U.S. Indexes Close Higher; Hurricane Irene Worries

Bikram Pandey
26 Aug, 2011
New York City

U.S. indexes traded higher and gold and silver gained. Crude oil declined after Hurricane Irene approached East Coast of the U.S. Financial markets and government offices shut down early in the preparation of storm. Fed Chairman Bernanke offered no new measures to stimulate the economy.

[R]2:30 PM New York – U.S. indexes traded higher and gold and silver gained. Crude oil declined after Hurricane Irene approached East Coast of the U.S. Financial markets and government offices shut down early in the preparation of storm. Fed Chairman Bernanke offered no new measures to stimulate the economy.[/R]

U.S. indexes advanced more than 1% in a shortened trading session after economic growth estimate was lowered to 1% and consumer sentiment dropped to the level last seen in November 2008.

Fed Chairman Ben S. Bernanke in a widely anticipated speech noted the strength of the U.S. economy and said that recent shocks have not fundamentally altered the economy. Bernanke also did not announce any new measures to stimulate the economy and focused his comments on the fiscal policy and not on monetary policy.

BHP Billiton completed acquisition of Petrohawk Energy. Tiffany quarterly net soared 33% on revenues rise of 30%.

Aruba fourth quarter net income rose to $68.2 million. Micros fourth quarter net income soared to 22.6% to $41.5 million. Royal Bank of Canada reported third quarter net loss of C$156 million. Tiffany second quarter net earnings increased 33% to $90.04 million.

European indexes declined for the second day in a row on the growing sentiment that Germany and France may lose their highest debt rating. Italy sold €8.5 billion of six-month treasury bills at lower yield. Portugal contemplated levying a special tax on high income earners. Transocean launched unconditional offer for Aker Drilling.

Euro-zone money supply improved, French jobless rate rose, German import prices increased and Swedish surplus climbed in July. Swiss economic indicator fell in August. Spain’s GDP expanded 0.2% in the second quarter from the previous quarter.

The UK indexes edged lower after economic growth slowed to 0.2% in the second quarter and service output increased in June. Home prices in England and Wales declined in July. Daimler and Rolls-Royce received final approval for Tognum acquisition.

Stocks in Japan wavered as Prime Minister Naoto Kan resigned and paved the way for the sixth prime minister in five years. The yen flirted near recent highs and banks and exporters traded volatile.

Stocks in Australia traded lower and the benchmark index declined 2.4% in the week. Lend Lease Group fiscal year net soared 43% on 15% lower revenues. The exchange operator ASX Ltd replaced its chief executive. Fairfax Media swung to an annual loss and will list its New Zealand based auction site Trade Me.

Commodities, Bonds and Currencies

The 10-year U.S. bond yield decreased to 2.19% and 30-year U.S. bond traded fell to 3.53%.

The U.S. dollar decreased at $1.4478 to one euro and closed lower against the Japanese yen to 76.70 yen.

Immediate delivery futures of Texas crude oil decreased $0.11 to $85.41 a barrel and futures of natural gas increased 0.01 cents to $3.93 per mbtu and gasoline price decreased 3.41 cents to 293.4 cents a gallon.

In metals trading, copper increased 1.75 cents to $4.115 per pound, gold increased $47.30 to $1,810.50 per ounce and silver increased $0.43 to $41.23.