Wall Street US stocks opened higher overnight boosted by strong earnings from firms including software giant Adobe, with traders nevertheless weighing mixed news on the eurozone economy.
The Dow Jones Industrial Average rose 38.15 points (0.33 per cent) to 11,516.28 in opening trades, while the S&P 500 index, a broader measure of the market, gained 4.76 points (0.38 per cent) to 1251.90.
The tech-rich Nasdaq rose 10.94 points (0.42 per cent) to 2660.48.
“Some of yesterday’s tensions have been relieved, with rhetoric on the Korean peninsula returning to normal, but a downgrade warning for Portugal from Moody’s Investor Services could create a fresh point of concern this morning,” said Joseph Hargett of Schaeffer’s Investment Research.
Confidence in the battered European economy was given a shot in the arm after China expressed support for EU measures to tackle the eurozone debt crisis.
But at the same time, Moody’s warned over a possible ratings downgrade for Portugal over its massive debt.
After Greece and Ireland had to be salvaged by massive international bailouts, other European members, mainly Portugal, Spain, Belgium and even Italy are considered at risk of crisis in 2011.
In corporate news, Adobe, the maker of Photoshop, Flash and Acrobat programs, reported yesterday that it had earned $US269 million ($271.17 million) in its last quarter, beating forecasts on the street.
Adobe shares soared 5.5 per cent in early trading.
Source: www.egoli.com.au
