U.S. Stocks Bounce Back, Switzerland to Revise Disclosure Rules

Nichole Harper
28 Aug, 2013
New York City

U.S. indexes gained after a rebound in energy sector stocks as tensions in the Middle East rise. U.S. and allies prepare for a limited strike against Assad regime in Syria that could lead to a wider conflict in the region. Oil extended 3-day rally and gold eased.

[R]12:15 PM New York – U.S. indexes gained after a rebound in energy sector stocks as tensions in the Middle East rise. U.S. and allies prepare for a limited strike against Assad regime in Syria that could lead to a wider conflict in the region. Oil extended 3-day rally and gold eased.[/R]

U.S. stocks rebounded after market indexes dropped to a two-month low as energy and resource sector stocks gained on the rising geopolitical worries.

U.S. and allies build momentum to conduct a limited military strike against the Assad regime in Syria that is likely to repeat the chaos that followed after the Iraq war a year ago.

Nearly decade after Iraq has seen more than one million innocents people and children dead and the economy of impoverished nation in tatters and most of the oil resources in control of Western powers.

In New York, the S&P 500 index increased 0.3% and the Nasdaq Composite Index added 0.5%.

In Europe, FTSE 100 index declined 0.5% and DAX 30 index dropped 1.4%. In Paris trading, CAC 40 index decreased 0.45% and in Zurich SMI index declined 1.5%.

Switzerland and U.S. are inching closer to agree on a plan that will force larger number of Swiss banks to disclose the identity of accounts held by the U.S. citizens.

Credit Suisse, UBS and Julius Baer Group are in separate discussions to settle their disputes with the U.S. Justice Department to divulge the names of account holders and settle tax evasion probes.

U.S. Stocks in Review

Avago Technologies Ltd increased 4% after the wireless communications components maker reported better than expected third-quarter revenues of $664 million.

Express Inc soared 8% after the specialty retailer reported same store sales in second quarter increased 6%.

Joy Global declined 6% after net earnings and sales declined 5% in the latest quarter and CEO Mike Sutherlin said business conditions are “more challenging” as customers cut capital spending on lower cash flows.

Taser International Inc decreased 3% after JPMorgan lowered its view on the maker of stun guns for law enforcement officials.

TiVo increased 5% after the company reported second-quarter net income of $268.9 million compared to $27 million loss in the quarter a year ago.