Dow Down 4%; Gold Up 5.6%

Bikram Pandey
31 Aug, 2010
New York City

U.S. stocks traded sideways and crude oil and copper declined. For the month, the Dow declined 4% and the Nasdaq index fell 6%. Gold increased 5.6% and crude oil declined nearly 9%. Market index in Japan declined 7.5% in August as the yen rallied 6%.

[R]4:15 PM New York – U.S. stocks traded sideways and crude oil and copper declined. For the month, the Dow declined 4% and the Nasdaq index fell 6%. Gold increased 5.6% and crude oil declined nearly 9%. Market index in Japan declined 7.5% in August as the yen rallied 6%.[/R]

U.S. stocks trade lower on worries of slowdown in global economic recovery. Obama urged Senate to approve small business bill that will allow increased lending at community banks.

HSBC finalized auto loan portfolio sale to Santander for $3.56 billion. Hewlett-Packard agreed to pay $55 million to settle kickbacks case.

Research In Motion Ltd declined more than 2%. DSW Inc declined after second quarter net doubled and Dollar General Corp declined after second quarter net soared 51%. The Bank of Nova Scotia net income rose 14%. SWS Group fourth quarter revenues fell 10% and net surged 49%.

The European markets declined after euro-zone inflation eased to 1.6% in August. The euro area unemployment rate rose to a twelve-year high in July. The OECD annual inflation increased in July. German jobless rate remained stable at 7.6% in August.

Carrefour SA first half net sales increased 6% and returned to profit to €82 million. Hermes International SA, the luxury fashion retailer net profit soared 55% to €194.6 million.

The UK indexes slid after consumer confidence rose in August. The UK M4 money supply growth eased, mortgage approvals rose and lending fell in July. Endeavour International agreed to sell Cygnus asset for $110 million.

Bunzl plc first-half revenue grew 2.6% and net profit rose 7%. Grafton Group Plc revenues declined 1.1% and net nearly tripled. Afren Plc sales increased 38% and swung to net profit in the first half to $50.72 million.

Stocks in China region fell after a report said personal incomes fell in the U.S. Profits of large and midsize steelmakers in China slumped in July. First half profits at Guangzhou Auto surged three-fold.

Stocks in Japan plunge to the year-to-date low and for the month dropped 7.5%. Industrial output, retail sales, and housing starts rise in July. JAL submits a rehab plan to the court. Monthly wages increased 1.3% in July.

India reported GDP in the fiscal first quarter ending in June expanded at the fastest rate in ten quarters. The growth in manufacturing and mining industries led the expansion as exports growth trailed the domestic consumption. Stocks fell on the worries that interest rates may have to rise faster than expected to combat elevated inflation.

The benchmark index in Australia fell more than 1% ignoring positive economic data and tracked losses in Japan and international markets. Retail sales and building approvals rise in July. Gross operating profits at companies rises in second quarter. Perth records the second driest winter on record.

Commodities, Currencies and Yields

Dollar edged lower against euro to $1.267 and fell against the Japanese yen to 84.01.

Crude oil decreased $2.97 to $71.73 a barrel for a front month contract, natural gas edged lower 1 cents to $3.81 per mBtu and gasoline decreased 4.47 cents to 188.94 cents.

Gold increased $8.20 in New York trading to close at $1,247.40 per ounce, silver increased $0.27 to $19.34 per ounce and copper for the front month delivery dropped 6.75 cents to $3.36 per pound.

Yields on 10-year U.S. bonds declined to 2.47% and on 30-year U.S. bonds yields declined 3.52%.