before the market opened.

Retail sales jumped 1.6% in March, beating estimates from economists surveyed by Briefing.com. Sales excluding autos rose 0.6%, also topping predictions.

"This string of positive retail sales numbers implies that the rumored death of the American consumer was greatly exaggerated," Hogan said.

The Consumer Price Index (CPI), a measure of consumer inflation, rose 0.1% in March, in line with predictions. Core CPI, which excludes volatile food and energy prices, was unchanged. Economists had forecast a 0.1% jump.

A separate report showed business inventories rose 0.5% in March, slightly higher than the 0.4% jump that was forecast.

Federal Reserve Chairman Ben Bernanke testified before a joint session of Congress on the economic outlook, saying private-sector demand will be "sufficient" to spur moderate recovery in coming months, but more time is needed to recover job losses.

Separately, the Fed released its Beige Book report, which said economic activity expanded "somewhat" in 11 of the central bank's 12 districts.

World markets: Stocks in Europe ended higher, with Britain's FTSE 100, France's CAC 40 and Germany's DAX all in positive territory.

Asian markets also finished the session with gains. Hong Kong's Hang Seng edged higher, and the Nikkei in Japan added 0.4%.

Currencies and commodities: The dollar fell against its major rivals: the euro, pound and yen.

Oil prices snapped a 5-day losing streak, settling up $1.79 to $85.84 a barrel. The government's weekly report on U.S. crude inventories showed oil supplies fell by 2.2 million barrels last week.

COMEX gold for June delivery settled up $6.20 to $1,159.60 an ounce.

Bonds: Prices for U.S. Treasurys fell, with the yield on the benchmark 10-year note rising to 3.83%. Bond prices and yields move in opposite directions.

Market breadth was positive. On the New York Stock Exchange, winners topped losers almost four to one on volume of 1.1 billion shares. On the Nasdaq, advancers also beat decliners four to one, on volume of 3 billion shares. 

Asian shares open mixed

Dow: 11,000 at the finish line

The Dow Jones industrial average (INDU) added 8 points or 0.1%, finishing at 11,005.97, the highest close since Sept. 26, 2008, when it ended at 11,143.13.

"11,000 is a nice number but it's more psychological than anything," said Jim Dunigan, chief investment officer at PNC Wealth Management. "The S&P is getting close to 1,200 and that's another big round number."

The S&P 500 index (SPX) gained 2 points, or 0.2%, ending at 1196.48, an 18-month high. The Nasdaq composite (COMP) edged up 4 points, or 0.2%, to the highest finish since June 19, 2008.

After the close, Dow component Alcoa (AA, Fortune 500) ignited the quarterly reporting period. The aluminum maker posted earnings of 10 cents per share versus a loss of 59 cents a year earlier, meeting the expectations of analysts surveyed by Thomson Reuters. Alcoa reported revenue of $4.89 billion versus $4.147 billion a year ago. Analysts expected revenue of $5.238 billion.

"Alcoa was a pretty good start, but expectations for this earnings period are high and there's the potential for disappointment," Dunigan said.

First-quarter earnings are expected to have risen 37% versus the prior year, while revenue is expected to have risen 10%, according to Thomson Reuters.

Gains are expected to be driven by financials, materials and consumer discretionary -- the sector that includes autos and retailers.

Intel (INTC, Fortune 500) reports results on Tuesday, while Google (GOOG, Fortune 500), JPMorgan Chase (JPM, Fortune 500) and Bank of America (BAC, Fortune 500) are due later in the week.

Stocks closed higher Friday at the end of another up week for stocks. The market has risen in seven of the last eight weeks as economic confidence has replaced jitters about a global slowdown that felled markets in January.

Both the Dow and S&P 500 stand at roughly 18-month highs, while the Nasdaq stands at the highest point in nearly two years.

Greece: Investors got another bout of good news on the global front over the weekend, when European leaders agreed to make loans available to debt-burdened Greece.

