Markets in New York and Europe Rebound, Oil Jumps

Nichole Harper
20 Mar, 2015
New York City

Stocks in New York surged after investors focused on domestic earnings and set aside worries linked to the recent surge in the dollar. Investors in Europe focused on the benefits of the bond buying program as leaders in the euro zone appear to sound positive on bailout conditions for Greece.

[R]12:30 PM New York – Stocks in New York surged after investors focused on domestic earnings and set aside worries linked to the recent surge in the dollar. Investors in Europe focused on the benefits of the bond buying program as leaders in the euro zone appear to sound positive on bailout conditions for Greece.[/R]

Stocks in New York and European capital cities traded higher after the dollar retreated from its 10-year high, crude oil rebounded and investors reviewed at the latest batch of earnings.

Stocks on Wall Street surged and market indexes jumped nearly 1% as the Nasdaq Index traded above 5,000 for the third day in a row after earnings from Nike and an announcement from Biogen Idec.

Investors bid up stocks in New York after the dollar declined 2% from its 10-year peak on the hope that the recent surge in dollar is not going to slowdown economic growth in the U.S. and drag earnings at most publicly traded companies.

Nike surged after operating margins rose on the sale of higher priced shoes and apparels in the latest quarter.

Biogen Idec said its experimental drug to treat Alzheimer showed to slow significantly the decline in cognitive abilities, according to a private study conducted on a limited group of people.

On Wall Street trading, Tollbooth Strategy Index jumped 0.7% or 68.90 to 10,599.71.

S&P 500 index climbed 20.57 or 1% to 2,109.84 and the Nasdaq Composite Index jumped 42.40 or 0.8% to 5,035.08.

Crude oil gained $1.89 a barrel to $45.85 and gold climbed $11.80 to $1,180.80 an ounce.

U.S. Movers

Darden Restaurants, Inc ((DRI)) jumped 2.1% or $1.39 to $66.32 after the restaurant and bars operator reported total revenues in the third-quarter ending on February 22 climbed 6.8% to $1.73 billion from a year ago period.

Same-restaurant sales in the quarter jumped 3.6%

Net income in the quarter soared 21.9% to $133.8 million or $1.05 per diluted share compared to $109.7 million or 82 cents from the same quarter last year.

Nike Inc ((NKE)) soared 4.5% or $4.43 to $102.75 after the athletic footwear, apparel, equipments maker reported revenues in the third-quarter ending in February jumped 7% to $7.46 billion form a year ago period.

Net income in the quarter surged 16% to $791 million or 89 cents per diluted share compared to $682 million or 75 cents from the same quarter last year.

European Markets

European markets traded higher after talks between leaders of the euro zone seemed to be nearing a pact with prime minister of Greece for the release of aid.

Markets took a positive view of the tone but Greece is still falling short of the implementation of financial and economic reforms demanded by the euro zone leaders and the IMF and the ECB.

In London trading, FTSE 100 index gained 0.5% or 36.68 to 6,999 and in Frankfurt the DAX index climbed 1.2% or 144.77 to 12,044.17.

In Paris, CAC 40 index jumped 1% or 50.16 to 5,087.34.

Lafarge SA jumped 2.9% to €64.16 after the France based building materials and cement producer agreed on a new share-swap ratio for the $44 billion merger deal with Switzerland-based rival Holcim Ltd for its $44 billion.

Under the revised arrangement, 9 Holcim shares will be exchanged for 10 Lafarge shares and Lafarge CEO Bruno Lafont will become co-chairman of the combined group and will appoint a new CEO.

Banco de Sabadell SA climbed 3.2% to €2.28 after the Spain-based financial services provider agreed to acquire TSB Banking Group Plc for 340 pence per share that valued cash offer at £1.7 billion or $2.5 billion.

Lloyds Banking Group agreed to sell its stake of 9.99% in TSB for £850 million and use net proceeds for general corporate purposes.

Asian Markets

Stocks in Tokyo extended weekly advance and trading in yen set the pace and direction of stock market indexes.

Chiyoda and Mitsubishi to partner to build a new airport in Bohol, Philippines. Rakuten, the online retailer agreed to acquire Overdrive, the ebook platform overDrive.

Stocks in Tokyo edged up and the Nikkei index extended weekly gain to 1.6% after investors remained focused on the direction of the yen and the Bank of Japan’s focus on reviving inflation.

The Nikkei 225 Stock Average gained 83.66 or 0.4% to 19,560.22 and the broader Topix index rose 4.70 to 1,580.51. For the week, Nikkei 225 jumped 1.6%.

The yen eased to 120.76 against a dollar.

Stocks in volatile trading closed down in Mumbai and investors shifted attention to local economy and corporate news.

Rupee was unchanged at 62.52 against one dollar.

The Sensex Index declined 208.59 or 0.7% to close at 28,261.08. The CNX Nifty dropped 63.75 or 0.7% to 8,570.90.

For the week, Sensex Index and CNX Nifty slipped 0.7%.

Tata Motors Limited fell 1% to ₹547.60 on a speculation truck and motor vehicle maker reported that its Jaguar Land Rover unit has launched a recall of 36,000 Range Rover Evoque SUVs in China.

Wipro Limited jumped 2.9% to ₹651.85 after the third largest software developer secured a five-year contract from U.S.-based utility company Greater Cincinnati Water Works.