U.S. Indexes Rise on Jobs Outlook; Gold, Oil Advance

Bikram Pandey
07 Jul, 2011
New York City

U.S. indexes closed higher after a private survey estimated private sector payrolls increased 156,000 in June and weekly jobless claims fell 14,000. The larger than estimated increase in private sector lifted the Nasdaq and S&P 500 indexes more than 1%. Gold and crude oil advanced.

[R]4:00 PM New York – U.S. indexes closed higher after a private survey estimated private sector payrolls increased 156,000 in June and weekly jobless claims fell 14,000. The larger than estimated increase in private sector lifted the Nasdaq and S&P 500 indexes more than 1%. Gold and crude oil advanced.[/R]

U.S. indexes traded higher after weekly jobless claims fell 14,000 and U.S. private sector employment rose more than anticipated and non-manufacturing index declined in June.

According to the ADP survey, private sector payrolls increased 156,000 in June more than expected below 100,000.

U.S. chain stores reported better than expected same store sales in June. Costco Wholesale Corp, Limited and Target Corp reported sales better than estimated.

The European Central Bank lifted key rates to curb inflation and also offered more credit to Portugal and drew a hard line on Greece’s debt.

In merger news, NYSE Euronext gained 3% after shareholders approved merger with Germany based Deutsche Borese AG.

AAR fourth quarter net income soared 32% but A. Schulman third quarter net income fell 28%. International Speedway second quarter sales fell. Lumber Liquidators revised expected net sales of second, third and fourth quarters.

German industrial production rose more than estimated and French trade gap widened in May. Czech trade surplus rose and Bulgarian retail sales increased in May. Swiss annual inflation climbed in June.

The UK indexes rose after the Bank of England held its key rate unchanged at 0.5% and maintained bond purchase program at £200 billion. The UK manufacturing output increased in May. WH Smith plunged 4.6% after the retailer reported a 1% drop in total group sales.

Stocks in Japan halted a 7-day rally on fresh power supply worries. Trade ministry asked all nuclear power plants to undergo a stress test that may delay the resumption of many power plants and extend rolling power cuts this summer.

Australian stocks closed flat after the June employment reports showed stronger than expected job growth. Employers added 23,400 new jobs in June and unemployment hovered near 4.9%. Commodities and Australian dollar gained lifting resource linked stocks.

Commodities, Bonds and Currencies

The 10-year U.S. bond yield increased to 3.125% and 30-year U.S. bond traded increased to 4.375%.

The U.S. dollar decreased at $1.4309 to one euro and fell against the Japanese yen to 80.90 yen.

Immediate delivery futures of Texas crude oil increased $1.86 to $98.51 a barrel and futures of natural gas decreased 0.06 cents to $4.15 per mbtu and gasoline price increased 11.93 cents to 311.69 cents a gallon.

In metals trading, copper decreased 10.20 cents to $4.43 per pound, gold soared $3.00 to $1,532.20 per ounce and silver increased $0.63 to $36.55.