Stock Market Today

–U.S. stocks advance Monday after DJIA’s worst week given that October 2008

–Euro-zone debt hopes help support stocks, overshadow weakness in technology

–Eastman Kodak plunges after borrowing from credit line

–Boeing gains after 787 Dreamliner delivery

By Brendan Conway

Of DOW JONES NEWSWIRES

NEW YORK -(Dow Jones)- U.S. stocks advanced in seesaw trading Monday, withblue chips hitting session highs shortly before noon and the financial sectorposting strong gains.

The Dow Jones Industrial Average climbed 175 points, or 1.6%, to 10946 as noonapproached, after paring an early triple-digit gain and moving even higher in alate-morning updraft. The activity follows the Dow’s biggest weekly point dropsince October 2008 last week, driven by worries of a Greek default and furtherturmoil in global markets.

The Standard & Poor’s 500-stock index gained 14 points, or 1.2%, to 1150 inrecent action. The Nasdaq Composite lagged, rising 12 points, or 0.5%, to 2495.

Stocks had leapt in early trading on hopes for coordinated action to resolvethe euro-zone debt crisis. Those hopes followed European Central Bank executiveboard member Lorenzo Bini Smaghi’s favorable comments on Sunday on a euro-zonebailout fund patterned after U.S. efforts to stem the 2008 financial crisis. Itwould be a more-aggressive approach towards the sovereign-debt crisis than whatEuropean leaders have pursued thus far.

European traders also attributed the strength in stock prices there tocomments from ECB Governing Council member Ewald Nowotny that the central bankcan’t rule out a reduction in interest rates.

“It’s a tiny respite,” said Tony Norris, co-manager with the Wells FargoAdvantage International Bond Fund in London. “The market was in the mood to havea bounce, [even though] it’s just talk and far more talk, a lot of supportive talk.Unless we see much more action, it’s going to be a very short respite.”

Technology stocks were the session’s underperformers. Apple shed 1.2% afterJ.P. Morgan Chase analysts said order reductions for the company’s Asian iPadsuppliers suggested a deceleration in manufacturing of the devices. FreescaleSemiconductor Holdings contributed to the weak tone in technology by cutting itssales outlook for the third quarter, adding to recent warning signs from thechip sector.

The financial sector was the strongest performer in the S&P 500, reflectingthe more favorable tone on the euro-zone crisis Monday. J.P. Morgan Chase wasone with the strongest blue chips, rising 3.3%.

“We continue to see a lot of talk around the support that’s needed, but theconcrete plans are still elusive,” stated Jim Dunigan, managing executive ofinvestments at PNC Wealth Management. “The path is still a little treacherous.”

Gold futures fell to an eight-week low and traded below $1,603 an ouncerecently, after last week suffering the biggest weekly percentage decline since1983. Crude-oil futures rose above $80 a barrel. The U.S. dollar fell slightlyagainst the yen but gained slightly versus the euro.

Boeing rose 4.2% to lead blue-chip stocks higher after the aerospace anddefense company delivered its first 787 Dreamliner to Japan’sAll Nippon Airwayson Sunday.

Clorox lost four.7% after billionaire investor Carl Icahn withdrew his 11nominees to replace the household-product company’s board after determining hisplan to sell the company would be opposed by shareholders at this time.

Eastman Kodak dropped 23% after the film company said late-Friday that itborrowed $160 million against its credit line, which raised fears of a cashshortage.

Mela Sciences gained 66% after the company received an approvable letter fromU.S. Food and Drug Administration for its MelaFind device used to diagnosemelanoma.

In economic data, new-home sales fell for the fourth-straight month in August,another discouraging sign on the state of the battered housing market. TheFederal Reserve Bank of Chicago’s National Activity Index showed a weak readingfor August.

-By Brendan Conway, Dow Jones Newswires; 212-416-2670; brendan.conway@dowjones.com

 (Finish) Dow Jones Newswires 09-26-111224ET Copyright (c) 2011 Dow Jones & Company, Inc.

–U.S. stocks advance Monday after DJIA’s worst week given that October 2008

–Euro-zone debt hopes help support stocks, overshadow weakness in technology

–Eastman Kodak plunges after borrowing from credit line

–Boeing gains after 787 Dreamliner delivery

By Brendan Conway

Of DOW JONES NEWSWIRES

NEW YORK -(Dow Jones)- U.S. stocks advanced in seesaw trading Monday, withblue chips hitting session highs shortly before noon and the financial sectorposting strong gains.

