Autoblog reviews all the hottest cars

AOL Money & Finance

Before the bell: Will stocks continue Friday's trend?

More

It's early morning on Christmas Eve and despite knowing the markets open today (albeit for a short session to 1:00 p.m. EST), it feels like no one is around. No surprise there, I guess.

Well, a few people are around after all since stock futures at this time indicate a higher open for U.S. stocks, reversing their earlier direction. Seems investors want to continue Friday's trend and push for a year-end rally -- will there be one?

On Friday, stocks surged in what many indeed hoped was the beginning of a Santa rally with the Dow Industrials ending 205 points higher, or 1.55%, the S&P 500 adding 24 points, or 1.67%, and the Nasdaq composite rising 51 points, or 1.94%.

While stocks experienced a significant rally Friday combined with large volume, today may see more choppy trading as volumes are usually small on this day. Some still expect the action to be more robust than usual for this time of year given the volatility and returns traders experienced this year.

So no economic indicators this morning, but there are some news items that can shed some light on the state of the consumer. Following a strong Black Friday shopping weekend, there were concerns the consumer didn't open his wallet as he did in years past. Well, this past weekend, the last shopping weekend before the holiday, "the nation's shoppers -- taking advantage of deep discounts and expanded hours -- jammed stores..." Still the spending surge may not be enough to offset the previous weeks' mediocre sales.


Shedding light on the constantly worsening credit situation of consumers, a recent report showed that "Americans are falling behind on their credit card payments at an alarming rate, sending delinquencies and defaults surging by double-digit percentages in the last year and prompting warnings of worse to come."

Overseas, Asian stocks rallied Monday, with mining shares gaining after metals and oil prices firmed Friday and as on earnings outlook. European stocks also advanced. Keep in mind, though, that several markets overseas were either closed or had an abbreviated session.

After a $2 a barrel rally Friday, oil prices fell Monday amid light holiday trading down to $92.86 a barrel.

In corporate news:

This morning, GE Capital, the financial unit of General Electric Co. (NYSE: GE), said Monday it will acquire the bulk of Merrill Lynch Capital's, a commercial finance unit of Merrill Lynch & Co. (NYSE: MER), operations. Terms of the deal were not disclosed.

News Corp. (NYSE: NWS) said Sunday it will sell eight of its owned-and-operated FOX network television stations to private-equity firm Oak Hill Capital Partners for about $1.1 billion in cash.

Alcoa Inc. (NYSE: AA) on Friday said it agreed to sell its packaging and consumer businesses to New Zealand-based Rank Group Ltd. for $2.7 billion in cash.
Symbol Lookup
IndexesChangePrice
DJIA-223.328,280.74
NASDAQ-49.201,796.52
S&P 500-26.91896.42

Last updated: July 06, 2009: 07:41 AM

BloggingStocks Exclusives

Hot Stocks

DailyFinance Headlines

Latest from BloggingBuyouts

TheFlyOnTheWall.com Headlines

BioHealth Investor Headlines

WalletPop Headlines

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

WalletPop Headlines