S&P 500 Index Up 4.2%; Modest Gains in Gold, Oil

Devan Biswas
10 Sep, 2010
New York City

U.S. stocks closed higher after a rally in the early afternoon. International Energy Agency lifted the global demand for oil but cautioned significant downside risks. For the week, the Dow closed up 3.1% and the S&P 500 index by 4.2%. Markets in Japan closed higher for the second week in a row.

[R]4:00 PM New York – U.S. stocks closed higher after a rally in the early afternoon. International Energy Agency lifted the global demand for oil but cautioned significant downside risks. For the week, the Dow closed up 3.1% and the S&P 500 index by 4.2%. Markets in Japan closed higher for the second week in a row.[/R]

U.S. stocks advance after concerns eased on global economic recovery but inventories at wholesalers rose at the fastest pace in two years in July. IEA cautioned slowdown in global oil demand.

3M agreed to acquire Arizant for $810 million and Texas Instruments Inc lifted annual revenues and earnings outlook.

Aceto Corp fiscal fourth quarter net sales increased 41% and net gained three fold. Brady Corp quarterly net sales increased 12.4%. John Wiley & Sons, Inc first quarter net sales increased 5% and net surged 64%. Lululemon Athletica Inc quarterly net more than doubled.

National Semiconductor Corp dropped 4% after it forecasted lower than estimated second quarter sales. Lululemon Athletica Inc spared 10% after the athletic wear maker reported sharply higher quarterly earnings. TRW Automotive Holdings dropped after a group of shareholders plan to sell shares.

The European indexes fell after EU current account deficit widened in the second quarter. The ECB President Jean Claude Trichet reiterated credit measures essential for euro area recovery. IfW raised German growth outlook. French industrial output improved in July.

The UK indexes traded sideways after producer prices inflation eased in August. Irish manufacturing output rose in July and weekly earnings fell in the first quarter. Morgan Sindall acquired ongoing contracts and related assets of Connaught plc.

JD Wetherspoon plc fiscal 2010 revenues increased 4.3% and net profit nearly doubled. Laura Ashley Holdings plc first-half revenue increased 5.7% and net surged more than eight fold.

Stocks in Japan gained on a weaker yen to post the second weekly gain in a row. Government announced a 915 billion yen stimulus. Office vacancy rises in August but machine tool orders surged 170% in the month.

Stocks in China region traded higher after August trade surplus increased 25%. Shanghai Pharmaceutical Holding Co plans to list in Hong Kong to raise as much as $1 billion. Metropolitan homes prices rose at a slower pace. Iron ore imports in August dropped 13%.

Markets in India were closed.

The benchmark index in Australia failed to build on gains in international markets. Competition regulator blocks Virgin Blue and Air New Zealand alliance. Export of coal from Newcastle rises in the week ending September 6.

Commodities, Currencies and Yields

Dollar edged higher against euro to $1.27 and fell against the Japanese yen to 83.88.

Crude oil increased $2.16 to $76.41 a barrel for a front month contract, natural gas edged higher 0.11 cent to $3.88 per mBtu and gasoline increased 3.6 cents to 197.14 cents.

Gold decreased $4.90 in New York trading to close at $1,246.00 per ounce, silver declined $0.005 to $19.85 per ounce and copper for the front month delivery fell 3.45 cents to $3.41 per pound.

Yields on 10-year U.S. bonds increased to 2.79% and on 30-year U.S. bonds yields edged up 3.87%.