The Dow Jones Industrial Average climbed 175 points, or 1.6%, to 10946 as noonapproached, after paring an early triple-digit gain and moving even higher in alate-morning updraft. The activity follows the Dow’s biggest weekly point dropsince October 2008 last week, driven by worries of a Greek default and furtherturmoil in global markets.

The Standard & Poor’s 500-stock index gained 14 points, or 1.2%, to 1150 inrecent action. The Nasdaq Composite lagged, rising 12 points, or 0.5%, to 2495.

Stocks had leapt in early trading on hopes for coordinated action to resolvethe euro-zone debt crisis. Those hopes followed European Central Bank executiveboard member Lorenzo Bini Smaghi’s favorable comments on Sunday on a euro-zonebailout fund patterned after U.S. efforts to stem the 2008 financial crisis. Itwould be a more-aggressive approach towards the sovereign-debt crisis than whatEuropean leaders have pursued thus far.

European traders also attributed the strength in stock prices there tocomments from ECB Governing Council member Ewald Nowotny that the central bankcan’t rule out a reduction in interest rates.

“It’s a tiny respite,” said Tony Norris, co-manager with the Wells FargoAdvantage International Bond Fund in London. “The market was in the mood to havea bounce, [even though] it’s just talk and far more talk, a lot of supportive talk.Unless we see much more action, it’s going to be a very short respite.”

Technology stocks were the session’s underperformers. Apple shed 1.2% afterJ.P. Morgan Chase analysts said order reductions for the company’s Asian iPadsuppliers suggested a deceleration in manufacturing of the devices. FreescaleSemiconductor Holdings contributed to the weak tone in technology by cutting itssales outlook for the third quarter, adding to recent warning signs from thechip sector.

The financial sector was the strongest performer in the S&P 500, reflectingthe more favorable tone on the euro-zone crisis Monday. J.P. Morgan Chase wasone with the strongest blue chips, rising 3.3%.

“We continue to see a lot of talk around the support that’s needed, but theconcrete plans are still elusive,” stated Jim Dunigan, managing executive ofinvestments at PNC Wealth Management. “The path is still a little treacherous.”

Gold futures fell to an eight-week low and traded below $1,603 an ouncerecently, after last week suffering the biggest weekly percentage decline since1983. Crude-oil futures rose above $80 a barrel. The U.S. dollar fell slightlyagainst the yen but gained slightly versus the euro.

Boeing rose 4.2% to lead blue-chip stocks higher after the aerospace anddefense company delivered its first 787 Dreamliner to Japan’sAll Nippon Airwayson Sunday.

Clorox lost four.7% after billionaire investor Carl Icahn withdrew his 11nominees to replace the household-product company’s board after determining hisplan to sell the company would be opposed by shareholders at this time.

Eastman Kodak dropped 23% after the film company said late-Friday that itborrowed $160 million against its credit line, which raised fears of a cashshortage.

Mela Sciences gained 66% after the company received an approvable letter fromU.S. Food and Drug Administration for its MelaFind device used to diagnosemelanoma.

In economic data, new-home sales fell for the fourth-straight month in August,another discouraging sign on the state of the battered housing market. TheFederal Reserve Bank of Chicago’s National Activity Index showed a weak readingfor August.

-By Brendan Conway, Dow Jones Newswires; 212-416-2670; brendan.conway@dowjones.com

 (Finish) Dow Jones Newswires 09-26-111224ET Copyright (c) 2011 Dow Jones & Company, Inc.

–U.S. stocks advance Monday after DJIA’s worst week given that October 2008

–Euro-zone debt hopes help support stocks, overshadow weakness in technology

–Eastman Kodak plunges after borrowing from credit line

–Boeing gains after 787 Dreamliner delivery

By Brendan Conway

Of DOW JONES NEWSWIRES

NEW YORK -(Dow Jones)- U.S. stocks advanced in seesaw trading Monday, withblue chips hitting session highs shortly before noon and the financial sectorposting strong gains.

The Dow Jones Industrial Average climbed 175 points, or 1.6%, to 10946 as noonapproached, after paring an early triple-digit gain and moving even higher in alate-morning updraft. The activity follows the Dow’s biggest weekly point dropsince October 2008 last week, driven by worries of a Greek default and furtherturmoil in global markets.

