Additional Chinese Stimulus Measures Expected, Markets Soar
The markets extended its gains during the midday with the Dow jumping 174 points to 12,748 as slower than expected expansion of the Chinese economy sparked speculation of further stimulus measures. Nasdaq surged 38 points to 2904. On the upside
Shares of Affymax (Nasdaq: AFFY) continued climbing after announcing yesterday that nationwide dialysis center operator Fresenius Medical Care would use its anemia treatment Omontys. Bank of America Merrill Lynch lifted its earnings guidance for Orexigen Therapeutics (Nasdaq: OREX). Rising gold prices lifted shares of Kinross Gold (NYSE: KGC). On the downside Stifel Nicolaus analyst Mark Astrachan cut his earnings guidance for Green Mountain Coffee Roasters (Nasdaq: GMCR). Bank of America initiated coverage of Questcor Pharmaceuticals (Nasdaq: QCOR) with a Buy rating and set a $60 price target but the stock price tumbled. A Seeking Alpha contributor raised questions about James River Coal's (Nasdaq: JRCC) liquidity. In the broad market, advancing issues outpaced decliners by a margin of more than 9 to 2 on the NYSE and by nearly 3 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks soared 10 points to 800.