Employment Data Lift U.S. Stocks, Bond Yields

123jump.com Staff
05 Apr, 2010
New York City

U.S. stocks closed higher after employment in March increased. U.S. Transportation Secretary Ray LaHood proposed the highest civil fine of $16.4 million against Toyota Motor for hiding sudden acceleration problem. Ten-year Treasury yields reach 4% for the first time in ten months.

[R]5:20 PM New York – U.S. stocks closed higher after employment in March increased. U.S. Transportation Secretary Ray LaHood proposed the highest civil fine of $16.4 million against Toyota Motor for hiding sudden acceleration problem. Ten-year Treasury yields reach 4% for the first time in ten months.[/R]

U.S. stocks traded higher in light trading after March employment increased and an index of service industry showed expansion at the fastest pace in nine years and pending home sales index increased in February.

U.S. Transportation Secretary Ray LaHood proposed the highest civil penalty of $16.4 million against Toyota Motor Corp for “knowingly” hiding dangerous defect that caused sudden acceleration. Toyota has two weeks to contest the fine.

Apple Inc traded higher after it sold 300,000 iPads on the first day of sale. Arena Resources soared after it agreed to a buyout at $40 a share from SandRidge Energy. Tesoro Corp dropped 6% after a refinery blast.

Stocks in India closed higher as investors took optimistic view on the economic growth and soon to be released earnings. The U.S. Treasury Secretary Timothy F. Geithner is scheduled to meet Prime Minister Manmohan Singh to expand economic partnership between the two countries.

North American Markets

Dow Jones Industrial Average increased 46.48 or 0.4% to close at 10,973.55, S&P 500 Index edged higher 9.34 or 0.8% to 1,187.44 and Nasdaq Composite Index added 26.95 or 1.12% to close at 2,429.53. Toronto TSX Composite Index increased 35.29 or 0.3% to 12,186.36.

Latin American Markets Indexes

Mexico Bolsa Index increased 382.46 or 1.1% to 33,648.89 in yesterday’s trading and Brazil Bovespa Stock Index increased 153.34 or 0.2% to 71,289.68.

Europe Markets Review

Markets in UK, Germany, France, Switzerland, Spain, Portugal, Greece and Italy were closed today.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 53.21 or 0.47% to 11,339.30, and the FTSE Bursa KL Composite index in Malaysia was higher 5.81 or 0.43% to 1,341.75. Markets in Hong Kong, Shanghai and Australia were closed today.

The Kospi Index in South Korea increased 1.50 or 0.09% to close at 1,724.99. SET index in Thailand closed higher 7.00 or 0.87% to 808.15. JSE Index in Indonesia increased 57.25 or 2.02% to 2,887.25. The Sensex index in India increased 243.06 or 1.37% to 17,935.68.

The benchmark index in Indonesia surged more than 2% ahead of central bank rate decision. The benchmark rate is 6.5% and market analysts and economists expect the rate to be unrevised. Retailers and banks led the gainers in trading today. The benchmark index has soared 14% in the year so far, leading all Asian market indexes.

Malaysian benchmark index closed higher for the tenth day in a row and ringgit gained 0.6% to 3.23 to a dollar after exports increased 18.4% in February from a year ago according to the data released by the government.

Commodities, Metals, and Currencies

Crude oil increased $1.93 to $86.80 a barrel for a front month contract, natural gas edged up 21 cents to $4.30 per mBtu and gasoline increased 2.68 cents to 235.05 cents.

Soybean future closed down 6 cent to $9.36 a bushel. Wheat futures decreased 1.25 cents in Chicago trading to $4.67 a bushel. Sugar closed down 0.30 cents at 16.40 cents per pound.

Gold increased $6.00 in New York trading to close at $1,132.10 per ounce, silver closed up $0.21 to $18.10 per ounce and copper for the front month delivery increased 5.15 cents to $3.63 per pound.

Dollar edged higher against euro to $1.3484 and increased against the Japanese yen to 94.37.

Yield on 10-year U.S. bonds closed higher at 3.99% and with 30-year maturities increased at 4.84%.