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Selasa, 11 Januari 2011

Reuters Wall Street dips on Portugal fears; Alcoa falls late

(Reuters) - Stocks recovered most of their early losses in light volume and ended slightly lower on Monday as prospects for strong earnings helped counter fears Portugal would be forced into a bailout.
Investors say the market's upward trend remains intact, but the S&P's third straight session of declines suggests momentum has stalled.

Traders also cited the positive outlook for earnings as a catalyst for the rebound. Even though The S&P 500 edged down, the number of advancers outweighed decliners on both the New York Stock Exchange and the Nasdaq.
Alcoa Inc (AA.N), the largest U.S. aluminum producer, unofficially began the earnings season after the closing bell by posting a fourth-quarter profit that topped Wall Street forecasts. Still, its shares fell 2 percent to $16.16 in after-hours trading.

Alan Lancz, president of Alan B. Lancz & Associates Inc in Toledo, Ohio, said Alcoa's performance should help the market. "It's a good first shot across the bow for the earnings season," he said.
Stocks initially fell Monday on worries Lisbon would have to seek a bailout, but concerns faded on talk of support from the European Central Bank.
The euro, seen of late as a proxy for investors' risk appetite, gained 0.5 percent against the U.S. dollar, recovering from a four-month low.

"We believe that it's prudent to monitor debt problems in Ireland, Spain and Portugal, but these situations are nowhere near crisis levels, and we believe they are largely overblown," said Doug Cote, who helps manage about $50 billion as senior market strategist with ING Investment Management in New York, noting the rebound in the euro.

The Dow Jones industrial average .DJI fell 37.31 points, or 0.32 percent, to 11,637.45. The Standard & Poor's 500 Index .SPX dipped 1.75 points, or 0.14 percent, to 1,269.75. The Nasdaq Composite Index .IXIC gained 4.63 points, or 0.17 percent, to 2,707.80.

The benchmark S&P 500 found technical support near its 14-day moving average, now around 1,264.   more ...

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