U.S. Housing Start, Permits Rise; Gold Drops

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

Stocks in early trading in New York gained after housing permits and starts surged in March. Housing permits increased 7.5%, starts gained 1.6% but completions declined 3.1% in the month. Google quarterly sales rise 23% and net soars 41%.

[R]10:00 AM New York – Stocks in early trading in New York gained after housing permits and starts surged in March. Housing permits increased 7.5%, starts gained 1.6% but completions declined 3.1% in the month. Gold declined 0.9%. Google sales surged 23%, Bank of America earnings rise on Merrill Lynch acquisition.[/R]

Housing starts resumed in March after difficult weather conditions in February and permits for new construction were on the rise as builders and buyers express confidence.

Housing permits in March increased 7.5% from February or 34.1% a year ago month to 685,000. Housing starts in March fell 1.6% from February. Housing completion rose 3.1% from February or plunged 21.2% from a year ago month to 667,000.

New home construction increased 20% in the month from a year ago and housing permits surged 34% from a year ago period.

Single family home construction decreased 0.9% in the month but home permits increased 5.6% and multi-family homes starts soared 19%.

Commodities, Currencies and Yields

Dollar edged higher against euro to $1.3529 and decreased against the Japanese yen to 92.85.

Crude oil decreased 88 cents to $84.63 a barrel for a front month contract, natural gas edged higher $0.02 cent to $4.01 per mBtu and gasoline decreased 2.560 cents to 230.06 cents.

Gold decreased $4.30 in New York trading to close at $1,156.00 per ounce, silver closed lower $0.073 to $18.36 per ounce and copper for the front month delivery decreased 0.350 cents to $3.62 per pound.

Yields on 10-year U.S. bonds increased to 3.81% and on 30-year U.S. bonds traded at 4.70%.

Stock Movers

Boston Scientific Corporation gained 6.4% after the maker of heart devices to immediately resume distribution of its heart defibrillators after winning a regulatory approval.

General Electric Co. added 0.5% after earnings declined in the first quarter.

Google Inc declined 5% after quarterly revenues increased 23% and profits surge 41%.

Lions Gate Entertainment Corp increased 8.1% after the company announced that it has received a revised unsolicited tender offer from the Icahn Group to acquire all common shares for $7 per share in cash.

NPS Pharmaceuticals, Inc slipped 7.5% after the biopharmaceutical company announced that it intends to offer 7.5 million shares of its common stock in an underwritten public offering.

Silicon Motion Technology Corporation rose 4.8% after the company expects revenue in the first quarter of 2010 to increase sequentially 15% to 16%.

Earnings Review

Advanced Micro Devices, Inc ((AMD)) the microprocessor maker said first quarter sales rose 33% to $1.57 billion from $1.18 billion a year ago. Net income in the quarter was $257 million or 35 cents per diluted share compared to net loss of $416 million or 66 cents per share a year ago.

Christopher & Banks Corporation ((CBK)) the clothing retailer said fourth quarter sales fell 2% to $102.0 million from $104.0 million a year ago. Net loss in the quarter was $6.4 million or 18 cents per diluted share compared to net loss of $28.8 million or 82 cents per share a year ago.

Google Inc ((GOOG)) the Internet search engine said first quarter revenues rose 23% to $6.78 billion from $5.51 billion a year ago. Net income in the quarter rose 41% to $2 billion or $6.06 per diluted share compared to net income of $1.42 billion or $4.49 per share a year ago.

Intuitive Surgical, Inc ((ISRG)) the manufacturer of surgical systems said first quarter revenues rose 74.4% to $328.6 million from $188.4 million a year ago. Net income in the quarter rose 203.5% to $85.3 million or $2.12 per diluted share compared to net income of $28.1 million or 72 cents per share a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 171.61 or 1.52% to 11,102.18, Hang Seng index in Hong Kong decreased 292.56 or 1.32% to 21,865.26 and CSI 300 index in China lower 38.24 or 1.13% to 3,356.33. ASX 200 index in Australia decreased 17.20 or 0.34% to 4,984.70. The FTSE Bursa KL Composite index in Malaysia closed lower 6.06 or 0.45% to 1,332.77.

The Kospi Index in South Korea decreased 9.42 or 0.54% to close at 1,734.49. SET index in Thailand closed lower 24.74 or 3.25% to 736.16 and JSE Index in Indonesia decreased 21.86 or 0.75% to 2,878.67. The Sensex index in India decreased 48.08 or 0.27% to 17,591.18.

Europe Markets Review

In London FTSE 100 Index closed lower 0.60 or 0.01% to 5,824.41, in Paris CAC 40 Index increased 7.83 or 0.19% to close at 4,073.48, in Frankfurt DAX index higher 5.06 or 0.08% to close at 6,296.51. In Zurich trading SMI increased 7.39 or 0.11% to close at 6,974.95.