Employment Data Lift U.S. Indexes; Gold Up

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

U.S. stocks closed higher after July private sector employment increased. Barnes & Noble seeks a buyer after a pressure from an activist investor. Wheat prices continue to rise as drought in Russia force lower supplies in international markets. The dollar edged higher.

[R]4:00 PM New York – U.S. stocks closed higher after July private sector employment increased. Barnes & Noble seeks a buyer after a pressure from an activist investor. Wheat prices continue to rise as drought in Russia force lower supplies in international markets. The dollar edged higher.[/R]

U.S. stocks closed higher after struggling in the morning. U.S. home purchase applications rise 1.3% and private sector employment increased by 42,000 in July. BP says leaking oil well in the Gulf of Mexico appears to have reached static condition.

U.S. stocks traded higher and of the 30 stocks in the Dow, 19 traded higher. Barnes & Noble Inc soared as the takeover battle heats up. Electronic Arts jumped 5% after it reported quarterly profit. Priceline.com surged more than 20% after it estimated higher annual earnings.

Barnes & Noble Inc surged as much as 20% after the company decided to seek a buyer under the pressure from an activist investor Ron Burkle.

The European indexes decline after weaker-than-expected global economic data. Romania to receive next aid tranche from the IMF and the EU but retains key rate at 6.25%. Euro-zone retail sales unchanged in June and service sector growth accelerates in July.

Wheat prices in international markets surge as Russia face worst drought in five decades. Prices have surged nearly 40% in July in the trading in Chicago.

The UK indexes dropped after mixed earnings. The UK shop price inflation remained flat at 1.5%, government net reserves fell $24 million, services growth decelerated, and home prices rose in July. RBS agrees to sell 318 branches to Banco Santander for $2.63 billion.

Stocks in Japan dropped after exporters fell as the yen surged to a 7-month high against the dollar. Toyota Motor posts better-than-expected first quarter result. Panasonic plans to cut as much as 50% TV prices in China to qualify for subsidies.

Stocks in China region gained after dropping in mid-day trade. China opens its market for gold trade. PMI for non-manufacturing sector gains. Iron ore imports drop in as local production increases. BYD cuts its forecast for the year.

The benchmark index, Sensex in India surged to a 30-month high as investors estimate strong revenues at software services companies. GMR Infrastructure agreed to acquire 50% stake in InterGen, a power plant management companies with operations in Europe and Asia. Mumbai industrial plot of 18 acres fetches $170 million.

Stocks in Australia dipped after financial stocks declined on a weakness in the U.S. markets. Exports advanced and imports were flat in June. House prices grow at a robust pace in metropolitan areas of Australia.

Commodities, Currencies and Yields

Dollar edged higher against euro to $1.317 and gained against the Japanese yen to 86.71.

Crude oil decreased $0.10 to $82.45 a barrel for a front month contract, natural gas edged lower 0.03 cent to $4.66 per mBtu and gasoline decreased 1.56 cent to 217.79 cents.

Gold increased $10.80 in New York trading to close at $1,198.30 per ounce, silver declined $0.10 to $18.31 per ounce and copper for the front month delivery increased 4.10 cents to $3.39 per pound.

Yields on 10-year U.S. bonds increased to 2.95% and on 30-year U.S. bonds added to 4.07%.