Wall Street Rallies, Chrysler Leads Auto Sales Growth, Chain Store Sales Lag

Bikram Pandey
01 Nov, 2012
New York City

Stocks on Wall Street advanced after latest jobless claims and private sector employment growth. U.S. manufacturing also advanced in the previous month. Auto sales rose less than expected and same store sales lagged expectations in October.

[R]3:20 PM New York – Stocks on Wall Street advanced after latest jobless claims and private sector employment growth. U.S. manufacturing also advanced in the previous month. Auto sales rose less than expected and same store sales lagged expectations in October.[/R]

Market indexes in New York jumped more than 1% after weekly jobless claims declined and manufacturing growth increased in October. Construction spending rose to a three-month high and consumer confidence increased to the highest in four years.

Auto makers reported an increase in auto sales despite the impact of Hurricane Sandy in several states on the East Coast. The devastating storm cut the monthly sales estimate by 25,000 and annual industry sales are expected to cross 14.4 million units.

Auto sales in the month increased 4.6% from September and 11% from a year ago month.

Chrysler sales increased 10% in the month, GM sales rose 4.7% and Ford sales increased 0.4%. Honda said U.S. sales increased 8.8% and Toyota sales rose 15.8%.

JDA Software ((JDAS)) soared 17% after the supply chain management software developer agreed to be acquired by a privately owned competitor RedPrairie Corp for $1.9 billion.

On the earnings front, Cigna third quarter net quarter jumped 155% on revenue growth. Exxon Mobil net slumped 7% and Exelon profit plunged 51%. Pfizer third quarter net declined 14% as sales dropped. Visa fourth quarter net soared 89%.

Consumers held back retail spending ahead of the U.S. presidential election and Hurricane Sandy diverted spending to home related items. Same store sales in month are expected to increase at least 4.5% after rising 3.9% in September.

Gap Inc reported same store sales in October increased 4% and Macy’s Inc sales increased 4.1%. Limited reported monthly store sales increased 3%.

The TJX Companies, Inc ((TJX)) rose 1.5% after the operator of several discount retail chains said sales increased 11% and same store sales rose 7% in October and lifted earnings outlook to 61 cents in the current quarter.

The European indexes gained after a rebound in Chinese manufacturing activity. The UK home prices increased more-than-estimated and Greek manufacturing activity declined in October. Swiss retail sales eased in September.

Drägerwerk net sales rose to €573.9 million. Shell earnings climbed 2% to $7.14 billion in the third quarter. British Sky Broadcasting first quarter revenue increased 4% to £1.72 billion. Lloyds net interest income fell 16% in the third quarter.

The Nikkei average in Japan increased for the second day in a row after the yen softened and China reported first manufacturing advance in October in three months. TDK Corp and Fujifilm Holdings, Sony and Sharp fell on weak quarterly results.

Australian stocks drifted lower after weak opening despite the evidence that Chinese manufacturing activities are stabilizing. Home prices in Australian cities declined for the first time in five months.

Commodities, Bonds and Currencies

U.S. treasury yield on 10-year bond increased to 1.72% and on 30-year bond rose to 2.90%.

The U.S. dollar inched lower to $1.293 to a euro and increased against the Japanese yen to 80.12 yen.

Immediate delivery futures of Texas crude oil increased 75 cents to $86.99 a barrel and Brent crude fell 50 cents to $108.23, futures of natural gas decreased 0.01 cents to $3.68 per mbtu and gasoline traded up 0.1 cents to 263.03 cents a gallon.

In metals trading, copper increased 3.70 cents to $3.55 per pound, gold decreased $2.10 to $1,717.20 per ounce and silver decreased 47 cents to $32.27.