The 16 countries that use the euro agreed to provide a collective $40 billion, while the International Monetary Fund (IMF) agreed to kick in $13.5 billion.

The loans, should Greece choose to access them, would have interest rates that are lower than what lenders had been requiring in recent days to hold Greek debt. Last Thursday, Greece's borrowing costs hit an all-time high as investors worried the country might default.

Greece is seen as something of the tip of the iceberg, with investors worrying that a default would exacerbate problems in other debt-burdened nations. Greece is one of the so-called PIIGS, along with Portugal, Ireland, Italy and Spain.

Recession questions: Although most economists think that the recession is over, the panel of economists who are responsible for specifying changes in the business cycle aren't sure yet.

The National Bureau of Economic Research said Monday that it is premature to say whether the recession that began in December 2007 has ended. The group is apparently wary to call an end when there is still the threat of a so-called double dip recession.

World markets: In overseas trading, European markets were mixed, with London's FTSE up 0.1%, France's CAC 40 and Germany's DAX both little changed. Asian markets were mixed, with the Hong Kong Hang Seng down 0.3% and the Japanese Nikkei up 0.4%.

Bonds: Treasury prices rallied, lowering the yield on the 10-year note to 3.85% from 3.89% late Friday. The 10-year had risen as high as 4% Monday, an 18-month high. Treasury prices and yields move in opposite directions.

The dollar and commodities: The dollar fell versus the euro and gained against the yen.

COMEX gold for June delivery rose $3 to settle at $1,162.20 per ounce.

U.S. light crude oil for May delivery fell 58 cents to settle at $84.34 a barrel on the New York Mercantile Exchange.

Market breadth was positive. On the New York Stock Exchange, winners beat losers eight to seven on volume of 976 million shares. On the Nasdaq, advancers beat decliners seven to six on volume of 2.06 billion shares.  

Here come the profit reports

Alcoa (AA, Fortune 500) begins the quarterly reporting period, as is traditional, when it reports results after the start of trading Monday. Alcoa is one of five Dow components due to report results this week. The others are Intel (INTC, Fortune 500), JPMorgan Chase (JPM, Fortune 500), Bank of America (BAC, Fortune 500) and General Electric (GE, Fortune 500). Tech leader Google is also due to report.

Greece: U.S. investors will also be attuned to developments coming out of Europe, amid speculation that debt-laden Greece could receive a bailout from the European Union and the International Monetary Fund (IMF) shortly.

Greece's finance minister said Friday that details of a previously agreed upon rescue package by Euro zone countries and the IMF were being worked out, even as he also said that the nation didn't need a rescue.

Worries that Greece may default on its mounting debt, destabilizing the euro and sparking a bigger debt crisis amid other vulnerable European nations, have weighed on markets intermittently all year. But the fears were exacerbated last Thursday after Greek borrowing costs spiked to an all-time high.

The analysts both said that the threat of a Greek default has been in the market for a while and has therefore already been priced in to stock valuations, to an extent. Nonetheless, they said that any sign of a crisis spreading would batter U.S. stocks.

Wednesday: JPMorgan Chase, which reports results before the bell, is expected to have earned 64 cents per share versus 40 cents a year ago. JPMorgan is the first of a slew of banks that are expected to report strong profits this week.

Thursday: Tech behemoth Google (GOOG, Fortune 500) reports results after the close. The company is expected to have earned $6.57 per share versus $5.16 per share a year ago.

Friday: Bank of America is expected to report a profit of 9 cents per share in the morning, down from 44 cents per share a year ago.

General Electric is forecast to report a profit of 16 cents per share, down from 26 cents a year ago.

The April Consumer Sentiment index from the University of Michigan is due after the start of trading. Sentiment is expected to have improved to a reading of 75.0 from 73.6 in March. 

