U.S. Consumer Confidence Rises; GE Lifts Dividend Again

Bikram Pandey
11 Dec, 2010
New York City

U.S. trade deficit declined to a two-year low after exports rose on a falling dollar. Exports rose on the strong demand from emerging markets including China, Mexico and Brazil. General Electric increased its quarterly dividend 17% to 14 cents, second increase in the year.

[R]4:00 PM New York – U.S. trade deficit declined to a two-year low after exports rose on a falling dollar. Exports rose on the strong demand from emerging markets including China, Mexico and Brazil. General Electric increased its quarterly dividend 17% to 14 cents, and its second increase in the year.[/R]

U.S. stocks gained after U.S. trade deficit contracted in October but export prices surged in November. The larger than expected decline in trade deficit weighed heavily on the trading sentiment. The preliminary read on the consumer sentiment showed an increase as tracked by the Thomson Reuters/University of Michigan survey.

The consumer sentiment index increased to 74.2 in December from 71.6 at the end of November.

The Build America Bond program, the vastly popular municipal bonds subsidized by the federal government may come to an end at the end of the year. The latest push by the Senate Democrats failed to win enough support to extend the program in the current tax bill compromise.

The program has been in place since April 2009 and was created under President Barrack Obama and securities of $179 billion are issued by several states and municipalities.

Beckman Coulter contemplated sale on buyout offers. Sinopec agreed to acquire Occidental Petroleum's Argentinean assets for $2.45 billion.

Brown-Forman second quarter net sales increased 1.4%. E. I. du Pont estimated higher sales but earnings trailed estimates. Ferrellgas first quarter net sales increased 14%. Vail Resorts first quarter net sales soar.

The European indexes traded sideways after German inflation rose in November and French manufacturing slumped in October. Hungarian inflation remained flat in November and Swedish industrial production rose less than anticipated in October.

The UK indexes traded mixed after home prices rose in November. Various home price indexes have shown a diverging picture in the UK real estate market. Irish manufacturing output growth slackened. Flybe Group PLC began trading in London and raised £215 million.

The Nikkei index in Tokyo declined from the seven-month high but closed higher for the sixth week in a row. Economy in the quarter to September expanded at a faster rate of 4.5%. Pola Orbis struggled on the first day of trading. Machine tool orders double in November.

China key stock index gains in trade to reverse most of the losses in the week. Trade surplus in the month rose to $22.9 billion and exports soared 35%. China freezes coal prices at current levels to arrest inflation.

Stocks in Mumbai gained more than 1% after industrial production surged 10.8% in October following a 4.4% increase in September. Canada’s Bombardier gets order for $446 million from SpiceJet.

Apollo Hospitals is looking to raise as much as $200 million. Bulk trading lifted ACC Limited, Century Enka Limited and Tata Elxis Ltd. Nagarjun Construction soared after it won several orders. Kalpataru Power Transmission Limited won $150 million of orders.

Commodities, Currencies and Yields

Dollar edged up against euro to $1.32 and rose against the Japanese yen to 83.89. One UK pound fetched $1.58.

Crude oil decreased $0.73 to $87.64 a barrel for a front month contract, natural gas edged lower 2 cents to $4.41 per mBtu and gasoline decreased 3.27 cents to 230.8 cents.

Gold decreased $6.10 in New York trading to close at $1,386.70 per ounce, silver decreased $0.09 to $28.72 per ounce and copper for the front month delivery decreased 2.35 cents to $4.11 per pound.

Yield on 10-year U.S. bond increased to 3.28% and on 30-year U.S. bond yield was unchanged at 4.41%.