U.S. and World Markets Rebound on Putin Comments

Nichole Harper
04 Mar, 2014
New York City

U.S. and global market indexes rebounded on the hopes of easing tensions in Ukraine. At least for now Russia appears to be not prepared to increase military strength. Gold and crude oil futures eased. RadioShack plans to close as many as 1,100 or 20% of its stores.

[R]12:45 PM New York – U.S. and global market indexes rebounded on the hopes of easing tensions in Ukraine. At least for now Russia appears to be not prepared to increase military strength. Gold and crude oil futures eased. RadioShack plans to close as many as 1,100 or 20% of its stores.[/R]

Stocks on Wall Street and around the world rebounded a day after a global selloff on the hopes of easing tensions in Ukraine.

The standoff between Russia and Ukraine continued but encouraging statements from Russian President Vladimir V. Putin calmed market nerves.

At least for now, Russia appears to be not prepared to take extreme military actions and called for an end to the surprise military exercise he ordered last week.

In a televised news conference he suggested that he does not see the need to use force for now, but Russia will consider “all options available” to protects its interests.

Secretary of State John Kerry arrives in Kiev today to reassure interim government of the U.S. support and increase diplomatic pressure on Russia.

The U.S. Treasury Department also announced a plan to offer an economic assistance package that will include $1 billion loan guarantee and eased some of the concerns of international support for Ukraine.

The struggling nation has asked for emergency funding of $15 billion and several independent assessment said the nation needs as much as $70 billion.

Markets in Europe and Russia rebounded and gold and crude oil reversed gains in yesterday’s trading.

Market indexes on Wall Street scaled to new record highs.

S&P 500 index increased 24.15 or 1.3% to 1,869.88 and the Nasdaq Composite Index added 72.03 or 1.7% to 4,349.33.

Gold eased 1% or $14 to $1,336.50 and U.S. 10-year Treasury bond yield rose to 2.66% from 2.6% at the end of Monday.

Benchmark crude oil price declined 1.5% to $103.38 a barrel on the New York Mercantile Exchange.

European Markets

In London trading, FTSE 100 index jumped 1.7% or 112.74 to 6,821.09 and in Frankfurt the DAX index climbed 2.3% or 212.62 to 9,571.51.

In Paris, CAC 40 index advanced 2.3% or 99.66 to 4,390.53.

In Moscow, the benchmark Micex index recovered 5.6% after falling 10.8% plunge on Monday. And the ruble regained 0.5% against one dollar.

Gazprom, Russian government controlled natural gas monopoly rebounded 8% after falling nearly 10% in yesterday’s trading.

Gazprom also announced its plan to end discounted gas price sale to Ukraine, earlier today.

U.S. Stocks in Review

AutoZone, Inc. ((AZO)) slipped 1.3% or $7.21 to $534.02 after the automotive parts distributor reported net sales in the second-quarter ending in December climbed 10.5% to $2.1 billion.

Net income in the quarter jumped 9.4% to $192.8 million or $5.63 a diluted share compared to $176.2 million or $4.78.

MBIA Inc ((MBI)) climbed 9.3% or $1.24 to $14.56 after the mortgage insurance company reported total revenue in the fourth-quarter ending in December declined 37.4% to $98.6 million.

Net income in the quarter tumbled 79.2% to $132 billion or 68 cents a diluted share compared to $636 million or $3.26.

RadioShack Corporation ((RSH)) plunged 13.6% to $2.35 after the electronics retailer posted sales fell 20% to $935.40 million from $1.2 billion a year ago quarter and reported a quarterly loss of $191.4 million compared to a loss of $63.3 million, eight quarterly loss in a row.

The company also said it plans to close as much as 20% or 1,100 of its underperforming stores.

Qualcomm, Inc ((QCOM)) increased 3.9% to $76.53 after the wireless devices chipmaker increased its dividend by 20% to 42 cents and said it plans to buy back an additional $5 billion of its shares.