Weak Opening in NY; $40 B Treasury Auction

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

U.S. stocks in the early trading edged lower and the euro declined. U.S. Treasury is scheduled to sell $40 billion of 3-year bonds today. Copper traded lower after rising to 20-month high but crude oil hovered near 17-month high.

[R]10:20 AM New York – U.S. stocks in the early trading edged lower and the euro declined. U.S. Treasury is scheduled to sell $40 billion of 3-year bonds today. Copper traded lower after rising to 20-month high but crude oil hovered near 17-month high.[/R]

Stocks in early trading in New York tracked lower after the euro declined and metals fell. U.S. Treasury is scheduled to sell record $40 billion of 3-year bonds today.

The euro decreased and Greek bonds dropped with the yield spreads to German bonds surged to record 4% on the worries that the EU led bailout may not be sufficient. Media reports also suggest that Greece prefers to not involve the International Monetary Fund in the bailout plan.

Australia raised its key lending rate by 25 basis points to 4.25% and the Australian dollar increased 1% against the euro and 0.3% against the U.S. dollar.

Yields on 2-year Greek bonds increased to 6.41%.

British Prime Minister Gordon Brown set national election date May 6. The UK pound declined 1% against the dollar and election watchers are forecasting a hung parliament as neither Labour Party nor Conservative Party is likely to have a clear majority.

Commodities, Currencies and Yields

Dollar edged higher against euro to $1.3398 and decreased against the Japanese yen to 93.94.

Crude oil increased $1.75 to $86.79 a barrel for a front month contract, natural gas edged lower $0.012 cent to $4.27 per mBtu and gasoline increased 2.80 cents to 235.00 cents.

Gold decreased $6.00 in New York trading to close at $1,128.00 per ounce, silver traded lower $0.16 to $18.10 per ounce and copper for the front month delivery decreased 1.20 cents to $3.62 per pound.

Yields on 10-year U.S. bonds decreased to 3.96% and on 30-year U.S. bonds traded lower 4.82%.

Stock Movers

Bally Technologies, Inc decreased 5.5% after the gaming-technology company signed a definitive agreement for the sale of its Rainbow Casino in Vicksburg, Miss. to Isle of Capri Casinos, Inc.

Brigham Exploration Company dropped 3.4% after the energy company announced commencement of a proposed underwritten public offering of 13 million shares of common stock.

The Dress Barn, Inc rose 2.8% after the women’s clothing retailer was included in the S&P MidCap 400 index replacing Terra Industries Inc.

Massey Energy Company dropped 9% after an explosion at a coal mine killed 25 miners at a mine in West Virginia, the worst coal mine accident since 1984.

Rogers Corporation gained 6.2% after the maker of telecom and defense components revised first quarter net sales to approximately $83 million compared to the February 18, guidance of $75 to $80 million.

Earnings Review

Electro Rent Corporation ((ELRC)) an electronic test equipment provider said third quarter revenues rose 9.6% to $33.0 million from $30.1 million a year ago. Net income in the quarter rose 16% to $2.2 million or 9 cents per diluted share compared to net income of $1.9 million or 8 cents per share a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 56.98 or 0.50% to 11,282.32, and CSI 300 index in China lower 2.20 or 0.06% to 3,405.14. ASX 200 index in Australia increased 46.00 or 0.94% to 4,953.70 and the FTSE Bursa KL Composite index in Malaysia was higher 2.62 or 0.20% to 1,344.37. Markets in Hong Kong were closed today.

The Kospi Index in South Korea increased 1.10 or 0.06% to close at 1,726.09. JSE Index in Indonesia decreased 6.28 or 0.22% to 2,880.97. The Sensex index in India increased 5.89 or 0.03% to 17,941.37. Markets in Thailand were closed today.

Europe Markets Review

In London FTSE 100 Index closed higher 32.86 or 0.57% to 5,777.75, in Paris CAC 40 Index increased 17.48 or 0.43% to close at 4,051.71, in Frankfurt DAX index higher 9.66 or 0.15% to close at 6,245.22. In Zurich trading SMI increased 11.71 or 0.17% to close at 6,900.63.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 56.98 or 0.50% to 11,282.32, and CSI 300 index in China lower 2.20 or 0.06% to 3,405.14. ASX 200 index in Australia increased 46.00 or 0.94% to 4,953.70 and the FTSE Bursa KL Composite index in Malaysia was higher 2.62 or 0.20% to 1,344.37. Markets in Hong Kong were closed today.

The Kospi Index in South Korea increased 1.10 or 0.06% to close at 1,726.09. JSE Index in Indonesia decreased 6.28 or 0.22% to 2,880.97. The Sensex index in India increased 5.69 or 0.03% to 17,941.37. Markets in Thailand were closed today.