Nasdaq Leads September Rally with 11.7%

Bikram Pandey
01 Oct, 2010
New York City

U.S. stocks opened higher but declined in the early afternoon and struggled to rebound. Three popular indexes surged between 8% and 12% in September. Crude oil gained more than 2% for the second day in a row and gold and silver traded elevated as the dollar edged lower.

[R]4:00 PM New York – U.S. stocks opened higher but declined in the early afternoon and struggled to rebound. Three poplar indexes surged between 8% and 12% in September. Crude oil gained for the second day more than 2% and gold and silver traded elevated as the dollar edged lower. Dollar Thrifty shareholders rejected $1.5 billion offer from Hertz.[/R]

U.S. stocks rose after weekly jobless claims fell 16,000 to 453,000 and second quarter GDP growth was revised to 1.7%. AIG agreed to sell Japan-based life insurance units to Prudential for $4.8 billion. Covance and Sanofi-Aventis agreed on 10-year R&D alliance.

U.S. indexes surged in September as investors returned. S&P 500 index increased 8.8%, the Dow gained 7.8% and the Nasdaq surged 11.7%.

Satyam Computer fiscal year revenues declined 38% but net loss narrowed. Omnova Solutions third quarter sales increased 22.5%. McCormick & Company quarterly net increased 36%. Worthington Industries, Inc. quarterly net more than doubled.

The European indexes advanced after French PPI eased in August and German unemployment fell in September. Spain debt was downgraded with a stable outlook. Euro area annual inflation rose in September.

The UK indexes traded lower after home prices rose and consumer confidence slumped in September. Ireland raised Anglo Irish bailout estimate. AIG agreed to sell Japan-based life insurance subsidiaries to Prudential Financial for $4.8 billion.

Stocks in Tokyo trading declined sharply after indexes fell in Europe and the yen hovered near recent highs. For the month, Nikkei increased 1.7% trailing the gains in other markets. Domestic auto output, vehicle exports and retail sales grew, while factory output drops marginally in August. Japan develops a vehicle motor that does not depend on rare earth metals.

Stocks in Shanghai gained as home builders and banks led gainers. Hong Kong stocks declined after Goldman Sachs sold stake in ICBC. China introduces new measures to curb property speculation. U.S. slaps tariff on China products and blamed unfair currency practices.

The benchmark index in Mumbai gained 0.6% and closed up 11.3% in September and soared 14.9% for the year. The index is trailing the record by 4% established on January 11, 2008. Inflation continues to haunt policy makers.

Stocks in Sydney fell on the worries that a slowdown in home sales may affect banks. In addition a plan by a rating agency to stress test bank portfolio for mortgage securities. Drop in new home building approvals brings down the Australian dollar from its near two-year high level. August Job vacancies climb by 4.4% from a year ago.

Commodities, Currencies and Yields

Dollar edged lower against euro to $1.362 and fell against the Japanese yen to 83.50. One UK pound fetched $1.57.

Crude oil increased $2.03 to $79.89 a barrel for a front month contract, natural gas edged lower 0.09 cent to $3.86 per mBtu and gasoline increased 4.45 cents to 204.40 cents.

Gold decreased $0.70 in New York trading to close at $1,309.60 per ounce, silver fell $0.13 to $21.83 per ounce and copper for the front month delivery decreased 0.30 cents to $3.658 per pound.

Yields on 10-year U.S. bond yield increased to 2.51% and on 30-year U.S. bond yield was unchanged at 3.69%.