Fall in Oil Sparks Rally in Averages

123jump.com Staff
30 Nov, -0001
New York City

Oil traders did not want to take position in the Oil markets, driving the futures below $50 for the first time in more than ten weeks. Chinese currency revaluation talks has intensified in the Asian markets trading,even though Tokyo and much of Chinese markets are closed for the week. Traders anticipate some action from Chinese government in the coming week.

According to Commerce Department March personal income and consumption increased by 0.5% and 0.6%. Savings as a personal disposable income dropped to the lowest level of 0.4% in the last eight months.

Overall Americans earned more and spent more on items that are tied to inflation. Overall business cost of wages and salaries did not rise in March according to the same report.

Consumer confidence fell for fourth month in a row according to the University of Michigan’s survey. There is a big difference between what shoppers say and do, the disconnect between these two continues.

Low interest rate, home equity build up and stable job outlook has kept the consumer in spending mood, at least for now the rising energy prices has not dampened the consumer’s shopping action.

Companies releasing positive earnings continue. ChevronTexaco, Anadarko Petroleum, ITT industries, Olin Corp delivered earnings growth. U.S. Air, Clear Channel, Hearst-Argyle and Cardinal Health reported lower earnings.



S&P - 1.18% Up
Nasdaq - 0.92% Up
Dow - 1.18% Up


In Other News

Nissan CEO Carlos Ghosn will be taking over additional role of CEO of Renault, parent of Nissan.

Saks, luxury retailer, agreed to sell Proffitt and McRae chains to private retailer Belk for $622 million in cash.

Bolivian Senate approved energy law that will increase taxes on oil companies just as Venezuela has done in the last three months.

NYSE seat was sold at $2.6 million on Friday up by $200 K on Thursday and selling close to all-time high of $2.65 million in 1999.

Berlusconi government receives confidence vote in Italian Senate.

European markets close higher with mining shares higher in London and auto and telecom up in Paris and Frankfurt. UP markets include London 0.24%, Frankfurt 0.16%, Paris 0.01%, Amsterdam 0.36% and Zurich 0.35%.


Earnings Headlines

U.S. Air loses $191 million, 8% more than a year ago, on 4% drop in passenger revenue. The company has $513 million in unrestricted cash less than half of what it had a year ago.

ITT Industries reported 1Q profit of $1.24 vs. 94 cents a year ago and raised the guidance for the year by 10 cents.

ChevronTexaco reported 1Q profit of $1.28 vs. $1.20, missed the estimates on refinery problems and lower production volume.

Anadarko Petroleum reported 1Q $2.05 vs. $1.55 a year ago and said that it had bought back 2.6 million shares in the quarter.

Cardinal Health reported 3Q profit of 84 cents vs. 98 cents a year ago and maintained the guidance for the year.

Olin Corp, chemical company, reported 1Q profit of 52 cents vs. 4 cents a year ago and forecasted 2Q profit of 45 cents.

Hearst-Argyle reported 1Q profit of 14 cents vs. 19 cents a year ago on 3% decline in revenue.