S&P 500 Index in 3-day Rally; Oil, Silver Up 3%

Bikram Pandey
06 Oct, 2011
New York City

The 3-day rally in the U.S. stocks lifted the S&P 500 index 7% and small cap focused Russell 2000 index 11%. The dollar hovered near the recent highs and oil extended gains in the second day to 9%. European markets added 3%.

[R]5:05 PM New York – The 3-day rally in the U.S. stocks lifted the S&P 500 index 7% and small cap focused Russell 2000 index 11%. The dollar hovered near the recent highs and oil extended gains in the second day to 9%. European markets added 3%.[/R]

U.S. stocks advanced in a cautious trading after weekly jobless claims increased but were lower than expected. Stocks surged in a late afternoon rally and the S&P 500 index gained 1.7% and the Nasdaq added 1.9%.

Apple Inc’s Chairman former chief executive died on Wednesday and worldwide tributes poured and recognized his contribution in making computing simplified and easier. Steve P. Jobs battled pancreatic cancer for the last eight years as he was enjoying the successful launch of three most popular products Apple released in the last three decades of its existence.

In the U.S. earnings news, Constellation Brands second quarter net income increased to $162.7 million. Helen of Troy second quarter net income rose to $23.6 million. Marriott reported third quarter net loss swung to $179 million. Ruby Tuesday first quarter Net income in the quarter declined 75% to $3.1 million.

European markets struggled at the opening but gained in the afternoon. European Central Bank left its key rate at 1.5% and the Bank of England expanded its bond buying program and left its key rate at 0.5%. The ECB also offered unlimited supply of loans to struggling banks for one year under covered bond program.

European leaders searched ways to recapitalize banks. The positive undertone for the market was driven on the hopes that France and Germany will accelerate the timetable for bank recapitalization that will restore market stability and financial system liquidity in the euro zone.

Stocks in Japan gained following a decline for four days in a row. Resource stocks and banks led the gainers. Aeon Co jumped 5% after it lifted its annual outlook. Sony Corp rebounded from a 25-year low after it secured funding to bid for the UK based EMI.

Australian stocks surged following a 2-day rally in international markets. The benchmark index in Sydney increased 3.6% and stocks in banking and resources sectors led the advance. The Australian dollar rebounded to 97 cents.

Commodities, Bonds and Currencies

The yield on 10-year U.S. bond closed up to 1.99% and 30-year bond increased to 2.95%.

The U.S. dollar decreased to $1.3434 to one euro and closed lower against the Japanese yen to 76.67 yen.

Immediate delivery futures of Texas crude oil increased $2.84 to $82.52 a barrel and futures of natural gas increased 0.02 cents to $3.59 per mbtu and gasoline price increased 11.08 cents to 268.00 cents a gallon.

In metals trading, copper increased 16.25 cents to $3.26 per pound, gold increased $12.00 to $1,653.60 per ounce and silver increased $1.62 to $31.97.