Averages Turn Positive

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

The recent run up in U.S. dollar strengthen the weakness in the oil and metals, and mining stocks. Gold, copper, silver trade lower in NY. Dell charges up tech stocks, Internet and Semi-stocks are trading higher.

The Manufacturing and Inventory report this morning from Commerce Department failed to spark the market.

The report stated that March inventories were up 0.4%, smaller than expected, and up 7.9% from a year ago. While market generally ignores this report, the lower growth in Inventory, better-than-expected retail sales and lower deficit will certainly force most economists to revise their Q2 GDP growth rate projections.

The total business to inventories ratio is now estimated to be at 1.30 and it is hovering near ten-year low.

Major averages trade in divergent fashion. Yesterday’s weakeness in metals and energy stocks is continued today on U.S. dollar strength. Major miners such as Rio Tinto, BHP, Phelps Dodge and Brazilian miner CVRD and oil companies such as Exxon Mobil, Stat Oil, Norsk Hydro, British Petroleum, Shell are trading lower.

Technology shares and semiconductor shares are trading higher on the strength in Dell earnings report. Intel, AMD, SanDisk, Maxim Integrated, Texas Instruments are trading higher.


In Other News

Australian share index closed lower by 0.4% on weaker metals and oil prices in Europe and NY. Shares of BHP and Rio Tinto were hit hard.

Indexes in Tokyo and Hong Kong lower by 1.0% and indexes in Sydney, Singapore and Mumbai were down. Taiwan bucked the trend in the region and was up mildly. Shares in Hong Kong were hit hard by the China’s attempt to curb property speculation.

Russia's offer of $15 billion pre-payment was accepted by Paris Club of sovereign donors. The recent run up in oil prices have helped the world's second largest oil exporter to build foreign exchange reserve of $145 billion, almost unthinkable in 1998 when Russia defaulted on $45 billion on foreign debt. Russia has $95 billion of foreign debt.

Mexican state oil firm Pemex said that it is likely to raise $1.75 billion in Asia, once a year, to diversify its investor base and on the recent fund raising success in the region.