Stocks Surge Ahead of Obama Jobs Plan; Financials Soar 4%

Bikram Pandey
07 Sep, 2011
New York City

U.S. indexes surged more than 2% after banks and tech stocks led the recovery after a 3-day decline. The Fed

[R]4:00 PM New York – U.S. indexes surged more than 2% after banks and tech stocks led the recovery after a 3-day decline. The Fed’s latest regional survey indicated slowing economic activities in seven of its 12 regions. Italy and Greece were in focus in Europe.[/R]

Stocks in New York trading rose after a three-day sell-off and Fed’s regional survey noted that economic activities increased at a slower pace in seven of the twelve regions in its latest survey. The survey noted consumers limited their spending and factories curbed manufacturing.

Banks led the gainers after Bank of America replaced executives in its restructuring plan. Yahoo gained as much as 6% after its board replaced chief executive. Nvidia rose on positive outlook.

Altera updated third quarter sales guidance. Navistar third quarter net income surged to $1.4 billion. Nvidia anticipates revenue of $4.7 billion to $5.0 billion in fiscal year 2013. VimpelCom second quarter net income declined 29% to $239 million. VeriFone third quarter net income soared 42% to $26.3 million.

European markets rebounded and bond yields declined after German Constitutional Court affirmed the government’s authority to fund bailouts in the euro-zone. Italian Senate is expected to vote on austerity measures later today. SAP AG reaffirmed its earnings outlook. Richemont sales soar 35% in the first half.

The Nikkei index in Tokyo gained more than 2% after dropping 6% in a three day sell-off. Export and resource linked companies led the broad advance in the market. Social media sites soared on broker comments.

Australian GDP rose 1.2% in the second quarter after exports rebounded and coal shipments recovered from the lows during the natural disaster in the first quarter. Stocks surged more than 2% after the central bank governor issued a positive outlook on the economy.

Commodities, Bonds and Currencies

The 10-year U.S. bond yield increased to 2.05% and 30-year U.S. bond added to 3.36%.

The U.S. dollar increased at $1.408 to one euro and closed lower against the Japanese yen to 77.31 yen.

Immediate delivery futures of Texas crude oil increased $3.22 to $89.24 a barrel and futures of natural gas increased 0.01 cents to $3.948 per mbtu and gasoline price added 6.13 cents to 290.00 cents a gallon.

In metals trading, copper increased 7.60 cents to $4.13 per pound, gold dropped $56.30 to $1,817.50 per ounce and silver decreased $0.19 to $41.67.