97% of S&P 500 Stocks Closed Higher

123jump.com Staff
29 Aug, 2007
New York City

It was a volatile day for the second day in New York trading. Tech stocks led the averages higher after a day when brokerages led the stocks lower. Nasdaq led three popular averages with a rise of 2.5%. Every stock in the 30 stock Dow Jones index gained today. Yesterday all stocks in the index fell. In the S&P 500 index 97% jumped higher today after 96% fell in yesterday trading. Brazil and Argentina led Latin markets.

[R]4:30PM New York, 10:30PM Frankfurt, 2:00 AM Mumbai[/R]

[R]Market averages in New York fell in the final hour of trading as investors speculated that hoped interest rate cut may not materialize. The sharp decline in the averages in New York markets dragged European and Latin markets.[/R]

FTSE 100 Index in London increased 30 or 0.50% to 6,132.20, in Tokyo Nikkei 225 closed at 16,012.83, down 1.7% or 274.66, and in Brazil, iBovespa Index traded up 1,089.31 or 2.11% to 52,734.64.

Yields edged higher on 10-year U.S. bonds and closed at 4.567% and 30-year bond rose to close at 4.886%.

Crude oil declined $1.78 to close at $73.51 per barrel, natural gas closed down 18 cents to $5.58 per mBtu, and gasoline futures increased 9.30 cents to close at 201.57 cents per gallon.

Gold increased $1.90 in New York trading to close at $675.40 per ounce, silver closed 8.3 cents higher to close at $12.007 per ounce, and copper for August month deliver in London fell $41 to $7,338.00 per pound in New York trading.

In New York averages opened up and raced to higher close by the end of the day. Investors looking for sectors immune to credit problems gravitated to tech stocks. The volatility in the market reached to new highs in the last five days of trading. Several indexes jumped more than 2% in today’s trading following similar losses yesterday. The volatility was also reflected in Dow Jones Industrial Average. Every stock in 30-stock index fell yesterday and jumped higher today. S&P 500 index also witnessed similar volatility in the last two days of trading. In the index 487 stocks fell in yesterday’s trading and 482 jumped.

Hopeful investors put their faith in a letter from the Fed Chairman to Senator Schumer dated August 27th. The Fed Chairman showed willingness to respond to market needs and credit markets start affecting the broader economy. The chairman also said that lifting caps for purchasing mortgages for Fannie Mae and Freddie Mac is not necessary.

U.S. weekly oil and gasoline report at the end of the last week showed that crude oil inventories declined 3.5 million barrels to 333.6 million barrels, gasoline inventories dropped 3.6 million barrels and distillates fuel inventories increased by 0.9 million barrels.

Tech stocks lifted Nasdaq 2.5%. Intel, Advanced Micro Devices, and Oracle jumped nearly 5%. Hewlett jumped 3%, IBM added 2%, and Dell added 4%. Apple Inc soared 6% on speculation of new products. Nokia jumped 7% after it launched a new product to compete with Apple. Seagate jumped 4% after revising its outlook for the current quarter.
Big Lots soared 10% on revised earnings outlook and Williams Sonoma jumped 11% after it reported net income decline of 27% and raised its annual earnings outlook.

Joy Global fell 4% after its earnings declined 61%. Net income in the quarter declined to 66 cents per share from $1.53 a year ago. The revenue jumped to $622 million from $599 million. The company guided sales for the year between $2.6 billion and $2.8 billion and earnings between $2.90 and $3.15 per share.

Of the 30 stocks in Dow Jones Industrial Average listed, all closed lower. All 30 stocks in index gained. Stocks in the index gained between 4.83% and 0.8%. General Motors led the index with a gain of 4.8% followed by rises of 4.7% in Intel, 4.3% in Home Depot, and 3.6% in AT&T.

Of the stocks in S&P 500, 17 stocks closed lower and 482 gained, 1 stock closed unchanged. Big Lots led the index with a gain of 10% followed by increases of 7.5% in LSI Corp, 6.3% in Compuware, 6.2% in Macy’s, and 6% in Marathon Oil, Apple and Nvdia. Progressive Corporation led the decliners with a loss of 9% followed by 2.7% decline in MGIC Investment, and 1.7% in Tribune.