The Standard & Poor’s 500-stock index gained 14 points, or 1.2%, to 1150 inrecent action. The Nasdaq Composite lagged, rising 12 points, or 0.5%, to 2495.

Stocks had leapt in early trading on hopes for coordinated action to resolvethe euro-zone debt crisis. Those hopes followed European Central Bank executiveboard member Lorenzo Bini Smaghi’s favorable comments on Sunday on a euro-zonebailout fund patterned after U.S. efforts to stem the 2008 financial crisis. Itwould be a more-aggressive approach towards the sovereign-debt crisis than whatEuropean leaders have pursued thus far.

European traders also attributed the strength in stock prices there tocomments from ECB Governing Council member Ewald Nowotny that the central bankcan’t rule out a reduction in interest rates.

“It’s a tiny respite,” said Tony Norris, co-manager with the Wells FargoAdvantage International Bond Fund in London. “The market was in the mood to havea bounce, [even though] it’s just talk and far more talk, a lot of supportive talk.Unless we see much more action, it’s going to be a very short respite.”

Technology stocks were the session’s underperformers. Apple shed 1.2% afterJ.P. Morgan Chase analysts said order reductions for the company’s Asian iPadsuppliers suggested a deceleration in manufacturing of the devices. FreescaleSemiconductor Holdings contributed to the weak tone in technology by cutting itssales outlook for the third quarter, adding to recent warning signs from thechip sector.

The financial sector was the strongest performer in the S&P 500, reflectingthe more favorable tone on the euro-zone crisis Monday. J.P. Morgan Chase wasone with the strongest blue chips, rising 3.3%.

“We continue to see a lot of talk around the support that’s needed, but theconcrete plans are still elusive,” stated Jim Dunigan, managing executive ofinvestments at PNC Wealth Management. “The path is still a little treacherous.”

Gold futures fell to an eight-week low and traded below $1,603 an ouncerecently, after last week suffering the biggest weekly percentage decline since1983. Crude-oil futures rose above $80 a barrel. The U.S. dollar fell slightlyagainst the yen but gained slightly versus the euro.

Boeing rose 4.2% to lead blue-chip stocks higher after the aerospace anddefense company delivered its first 787 Dreamliner to Japan’sAll Nippon Airwayson Sunday.

Clorox lost four.7% after billionaire investor Carl Icahn withdrew his 11nominees to replace the household-product company’s board after determining hisplan to sell the company would be opposed by shareholders at this time.

Eastman Kodak dropped 23% after the film company said late-Friday that itborrowed $160 million against its credit line, which raised fears of a cashshortage.

Mela Sciences gained 66% after the company received an approvable letter fromU.S. Food and Drug Administration for its MelaFind device used to diagnosemelanoma.

In economic data, new-home sales fell for the fourth-straight month in August,another discouraging sign on the state of the battered housing market. TheFederal Reserve Bank of Chicago’s National Activity Index showed a weak readingfor August.

-By Brendan Conway, Dow Jones Newswires; 212-416-2670; brendan.conway@dowjones.com

 (Finish) Dow Jones Newswires 09-26-111224ET Copyright (c) 2011 Dow Jones & Company, Inc.

–Merkel confident of coalition’s backing on EFSF

–Coalition parties to hold mock votes Tuesday

–Merkel seen avoiding showdown in parliament

BERLIN — German Chancellor Angela Merkel’s ruling center-right coalitionexpects to pass legislation Thursday that expands and modifies the euro-zonebailout fund, despite resistance from within the coalition’s ranks.

A coalition source told Dow Jones Newswires that coalition leaders expect atotal of up to 17 no votes and abstentions from deputies in Merkel’s coalitionof Christian Democrats, Bavarian Christian Social Union, and the pro-businessFree Democrats.

“The way it now looks, we are expecting about 15 to 17 no votes andabstentions,” the source said.

The coalition parties will hold mock votes again Tuesday, perhaps a final testbefore the parliamentary vote which is expected around 0920 GMTSept. 29.

No more than 19 coalition deputies can fail to vote in favor of the bill toprevent Merkel from having to rely on the opposition parties to pass thelegislation.

Yet despite their confidence in obtaining a coalition majority, coalitionsources also stressed that nothing is certain until the final vote inparliament.

Barring an unexpected development, it is certain that the European FinancialStability Facility bill will be passed by a large majority in parliamentThursday. The opposition Social Democrats and the Greens have committed to backthe bill. Only the far-left Die Linke has vowed to reject the bill.

