Stocks on Wall Street Fall; Oil, Copper, Gold Ease

Bikram Pandey
28 Mar, 2012
New York City

U.S. indexes wavered and extended two day losses to 1.5% after energy complex stocks declined. Crude oil eased after European nations and U.S. consider releasing oil from strategic oil reserves. Gold, silver and copper fell.

[R]4:05 PM New York – U.S. indexes wavered and extended two day losses to 1.5% after energy complex stocks declined. Crude oil eased after European nations and U.S. consider releasing oil from strategic oil reserves. Gold, silver and copper fell.[/R]

Stocks in New York were little changed in early trading after durable goods orders rose less than expected in February. However, market indexes accelerated the decline in the late afternoon and closed down and extended two losses to more than 1.5%.

The durable goods orders are keenly watched to gauge the broader economic growth and data today offered a halting economic recovery view. The latest set of economic data have been encouraging but a sharp rise in crude oil prices have taken a bite out of the consumer disposable income as six million more people are still looking for work since the beginning of economic weakness.

The two widely followed indexes, the S&P 500 index and the Nasdaq are set to rise the most in a quarter since the third quarter of 2009. Indexes are set to register the best gains since the first quarter of 1998.

Market indexes have rallied in the quarter after central bankers around world offered more accommodative monetary policies and the European Central Bank provide a second round of liquidity that increased the total available cash in the financial system by one trillion euros.

In corporate news, Pentair soared 18% after it agreed to merge with flow and control business of Tyco values at $4.6 billion. Family Dollar lifts full year earnings forecast on second quarter net increased 11% to $136.4 million. Apparel maker PVH projected revenues to be flat or up to 2% from 2011. Mattress maker Sealy and PVH reported earnings that beat expectations.

European indexes fell after Italy auctioned €8.5 billion of 6-month bills at lower yields. Euro area money supply growth rose in February. The UK economy contracted in the fourth quarter.

The benchmark index in Tokyo traded lower as most stocks trade ex-dividend. Railroad and bus operator Tokyu Corp after it estimated lower than expected operating earnings. Chemical maker Nippon Kayaku Corp declined after nine-month operating net fell 14%. Sharp soared on a deal with Hon Hai.

Australian benchmark index increased 1% and closed at a new high on a broad rally that lifted materials, financials and consumer staples. Bank of Queensland soared 8% after it reopened. Australian dollar slipped to $1.043.

Commodities, Bonds and Currencies

The yields on 10-year U.S. bond increased to 2.20% and 30-year U.S. bond edged higher to 3.30%.

The U.S. dollar edged down to $1.332 to one euro and eased against the Japanese yen to 82.31 yen in New York trading.

Immediate delivery futures of Texas crude oil decreased $2.02 to $105.31 a barrel and Brent crude futures fell $1.43 to $124.11. Futures of natural gas decreased 0.01 cents to $2.19 per mbtu and gasoline price fell 0.86 cents to 339.70 cents a gallon.

In metals trading, copper fell 7.90 cents to $3.80 per pound, gold eased $25.30 to $1,662.40 per ounce and silver fell 63 cents to $31.98.