Wall Street Extends Rally, Consumer Sentiment Jumps

Nichole Harper
17 May, 2013
New York City

U.S. market indexes extended gains after consumer sentiment rose more than expected and the index of leading economic indicators showed more economic expansion in the U.S. Dell declined on a sharp fall in earnings. J.C. Penney loss widened.

[R]12:30 PM New York – U.S. market indexes extended gains after consumer sentiment rose more than expected and the index of leading economic indicators showed more economic expansion in the U.S. Dell declined on a sharp fall in earnings. J.C. Penney loss widened.[/R]

U.S. stocks traded higher and market indexes traded near record levels after consumer confidence increased more than expected.

The index of leading economic indicators increased in April indicating that the U.S. economy may expand more, according to the data released by the Conference Board.

The preliminary index of consumer sentiment tracked by Reuters/University of Michigan increased to 83.7 in May from 76.4 in April.

The dollar gained against the euro and rose to $1.28 and the yen declined 0.7% to 102.98 against the currency.

European Markets

European markets edged up after consumer confidence rose more than expected in the U.S.

Markets in Europe traded higher and the benchmark index in London gained 0.5% and in Frankfurt added 0.3%. The indexes in Paris advanced 0.6% and in Zurich gained 0.3%.

Russia said its economy expanded at the slowest pace in March quarter since 2009. The gross domestic product expanded 1.6% from a year ago in the first quarter to March, the fifth quarterly decline in a row. The ruble was unchanged at 35.422 against one dollar.

ABN Amro said it plans to cut 400 staff after first-quarter profit declined 17%.

Asian Markets

Markets in Asia traded higher and the Nikkei index gained 0.7% after core machinery orders soared at the fastest pace in eight years in March.

Sensex index in Mumbai added 0.2% and the rupee traded at a one-week low near 55 to a dollar. Markets in Hong Kong were closed and in Australian edged higher as the dollar dropped to a new 11-month low.

Markets in Indonesia, Thailand and in Malaysia edged up and the benchmark index in Jakarta gained 1.3%.

Stocks in Review

Autodesk Inc ((ADSK)) plunged 12% after the design software developer estimated full-year revenue growth of 3%, less than expected by analysts.

Brocade Communications Inc ((BRCD)) decreased 3% after the networking equipment maker estimated third-quarter adjusted earnings between 11 cents and 13 cents a share, lower than expected between 15 cents and 17 cents a share according to a survey of analysts conducted by 123jump.com.

J.C. Penney ((JCP)) declined 1% after the department store operator said first-quarter net loss widened to $348 million from $163 million or to $1.58 a share from 75 cents a share.

Nordstrom Inc ((JWN)) fell 2% after the luxury department store chain reported first-quarter revenues lower than estimated by analysts.

Northrop Grumman gained 4% after the defense contractor said it plans to increase its share buyback by $4 billion to $5 billion and retire 25% of its outstanding shares by 25%.

Tesla Motors Inc ((TSLA)) increased 0.5% after the electric car maker increased the size of its offering to as much as $1.08 billion and plans to sell as many as 3.9 million shares and sell convertible notes of $648 million.