Asian Markets closed mostly lower tracking the overnight losses in the U.S. Japan led the region with a loss of 1.7% followed by declines of 1.5% in Hong Kong, 1.3% in Philippines, 1.2% in Australia, 1.1% in Shanghai and 1% in Taiwan. India and Thailand led the region with a gain of 0.5%.

In Latin Markets trading Argentina led the region with a gain of 3% followed by Brazil with a gain of 2.1%, Chile with a rise of 1.6%, and Mexico with an advance of 1.3%. Of the 60 stocks listed in iBovespa index in Brazil, 1 fell and 59 increased. Electrobras led the index with a gain of 6.6% and Cosan, the only decliner, lost 1.8%.


[R]2:00PM New York, 6:00PM London – UK stocks rebounded after heavy sell-off yesterday triggered by overnight losses on the Wall Street. House prices in England and Wales rose 0.1% in July. LogicaCMG half-year profit soared 13-fold.[/R]

UK shares recovered on easing U.S. mortgage market concerns. London finished higher 0.5% in mixed trading, paring morning losses. Mining and financial stocks led UK. Of the 102 FTSE 100 stocks, 76 gained, 22 dropped while 4 traded unchanged. Ten stocks in the index soared 3.5% while only one stock lost over 1%.

In London trading FTSE 100 climbed 0.49% or 30 to 6,132.20, recovering from losses of 1.9% yesterday.

The Land Registry announced today house price inflation in England and Wales slowed down to 8.8% in July from 9.1% in June. Completed property sales showed that prices rose by 0.1% in July, meaning an average property in England and Wales has risen to 181,460 pounds. The Registry said prices rose fastest in the London area, where they are currently 15.5% higher than in July last year. The average house price in London has now reached 342,936 pounds. The report also noted that for the fourth month in a row the rate of increase for London house prices rose 6% annually, at a higher rate than the rest of England and Wales. Flats and maisonettes price rose steeply too, up 9.7% to an average of 171,000 in the year to July.

Of the FTSE 100 index stocks, financials and mining shares rose and fell indifferently. Whitbread plc paced gainers rising 3.5% after reporting Wednesday stronger sales growth across the board in the 13 weeks to May 31. The firm said total sales rose 11.3% and like for like sales up 6.6%. Occupancy at Premier Inn rose to 82.1%, 1.3% up on 2006. Costa’s total sales increased substantially driven by new store openings and the strong like for like sales performance. In the UK 76 stores were opened in the year versus net closures 63 stores a year earlier and 52 stores were opened overseas.

Of the FTSE 100 shares, Kelda Group plc surged 3.15%, Severn Trent up 2.84% while Cadbury Schweppes and Standard Life added 2.5% and 2.11% respectively. Financials Old Mutual, Barclays plc, Schroders plc and Northern Rock inched higher 1.93%, 1.9%, 1.71% and 1.1% in that order. Mining stocks, BHP Billiton plc, Lonmin and Antofagasta plc all gained over 1.2%.

Of the index shares, minor losses were reported in mining and financial sectors too. Rexam plc led decliners falling 1.4% followed by Aviva plc down 0.99%. Persimmon lost 0.77% while Xstrata and Barratt Dev shed 0.71% and 0.66%. Anglo-American plc eased0.29% and Vedanta Resource lost 0.06%. Standard Chartered, HBOS plc and Experian group all lost below 1%.

Technology firm, LogicaCMG reported Wednesday net profit from continuing operations rose to 149.4 million pounds in the interim to June 30, up from 10.3 million in the comparative period in 2006. Revenue from continuing operations rose 36.2% to 1.5 billion pounds. Earnings per share, including exceptional items and amortisation of acquisition related intangibles rose to 1.8 pence from 0.6 pence a year ago. The company will pay an interim dividend of 2.3 pence versus 2.2 pence last year. Net debt declined to 399.1 million pounds from 557.1 million pounds. The company has appointed David Tyler, as new chairman replacing Cor Stutterheim while searching for a new chief executive is still on. LogicaCMG shares closed 2.75 pence lower in London.

