U.S. Dollar, Stocks Falter; Oil Above $82

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

U.S. stocks declined after pending home resale in the prior month declined and June consumer purchases were nearly unchanged and savings rate increased. Energy complex stocks gained after crude oil traded above $82 per barrel. The dollar edged lower against the euro and the yen.

[R]4:00 PM New York – U.S. stocks declined after pending home resale in the prior month declined and June consumer purchases were nearly unchanged and savings rate increased. Energy complex stocks gained after crude oil traded above $82 per barrel. The dollar edged lower against the euro and the yen.[/R]

U.S. stocks fall after rallying a day ago and Procter & Gamble Co reported a decline in earnings. Personal income rises 0.1% in June and pending U.S. homes resale declined 2.6% in July from a month ago. U.S. factory orders also declined 1.2% in June, more than estimated.

MetLife announces offering of 75 million shares and $3 billion in senior debt. Sanofi-Aventis is in talks to acquire Genzyme for $20 billion.

Atlas Air second quarter sales surged 48% and net soared 188%. Quarterly sales at Coach Inc increased 22% and net gained 34%. Lear Corp swung to net profit and Marathon Oil net surged 72%. Procter & Gamble reported quarterly net declined 11.6% and sales increased 4.7%. D.R. Horton reported third quarter sales increased 51% and swung to net profit of 16 cents a share.

European markets fall after bank stocks decline. Euro-zone wholesale inflation eases 0.3% in June. Spanish unemployment declines for the fourth consecutive month as consumer confidence improves in July. Swiss consumer prices fall for third month. Sanofi-Aventis is in talks to acquire Genzyme for $20 billion.

The UK indexes declined tracking lower commodity prices. The UK construction sector activity eased in July. Cameron and Clegg pledge for working towards economic recovery in the UK. BP Plc agrees to sell Colombian business to Ecopetrol and Talisman.

Stocks in Japan gained on earnings outlook. Funai Electric Co first quarter net drops. Toyota appoints lead lawyer against class action lawsuit in the U.S. J-Power plans to replace two ageing coal-fired power plants in Hiroshima prefecture.

Stocks in China fell on a weakness in banks while in Hong Kong edged higher. Shanghai new home sales slowed in July. Geely Holdings completes $1.5 billion acquisition of Volvo. A new Foxconn facility starts production of iPhones in Henan Province.

Stocks in Mumbai traded higher after positive earnings and Coal India prepares for its public offering. SKS Microfinance IPO was oversubscribed nearly 14 times. NMDC reports 100% jump in first quarter profit. Adani plans to import 4 lakh tons of coal for three users in India. SKS Microfinance IPO is oversubscribed.

Stocks in Australia traded higher on offshore leads after RBA left interest rate unchanged. Building approvals falls in June. Linc Energy stops trading of shares till August 5. Aston Resources IPO started on Monday.

Commodities, Currencies and Yields

Dollar edged lower against euro to $1.323 and fell against the Japanese yen to 85.81.

Crude oil increased $1.15 to $82.49 a barrel for a front month contract, natural gas edged lower 0.03 cent to $4.66 per mBtu and gasoline increased 2.45 cent to 219.30 cents.

Gold increased $3.70 in New York trading to close at $1,189.10 per ounce, silver added $0.04 to $18.46 per ounce and copper for the front month delivery decreased 3.30 cents to $3.36 per pound.

Yields on 10-year U.S. bonds decreased to 2.91% and on 30-year U.S. bonds added to 4.04%.