Volatile U.S. Stocks; Apple Surpasses Microsoft

Arthi Gupta, Mayank Mehta and Sanjay Barot
26 May, 2010
New York City

U.S. stocks rebounded in the morning trading on better than expected durable goods orders sales and new home sales in April. Stocks struggled in the afternoon and closed lower. Apple Inc closed as the most valuable technology company and the second most valued U.S. company, only behind ExxonMobil.

[R]5:50 PM New York – U.S. stocks rebounded in the morning trading on better than expected durable goods orders sales and new home sales in April. Stocks struggled in the afternoon and closed lower. European markets surged as much as 3% before settling at a lower increase. Apple Inc closed as the most valuable technology company and the second most valued U.S. company, only behind ExxonMobil.[/R]

World markets are increasingly volatile as the fears of ripples from euro-zone spreading to Asia and other markets resurfaced.

World markets and U.S. stocks rose as tensions about war rhetoric in the Korean peninsula tone down and investors shift their focus to economic data and earnings. U.S. stocks rallied in the morning after the release of better than expected durable goods orders and new home sales but lost steam in the late afternoon.

U.S. durable goods orders rise 2.9% in April and new single family home sales in the month increased 14.8% to annual rate of 504,000 units.

Apple Inc, the celebrated telephone, computer and other electronic devices market traded lower today but closed at a market cap $222 billion, ahead of Microsoft Corp market cap of $219 billion. Apple is now the most valuable technology company, ahead of Cisco, IBM, Motorola, Hewlett Packard, Oracle and Google.

European markets rebounded after losing nearly 5% in the last six trading sessions. French April consumer spending drops as car purchases slump. Telefonica SA urged Portugal Telecom shareholders to consider its bid for Brasilcel.

UK stocks rebound on the positive economic outlook and improving sentiment after a six-day sell-off. Brewin Dolphin Holdings PLC net profit in the first half surges 36%. Burberry Group plc rose 4.5% after sales in the latest fiscal year rise 8%.

Stocks in Tokyo trading closed mixed as commodities rise and worries of weak economic outlook dominate trading sentiment. Sanyo Electric received an order to build solar panels for a plant in Southern Italy.

U.S. and China strategic talk ends with agreements signed on shale gas and safety standards for nuclear reactors. Cosco increase its stake in port operating company. SAIC Motor expects to sell over 1.6 million autos in first-half. Ping An increases control of a mid-sized bank.

Sensex index in Mumbai rebounded more than 2% on the rising corporate profits. Milestone payment from Abbott strengthens Cadila Healthcare. Cairn India tracks recovery in crude oil. Mahindra & Mahindra Ltd acquires 55% stake in alternative energy company.

Australian stocks rebounded tracking higher commodities. BHP Billiton Ltd and eleven other miners bid $4 billion for Queensland rail network. Rio Tinto backs a progressive dividend policy and said demand for commodities in China is expected to remain high for the next fifteen years. Foster's Group Ltd plans to separate wine and beer business.

North American Markets

Dow Jones Industrial Average decreased 69.30 or 0.7% to close at 9,974.45, S&P 500 Index decreased 6.08 or 0.6% to 1,067.95 and Nasdaq Composite Index fell 15.07 or 0.7% to close at 2,195.88. Toronto TSX Composite Index added 25.82 or 0.2% to 11,543.90.

Latin American Markets Indexes

Mexico IPC Index surged 694.32 or 2.2% to 31,328.48 and Brazil Bovespa Stock Index soared 1,006.28 or 1.7% to 60,190.36.

Europe Markets Review

In London FTSE 100 Index closed higher 97.40 or 1.9% to 5,038.08, in Paris CAC 40 Index increased 77.30 or 2.3% to close at 3,408.59, in Frankfurt DAX index higher 87.98 or 1.5% to close at 5,813.59. In Zurich trading SMI increased 75.98 or 1.3% to close at 6,167.53.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 62.77 or 0.66% to 9,522.66, Hang Seng index in Hong Kong increased 210.95 or 1.11% to 19,196.45 and CSI 300 index in China higher 0.00 or 0.00% to 2,813.94. ASX 200 index in Australia increased 41.90 or 0.98% to 4,307.20. The FTSE Bursa KL Composite index in Malaysia closed lower 1.19 or 0.10% to 1,248.94.

The Kospi Index in South Korea increased 21.29 or 1.36% to close at 1,582.12. SET index in Thailand closed higher 7.65 or 1.06% to 728.94 and JSE Index in Indonesia increased 182.66 or 7.27% to 2,696.78. The Sensex index in India increased 365.36 or 2.28% to 16,387.84.

Commodities, Metals, and Currencies

Crude oil increased $2.07 to $70.82 a barrel for a front month contract, natural gas edged up 6 cent to $4.17 per mBtu and gasoline increased 2.70 cents to 195.80 cents.

Soybean future closed up 7.50 cent to $9.38 a bushel. Wheat futures increased 1.25 cents in Chicago trading to $4.61 a bushel. Sugar closed up 0.11 cents at 15.36 cents a pound.

Gold increased $12.90 in New York trading to close at $1,212.70 an ounce, silver closed up $0.29 to $18.07 per ounce and copper for the front month delivery increased 1.15 cent to $3.05 per pound.

Dollar edged higher against the euro to $1.218 and fell against the Japanese yen to 89.92.

Yield on 10-year U.S. bonds increased to 3.19% and with 30-year maturities closed higher to 4.09%.