U.S. and European Markets Retain Positive Tone on Earnings Optimism

Bikram Pandey
09 Jan, 2013
New York City

Stocks in New York extended European market gains on the corporate earnings optimism. Italy led the gains in European markets advance and reported record unemployment for the second month in a row. German industrial production barely budged. Nikkei in Japan rose on stimulus hopes.

[R]1:05 PM, New York – Stocks in New York extended European market gains on the corporate earnings optimism. Italy led the gains in European markets advance and reported record unemployment for the second month in a row. German industrial production barely budged. Nikkei in Japan rose on stimulus hopes.[/R]

Stocks on Wall Street gained after Alcoa reported better than expected quarterly results. Market indexes participated in a broad rally that lifted consumer and industrial and tech stocks. Morgan Stanley plans to trim 1,600 staff in its institutional securities business.

Alcoa fourth quarter net swung to $242 million profit. Apollo Group plunged 10% after quarterly net declined 11%. AZZ third quarter net soared 15%. Clearwire received unsolicited offer from Dish Network. Global Payments second quarter net soared 15%.

Herbalife Ltd ((HLF)) gained 4% after a hedge fund controlled by Daniel Loeb took 8.2% stake in nutrition supplement maker betting against the short seller Bill Ackman.

MGM Resorts International gained 1% after it China venture won a regulatory approval to build its second resort in Macau.

European markets advanced across the region and Germany reported weaker than expected increase in industrial output. Italian unemployment held steady at record in November. ArcelorMittal plan to raise $3.5 billion through stock and convertible bond offering.

ArcelorMittal plans to raise $3.5 billion in stock and convertible bond offering to cut $17 billion debt load. Telecom stocks in the region fell on the speculation that companies may be permitted to share infrastructure. J Sainsbury declined on weak same store sales growth.

Two month old rally in Tokyo stocks continued after the yen edged lower and international investors added net positions to Japanese stocks. Education stocks soared on the hopes of a tax exemption for grandchildren schooling gift. Resource sector stocks led the gainers.

Bank of India rallied on the fund raising plan. Bharti Airtel increased 25% price on data plans. IndusInd Bank third quarter net profit jumped 29.8%. Western India Shipyard secured orders valued $3 million.

Australian stocks closed higher after international investors stepped up buying. New home sales increased for the second month in November and retail sales declined in the month.

Commodities, Bonds and Currencies

U.S. treasury yield on 10-year bond closed at 1.86% and on 30-year bond rose to 3.06%.

The U.S. dollar inched lower to $1.307 to a euro and increased against the Japanese yen to 87.96 yen.

Immediate delivery futures of Texas crude oil decreased 29 cents to $92.88 a barrel and Brent crude fell 57 cents to $111.42, futures of natural gas decreased 11 cents to $3.11 per mbtu and gasoline traded down 3.02 to 276.57 cents a gallon.

In metals trading, gold decreased $9.10 to $1,653.10 per ounce and silver fell 33 cents to $30.14 and copper closed up 0.40 cents to $3.67 a pound.