U.S. Stocks Finish Higher; Commodities Slip

Bikram Pandey
19 May, 2011
New York City

U.S. stocks traded sideways as tech stocks displayed positive momentum. Investors questioned the surging valuation of the latest Internet public offering LinkedIn. Economic data suggested halting and slow recovering in manufacturing and home sales. Commodities fell and the dollar eased.

[R]4:00 PM New York – U.S. stocks traded sideways as tech stocks displayed positive momentum. Investors questioned the surging valuation of the latest Internet public offering LinkedIn. Economic data suggested halting and slow recovering in manufacturing and home sales. Commodities fell and the dollar eased against the euro.[/R]

U.S. stocks seesawed after regional economic survey in mind-Atlantic region showed weak manufacturing activity and existing home sales in April were weaker than expected. LinkedIn public offering soared on the first day of offering. French leaders worked to curtain the fallout from the Dominique Strauss-Kahn scandal.

In earnings news, Advance Auto Parts first quarter net income grew to $109.6 million. Dollar Tree first quarter net income surged to $101.0 million. Limited Brands first quarter net income soared to $165.2 million. Sears Holdings reported first quarter net loss of $170 million. The Buckle first quarter net income increased to $33.5 million.

Across Atlantic, European markets closed higher after commodities and resource linked stocks advanced. Glencore International closed up 2% on its first day of trading. Richemont declined after it reported lower than expected earnings. Pandora A/S plunged 15% after it increased prices of jewelry.

In Asia, Stocks in Japan declined after the economy shrank at 3.7% annual rate in the fourth quarter and fell for the second quarter in a row. The two quarters of decline in a row pushed the economy in recession. Renesas Electronics reported annual net loss in line with expectations.

Stocks in Australia rebounded after commodities gained and the Australian dollar rebounded. Resource stocks led the recovery. Brambles increased after it reported nine-month sales increased 5% and reaffirmed full year outlook. James Hardie said operating net declined 12% excluding one-time tax related charges.

Commodities, Bonds and Currencies

The 10-year bond yield decreased to 3.17% and 30-year bond rose to 4.30%.

The U.S. dollar decreased to $1.43 to a euro and fell against the Japanese yen to 81.56 yen.

Immediate delivery futures of Texas crude oil decreased $1.64 to $98.46 a barrel, of natural gas decreased 0.09 cents to $4.10 per mbtu and gasoline prices decreased 3.52 cents to 292.03 cents a gallon.

In metals trading, copper prices decreased 6.65 cents to $4.03 per pound, gold decreased $3.40 to $1,492.40 per ounce and silver decreased $0.26 to $34.83.