U.S. Stocks Ride Economic Optimism; Apple Up

123jump.com Staff
03 May, 2010
New York City

Stocks in New York traded higher after economic data suggested improving economic health and growing consumer income and spending. Apple Inc said it sold one millionth iPad by the end of April. Dollar Thrifty may get a better offer from Avis Budget Group.

[R]4:00 PM New York – Stocks in New York traded higher after economic data suggested improving economic health and growing consumer income and spending. Apple Inc said it sold one millionth iPad by the end of April. Dollar Thrifty may get a better offer from Avis Budget Group.[/R]

U.S. indexes jumped more than 1.4% after economic data suggested growing manufacturing in April and person income and spending rose in March. U.S. personal income for March rises at the fastest pace in six months. UAL agrees to acquire Continental Airlines for $3.2 billion. Loews quarterly revenue rises 23%.

UAL Corp the parent of United Air and Continental agreed to merge that will create the largest domestic carrier with market share of 21%. The deal is expected to cut capacity on many routes that will increase fares. The deal faces many hurdles but is expected to be complete by the end of the year.

Avis Budget Group in a letter to Dollar Thrifty Automotive Group said it is prepared to make a substantially higher offer. Dollar Thrifty stock soared 14%.

SanDisk Corporation led gainers in the S&P 500 index with a rise of 15% after Apple Inc said it sold one millionth iPad on April 30, indicating rising demand for memory chips. Administaff, Inc first quarter sales fall 1% but still reported higher than expected profit. Dollar Thrifty soared after Avis said it is prepared to offer more than Hertz’s bid. Continental and UAL Corp were active after the merger agreement.

Greek government agreed to deeper cuts in spending and to raise taxes in exchange for a bailout package for the next three years of as much as €120 billion. The euro declined on the worries that Greece may not be able to implement deep cuts and financial crisis may spread in the region.

Euro-area ministers agreed to a €110 billion rescue package for Greece but investors worry of wider contagion in the region. Stocks and euro declined. Hydro acquires mine assets from Vale SA in a $4.9 billion deal.

Stocks in Hong Kong closed lower after commodities declined and China raised bank reserve ratios. ICBC plans to start fund raising of as much as $12 billion next week. Swire Properties in a Hong Kong listing plans to raise $2.7 billion.

Stocks in Mumbai trade lower and India’s economy is expected to grow at 8.5% in the current fiscal year according to Finance Minister Mukherjee. Tata Motors closed at 52-week high on strong April auto sales. Stock-split plan generates interest in Kotak Mahindra Bank.

The Australian stocks fell after government announced 40% resource tax as early as 2012. The manufacturing index jumps to 59.8 in April indicating near-trend expansion in the economy. The RBA is scheduled to meet today to decide measures to contain inflation.

North American Markets

Dow Jones Industrial Average increased 122.05 or 1.1% to close at 11,167.32, S&P 500 Index edged higher 15.42 or 1.3% to 1,206.78 and Nasdaq Composite Index added 40.19 or 1.6% to close at 2,511.92. Toronto TSX Composite Index added 123.43 or 1% to 12,200.32.

Latin American Markets Indexes

Mexico IPC Index fell 91.86 or 0.3% to 32,861.00 and Brazil Bovespa Stock Index added 1,322.34 or 2% to 67,978.05.

Europe Markets Review

In London, markets were closed today, in Paris CAC 40 Index decreased 13.77 or 0.36% to close at 3,803.22, in Frankfurt DAX index lowered 9.22 or 0.15% to close at 6,126.48. In Zurich trading SMI decreased 34.08 or 0.52% to close at 6,582.74.

Asian Markets Review

Hang Seng index in Hong Kong decreased 297.23 or 1.41% to 20,811.36 and ASX 200 index in Australia decreased 21.90 or 0.46% to 4,785.50. The FTSE Bursa KL Composite index in Malaysia closed higher 0.51 or 0.04% to 1,346.89 and The Markets of Japan and China were closed today.

The Kospi Index in South Korea decreased 20.35 or 1.17% to close at 1,721.21 and JSE Index in Indonesia decreased 10.36 or 0.35% to 2,960.90. The Sensex index in India decreased 172.63 or 0.98% to 17,386.08 and The Markets of Thailand were closed today.

Commodities, Metals, and Currencies

Crude oil increased $0.05 to $86.20 a barrel for a front month contract, natural gas edged up 8 cents to $4.00 per mBtu and gasoline increased 3.61 cents to 243.55 cents.

Soybean future closed down 12.50 cent to $9.86 a bushel. Wheat futures decreased 1.25 cents in Chicago trading to $5.01 a bushel. Sugar closed down 0.17 cents at 14.98 cents per pound.

Gold increased $2.80 in New York trading to close at $1,183.00 per ounce, silver closed up $0.21 to $18.85 per ounce and copper for the front month delivery decreased 5.75 cent to $3.29 per pound.

Dollar edged higher against euro to $1.3201 and gained against the Japanese yen to 94.60.

Yield on 10-year U.S. bonds increased to 3.70% and with 30-year maturities increased to 4.54%.