August 21, 2012-Stocks Trade Higher on ECB Hopes

The major U.S. index futures are pointing to a higher opening on Tuesday, with the optimism muted despite a more spontaneous and cheery reaction of the rest of the global equity markets and the currency markets to stimulus hopes. Corporate tidings were mostly positive, but Best Buy’s (BBY) earnings came in as a disappointment. Although risk appetite could give a lift, trading could show a lack of direction for want of any compelling catalysts. U.S. stocks held mostly below the unchanged line on Monday, although closing off the lows of the session amid a lack of any major catalysts. The overbought levels prompted traders to ignore some deal news and encouraging reports of the European Central Bank preparing itself for buying sovereign bonds. The major averages opened lower and declined through the first hour of trading. After paring their losses by the mid-session, the averages broadly moved sideways before closing slightly lower. The Dow Industrials ended down 3.56 points or 0.03 percent at 13,272 and the S&P 500 Index closed 0.03 points lower at 1,418, while the Nasdaq Composite closed at 3,076, down 0.38 points or 0.01 percent.