S&P 500, Dow Indexes at 2-Year Highs; AT&T Lifts Dividend

Bikram Pandey
17 Dec, 2010
New York City

U.S. retailers were in focus as investors revise higher holiday sales expectations. The index of leading indicators increased in November as economic momentum builds. AT&T lifted dividend 2.4% and planned to buyback 300 million shares. For the week, the Dow up 0.8% and the S&P 500 added 0.4%.

[R]4:00 PM New York – U.S. retailers were in focus as investors revise higher holiday sales expectations. The index of leading indicators increased in November as economic momentum builds in the U.S. AT&T lifted its dividend 2.4% and said will buyback 300 million shares. European indexes struggled as yields hovered near elevated levels in the region.[/R]

U.S. stocks traded sideways as the index of leading economic indicators increased in November indicating that the economic momentum is building. The index tracked by the Conference Board increased 1.1% after a revised 0.4% gain in October.

The U.S. Congress voted in favor of the tax cut bill and the EU leaders agreed on permanent rescue fund.

American Express agreed to acquire Munich-based Loyalty Partner. BMO Financial acquired Marshall & Ilsley for $4.1 billion.

Accenture, first quarter total revenues increased 13% to $6.48 billion. ITT Corp. forecast total revenue for fiscal 2011 approximate $11 billion. Oracle, second quarter revenues surged 47% to $8.58 billion. Research In Motion, third quarter revenue increased 40% to $5.49 billion.

The European indexes fell after euro-zone trade surplus exceeded in October. The EU decided to set up a permanent bailout mechanism. German business confidence rose in December. The IMF noted recovery in the Danish economy.

The UK indexes declined after Moody’s slashed Ireland’s credit rating and UK consumer confidence deteriorated in November. The IMF sanctioned €22.5 billion loan for Ireland. RBS agreed to sell project finance assets worth £3.9 billion to Japan''s BTMU.

Tokyo stocks stayed flat amid softer yen and debt worries from Europe. Nippon Sharyo and Sumitomo get railcar orders worth $4.8 billion from the United States. Smartphone sales expected to surge 190% this year. Japan expects to hike taxes on fossil fuel from next October.

China key stock indexes drop on inflation concerns. China and India agree to boost trade to $100 billion by 2015. Throughput at Shanghai port surges 22% in November. China’s piped import of natural gas touches 4 billion cubic meters in the first year.

Australian stocks edged down led by banks and lower mining stocks. Santos sells 15% stake in Gladstone LNG for A$665 million to fund the project. Western Australia revises its full year budget surplus upwards. Reserve Bank of Australia plans a liquidity facility to help banks conform to Basel norms.

Commodities, Currencies and Yields

Dollar edged up against euro to $1.31 and dropped against the Japanese yen to 83.89. One UK pound fetched $1.55.

Crude oil increased $0.46 to $88.17 a barrel for a front month contract, natural gas edged lower 2 cents to $4.07 per mBtu and gasoline decreased 2.5 cents to 232.95 cents.

Gold increased $4.30 in New York trading to close at $1,375.30 per ounce, silver increased $0.41 to $29.19 per ounce and copper for the front month delivery decreased 5.30 cents to $4.17 per pound.

Yield on 10-year U.S. bond decreased to 3.34% and on 30-year U.S. bond yield fell to 4.43%.