(RTTNews) - Stocks are up by solid margins in mid-morning trading on Friday, despite a disheartening report on the latest consumer attitudes. The major averages are all in positive territory, regaining some ground after ending the previous session sharply lower.

Reuters and the University of Michigan released their preliminary report on consumer sentiment in the month of November, showing that sentiment unexpectedly deteriorated compared to the previous month.

The consumer sentiment index fell to a reading of 66.0 in November from the final October reading of 70.6. The decrease came as a surprise to economists, who had expected the index to edge up to a reading of 71.0.

Some of today’s optimism was generated by news that the Eurozone economy expanded by 0.4 percent in the third quarter, according to the flash estimate released by Eurostat. The increase in GDP came after the measure contracted for five straight quarters.

Additionally, the Commerce Department released a report showing the U.S. trade deficit widened to $36.5 billion in September from a revised $30.8 billion in August. Economists had been expecting the deficit to widen to $31.8 billion from the $30.7 billion originally reported for the previous month.

In corporate news, Discount retailer Dollar General Corp. (DG) announced that it has priced its IPO of 34.10 million shares of its common stock at $21 per share, the lower end of the announced pricing range. The stock is currently trading at $22.95 per share.

In other news, Walt Disney (DIS), Nordstrom (JWN) and J. C. Penney (JCP) were among the firms to report quarterly results, seeing a mixed bag on the profit and revenue fronts.

The major averages have shown a strong move to the upside in recent trading, reaching new highs for the session. The Dow is currently up 80.41 at 10,277.88, the Nasdaq is up 12.92 at 2,161.94 and the S&P 500 is up 5.79 at 1,093.03.

Sector News

Airline stocks are considerably higher in mid-morning trading, resulting in a 2.9 percent gain by the NYSE Arca Airline Index. Despite the strong gain, the index remains in a range.

LAN Airlines S.A. (LFL) is turning in a notable performance in the sector, posting a gain of 3.7 percent. The stock is offsetting the losses posted in the last two sessions and is on pace for its best close in nearly two years.

Some of the strength in the airline sector may have been precipitated by news that British Airways and Spanish airline Iberia have agreed to merge in an all-share deal, ending more than a year of negotiations.

Health insurance and healthcare provider stocks are also moving significantly higher, with the Morgan Stanley Healthcare Payor and Healthcare Provider indices rising by 1.6 percent and 1.7 percent, respectively. The indices remain in a range despite the day’s notable gains.

Most of the other major sectors have also moved to the upside over the course of the morning, as traders pick up stocks at reduced levels following yesterday’s sell-off.

Stocks Driven By Analyst Comments

Petsmart Inc. (PETM) is rising in mid-morning trading after being upgraded by Goldman Sachs from Neutral to Buy. The broker cited bottoming sales trends as a reason for the upgrade. The stock is currently up by 4.4 percent, moving towards last month’s one-year intraday high.

Rosetta Resources, Inc. (ROSE) is also moving higher following an upgrade by SunTrust, which raised its rating on the stock to Buy from Neutral, citing improved productivity. Shares have risen by 5.8 percent but continue to move in a range.

On the other hand, Perfect World (PWRD) is retreating after being downgraded by Pali research from Buy to Neutral. The stock has slipped by 4 percent.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region closed on a mixed note on Friday. Hong Kong’s Hang Seng Index rose by 0.7 percent, while Japan’s Nikkei 225 Index fell by 0.4 percent.

Meanwhile, the major European markets have turned lower, with the U.K.’s FTSE 100 Index down by 0.2 percent, while the French CAC 40 Index and the German DAX Index are down by 0.8 percent and 0.4 percent, respectively

In the bond markets, treasuries are nearly flat. Subsequently, the yield on the benchmark ten-year note is sitting at 3.448 percent, essentially unchanged on the day.

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Posted in Categories: Economy, Eurozone, Japan, Releases, UK, USA.

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