Stocks Lose Momentum; World Markets Positive

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

U.S. stocks struggled to hold earlier gains at close as lawmakers bicker on financial reforms. U.S. Coast Guard officials are struggling to contain oil spill near Louisiana that now covers 1,800 square miles. Charles River Laboratories agreed to acquire China based WuXi Pharma Tech for $1.6 billion.

[R]4:00 PM New York – U.S. stocks struggled to hold earlier gains at close as lawmakers bicker on financial reforms. U.S. Coast Guard officials are still struggling to contain oil spill near Louisiana that now covers 1,800 square miles. Charles River Laboratories agreed to acquire China based WuXi Pharma Tech in cash and stock for $1.6 billion.[/R]

U.S. stocks traded higher in the morning but lost momentum in the final hours and closed lower. The dollar advanced against the euro as investors fear Greek debt restructuring may be needed as early next year. U.S. Treasury plan to sell 1.5 billion shares in Citigroup.

Whirlpool shares surge 14% on improved outlook. Humana''s first quarter earnings increase and ahead of expectations. Caterpillar swings to a first quarter profit. Hertz agrees to acquire Dollar Thrifty for $1.2 billion.

The euro traded lower and stocks closed higher after Germany demanded credible budget deficit cut from Greece. Air Liquide first quarter revenue up 5.2%. L’Oréal USA takes over Essie Cosmetics. TomTom NV increased 8.2% to €6.48.

UK stocks closed higher after home prices increased in April and Carphone Warehouse raised its annual outlook again. Bank of Ireland to raise €3.4 billion. Chloride Group soared 40% after it rejected the takeover approach by Emerson Electric.

Stocks in Japan surged tracking gains in the U.S. Toyota Motor estimated operating profit in the current year and after the close Cannon Inc reported first quarter net surged three-fold. The camera and office equipment maker lifted full-year outlook.

Stocks in Hong Kong closed higher tracking gains in international markets but indexes in Shanghai declined after regulators tightened oversight of the property companies. WuXi Pharma agreed to be acquired by Charles River Laboratories for $1.6 billion. L’Occitaine International SA prepares to sell 25% of the company in a Hong Kong listing and raise $710 million.

Stocks in Mumbai traded higher after higher than expected earnings from Maruti Suzuki, Godrej Consumer Products and ICICI Bank and HDFC Bank. Reliance Industries net surged 30%, lower than expected.

North American Markets

Dow Jones Industrial Average gained 0.75 or 0.01% to close at 11,205.03, S&P 500 Index edged lower 5.23 or 0.4% to 1,212.05 and Nasdaq Composite Index fell 7.20 or 0.3% to close at 2,522.95. Toronto TSX Composite Index rose 41.33 or 0.4% to 12,280.97.

Latin American Markets Indexes

Mexico Bolsa Index fell 66.01 or 0.2% to 33,787.68 and Brazil Bovespa Stock Index declined 580.48 or 0.8% to 68,929.01.

Europe Markets Review

In London FTSE 100 Index closed higher 30.20 or 0.53% to 5,753.85, in Paris CAC 40 Index increased 46.09 or 1.17% to close at 3,997.39, in Frankfurt DAX index higher 72.57 or 1.16% to close at 6,332.10. In Zurich trading SMI increased 35.77 or 0.53% to close at 6,803.74.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 251.33 or 2.30% to 11,165.79, Hang Seng index in Hong Kong increased 342.57 or 1.61% to 21,587.06 and CSI 300 index in China lower 18.01or 0.56% to 3,172.00.The FTSE Bursa KL Composite index in Malaysia closed higher 3.29 or 0.25% to 1,340.07 and The markets of Australia were closed today.

The Kospi Index in South Korea increased 15.17 or 0.87% to close at 1,752.20. SET index in Thailand closed higher 9.76 or 1.29% to 764.34 and JSE Index in Indonesia increased 19.98 or 0.68% to 2,944.71. The Sensex index in India increased 51.08 or 0.29% to 17,745.28.

Commodities, Metals, and Currencies

Crude oil decreased $1.15 to $83.97 a barrel for a front month contract, natural gas edged down 1 cent to $4.25 per mBtu and gasoline decreased 1.22 cents to 234.09 cents.

Soybean future closed down 1.00 cent to $10.09 a bushel. Wheat futures decreased 17.50 cents in Chicago trading to $4.88 a bushel. Sugar closed up 0.10 cents at 15.85 cents per pound.

Gold decreased $0.90 in New York trading to close at $1,152.80 per ounce, silver closed up $0.09 to $18.32 per ounce and copper for the front month delivery increased 1.55 cents to $3.54 per pound.

Dollar edged higher against euro to $1.335 and increased against the Japanese yen to 94.02.

Yield on 10-year U.S. bonds decreased to 3.80% and with 30-year maturities increased to 4.66%.