U.S. Indexes Fall, European Markets Rise

Bikram Pandey
26 Aug, 2010
New York City

The broader indexes declined in five of the last six session and the economic worries remain top concern of retail investors. U.S. jobless claims declined in the last week but European indexes rebounded after better than expected earnings from Credit Agricole and L

[R]4:00 PM New York – The broader indexes declined in five of the last six session and the economic worries remain top concern of retail investors. U.S. jobless claims declined in the last week but European indexes rebounded after better than expected earnings from Credit Agricole and L’Oreal. Also, lending to corporations rose at the fastest pace in July in Europe.[/R]

U.S. stocks struggled after jobless claims declined more than estimated but late monthly mortgages payment rose. U.S. stocks rose after weekly jobless claims fell 31,000 to 473,000. The broader indexes declined in five of the last six session and the economic worries remain top concern of retail investors.

Chilean President agreed to sell TV network to Time Warner. Google unveiled voice calling service. Mazda and Ford joint venture plan to invest $350 million in Thailand. Novartis acquired 77% stake in Alcon for $28.3 billion.

Patterson Cos. Declined after it missed revenues estimates. Jo-Ann Stores Inc surged more than 13% after it lifted fiscal 2011 earnings estimate.

Guess Inc second quarter sales increased 10.5% and net gained 12%. Heico Corp third quarter sales increased 18% and net surged 34%. JDS Uniphase revenues increased 43% and turned to profit of $1.5 million. Jo-Ann Stores returned to profit on quarterly revenue increase of 4.5%.

The European indexes gained after Euro-zone lending and leading indexes rose in July and M3 money supply growth was flat. The ECB said net lending to corporations rose at the fastest pace in July. Novartis acquired 77% stake in Alcon.

The UK indexes climbed after August retail sales rose. The Financial Services Authority suggested that UK firms should hold more capital against risks. G4S agreed to buy 51% stake in Brazil-based Plantech.

Diego plc full year net sales increased 5% and net climbed 2%. G4S plc first half net revenues increased 4.3% and net advanced 4.1%. Kazakhmys plc first half revenues increased 36% and net gained 11%. Segro Plc first half sales increased 35% and net climbed 11%.

Stocks in Japan traded higher for the first time in five days helped by a weakened but steady yen. Ozawa decides to challenge Kan for the ruling party leadership. Domestic shipments of solar cells and personal computers rise in Japan.

Stocks in China dropped after choppy trading in international markets. Geely Automobile Holdings Ltd first half net surged 35% and Cosco Shipping Co net surged 54%. Alibaba.com completes its second acquisition.

India control oil companies will not bid for Cairn India stake. India will float $11 billion fund by the next fiscal year to finance large infrastructure projects. A modest decline in inflation was recorded in the latest read.

Stocks in Australia rallied after Woolworth net increased 10.1% to A$2 billion and said it will buyback A$700 million shares. Santos Ltd is planning $15 billion LNG project in Queensland. Wealth manager 100F Holdings full-year net surged four-fold.

Commodities, Currencies and Yields

Dollar edged lower against euro to $1.27 and gained against the Japanese yen to 84.44.

Crude oil increased $0.85 to $73.37 a barrel for a front month contract, natural gas edged lower 4 cents to $3.83 per mBtu and gasoline increased 4.33 cents to 190.72 cents.

Gold decreased $1.60 in New York trading to close at $1,239.70 per ounce, silver decreased $0.07 to $18.99 per ounce and copper for the front month delivery increased 8.40 cents to $3.31 per pound.

Yields on 10-year U.S. bonds decreased to 2.50% and on 30-year U.S. bonds yields fell 3.53%.