Last week, government officials, including Finance Minister WolfgangSchaeuble, played down the importance of achieving a so-called chancellor’smajority–a majority carried by the coalition parties alone. The officialssuggested that parliament would vote with as much as an 80% majority in favor ofthe EFSF bill.

But the specter of Merkel having to borrow votes from the opposition to gainpassage of the EFSF bill fuelled speculation that failure to achieve its ownmajority could cause an irreparable split in the coalition, possibly forcingMerkel to call new elections.

“The critical faction is not strong enough to endanger the chancellor’smajority,” Klaus-Peter Flosbach, financial policy expert in Merkel’s coalitiontold Dow Jones Newswires.

Michael Meister, deputy chairman with the CDU-CSU parliamentary group, was alsoconfident that in the end the coalition deputies would back Merkel. Meister saida resolution that guarantees parliament veto power over future bailouts swungmany votes within the coalition in Merkel’s favor.

“The involvement of parliament with far-reaching supervisory powers was aconvincing solution in the eyes of many colleagues in parliament,” Meister stated.

In a rare appearance on a popular political talk show on Germany’s ARDtelevision Sunday night, Merkel appeared confident there would be no showdown inparliament this week.

“I want to have our own majority,” Merkel stated. “And I am very confident thatwe will succeed in doing so.”

-By William Boston, Dow Jones Newswires; +49 30 2888 4128; william.boston@dowjones.com

 (End) Dow Jones Newswires 09-26-111235ET Copyright (c) 2011 Dow Jones & Company, Inc.

–Merkel confident of coalition’s backing on EFSF

–Coalition parties to hold mock votes Tuesday

–Merkel seen avoiding showdown in parliament

BERLIN — German Chancellor Angela Merkel’s ruling center-right coalitionexpects to pass legislation Thursday that expands and modifies the euro-zonebailout fund, despite resistance from within the coalition’s ranks.

A coalition source told Dow Jones Newswires that coalition leaders expect atotal of up to 17 no votes and abstentions from deputies in Merkel’s coalitionof Christian Democrats, Bavarian Christian Social Union, and the pro-businessFree Democrats.

“The way it now looks, we are expecting about 15 to 17 no votes andabstentions,” the source said.

The coalition parties will hold mock votes again Tuesday, perhaps a final testbefore the parliamentary vote which is expected around 0920 GMTSept. 29.

No more than 19 coalition deputies can fail to vote in favor of the bill toprevent Merkel from having to rely on the opposition parties to pass thelegislation.

Yet despite their confidence in obtaining a coalition majority, coalitionsources also stressed that nothing is certain until the final vote inparliament.

Barring an unexpected development, it is certain that the European FinancialStability Facility bill will be passed by a large majority in parliamentThursday. The opposition Social Democrats and the Greens have committed to backthe bill. Only the far-left Die Linke has vowed to reject the bill.

Last week, government officials, including Finance Minister WolfgangSchaeuble, played down the importance of achieving a so-called chancellor’smajority–a majority carried by the coalition parties alone. The officialssuggested that parliament would vote with as much as an 80% majority in favor ofthe EFSF bill.

But the specter of Merkel having to borrow votes from the opposition to gainpassage of the EFSF bill fuelled speculation that failure to achieve its ownmajority could cause an irreparable split in the coalition, possibly forcingMerkel to call new elections.

“The critical faction is not strong enough to endanger the chancellor’smajority,” Klaus-Peter Flosbach, financial policy expert in Merkel’s coalitiontold Dow Jones Newswires.

Michael Meister, deputy chairman with the CDU-CSU parliamentary group, was alsoconfident that in the end the coalition deputies would back Merkel. Meister saida resolution that guarantees parliament veto power over future bailouts swungmany votes within the coalition in Merkel’s favor.

“The involvement of parliament with far-reaching supervisory powers was aconvincing solution in the eyes of many colleagues in parliament,” Meister stated.

In a rare appearance on a popular political talk show on Germany’s ARDtelevision Sunday night, Merkel appeared confident there would be no showdown inparliament this week.

“I want to have our own majority,” Merkel stated. “And I am very confident thatwe will succeed in doing so.”

-By William Boston, Dow Jones Newswires; +49 30 2888 4128; william.boston@dowjones.com

 (End) Dow Jones Newswires 09-26-111235ET Copyright (c) 2011 Dow Jones & Company, Inc.