U.S. Extend Gains to Second Day; Google, HP, McKesson in Focus

Bikram Pandey
12 Apr, 2012
New York City

U.S. indexes extended gains for the second day in a row after two Fed officials endorsed the low interest rate view through 2014. Weekly jobless claims rose. Google Inc jumped 2% ahead of earnings after the market close.

[R]4:00 PM New York – U.S. indexes extended gains for the second day in a row after two Fed officials endorsed the low interest rate view through 2014. Weekly jobless claims rose. Google Inc jumped 2% ahead of earnings after the market close.[/R]

Stocks in New York trading closed sharply higher and extended gains for the second day in a row after two Fed officials supported low interest rate view through 2014. In early trading stocks were under pressure after initial claims of jobless benefits increased in the last week.

Weekly jobless claims rose to ten-week high, trade deficit narrowed in February and producer price index was flat in March.

The troubled Japanese electronics maker Sony Corp planned to slash 10,000 jobs in the current fiscal year as the company refocuses on its hardware strategy after a failed attempt to diversify into content and film making in Hollywood.

In other corporate news, Argan fourth quarter net increased. Commerce Bancshares first quarter net increased to $65.8 million. Fastenal first quarter net surged 26%.

Rite Aid fourth quarter net loss to $163.8 million and expects to continue in fiscal 2013 and McKesson Corp soared 4% after the largest U.S. drug distributor won a $31.6 billion contract from the Department of Veterans Affairs.

The luxury retailer Nordstrom agreed to sell Bonobos clothing across its network of stores and also led $16.4 million minority investment round that included Accel Partners and Lightspeed Venture Partners.

Hewlett Packard soared 7% after two independent research firms estimated higher quarterly PC unit sales for the company. Gartner said global PC shipments increased 1.9% to 89 million units reversing the earlier prediction of 1.2% decline in the first quarter.

The European indexes traded sideways after Italy sold €2.9 billion of 3-year bonds at higher borrowing costs. Output in the euro area improved in February and Greek jobless rate climbed in January. The International Energy Agency maintained oil demand outlook for 2012.

Industrial production in the euro area and Spanish leading economic index rose in February. Greek jobless rate jumped to a record high of 21.8% in January. Inflation in France increased but in Portugal slowed to 7-month low in March.

The UK indexes advanced and trade deficit widened in February and Irish inflation rose in March. Ashmore Group assets under management increased 9.1% in the third quarter.

Stocks in Japan halted seven day decline and the yen held firm ahead of the long-range rocket launch from North Korea. Sony and Sharp were in focus for the second day after the revised loss estimates. Freight shipping companies fell on the prospect of lost revenues linked to Iranian oil shipments.

Stocks and indexes in Australian gained after employers added 44,000 net new jobs in March. The quarterly job addition of 76,000 was the best since the final quarter of 2010. Seven Group agreed to acquire equipment distribution business of the U.S. based Bucyrus.

Commodities, Bonds and Currencies

The yields on 10-year U.S. bond increased to 2.05% and 30-year U.S. bond edged higher to 3.21%.

The U.S. dollar edged lower to $1.319 to one euro and inched lower against the Japanese yen to 80.78 yen.

Immediate delivery futures of Texas crude oil increased 90 cents to $103.60 a barrel and Brent crude futures rose $1.48 to $121.66.

In New York trading, futures of natural gas increased 0.004 cents to $1.988 per mbtu and traded near a decade low and gasoline price rose 6.46 cents to 336.03 cents a gallon.

In metals trading, copper fell 7.60 cents to $3.71 per pound, gold jumped $17.60 to $1,677.90 per ounce and silver rose 87 cents to $32.37.