U.S. Stocks Halt 3-day Fall; LinkedIn Sets IPO Price at $45

Bikram Pandey
18 May, 2011
New York City

U.S. stocks closed higher after losing for three days. LinkedIn finalized its public offering to raise $353 million and set its price of $45 a share. Glencore International Plc, the commodities trader is expected to price its offering 530 pence a share.

[R]5:50 PM New York – U.S. stocks closed higher after losing for three days. LinkedIn finalized its public offering to raise $353 million and set its price of $45 a share. Glencore International Plc, the commodities trader is expected to price its offering 530 pence a share.[/R]

U.S. stocks edged lower as weak sentiment affected trading but market staged a reversal in the afternoon as closed higher after losing for three days in a row. Commodities advanced and crude oil gained 2%.

Earnings were in focus. Target earnings gained 2.7% and Dell soared after earnings advanced. Deere & Co quarterly net rose 65%.

LinkedIn Corp completed the sale of 7.84 million shares at $45 each according to a company statement. The company raised its offer price range to $42 to $45 a share from $32 to $35 a share. The business professional network platform raised $352.8 million

Analog Devices first quarter net earnings increased to $241.8 million. BJ’s first quarter net income rose to $33.7 million. Dell first quarter net income surged 177% to $945 million. Staples first quarter net income grew 5% to $198 million. Target first quarter net earnings rose 3% to $689 million.

European markets traded sideways as resource linked stocks gained but banks were under pressure. European Union officials intensified campaign and said Greek default is not an offensive. Bank of Spain said bad loan ratio declined to 6.11% in March from 6.2% in February.

UK stocks traded higher after commodities gained and real estate sector stocks advanced. Land Securities said pre-tax annual net rose 15%. Fashion apparel retailer FCUK said first quarter sales rose 3.6%.

The benchmark index in Tokyo jumped 1% after several news hinted at the recovering industrial climate and improving power condition in the central Japan industrial belt. Renesas Electronics may resume its production in June and reach full capacity by October but company sources deny the time table.

Stocks in Mumbai traded sideways as investors digested rising earnings from Bajaj Auto and Bajaj Finserv. However, market was unnerved after the State Bank of India reported 99% drop in earnings. Reliance Industries fell after a report indicated gas production may not increase for three more years.

The Australian benchmark index gained as the first quarter wages increased 0.8% from the previous quarter and gained 3.8% from a year ago. Graincorp soared 5% on takeover talks and Tully Sugar shareholders approved the change that will facilitate the takeover.

Commodities, Bonds and Currencies

The 10-year bond yield increased to 3.18% and 30-year bond rose to 4.29%.

The U.S. dollar decreased to $1.424 to a euro and fell against the Japanese yen to 81.69 yen.

Immediate delivery futures of Texas crude oil increased $3.19 to $100.10 a barrel, of natural gas increased 0.016 cents to $4.19 per mbtu and gasoline prices increased 3.62 cents to 295.55 cents a gallon.

In metals trading, copper prices increased 10.65 cents to $4.10 per pound, gold increased $15.80 to $1,495.80 per ounce and silver increased $1.60 to $35.09.