U.S. and World Markets Advance

Nichole Harper
23 Dec, 2013
New York City

U.S. and world markets extended gains and gold and crude oil declined. U.S. household spending increased and consumer confidence index also advanced. China Mobile will begin selling Apple made phone.

[R]1:05 PM New York – U.S. and world markets extended gains and gold and crude oil declined. U.S. household spending increased and consumer confidence index also advanced. China Mobile will begin selling Apple made phone.[/R]

U.S. and world markets advanced on the first day of holiday week and trading volume was sluggish.

Stocks on Wall Street maintained a positive bias and broader market indexes extended gains after consumer confidence increased in December and U.S. household spending increased.

S&P 500 index increased 10.74 to 1,829.06 and the Nasdaq Composite Index added 1% to 4,143.70.

Gold in New York trading declined 0.1% to 1,202 an ounce and crude oil future of immediate month delivery fell 0.5% to $98.80 a barrel, still near a 2-month high.

Household Spending Rises, Consumer Confidence Up

U.S. household purchases increased 0.5% in November after rising revised 0.4% in October, Commerce Department said today.

Consumer confidence index tracked by Thomson Reuters and University of Michigan increased to 82.5 in December from 75.1 in November.

IMF Turned Optimistic on U.S. Economic Growth

Investors also took a note of positive assessment of the U.S. economy from International Monetary Fund. Christine Lagarde said on a television interview that the IMF is raising its outlook.

Lagarde did not offer any new projections but cited that the latest budget accord and Fed plan to taper its bond buying program offer greater clarity.

In October, the IMF has estimated U.S. economic growth of 2.6% in the next year.

European Markets

In London trading, FTSE 100 index jumped 0.7% or 48.98 to 6,656 and in Frankfurt the DAX index increased 0.7% or 65.15 to 9,465.

In Paris, CAC 40 index rose 0.1% or 6.04 to 4,200.

Japan Targets Lower Budget Deficit

Government of Japan and the ruling coalition in Japan adopted fiscal budget that anticipated higher tax revenues and lower primary budget deficit.

The government based its budget on nominal economic growth in the next fiscal year at 3.3% and real gross domestic product growth at 1.4%.

Government estimated 95.88 trillion yen or $921 billion budget in the next fiscal year starting from April 1, Finance Minister Taro Aso said at a meeting in Tokyo yesterday.

Japan plans to issue 41.25 trillion yen of new revenue bonds in the next fiscal year and the revenues from the bond sale will pay for 43% of next year’s budget, lower than 46.3% in the current fiscal year.

The primary budget deficit, calculated after subtracting expenditures and not counting interest payments from general revenues excluding bond sales, will improve by 43 trillion yen.

U.S. Stocks in Review

Jos. A. Bank Clothiers Inc ((JOSB)) slipped 1.2% or 70 cents to $56.32 after the apparel and accessory retailer rejected $1.5 billion acquisition offer from rival Men''s Wearhouse Inc.

Regency Energy Partners LP ((RGP)) climbed 4.8% or $1.16 to $25.35 after the natural gas transporter agreed to buy the midstream business of Eagle Rock Energy Partners LP for about $1.3 billion.

Seagate Technology Plc ((STX)) rose 38 cents to $56.02 after the hard-disk drive maker agreed to acquire Xyratex Ltd. in cash transaction valued at $13.25 a share or a total consideration of approx $374 million.

Tiffany & Co ((TIF)) gained 11 cents to 90.65 and the jewelry chain was ordered by U.S. arbitration panel to pay Switzerland-based The Swatch Group Ltd $448 million over a failed joint venture. Swatch Group had canceled the joint operation after the two companies disagreed in 2011.

Target Corporation ((TGT)) dropped 1.1% or 68 cents to $61.80 and the discount retailer is facing lawsuits over the data breach in three states after hackers collected 40 million credit card accounts of shoppers between November 27 and December 15.