Stocks in New York Advance to New Highs, World Markets Struggle

Bikram Pandey
22 Jan, 2013
New York City

Market indexes in New York extend recent multi-year high gains and home sales surged 9.2% in 2012. Delta Air, Verizon, Johnson & Johnson and Caterpillar reported mixed earnings. European markets eased and banks were under pressure. Bank of Japan lifted its inflation target to 2%.

[R]4:00 PM, New York – Market indexes in New York extend recent multi-year high gains and home sales surged 9.2% in 2012. Delta Air, Verizon, Johnson & Johnson and Caterpillar reported mixed earnings. European markets eased and banks were under pressure. Bank of Japan lifted its inflation target to 2%.[/R]

Market indexes shook off early decline of 0.4% after existing home sales declined unexpectedly in December. Indexes steadily gained in the afternoon and closed up 0.35%.

Existing home sales declined 1% in December from November but for the year 2012 sales increased 9.2% to 4.65 million in 2012.

Corporate earnings were mixed and Microsoft is looking to finance as much as $1 billion the deal to take computer maker Dell private. Verizon Communications reported wider loss on higher than expected subsidies for smart phones and pension chargs.

Delta Air Lines fourth quarter net tumbled and du Pont fourth quarter net declined 70%. Johnson & Johnson profit surged to $2.57 billion. Travelers fourth quarter net profit declined 51%.

European markets closed lower as the earnings season get in the full swing this week. Vivendi declined on the difficult business conditions at its telecom unit. Deutsche Bank was asked to simulate profit after a breakup of banking from securities business by the German regulator.

Stocks in Tokyo traded volatile and shot up 1% after the Bank of Japan confirmed the inflation target revision to 2% and deferred unlimited bond purchase from January 2014. The yen traded higher.

Asian Paints third quarter profit climbed 30.5% and Cairn India profit jumped 48%. Hindustan Unilever third quarter net profit soared 15.6% and Kotak Mahindra climbed 25% to Rs 577.21 crore. RCom and RIL are in talks for mobile network expansion.

Australian market index ASX 200 surged after the Bank of Japan announcement but failed to close in positive territory. Investor confidence to invest stayed near a 15-year low on high dollar and weak business conditions. NAB declined after Santander denied reports of its interest in buying UK assets.

Commodities, Bonds and Currencies

U.S. treasury yield on 10-year bond closed down to 1.83% and on 30-year bond edged down to 3.02%.

The U.S. dollar inched lower to $1.334 to a euro and increased against the Japanese yen to 88.71 yen.

Immediate delivery futures of Texas crude oil increased 68 cents to $96.24 a barrel and Brent crude gained 69 cents to $110.61, futures of natural gas decreased 2 cents to $3.55 per mbtu and gasoline traded up 3.53 to 283.20 cents a gallon.

In metals trading, gold increased $4.80 to $1,691.80 per ounce and silver gained 25 cents to $32.27 and copper closed up 2.60 cents to $3.70 a pound.