U.S. Indexes Higher After a Wild Week

Bikram Pandey
12 Aug, 2011
New York City

The U.S. indexes jumped higher for the second day in a row after a turbulent week that saw indexes bounce up and down over 4%. For the week, the S&P 500 index fell 1.7%, declined 9% in the month and dropped 6% in the year so far.

[R]4:30 PM New York – The U.S. indexes jumped higher for the second day in a row after a week of chaos that saw indexes bounce up and down over 4%. For the week, the S&P 500 index fell 1.7%, declined 9% in the month and dropped 6% in the year so far.[/R]

U.S. indexes gained after retail sales rose 0.5% in July. France, Italy, Spain and Belgium banned short-selling of financial stocks. The French economy recorded zero growth in the second quarter. The EU/IMF approved €11.5 billion aid to Portugal.

DeVry fourth quarter net income increased 5% to $75.2 million. J. C. Penney reported second quarter net income flat to $14 million. Nordstrom second quarter net income increased 20% to $175 million. Nvidia second quarter net income rose to $151.6 million.

European indexes traded higher after France, Italy, Spain and Belgium banned short-selling of financial stocks. The French economy recorded zero growth in the second quarter prompting worries of credit rating. ThyssenKrupp quarterly net declined 22%.

Euro area industrial output decelerated in June. French economy remained flat but payroll employment rose in the second quarter. Spain inflation slowed to 3.1% in July. Hungary industrial output slowed and Italian deficit narrowed in June.

The UK indexes rose led by banks. Normality returned in the UK after four days of arson and looting. France, Italy, Spain and Belgium banned short-selling of financial stocks. The UK construction output grew 2.3% in the second quarter, more than the initial estimate.

Stocks in Japan edged down and the Nikkei index fell 3.6% after a volatile week of trading. The government lowered its economic outlook in the current year to 0.5% from 1.5% on the persistent supply chain and production problems after the earthquake and power shortage. Banks are down 20% in the year.

Australian stocks traded higher and after a week of volatile trading closed up 1.6%. The benchmark index is down 12% in the year so far and 16% lower from its peak in April. The index inched near 5,000 in April of 2010 and 2011 but failed to reach the psychologically important milestone.

Commodities, Bonds and Currencies

The 10-year U.S. bond yield decreased to 2.24% and 30-year U.S. bond closed down at 3.71%.

The U.S. dollar decreased at $1.4251 to one euro and closed flat against the Japanese yen to 76.81 yen.

Immediate delivery futures of Texas crude oil decreased $0.44 to $85.28 a barrel and futures of natural gas increased 0.04 cents to $4.06 per mbtu and gasoline price decreased 81 cents to 281.92 cents a gallon.

In metals trading, copper increased 1.95 cents to $4.01 per pound, gold decreased $8.10 to $1,743.40 per ounce and silver increased $0.40 to $39.07.