U.S. Indexes at Record Levels, Euro Zone Growth Picks Up

Nichole Harper
13 Feb, 2015
New York City

Stocks in New York advanced and several indexes flirted with new highs with large and small cap indexes trading at new highs. Tollbooth Index and the S&P 500 index traded at record highs. Germany led the improving economic expansion data in the euro zone.

[R]12:45 PM New York – Stocks in New York advanced and several indexes flirted with new highs with large and small cap indexes trading at new highs. Tollbooth Index and S&P 500 index traded at record highs. Germany led the improving economic expansion data in the euro zone.[/R]

Stocks in New York advanced and the Nasdaq reached a new 15-year high and the S&P 500 index traded at a new high.

January import price index declined 2.8% after decreasing of 1.9% in December and 1.8% in November, the Department of Labor said today.

On Wall Street trading, Tollbooth Strategy Index rose 0.3% or 27.16 to 10,504.22.

S&P 500 index gained 3.84 or 0.2% to 2,092.38 and the Nasdaq Composite Index increased 18.97 or 0.4% to 4,876.63.

In Europe market indexes advanced after leaders in the euro zone worked together to avert confrontation with Greece and seek a compromise for the release of next tranche of bailout.

Also, the latest economic data suggested that economies across the euro zone are beginning to expand.

Gross domestic product increased 0.3% after rising at 0.2% in the previous quarter, according to the data released by the statistics office of the European Union.

The German economy, the largest in the region, expanded at 0.7% in final quarter, French economy slowed as expected and Italian economy began to stabilize after two quarterly contraction and the Dutch economy expanded 0.5%.

U.S. Movers

American International Group Inc ((AIG)) jumped 2.3% or $1.18 to $53.63 after the insurance company reported revenues in the fourth-quarter ending in December dropped 2.7% to $9.21 billion from a year ago period.

Net income in the quarter tumbled 66.9% to $655 million or 46 cents per diluted share compared to $1.98 billion or $1.34 from the same quarter last year.

AIG announced an additional share buyback of up to $2.5 billion and declared a dividend of 12.5 cents per share.

Kraft Foods Group, Inc. ((KRFT)) dropped 2.9% or $1.96 to $64.21 after the food and beverage product maker said net revenues in the fourth-quarter ending in December rose 2.2% to $4.7 billion from a year ago period.

Net in the quarter swung to a loss $398 million or 68 cents per diluted share compared to profit of $931 million or $1.54 from the same quarter last year.

European Markets

European markets traded higher after politicians and finance ministers sounded positive tone on Greece and Ukraine but differences remain deep.

Talks among Greece and European leaders appear to turn friendlier as all parties involved avoid confrontation and seek a compromise.

Greece is looking for additional €8 billion in loans and disbursement of €1.3 billion of profit generated in trading Greek bonds but under the revised debt terms.

ASE Index in Athens rose as much as 5% and government bond jumped three percentage points in trading today.

In London trading, FTSE 100 index gained 0.7% or 45.74 to 6,873.85 and in Frankfurt the DAX index rose 0.4% or 38.16 to 10,957.81.

In Paris, CAC 40 index increased 0.8% or 35.94 to 4,762.14.

ThyssenKrupp AG declined 3.6% to €22.78 after the Germany-based carbon steel product maker reported net sales in the first-quarter ending in December climbed €10.04 billion from €9.09 billion a year ago period.

Net in the quarter swung to profit from a year ago to €50 million compared to a loss of €65 million and earnings per share swung to €0.09 from a loss per share of €0.12.

L''Oreal SA dropped 2.6% to €153.85 after the France-based cosmetic group reported revenues in the year ending in December rose 1.8% to €22.53 billion from €22.12 billion a year ago period. Comparable store sales in the year jumped 3.7%.

Net profit in the year surged 65.9% from a year ago to €4.91 billion compared to €2.96 billion and diluted earnings per share jumped to €8.39 from a loss per share of €4.87.

Asian Markets

Market averages in Tokyo eased from the recent 7-year high and investors focused on the latest batch of earnings.

Citizen Holdings nine-month revenues jumped 5.6% and net soared 33%. Suntory Beverage & Food annual sales rose 12% and earnings advanced 16%. Mabuchi Motor net was ahead of expectations.

Stocks in Tokyo eased from the recent high and investors focused on the latest batch of earnings.

The Nikkei 225 Stock Average fell 66.36 or 0.4% to 17,913.36 and the broader Topix index nearly flat at 0.01 to 1,449.38. For the week, Nikkei 225 gained 1.3%.

The yen fell to 120.36 against one dollar.

Stocks in Mumbai rose for the fourth day in a row after State Bank of India reported stable but elevated loan loss reserves.

Markets rallied after investors took an optimistic view of the bad loans reserve at the largest bank in India. Investors were bracing for worse news on loan losses after the recent announcements from several large and smaller banks of the worsening loan qualities.

Indian rupee eased 88 paisa to 62.19 against one dollar.

The Sensex Index jumped 289.83 or 1% to close at 29,094.93. The CNX Nifty increased 93.94 or 1.1% to 8,805.50.

For the week, Sensex soared 1.2% and CNX Nifty surged 1.6%.

Coal India Limited advanced 2.4% to ₹377.50 after the largest coal miner said net in the third-quarter declined 16.2% to ₹3,262.49 crore.

Net revenues advanced 4.4% to ₹19,944.86 crore.

State Bank of India surged 7.9% to ₹307.05 after the largest bank in India said net in the third-quarter soared 30.24% to ₹2,910.06 crore.

Total revenues jumped 12.07% to ₹43,783.98 crore.

Loan loss reserve increased to 4.9% in the quarter to December compared to 4.89% in the previous quarter, but lower than expectations of as high as 5.5% by some analysts.

Net non-performing assets in the bank fell 2.8% compared to 3.24% in the same period last year.