U.S. Stocks, Gold, Oil Rise; Dollar Slides

Devan Biswas
13 Oct, 2010
New York City

U.S. stocks surged after JPMorgan Chase, CSX Corp and Intel reported better than expected earnings. The dollar declined further against the euro, the yen and the pound. Gold surged to a new record high and crude oil inched to $83 a barrel.

[R]4:00 PM New York – U.S. stocks surged after JPMorgan Chase, CSX Corp and Intel reported better than expected earnings. The dollar declined further against the euro, the yen and the pound. Gold surged to a new record high and crude oil inched to $83 a barrel.[/R]

U.S. stocks traded sideways in a choppy trading. CSX Corp traded higher after the rail network operator reported higher than expected earnings. Intel and JPMorgan Chase edged lower after reporting earnings. MGM Resorts plunged nearly 10% after it plans to raise as much as $500 million.

U.S. stocks gained on optimism about quantitative easing measures from the Fed and upbeat earnings from Intel and JPMorgan. U.S. import prices declined 0.3% and export prices rose 0.6% in September. Intel and JPMorgan reported quarterly earnings of 59% and 23% respectively.

The UK indexes rose after U.S. Fed comments and a rally that lifted world markets. Resource stocks closed higher. The UK consumer confidence deteriorated in September and unemployment fell but claimant count rose. Standard Chartered planned rights issue and raise as much as £7 billion.

Japanese stocks moved in a narrow range to close little changed. The yen weakens for the first time in five days but stayed near 15-year highs. Sale of used automobiles surges in September after the subsidies expired. Japan asks China and South Korea to act in concert to ensure stability in currency markets.

Stocks in China region rose after mainland China exports surged and foreign exchange reserves reached a record in September. China regulator vows to stop speculative money inflows. Hong Kong proposes to increase land supply for projects.

Stocks in Mumbai surged after foreign investors continued to increase stakes and the strength in the international markets. Coal India Ltd expects to raise as much as $3.8 billion in a public offering on strong demand form global investors.

Stocks in Australia stayed little changed after fluctuating several times. Consumer confidence rises in October. Resource stocks are expected to rise as iron ore prices increase ahead of rebuilding of stocks in China. Australian banks have sufficient capital to withstand 40% decline in home prices.

Commodities, Bonds and Currencies

Yields on 10-year bond increased to 2.43% and on 30-year bonds rose to 3.83%.

The U.S. dollar decreased to $1.396 to a euro and fell against the Japanese yen to 81.77 yen.

Immediate futures prices of Texas crude oil increased $1.30 to $82.96 a barrel, for natural gas added 0.07 cents to $3.70 per mbtu and gasoline prices increased 3.66 cents to 216.95 cents a gallon.

In metals trading, copper prices gained 3.3 cents to $3.83 per pound, gold increased $24.60 to $1,371.30 per ounce and silver advanced 76 cents to $23.91.