Earnings Outlook Drives U.S. Indexes

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

Earnings expectations drove market indexes higher at close after a weakness in the morning trading. Greece completed the offering of short term debt. Commodities declined. The S&P 500 index is approaching 1200 and the Dow at 11000 is viewed by many as twin resistance levels.

[R]6:00 PM New York – Earnings expectations drove market indexes higher at close after a weakness in the morning trading. Greece completed the offering of short term debt. Commodities declined. The S&P 500 index is approaching 1200 and the Dow at 11000 is viewed by many as twin resistance levels.[/R]

Stocks and commodities in New York traded lower after Alcoa reported weaker than expected quarterly sales but narrower loss. At close indexes rebounded on the earnings optimism.

U.S. trade deficit in February expanded 7% and China led the deficit with all nations. Deficit rebounded with the bounce in the economy. Imports surpass the exports in the month and the U.S. recorded its largest deficit with China, $16.5 billion.

Aloca Inc declined after quarterly sales were lower than expected and reported narrower loss. Palm is in discussion with Asia based companies that may result in the company sale. Peabody Energy is negotiating with Coal India for long term supply.

European markets closed lower. Greece completed the sale of Treasury bills that drew strong interest from investors however there is a growing doubt that the nation can complete bond sales of five years or longer maturity.

UK stocks closed lower tracking losses in commodities. Debenhams plc first-half net profit falls. Oxford Catalysts Group fiscal year 2009 loss widens. Grainger plc sales pick up. Tullow Oil plc finds oil at a field in Uganda.

North American Markets

Dow Jones Industrial Average increased 13.45 or 0.12% to close at 11,019.42, S&P 500 Index edged higher 0.82 or 0.07% to 1,197.30 and Nasdaq Composite Index added 3.82 or 0.2% to close at 2,457.87. Toronto TSX Composite Index decreased 28.18 or 0.2% to 12,148.66.

Latin American Markets Indexes

Mexico Bolsa Index decreased 33.35 or 0.1% to 33,819.04 and Brazil Bovespa Stock Index increased 178.04 or 0.25% to 70,792.40.

Europe Markets Review

In London FTSE 100 Index closed lower 15.99 or 0.28% to 5,761.66, in Paris CAC 40 Index decreased 18.51 or 0.46% to close at 4,031.99, in Frankfurt DAX index lower 19.86 or 0.32% to close at 6,230.83. In Zurich trading SMI decreased 25.10 or 0.36% to close at 6,885.86.

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.

Commodities, Metals, and Currencies

Crude oil decreased $0.35 to $83.99 a barrel for a front month contract, natural gas edged up 15 cents to $4.16 per mBtu and gasoline increased 0.68 cents to 230.26 cents.

Soybean future closed up 7.00 cent to $9.75 a bushel. Wheat futures increased 8.25 cents in Chicago trading to $4.887 a bushel. Sugar closed up 0.38 cents at 17.23 cents per pound.

Gold increased $9.50 in New York trading to close at $1,152.70 per ounce, silver closed down $0.18 to $18.24 per ounce and copper for the front month delivery increased 3.25 cents to $3.59 per pound.

Dollar edged lower against euro to $1.3607 and increased against the Japanese yen to 93.21.

Yield on 10-year U.S. bonds closed lower at 3.82% and with 30-year maturities closed lower at 4.68%.