Stocks, Commodities Decline in New York

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

Stocks and commodities in New York traded lower after Alcoa reported weaker than expected quarterly sales but narrower loss. U.S. trade deficit in February rose. Greece attracts more investors at its debt sale after emergency aid from the EU and the IMF.

[R]9:45 AM New York – Stocks and commodities in New York traded lower after Alcoa reported weaker than expected quarterly sales but narrower loss. U.S. trade deficit in February rose. Greece attracts more investors at its debt sale after emergency aid from the EU and the IMF.[/R]

Stocks in early trading in New York traded lower after Alcoa missed sales estimates but reported a narrower quarterly loss. Greece attracted more buyers for its debt sale after the EU and the IMF offered 45 billion euros in emergency loans. U.S. trade deficit in February rose as imports rise faster than exports.

Trade deficit in February increased to $39.7 billion from $37.0 billion in January. February exports rose by $0.3 billion and imports increased by $3.0 billion. The goods deficit increased by $1.9 billion and service surplus decreased to $0.8 billion.

Exports increased 0.2% and imports rose 1.7% in the month from January according to the latest data released by the Commerce Department.

The U.S. recorded the largest deficit among any nations with China to $16.5 billion.

Deficit with the European Union soared nearly 90% to $5.3 billion and with Japan increased to $4.3 billion, an increase of 28.3%.

The annualized deficit in the first two months is running at $460 billion, an increase of 21.5% from $378.6 billion in 2009.

In a separate report from the United States Department of Labor, March import price index increased 0.7% after 0.2% decline in fuel prices. The index for export prices increased 0.7% after decreasing 0.4% in each of last three months.

Commodities, Currencies and Yields

Dollar edged higher against euro to $1.3586 and decreased against the Japanese yen to 93.07.

Crude oil decreased 80 cents to $83.93 a barrel for a front month contract, natural gas edged lower $0.01 cent to $4.00 per mBtu and gasoline decreased 0.380 cents to 229.20 cents.

Gold decreased $8.40 in New York trading to close at $1,154.30 per ounce, silver closed lower $0.254 to $18.60 per ounce and copper for the front month delivery increased 0.300 cents to $3.57 per pound.

Yields on 10-year U.S. bonds increased to 3.83% and on 30-year U.S. bonds traded at 4.70%.

Stock Movers

Alphatec Holdings, Inc rose 0.2% after the maker of medical devices announced that it is offering to sell 8 million shares and a shareholder HealthpointCapital Partners, L.P. is offering 8 million shares in a public offering.

Ambac Financial Group, Inc surged 104.5% after the bond insurer said fourth quarter 2009 net income soared to $558.1 million, or $1.93 per diluted share on the one-time tax benefit and

American International Group, Inc increased 8.0%.

ArvinMeritor, Inc gained 6.3% after the maker of parts for cars and trucks was added to the “Conviction Buy” list at Goldman Sachs Group Inc.

Boots & Coots Inc surged 25.5% after the oil-well services provider and Halliburton entered into a merger agreement that values the company at $240.4 million.

California Pizza Kitchen Inc increased more than 1.5% after it reported estimated earnings that were ahead of market expectations. The company is looking at strategic alternatives including a possible sale.

Earnings Review

Alcoa Inc ((AA)) the aluminum producer said first quarter sales rose 18% to $4.89 billion from $4.15 billion a year ago. Net loss in the quarter was $201 million or 20 cents per diluted share compared to net loss of $497 million or 61 cents per share a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 90.67 or 0.81% to 11,161.23, Hang Seng index in Hong Kong decreased 34.64 or 0.16% to 22,103.53 and CSI 300 index in China higher 40.24 or 1.20% to 3,391.72. ASX 200 index in Australia decreased 32.70 or 0.66% to 4,951.60. The FTSE Bursa KL Composite index in Malaysia closed lower 5.09 or 0.38% to 1,334.52.

The Kospi Index in South Korea increased 0.29 or 0.02% to close at 1,710.59. SET index in Thailand closed lower 28.76 or 3.64% to 760.90 and JSE Index in Indonesia increased 3.37or 0.12% to 2,884.70. The Sensex index in India decreased 31.04 or 0.17% to 17,821.96.

Europe Markets Review

In London FTSE 100 Index traded lower 14.06 or 0.24% to 5,763.59, in Paris CAC 40 Index decreased 3.37 or 0.08% to 4,047.13 and in Frankfurt DAX index traded lower 13.66 or 0.22% to 6,237.03. In Zurich trading SMI decreased 18.65 or 0.27% to 6,892.31.