Stocks rise on consumer hopes

The Dow Jones industrial average (INDU) added 30 points, or 0.3%. The S&P 500 index (SPX) gained 4 points or 0.3%. The Nasdaq composite (COMP) gained 6 points, or 0.2%, and matched Tuesday's 18-month high.

Stocks fell in the morning, but managed to erase those losses and edge higher in the afternoon, led by financial shares including American Express (AXP, Fortune 500), JPMorgan Chase (JPM, Fortune 500) and Goldman Sachs (GS, Fortune 500). The KBW Bank (BKX) index added 1.4%. Retail shares gained as well.

Stocks slipped Wednesday after General Motors' huge loss, but the market was also vulnerable after finishing at 18-month highs Tuesday.

The Dow, Nasdaq and S&P 500 have now risen in six of the last seven weeks as investors have bet that continued low interest rates, some stability in the job market and a pickup in the economy will help sustain a stock advance.

As of Thursday afternoon, the Dow is flat for the week, the Nasdaq and the S&P are both up.

Retail: A number of chain stores reported strong March sales thanks in part to the early Easter holiday and signs of improvement in the job market.

Sales at stores open a year or more, a retail metric known as same-store sales, rose 9.1% in March versus a year ago, according to Thomson Reuters. It was the biggest monthly gain since Thomson began keeping records in 2000, and surpassed the company's forecast for a gain of 6.3%.

Among the standouts, women's apparel retailer The Limited (LTD, Fortune 500) said sales rose 15% at stores open a year or more versus forecasts for a rise of 6.8%.

Discounter TJX (TJX, Fortune 500) said sales at stores open a year or more rose 12% in the month. As a result, the retailer raised its current quarter profit outlook.

But some companies warned that a strong March will chip away at April sales. Kohl's (KSS, Fortune 500) said its strong 22.5% jump in March will be followed by a decline in April.

Jobs: The number of Americans filing new claims for unemployment rose to 460,000 last week from a revised 442,000 the previous week, the Labor Department said Thursday morning. Economists surveyed by Briefing.com had expected 435,000 claims, on average.

Continuing claims, a measure of those who have been receiving benefits for a week or more, fell to 4,550,000 from 4,681,000 the previous week. Economists surveyed by Briefing.com thought continuing claims would fall to 4,630,000.

Airlines: UAL' (UAUA, Fortune 500)s United Airlines and US Airways (LCC, Fortune 500) are reportedly talking about a merger again, according to several published reports. The two companies discussed teaming up previously in the last decade. UAL shares gained 7% and US Airways shares gained 12%. Other airlines rose as well.

World markets: In overseas trading, European markets slumped as Greece's borrowing costs hit a record high on worries about the country defaulting. Asian markets ended lower.

Bonds: Treasury prices fell, raising the yield on the 10-year note to 3.90% from 3.86% late Wednesday. The 10-year had risen as high as 4% Monday, an 18-month high. Treasury prices and yields move in opposite directions.

Treasury sold $13 billion in 30-year bonds in the afternoon, in the last of four auctions this week worth about $82 billion.

The dollar and commodities: The dollar fell versus the euro and gained against the yen.

COMEX gold for June delivery fell 10 cents to settle at $1,152.90 per ounce.

U.S. light crude oil for May delivery fell 46 cents to settle at $85.39 a barrel on the New York Mercantile Exchange.

Market breadth was mixed. On the New York Stock Exchange, winners beat losers on volume of 1.05 billion shares. On the Nasdaq, advancers topped decliners on volume of 2.35 billion shares. 

Stocks finish with losses

The blue-chip Dow has bumped against the important mark lately. On Monday, the index rose to within 11 points of 11,000. The Dow last closed above that level on Sept. 26, 2008.

Nasdaq, S&P at new 1-1/2 year highs

False Alarm!

Yesterday's STI surge chase the correction signal away.

It seems like we are going to be another round of Bull run.

Good luck to all.

