U.S. stocks ended mostly higher, helped by strong Chinese economic data and confidence ahead of earnings season. The Dow Jones industrial average rose 45.80, or 0.43 percent, to 10,663.99. The Standard & Poor’s 500 index advanced 2 or 0.17 percent, to 1,146.98, while the Nasdaq composite was the lone laggard, declining 4.76, or 0.21 percent, to 2,312.41. The blue chips and benchmark S&P hit new 15 month highs.

Morning Outlook

Wall Street looks to open lower Tuesday over concerns over the quality of quarterly earnings. AA kicked things off yesterday and didn’t impress, while Electronic Arts Inc (ERTS) warned on fiscal 2010 earnings, blaming weakness in Europe as well as a shift toward lower-margin products in Europe. Dow Jones industrial average futures fell 68, or 0.6 percent, to 10,536. Standard & Poor’s 500 index futures declined 8.20, or 0.7 percent, to 1,134.30, while Nasdaq 100 index futures lost 14.00, or 0.7 percent, to 1,869.50.

China, after seeing explosive growth in exports, pumped up their lending rate from 1.76 percent to 1.84 percent while increase reserve requirements by 0.5 percent. Things are just on fire in the far east, and many fear that the entire country is an asset bubble waiting to burst, or even go as far as saying the Chinese government is cooking the books on growth.

On the Corporate Front

Alcoa Inc (AA), the largest U.S. aluminum producer, saw shares fall following their earnings statement. Sales fell 4.5 percent to $5.43 billion despite an 18 percent increase in the price of aluminum. In the 4th quarter, AA posted a once cent profit per share, below analyst estimates of six cents.

Currencies and Commodities

The greenback was mixed in trading while most commodities fell. The dollar fell 0.7037% at 91.44 yen in the currency market. The euro depreciated 0.1106% to $1.4497 while the pound rose 0.2364% to $1.6153. Gold shed $3.10 to $1148.30 an ounce, while silver declined 1.23% at $18.45. Light, sweet crude for February delivery dropped back under $82 per barrel on the NYMEX following its sharp advance to 15 month highs. The contract is losing $1.14 to $81.38 per barrel on the NYMEX; a 1.38% decline.

Economic Calendar

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International Trade: Measures the difference between imports and exports of both tangible goods and services. Imports may act as a drag on domestic growth and they may also increase competitive pressures on domestic producers. Exports boost domestic production. We have had huge trade deficits in recent years, with foreign countries able to produce goods cheaper. The trade gap is expected to widen to $35 billion in November as the weak dollar has been boosting the U.S. economy with exports rising for six consecutive months.. The trade gap narrowed to $32.9 billion in October.

Market Summary

Wall Street continued its year end rally Monday, starting another holiday shortened week right into the last day on the decade. After being up in futures trading and throughout the day, stocks turned negative in the afternoon before recovering at the closing bell. In a light volume session, the Dow Jones industrial average rose 26.98, or 0.3 percent, to 10,547.08. The Standard & Poor’s 500 index rose 1.30, or 0.1 percent, to 1,127.78, and the Nasdaq composite index advanced 5.39, or 0.2 percent, to 2,291.08. In other trading, the Russell 2000 index of smaller companies fell 0.32, or less than 0.1 percent, to 633.75. The major averages were led by energy and material stocks, which saw a rise in raw material prices on the dollar drop.

Crude gained 72 cents to settle at $78.77 a barrel on the NYMEX as demand for heating oil has drawn down supplies. The technical trend is to test $80 by mid weeks EIA inventory report.

With $118 billion in treasuries being auctioned off this week, a downward pressure is being applied to prices. The yield on the 10 year benchmark ros e5 basis points to 3.85 percent.

It was a quiet news day on the street. And when news is thin, lets just turn to Tiger to spice things up!

Woods Costs Shareholders

A new study from the University of California, Davis, estimates that shareholders of Woods sponsors Nike (NKE) and Gatorade maker PepsiCo (PEP) have lost $5 billion to $12 billion in market value since news broke about the golf champ’s marital infidelity.

In addition to PepsiCo and Nike, the study tracked the performance of Accenture (ACN), AT&T (T), Electronic Arts (ERTS), Procter & Gamble (PG) and TLC Vision (TLCV) and News Corp. (NWSA).

The study looked at stock returns for the 13 trading days between Nov. 27 — the date of the car crash that ignited the Woods scandal — and Dec. 17, a week after he announced his indefinite leave from the sport.

The economists compared the returns of Woods’ sponsors to those of the broader market and of each sponsor’s closest competitor. They also reviewed returns for the four years before the car accident to determine how each sponsor’s performance correlates with the market.

Market Summary

U.S. stocks jumped on Monday, extending gains from the previous week, on renewed risk-taking sentiment after the Group of 20 pledged to keep economic stimulus in place until a recovery was assured. 29 out of the 30 blue chips rose, sending the Dow Jones Industrial Average to its highest close this year. The major averages all powered forward, shaking off the 10.2% employment number from Friday.

The Dow Jones industrial average jumped 203.52 points, or 2.03 percent, to 10,226.94; a 13 month high. The Standard & Poor’s 500 Index rose 23.78 points, or 2.22 percent, to 1,093.08, while the Nasdaq Composite Index gained 41.62 points, or 1.97 percent, to 2,154.06.

Corporate mergers and acquisitions also boosted the market, with General Electric Co (GE) and Comcast Corp (CMCSA) agreed on a valuation of around $30 billion for a joint venture between NBC Universal and Comcast.

Dollar Pegged Commodities Soar

Energy and mining stocks were nice performing sectors, as called in the morning outlook as the falling dollar shot spot prices higher. Gold closed at a record $1,101.40 an ounce in New York, up $5.70 from Friday, after hitting a new high of $1,111.70 an ounce earlier in the day. The gold bugs are loving this, as gold has gained more than 23% on the year. Benchmark crude for December delivery on Monday rose $2 to settle at $79.43 a barrel on the NYMEX

More Layoffs on the Street

Sprint Nextel Corp (S) is starting the process of eliminating up to 2,500 jobs in the current quarter in an effort to save at least $350 million annually. The company employs 42,000 workers. The No. 3 U.S. mobile service said many of the job cuts would happen by the end of December and would include jobs across the entire company

Electronic Arts Inc.’s (ERTS) will cut 1,500 jobs, most by March 31, in a restructuring aimed at trimming at least $100 million in costs. The company currently has about 9,000 employees.

In their quarterly report, EA experienced a loss of $391 million, or $1.21 a share, compared with a year-earlier loss of $310 million, or 97 cents a share. Adjusted revenue rose 2% to $1.15 billion; compared to analyst expectations of $1.14 billion.