Builders Confidence Fall, U.S. Stocks Rise

123jump.com Staff
19 Jul, 2010
New York City

U.S. stocks extended gains in the late trading despite fall in home builders confidence drop to one-year low. European markets decline on the bank stress test worries. Gold fell and crude oil closed nearly unchanged.

[R]400 PM New York – U.S. stocks extended gains in the late trading despite fall in home builders confidence drop to one-year low. European markets decline on the bank stress test worries. Gold fell and crude oil closed nearly unchanged.[/R]

U.S. indexes extended gains in the later afternoon after a significant sell-off on Friday. Home builders confidence index dropped to one-year low this month as sales of new home remain soft. The tax credit expiration and elevated unemployment has sapped the demand.

Moody''s downgrades the Ireland sovereign debt. The Carlyle Group and TPG Capital agree to acquire Healthscope for $2.7 billion. Nokia Siemens agreed to acquire wireless network infrastructure assets of Motorola for $1.2 billion.

Tomkins plc led gainers in the S&P 500 index with a rise of 32.6%. Delta swings to a profit and forecasts revenue growth. Halliburton net income rises 83%. Hasbro profit climbs on cost cuts and revenue drops. India based Reliance Industries in talks to buy a stake in Quicksilver.

European stocks rise after International Power and GDF Suez SA renews negotiations for a combination of certain assets. Euro-zone construction output declines and current account deficit widens in May. The IMF rejects Hungary’s plea for a higher budget deficit for 2011.

The UK indexes fall and Tomkins received a takeover proposal. Moody''s downgrades the Ireland sovereign debt on bleak growth outlook. The UK home prices decline in July and retail sales soar in London in June. BP oil spill clean-up costs rise to $3.95 billion.

Stocks in Mumbai fluctuated and closed lower. Trade deficit widens in first quarter. Canara Bank net zooms. Reliance Com shares jump on the speculation of stake sale to Etisalat. Torrent Pharma gets tentative US regulatory approval.

Stocks in China rose and in Hong Kong fell. Export growth may drop 50% or more in the second half of the year says a government agency. Ford Motor starts construction of assembly plant in Nanchang. Explosion at Dalian New Port leads to an oil spill.

Stocks in Australia track lower after U.S. indexes plunged more than 2.5% on Friday. Prime Minister Gillard sets August 21 for the general election. U.S private equity funds Carlyle and TPG win the takeover of Healthscope. Dampier Gold’s IPO begins today. Ausenco wins contract for Canada’s Taseko mine development design.

Commodities, Bonds and Currencies

Yields on 10-year bond declined to 2.96% and on 30-year bonds fell to 3.98%.

The U.S. dollar increased to $1.2961 to a euro and against the Japanese yen rose to 86.78 yen.

Immediate futures prices of Texas crude oil increased $0.39 to $76.40 a barrel, for natural gas decrease 2.1 cents to $4.49 per mbtu and gasoline prices increased 0.99 cents to 205.85 cents a gallon.

Futures of corn decreased 13 cent to $3.94, soybean fell 10.50 cents to $9.74, sugar increased 0.50 cents to $9.74 a pound and wheat declined 6.50 cent to $5.80 a bushel.

In metals trading, copper prices rose 1.15 cents to $2.94 per pound, gold decreased $6.60 to $1,181.60 per ounce and silver decreased 16.8 cents to $17.62.