Domestic Focus Lifts U.S. Indexes; Oil Above $100

Bikram Pandey
13 Feb, 2012
New York City

U.S. stocks traded higher after indexes declined for the first time last week as investors focused on domestic earnings and events. Industrials, energy and technology sectors led the broad rally today. Oil jumped above $100 on new tension linked to Iran and Saudi Arabia.

[R]4:35 PM New York – U.S. stocks traded higher after indexes declined for the first time last week as investors focused on domestic earnings and events. Industrials, energy and technology sectors led the broad rally today. Oil jumped above $100 on new tension linked to Iran and Saudi Arabia.[/R]

U.S. indexes traded higher on the first day after Greek lawmakers approved additional austerity measures and the euro advanced. Commodities and oil edged higher.

In stock trading, the attention shifted to domestic economy and earnings and investors continued to add to net positions as they have been doing so far in the year. The rising optimism in New York is lifting stocks across all major sectors and large and small cap companies are attracting a sustained buying in the last three weeks in a row.

President Obama proposed in fiscal 2013 budget tax incentives for manufacturing and a large corporate tax overhaul that could lower maximum tax rate and levy minimum taxes on filers with more than $1 million of income. Republicans vowed to stymie the plan that cuts the military spending by only 1%.

Fiscal 2012 budget deficit is expected to shoot to $1.33 trillion, fourth annual deficit above $1 trillion. However, the latest budget forecast for fiscal 2013 budget of $3.8 trillion estimates deficit to decline to $901 billion, or 5.5% of the U.S. GDP.

In corporate news, Chesapeake Energy will raise $10 billion to $12 billion from asset sale. Diebold fourth quarter net income swung to $79.8 million and Regeneron Pharmaceuticals fourth quarter net loss widened to $53.4 million. W.W. Grainger said January sales increased 17%.

European markets advanced after Greek lawmakers approved economic measures as the popular support declined and people rioted on the streets of Athens. Italy completed the short term debt sale of €12 billion at a lower yield as demand falters.

In Asian trading, the Nikkei index gained after losses for two days in a row. The GDP in December quarter shrank at 0.6% on weaker than expected exports. Fanuc advanced after the company plans to double its machine tools capacity at a plant near Tokyo. Tepco estimated higher loss.

Australian stocks traded higher on the hopes that Greek Parliament approval will contain the debt contagion in Europe. ANZ was the latest bank to break ranks with the RBA and increase rates and NAB announced job cuts but failed to trim executive salaries and bonuses.

Commodities, Bonds and Currencies

The yield on 10-year U.S. bond increased to 1.97% and 30-year bond inched lower to 3.11%.

The U.S. dollar traded up 0.03% to $1.319 to one euro and edged up against the Japanese yen at 77.57.

Immediate delivery futures of Texas crude oil rose $1.96 to $100.63 a barrel and futures of natural gas fell 0.04 cents to $2.43 per mbtu and gasoline price increased 2.68 cents to 300.17 cents a gallon.

In metals trading, copper decreased 2.70 cents to $3.83 per pound, gold decreased $0.20 to $1,725.10 per ounce and silver rose 8 cents to $33.69.