U.S. Stocks, Oil Advance; EU Files Antitrust Charges Against Google

Nichole Harper
15 Apr, 2015
New York City

Market indexes on Wall Street traded higher and Bank of America reported profit in the first-quarter of 2015. European Union alleged Google with anti-competitive practice of directing traffic to its own shopping services ahead of rivals.

[R]1:45 PM New York – Market indexes on Wall Street traded higher and Bank of America reported profit in the first-quarter of 2015. European Union alleged Google with anti-competitive practice of directing traffic to its own shopping services ahead of rivals.[/R]

Stocks on Wall Street traded higher and crude oil prices jumped above $55 a barrel.

Bank of America swung to profit in the first-quarter but results were lower than expected as the bank reported rising deposits and cut its legal costs.

In Europe, Nokia agreed to acquire rival France-based telecom-equipment maker Alcatel-Lucent.

On the economic front, industrial production in March fell 0.6% after rising 0.1% in February. Manufacturing production rose 0.1% and mining fell 0.7%, Federal Reserve Bank said today.

On Wall Street trading, Tollbooth Strategy Index rose 0.1% or 14.31 to 10,684.56.

S&P 500 index gained 9.78 or 0.5% to 2,105.58 and the Nasdaq Composite Index rose 24.41 or 0.5% to 5,001.76.

Crude oil in New York jumped $2.31 to $55.60 a barrel and gold climbed $4.50 to $1,197.10 an ounce.

China reported its slowest economic growth rate in six years. First-quarter economic expansion slowed to 7% as China engineered a slowdown and curb speculation in construction and home building and contain the building up of bad loans at banks.

The economic growth slowed from the 7.3% increase in the final quarter of 2014.

U.S. Movers

Bank of America Corp ((BAC)) fell 9 cents to $15.73 after the financial services provider reported total revenues in the first-quarter ending in March declined 5.7% to $21.42 billion from a year ago period.

Net in the quarter swung to profit $2.98 billion or 27 cents per diluted share compared to a loss of $514 million or 5 cents from the same quarter last year.

Total client balances in the quarter jumped 5% to more than $2.5 trillion from the year-ago period.

Merrill Edge Brokerage Assets climbed 18% to $118 billion and global banking increased period-end loans by $6 billion to $296 billion.

The bank''s mortgage banking revenue soared 68.4% to $694 million and non-interest expenses in the quarter declined 29.4% to $15.7 billion while litigation expenses dropped to $370 million.

So far, the bank paid at least $70 billion to settle the legal issues related to the financial crisis.

Delta Air Lines, Inc ((DAL)) climbed 3.5% or $1.50 to $44.58 after the airline said total revenues in the first-quarter ending in March jumped 5% to $9.39 billion from a year ago period.

Net income in the quarter soared 250.2% to $746 million or 90 cents per diluted share compared to $213 million or 25 cents from the same quarter last year.

Intel Corporation ((INTL)) soared 4.4% or $1.36 to $32.85 after the computer processor maker reported revenues in the first-quarter ending in March nearly flat at $12.8 billion from a year ago period.

Net income in the quarter rose 3% to $2 billion or 41 cents per diluted share compared to $1.9 billion or 38 cents from the same quarter last year.

European Markets

The European Central Bank left its interest rates unrevised and continued with its bond purchase program to revive economic growth and inflation in the euro zone.

In London trading, FTSE 100 index gained 0.4% or 25.62 to 7,100.88 and in Frankfurt the DAX index increased 0.4% or 47.72 to 12,275.32.

In Paris, CAC 40 index jumped 0.8% or 43.88 to 5,261.94.

ASML Holding NV slipped 1.4% to €92.71 after the Netherlands-based semiconductor equipment maker reported total net sales in the first-quarter ending in March climbed 10.7% to €1.65 billion from €1.49 billion in a year ago period.

Net profit in the quarter surged 32.1% from a year ago to €403 million compared to €305 million and earnings per share jumped to €0.93 from €0.70.

For the second-quarter the company forecasted net sales of about €1.6 billion and gross margin of about 45% and other income of about €21 million.

EXOR SpA dropped 1.1% to €42.96 after the Italy-based controlling shareholder of Fiat Chrysler Automobiles N.V offered Bermuda-based reinsurer PartnerRe Ltd worth about $6.4 billion in cash.

Exor expects to close the deal in 2015.

Asian Markets

Market indexes in Japan closed nearly flat after the recent run up in anticipation of higher earnings driven by weaker yen. Drug makers led the decliners.

Chip equipment makers dropped after Intel lowered its capital spending plan in the current year.

Stocks in Tokyo took a breather after the recent rally and ahead of earnings parade from the next week.

Chip equipment makers declined after Intel said it will cut its capital expenditure in the current year to $8.7 billion from $10 billion. The smaller spending is likely to affect revenues at several Korean and Japanese equipment makers.

Seasonally adjusted index of industrial production in February declined 3.1% and shipments slumped 4.4%.

Inventories in the month jumped 1.1% and inventory ratio climbed 4% from a year ago month, the Ministry of Economy, Trade and Industry said today.

On a yearly basis, production dropped 2%.

China reported its slowest economic growth rate in six years. First-quarter economic expansion slowed to 7% as China engineered a slowdown and curb speculation in construction and home building and contain the building up of bad loans at banks.

The Nikkei 225 Stock Average slipped 38.92 or 0.2% to 19,869.76 and the broader Topix index slid 2.01 to 1,588.81.

The yen closed at 119.58 against a dollar.

Stocks in Mumbai traded lower after investors worried of stretched valuation and the latest read on wholesale inflation showed a decline for the fifth month in a row.

Wholesale prices fell largely on the weak food prices, lower manufacturing costs and slumping oil prices in international markets.

Wholesale price index declined 2.33% in March from the 2.06% fall in February and 6% from a year ago month, Ministry of Commerce & Industry said today.

The department added index in March increased 0.2% to 176.1 from 175.8 for the previous month level.

Rupee strengthened 12 paisa to 62.39 against one dollar.

The Sensex Index slipped 244.75 or 0.8% to close at 28,799.69. The CNX Nifty fell 83.80 or 0.9% to 8,750.20.

ACC Limited rose 1% to ₹1,612.25 after the cement producer said net in the first-quarter plunged 40.84% to ₹236.54 crore.

Net revenues fell 0.65% to ₹3,140.31 crore.

Bharti Airtel Limited slipped 2.3% to ₹414.60 and the largest wireless service provider said that the online retailer Flipkart ended talks with the company to join its new marketing platform for mobile applications.

The decision by Flipkart to back away from the Airtel platform was partly driven by the widespread negative comments on social media.

TV18 Broadcast Limited climbed 8.8% to ₹39.40 after the news channels operator said net income in the fourth-quarter surged 165.93% to ₹95.47 crore.

Net revenues in the quarter climbed 15.06% to ₹658.48 crore.