U.S. Indexes Gain on Home Sales, FedEx Outlook

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

U.S. stocks closed higher on positive views on the economy. FedEx lifted its full year earnings view and new home sales surged 24% from the revised May sales. Banks in Europe led the gainers in the region after the release of stress test data. Asian markets closed mixed but retained positive bias.

[R]400 PM New York – U.S. stocks closed higher on positive views on the economy. FedEx lifted its full year earnings view and new home sales surged 24% from the revised May sales. Banks in Europe led the gainers in the region after the release of stress test data. Asian markets closed mixed but retained positive bias.[/R]

U.S. stocks closed higher after FedEx lifted its earnings outlook and new home sales in June gained more than estimated in June. Sales increased 24% to 330,000 annual rate from new home sales revised lower to 267,000.

U.S. President Obama urged the U.S. Senate for an early passage of the small business bill. BP provided an update on the Gulf of Mexico oil spill and the oil giant reiterated there were no potential changes to management.

Beckman Coulter, Inc. led the decliners in the S&P 500 index with a loss of 21.1%. Clorox to sell its auto care products for $750 million. Lorillard second quarter net fall 8% on flat sales.

The European markets gain after banking stocks rebounded on results of the stress tests on European banks. The CEBS accuses German banks of not furnishing full debt details. The economic index of the euro-zone rises in June. The Economy Minister of Germany hints at GDP expansion of 2% in 2010.

The UK indexes advance tracking gains in the U.S. indexes. The UK home prices fall 0.1% in July and the Bank of England noted that corporate debt markets deteriorated slightly. The UK Treasury awards more regulatory powers to the central bank. Fiscal tightening will lead to slowdown in economic growth in the UK, according to a private report.

Stocks in Japan rallied strongly on positive earnings outlook. Japan trade surplus surges in June and rose for the 13th month in a row. Eisai gets U.S. approval for higher dose of Alzheimer treatment. Sumitomo and BHP finalize iron ore processing fee. JFE Steel agrees to take a 14% stake in India’s JSW Steel and a 24% stake in China’s Panchen Yihong Pipe Co.

Stocks in China region rallied after investor sentiment gained on improving global economic outlook. Banks in China may struggle to recoup about 23% of the 7.7 trillion yaun loans for local infrastructure projects. Trading of Zijin Mining stocks have been suspended in Hong Kong and Shanghai.

Stocks in Mumbai traded lower on weaker than expected earnings from Maruti. Monsoon gains momentum. SKS Microfinance lifted its price range for public offering. EIL declined 13% after the company priced secondary offering below current market price.

Stocks in Australia started on a bright note and sustained the gains buoyed by optimism in U.S. and Europe. PPI rises less than expected due to falling cost of vehicles and meat. Pre-Election Economic & Fiscal Outlook released. NAB sells 100 billion yen of five-year Samurai bonds.

Commodities, Bonds and Currencies

Yields on 10-year bond increased to 3% and on 30-year bonds added to 4.03%.

The U.S. dollar increased to $1.2997 to a euro and fell against the Japanese yen to 86.88 yen.

Immediate futures prices of Texas crude oil decreased $0.05 to $78.93 a barrel, for natural gas increase 3.9 cents to $4.61 per mbtu and gasoline prices decreased 1.53 cents to 210.69 cents a gallon.

In metals trading, copper prices rose 4.75 cents to $3.23 per pound, gold decreased $7.60 to $1,180.20 per ounce and silver increased 6.9 cents to $18.17.