U.S. Stocks Rise on Earnings, Economic Data

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

Fed Chairman Bernanke said the U.S. economy will grow at a moderate pace on the account of high unemployment and weak consumer spending. The regional survey published by the Fed suggested modest increase in hiring. The S&P 500 index closed above 1200, matching the index eighteen months ago.

[R]6:00 PM New York – Fed Chairman Bernanke said the U.S. economy will grow at a moderate pace on the account of high unemployment and weak consumer spending. The regional survey published by the Fed suggested modest increase in hiring and most regions showed an increase in all regions. The S&P 500 index closed above 1200, matching the index eighteen months ago.[/R]

U.S. stocks closed higher after JPMorgan Chase, Intel and CSX reported better than expected earnings. Retail sales in March gained and core rate of inflation was in-line with the Fed inflation range.

W.W. Grainger, Inc led the decliners in the S&P 500 index with a loss of 3.0%. CSX Corp first quarter net rises 24% to $306 million. Intel Corp gains after it estimated higher sales in the second quarter. JPMorgan Chase first quarter net surged 55.6% on 11% rise in revenues.

European markets closed higher after earnings momentum and an increase in industrial production lifted the sentiment. European chipmakers Infineon Technologies AG and STMicroelectronics NV traded higher after Intel Corp estimated higher worldwide demand.

UK stocks gyrated with metals and oil prices in London and New York trading. Ashmore Group Plc gained after assets under management increased 4% in the three months to March. Burberry closed higher after Christian Dior sales increased 12% in the first quarter.

Traders in Tokyo focused on Intel earnings after the largest chipmaker estimated higher second quarter sales. Tokyo Electron, the equipment maker and Intel supplier quarterly orders rose 21%. Toyota Motor Corp. suspends Lexus SUV sales in the U.S.

Stocks in China region traded under pressure after March real estate prices increased 11.7%. The sharp rise in prices only fueled worries of additional government steps to curb lending. Singapore de-facto revalued its dollar lending a support to a growing speculation that China is close to revalue yuan in less than sixty days.

Australian stocks closed higher on the back of a rebound in commodities and metals prices. Australia’s consumer confident drops 1% in April. The anti-trust regulatory agency approved the Shell-PetroChina joint bid for coal-seam field developer Arrow Energy Ltd.

North American Markets

Dow Jones Industrial Average increased 103.69 or 0.94% to close at 11,123.11, S&P 500 Index edged higher 13.35 or 1.2% to 1,210.65 and Nasdaq Composite Index added 38.87 or 1.6% to close at 2,504.86. Toronto TSX Composite Index increased 102.89 or 0.9% to 12,204.41.

Latin American Markets Indexes

Mexico Bolsa Index added 294.89 or 0.9% to 34,113.93 and Brazil Bovespa Stock Index increased 242.45 or 0.4% to 71,034.85.

Europe Markets Review

In London FTSE 100 Index closed higher 34.59 or 0.60% to 5,796.25, in Paris CAC 40 Index increased 25.71 or 0.64% to close at 4,057.70, in Frankfurt DAX index higher 47.57 or 0.76% to close at 6,278.40. In Zurich trading SMI increased 30.73 or 0.45% to close at 6,916.59.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 43.67 or 0.39% to 11,204.90, Hang Seng index in Hong Kong increased 17.90 or 0.08% to 22,121.43 and CSI 300 index in China higher 11.99 or 0.35% to 3,403.71. ASX 200 index in Australia increased 43.10 or 0.87% to 4,994.70. The FTSE Bursa KL Composite index in Malaysia closed higher 1.37 or 0.10% to 1,335.89.

The Kospi Index in South Korea increased 24.74 or 1.45% to close at 1,735.33. , JSE Index in Indonesia increased 0.31 or 0.01% to 2,885.02. The Markets of India and Thailand were closed today.

Commodities, Metals, and Currencies

Crude oil decreased $1.90 to $85.95 a barrel for a front month contract, natural gas edged up 3 cents to $4.19 per mBtu and gasoline increased 2.35 cents to 233.28 cents.

Soybean future closed up 1.50 cent to $9.77 a bushel. Wheat futures decreased 4.87 cents in Chicago trading to $4.87 a bushel. Sugar closed up 0.45 cents at 17.68 cents per pound.

Gold increased $2.00 in New York trading to close at $1,155.40 per ounce, silver closed up $0.18 to $18.43 per ounce and copper for the front month delivery increased 1.45 cents to $3.61 per pound.

Dollar edged lower against euro to $1.3656 and increased against the Japanese yen to 93.22.

Yield on 10-year U.S. bonds closed higher at 3.86% and with 30-year maturities closed lower at 4.73%.