Second Day Decline in U.S. Indexes on Economic Data

Bikram Pandey
19 Apr, 2012
New York City

U.S indexes decreased for the second day in a row after initial jobless claims were ahead of expectations and existing home sales fell in March for the second month in a row. The index of leading economic indicators in the month posted the sixth advance in a row.

[R]4:00 PM New York – U.S indexes decreased for the second day in a row after initial jobless claims were ahead of expectations and existing home sales fell in March for the second month in a row. The index of leading economic indicators in the month posted the sixth advance in a row.[/R]

U.S. indexes declined for the second day in a row after jobless claims dropped 2,000 to 386,000. In cautious trading stocks declined as France and Spain successfully sold bonds at auctions though at higher yields.

The Federal Reserve issued a statement to calm market fears and said that banks will have two years to adjust to new capital and business conditions in line with the so called “Volcker rule” before the enforcement begins.

On corporate earnings front, Bank of America first quarter net declined 68% to $653 million and met analyst expectations. Morgan Stanley first quarter net swung to $119 million loss. Verizon first quarter net soared 19% to $3.9 billion.

Yum! Brands first quarter net surged 73% to $458 million but failed to meet expectations set by analysts and growth in China slowed. DuPont reaffirmed full year earnings outlook.

The European indexes climbed after Spain and French sold debt at higher yields. Audi agreed to acquire Italian sports motorcycle manufacturer Ducati. Actelion, Akzo Nobel, and TeliaSonera quarterly net dropped.

Stocks in Japan traded lower after a surge in yesterday’s trading and trade balance swung to a deficit in March on higher fuel imports. Nippon Sheet Glass Company dropped 7% and closed at a new three-decade low after the company chief executive resigned.

Rupee in India traded at a new 14-week low against the dollar as government and importers settled payments.

Australian indexes advanced to an eight month high and a private report indicated property tax collection reached a record high of $33 billion last year. News Corp invites another unflattering attention to the company after it discovered it violated U.S. foreign ownership rules.

Commodities, Bonds and Currencies

The yields on 10-year U.S. bond decreased to 1.95% and 30-year U.S. bond edged lower to 3.11%.

The U.S. dollar closed nearly unchanged at $1.312 to one euro and inched higher against the Japanese yen to 81.53 yen.

Immediate delivery futures of Texas crude oil decreased 29 cents to $102.36 a barrel and Brent crude futures fell 2 cents to $117.95.

In New York trading, futures of natural gas decreased 0.004 cents to $1.908 per mbtu and traded near a decade low and gasoline price declined 4.93 cents to 315.35 cents a gallon.

In metals trading, copper fell 0.85 cents to $3.63 per pound, gold added $1.40 to $1,641 per ounce and silver increased 21 cents to $32.20.