U.S. Indexes Near 3-Month High; Copper Up

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

U.S. stocks rebounded from the early lows and copper and wheat jumped. Resource stocks traded higher in New York and London trading. The dollar edged higher. China expands the scope of its bank stress test and UK looks for ways to increase lending to small businesses. Exports slow in Japan.

[R]4:00 PM New York – U.S. stocks rebounded from the early lows and copper and wheat jumped. Resource stocks traded higher in New York and London trading. The dollar edged higher. China expands the scope of its bank stress test and UK looks for ways to increase lending to small businesses. Export growth in Japan declined.[/R]

U.S. stocks traded higher and majority stocks in the Dow Industrial Average and S&P 500 index gained. Copper closed higher and wheat closed near the recent highs. Broader market indexes traded near the 3-month high as investors speculate on the need for another stimulus.

Digital Globe Inc and GeoEye Inc surged after U.S. intelligence agency awarded contracts worth $7.3 billion. Hewlett Packard dropped after it ousted its chief executive. Berkshire Hathaway said second quarter net to fall 40%.

China Electric Motor, Inc second quarter sales increased 13.3% and net surged 93%. Dish Network Corporation second quarter net increased 9.1% and net surged 30.7%. Berkshire Hathaway second quarter net declined 40%.

The European indexes trade higher after a rise in resource and bank stocks. Fitch affirms Romania''s debt with a stable outlook. Euro-zone investor confidence soars in August. German trade surplus and export growth rises in June. Spanish corporate bankruptcies decline in the second quarter.

The UK indexes climb after resource stocks lead gainers. Six UK banks form a taskforce to facilitate business credit lending. AstraZeneca agrees for $198 million settlement in Seroquel product liability litigation. Costain Group wins £130 million Bond Street tube station expansion contract.

Stocks in Japan dropped on slowing export growth and worries that a slowdown in China may affect exports in the second half. Trade surplus drops unexpectedly in June. Toyota starts Tacoma output at its Texas facility. Itochu Corp acquires 2.75% stake in Aston Resources Pty Ltd, Australian company in the process of public offering.

Stocks in China region gained after trading volatile in the session. China regulators start stress tests that include sharp fall in home prices and a decline in earnings at steel and cement makers. SFC in Hong Kong permits yuan-dominated fund. China cancels preferential power prices for energy intensive industries.

Sensex index in Mumbai gained 1.4% tracking gains in international markets. Real estate developers led gainers and India Bulls won Mumbai land auction for $330 million price. Life Insurance Corporation plans to invest as much as $5 billion in financial markets.

Stocks in Australia gained after a rally in the resource sector helped the index close higher. Aston completes book build for its initial public offering. Jobs placement ads rise in July. Home loan approvals fell in June.

Commodities, Currencies and Yields

Dollar edged lower against euro to $1.322 and fell against the Japanese yen to 85.84.

Crude oil increased $0.77 to $81.47 a barrel for a front month contract, natural gas edged lower 15 cent to $4.31 per mBtu and gasoline increased 0.89 cent to 212.16 cents.

Gold decreased $2.30 in New York trading to close at $1,203.00 per ounce, silver decreased $0.15 to $18.32 per ounce and copper for the front month delivery increased 2.20 cents to $3.36 per pound.

Yields on 10-year U.S. bonds decreased to 2.82% and on 30-year U.S. bonds increased to 4%.