Dow flirts with 11,000

The market also kept an eye on the 10-year Treasury note yield, which surged to 4% as investors dumped treasuries in favor of riskier assets. Oil prices surged to nearly 18-month highs. The dollar was mixed versus other major currencies.

The Dow Jones industrial average (INDU) added 46 points, or 0.4%, to close at 10,973.55. Earlier, the Dow rose to within 11 points of 11,000, a key psychological level. The Dow last closed above 11,000 on Sept. 26, 2008, ending at 11,143.13.

The S&P 500 index (SPX) gained 9 points, or 0.8% closing at its highest point since Sept. 26, 2008, when it topped 1200. The Nasdaq composite (COMP) added 27 points, or 1.1%, closing at its highest point since Aug. 15, 2008.

Stocks gained last week, rising for the sixth of seven weeks. But markets were closed for Good Friday, making Monday the first time investors were able to react to Friday's big jobs report from the Department of Labor.

Monday also was the first chance for investors to react to the strong sales for Apple's iPad tablet computer, which launched Saturday amid much enthusiasm.

There were also positive reports on housing and on the services sector.

"The pending home sales report shows a stable housing environment and the services sector report was a consistent follow-through to last week's manufacturing report," said Scott Anderson, chief economist at Wells Fargo.

"Following the jobs report, growth looks pretty solid," he said. "It suggests we can avoid a double-dip recession."

Apple: The tech leader said it sold 300,000 of its iPad tablet computers on Saturday and that users downloaded over one million apps from the company's App store and over 250,000 ebooks from its iBookstore. Shares of Apple (AAPL, Fortune 500) gained 1% Monday.

Economy: The pending home sales index posted a surprise jump in February, rising 8.2% to 97.6 from a revised 90.2 in January. Economists expected the report from the National Association of Realtors to have declined by 1%, according to Briefing.com forecasts.

A separate report showed growth in the services sector of the economy. The Institute for Supply Management's (ISM) services sector index rose to 55.4 in March from 50 in February, versus forecasts for a rise to 53.6. Any reading over 50 indicates expansion in the sector.

Bonds: Treasury prices tumbled, raising the yield on the 10-year note to 4% from 3.86% Friday. Treasury prices and yields move in opposite directions.

In the afternoon, the government saw a strong response to its auction of $8 billion in 10-year Treasury Inflation Protected Securities (TIPS), with bidders offering to buy 3.43 times the amount of debt sold, up from the recent average. Indirect bidders, which include foreign central banks, bought 37.5% of the sale.

A January offering of $10 billion in 10-year TIPS saw bidders offering to buy 2.65 times the amount of debt sold with a 40.7% indirect bidder rate.

Treasury is auctioning $82 billion in debt this week.

The dollar and commodities: The dollar fell versus the euro and yen.

COMEX gold for June delivery rose $7.70 to $1,133.80 per ounce.

U.S. light crude oil for May delivery rose $1.75 to settle at $86.62 a barrel on the New York Mercantile Exchange, the highest close for crude since October 2008.

World markets: In overseas trading, European markets rallied. Asian markets ended higher as well.

Market breadth was positive. On the New York Stock Exchange, winners topped losers by three to one on volume of 906 million shares. On the Nasdaq, advancers beat decliners by almost three to one on volume of 2.05 billion shares. 

Jobs report jolt for stocks

iPad: Apple (AAPL, Fortune 500)'s new iPad debuted Saturday and the sales results will be scrutinized Monday, both in terms of what it means for the company and for other computer, e-reader and smartphone makers.

Early reviews have been varied, with critics praising the resolution, screen quality and lightness of the tablet computer or bemoaning the lack of features normally found on a laptop.

Apple stock has rallied in anticipation of the debut but could take a hit next week if investors take a "sell the news" approach. Apple shares have gained 12% so far this year and 109% in the last 12 months, closing at an all-time high of $235.97 Thursday.

Friday: Wholesale inventories are expected to have risen 0.3% in February after falling 0.1% in the previous month. The Commerce Department report is due in the morning.