Market Updates

Record U.S. Foreclosures; Stocks Fall

Mayank Mehta, Arthi Gupta and Darlington Musarurwa
19 May, 2010
New York City

    U.S. stocks wobbled as European markets and commodities gyrated on weakness in the euro region. U.S. home mortgages rose to a record high to 4.63%. U.S. Fed lifted its economic growth outlook.

[R]4:40 PM New York – U.S. stocks wobbled as European markets and commodities gyrated on weakness in the euro region. U.S. home mortgages rose to a record high to 4.63%. Fed lifted its economic growth outlook.[/R]

U.S. stock and world markets plunged sharply on fears about the impact the naked short selling ban imposed by Germany will have on the global markets. The decline in commodities coupled with a weaker euro also added to investors’ woes. U.S. consumer price index falls 0.1% in April. U.S. homes in foreclosures rose to record 4.63% in the first quarter from 4.58% in the previous quarter as weak jobs market impacted homeowners.

Fed lifted its outlook for U.S. economic growth to a range between 3.2% and 3.7% from the previous view in January between 2.8% and 3.5%.

Massey Energy Company led the decliners in the S&P 500 index with a loss of 5.6%. Analog Devices profit grows as sales rise 41%. Chico’s FAS net income more than doubles. Polo Ralph Lauren net income rises two-fold. Hewlett-Packard, Analog Devices, Deere net rises. American Apparel Inc plunged 39% after the company said it may have violated debt covenants.

Markets in Europe fell and derivatives markets turned volatile after Germany extended ban on derivatives exposure without the collateral. The euro hit a four-year low against the dollar. EU construction rises 7.6% in March. China’s CNPC buys stake in Shell’s Syria unit.

U.K. stocks decline on concerns tighter regulation as Germany banned short-selling of some bonds. Bank of England was unanimous to keep rates at record low on May 10. Pearson plc buys Melorio. RBS announces sale of RBS Factor S.A. Land Securities, Experian PLC profits rise.

Markets in Japan and Asia closed lower on the ongoing worries related to euro-zone. Six biggest banks in Japan total net profits soar to 1.13 trillion yen in 2009. Toyota recalls six Lexus models.

Stocks decline on a weakness in property developers. CSCEC plans to build Shenzhen''s third tallest building. Nanjing Iron & Steel to acquire coal mining assets in Anhui. CNOOC confirms oilfield development deal in Iraq.

Stocks in Mumbai traded lower on euro-zone worries. Exports in April increased 36% to $16.9 billion. Mandhana Industries makes a lackluster debut. Bank of Rajasthan agreed to sell to ICICI Bank. Sanofi-Aventis and Pfizer are in talks to buy Piramal.

Australia’s consumer sentiment index drops 7% in May. Fortescue Metals suspends A$17.5 billion projects on super-tax profit. Australia’s wages rises 0.9% in March.

North American Markets

Dow Jones Industrial Average fell 66.58 or 0.6% to close at 10,444.37, S&P 500 Index decreased 5.75 or 0.5% to 1,115.09 and Nasdaq Composite Index fell 18.89 or 0.8% to close at 2,298.37. Toronto TSX Composite Index fell 98.74 or 0.8% to 11,665.77.

Latin American Markets Indexes

Mexico IPC Index decreased 143.59 or 0.5% to 30,992.76 and Brazil Bovespa Stock Index fell 1,151.76 or 1.9% to 59,689.32.

Europe Markets Review

In London FTSE 100 Index traded lower 97.72 or 1.84% to 5,209.62, in Paris CAC 40 Index decreased 71.89 or 1.99% to close at 3,545.43, in Frankfurt DAX index lower 118.88 or 1.93% to close at 6,037.05. In Zurich trading SMI decreased 59.84 or 0.92% to close at 6,411.00.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 55.80 or 0.54% to 10,186.84, and Hang Seng index in Hong Kong decreased 365.96 or 1.83% to 19,578.98, and CSI 300 index in China lower 9.17 or 0.33% to 2,762.17. ASX 200 index in Australia decreased 83.60 or 1.87% to 4,387.10 and the FTSE Bursa KL Composite index in Malaysia was lower 21.94 or 1.65% to 1,308.23.

The Kospi Index in South Korea decreased 13.16 or 0.80% to close at 1,630.08. SET index in Thailand closed higher 5.43 or 0.71% to 765.54. JSE Index in Indonesia decreased 104.70 or 3.69% to 2,729.48. The Sensex index in India decreased 467.27 or 2.77% to 16,408.49.

Commodities, Metals, and Currencies

Crude oil increased $1.88 to $71.29 a barrel for a front month contract, natural gas edged down 18 cents to $4.16 per mBtu and gasoline decreased 2.43 cents to 201.88 cents.

Soybean future closed down 1.00 cent to $9.38 a bushel. Wheat futures increased 1.50 cents in Chicago trading to $4.69 a bushel. Sugar closed up 0.13 cents at 14.93 cents a pound.

Gold decreased $21.70 in New York trading to close at $1,192.90 an ounce, silver closed down $0.66 to $18.22 per ounce and copper for the front month delivery decreased 3.60 cent to $2.99 per pound.

Dollar edged lower against euro to $1.239 and fell against the Japanese yen to 91.58.

Yield on 10-year U.S. bonds decreased to 3.36% and with 30-year maturities decreased to 4.24%.

Annual Returns

Company Ticker 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008

Earnings

Company Ticker 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008