U.S. Indexes Rebound; Comcast Wins NBC Universal Deal Approval

Bikram Pandey
18 Jan, 2011
New York City

U.S. indexes rebounded ahead of earnings this week. Citigroup declined after earnings were lower than expected. Asian markets rose from the three-week lows ahead of earnings from banks in the region. The International Energy Agency lifted its outlook for oil consumption.

[R]4:30 PM New York – U.S. indexes rebounded ahead of earnings this week. Citigroup declined after earnings were lower than expected. Asian markets rose from the three-week lows ahead of earnings from banks in the region. The International Energy Agency lifted its outlook for oil consumption.[/R]

U.S. indexes rose and Apple CEO Steve Jobs sought medical leave. The U.S. approved the merger between Comcast and NBC Universal. The European ministers worked to develop alternative financing plans for struggling economies.

The IEA raised oil demand forecast for 2011. Massmart board approved proposed acquisition by Wal-Mart. Comerica agreed to acquire Sterling Bancshares in $1 billion all-stock deal. Danaher sold Pacific Scientific business for $685 million.

Citigroup fourth quarter total revenue surged to $18.4 billion. Delta Air fourth quarter operating revenue grew 14.3% to $7.79 billion. Forest Laboratories third quarter net revenues increased to $1.13 billion. TD Ameritrade first quarter net revenues rose 5% to $656.2 million.

The European indexes gained after finance ministers resolved to strengthen the region''s rescue fund and German economic sentiment index improved in January. Spain industrial orders surged in November. Axel Springer agreed to buy SeLoger.com for €634 million.

The UK indexes climbed after consumer confidence and annual inflation rose in December. RBS agreed to sell its unit to Advent International for £925 million. Pearson increased its stake in India-based TutorVista.

Shanghai stocks stayed little changed after dipping to a 15-week low on Monday. M&A activities surge 27% to more than $200 billion and FDI soars 17.4% to $105.74 billion in 2010. Profits at state-run enterprises soars 37.9% to 1.99 trillion yuan.

Japanese stocks rallied to push the Topix index up for the first time in three days. Toyota Motor resumes production at 11 plants after heavy snowfall on Monday. Russia based OAO Gazprom appoints Japan to construct a LNG plant near Vladivostok.

Stocks in Mumbai rallied more than 1% following sharply higher earnings from TCS, GAIL and Bajaj Finance. India led the global project finance deals at $81.4 billion in 2010.

Stocks in Sydney rebounded with a rise in financials, material and energy stocks. Australia appoints a business task force to help Queensland recover from flood ravages. While Brisbane returns to normal slowly, Victoria starts evacuations. Prices of thermal coal rises 5% as mines struggle to restart.

Commodities, Currencies and Yields

Dollar declined against euro to $1.338 and rose against the Japanese yen to 82.68. One UK pound fetched $1.596.

Crude oil increased $0.32 to $91.22 a barrel for a front month contract, natural gas edged lower 0.07 cents to $4.40 per mBtu and gasoline decreased 1.60 cents to 247.86 cents.

Gold decreased $5.70 in New York trading to close at $1,366.20 per ounce, silver increased $0.52 to $28.84 per ounce and copper for the front month delivery increased 1.35 cents to $4.42 per pound.

Yield on 10-year U.S. bond increased to 3.36% and on 30-year U.S. bond yield rose to 4.56%.