Carlyle Capital Corp. Ltd said Wednesday it will explore new avenues of funding to help reduce its target leverage after facing difficulties financing its portfolio of U.S. home mortgage backed-securities. Recently the firm had to seek $200 million from a private U.S. equity firm in emergency funding.


[R]1:00PM NY, 5:00 PM Frankfurt European markets closed higher, led by leisure stocks.[/R]

European stock markets reversed from earlier losses to close in the positive on Wednesday. Gains followed a rebound in sentiment throughout markets as well as upbeat leisure sector results. Nokia stood out among gainers with an advance of 6.4% after announcing a new online music and games service. Meanwhile, health-care stocks Roche Holding and Merck KGaA helped limit gains. Across regional markets, the U.K. rose 0.5%, followed by France, up 0.4% and Germany which finished unchanged.

In Frankfurt DaimlerChrysler was in the spotlight, with its shares rising 0.26% after announcing a 7.5 billion euro stock buyback and saying it won''t take as big a charge for selling 80% of Chrysler to Cerberus. Air Berlin advanced more than 6% although the carrier posted a steep earnings drop.

In Paris stocks advanced, led by Accor. The hotel operator rose 5.8% after it reported better-than-expected first-half earnings and announced a 500 million euros share buyback. Among other advancers, Vivendi gained 1.8%, boosted by a notable increase in first-half profit. However, financial stocks traded lower. Societe Generale and BNP Paribas declined 0.7% each on concerns that credit-market troubles will hurt investments and weigh on earnings.

In London gains were paced by PartyGaming. Shares of the online gambling company hit an all-time high, jumping 23% on better-than-expected earnings, helped by a sharp rise in new customers. Another notable gainer was hotel and restaurant operator Whitbread which advanced 3.47% after the company announced a stock repurchase program. Barclays shares rose 1.87% amid reports that it has no more than 75 million pounds of exposure to troubled investments.


[R]11:30AM Market averages traded higher. Fed to inject another $5.25 billion.[/R]

U.S. market averages continued to post solid gains Wednesday, boosted by bargain-hunting after recent sell-off. Fed Reserve’s announcement that it would inject $5.25 billion through a one-day repurchase agreement somewhat eased investor concerns about shrinking credit. Investors also kept an eye on the credit markets. The safest assets, Treasurys, were actively traded, while, more risky assets, like commercial paper, failed to attract a lot of attention.

In corporate news, Altria Group ((MO)) gained 0.7% after it said that it will pursue a spinoff of Philip Morris International unit to its shareholders and will increase company''s quarterly dividend to 75 cents a share from 69 cents.

Tech stocks posted considerable strength in late morning trading. Gainers were led by Seagate Technology ((STX)) which rose 5% after the world''s top maker of hard-disk drives raised its Q1 earnings and revenue forecasts. Apple Inc. ((AAPL)) rose 4.4% and Dow component Hewlett-Packard Co. ((HPQ)) climbed 2.5%.

The Dow rose 123.07, or 0.94% to 13.164.92, after falling 280 points on Tuesday. The blue-chip average was led higher by Intel ((INTC)), up 3.4%, General Motors ((GM)) which gained 2.6% and Home Depot ((HD)), rising 2.7%.

Most of the sectors posted strength with steel, oil, and tech stocks standing out as the strongest performances. At the same time, the biotech sector was one of the few sectors trading in the negative. The Standard & Poor''s 500 index added 13.79, or 0.96%, to 1,446.15, while the Nasdaq composite index gained 29.06, or 1.16% to 2,529.70. The yield on the benchmark 10-year Treasury note was at 4.51%, down from 4.52% late Tuesday.


[R]09:45AM Wall Street rallied at opening, with Dow rising 100 points.[/R]

Wall Street rallied at opening Wednesday, as investors took advantage of cheap buying after a heavy plunge in the previous session. The Dow Jones industrials jumped nearly 100 points. Leading gainers on the blue-chip average included General Motors Corp. ((GM)), up 2.3%, Intel Corp. ((INTC)), rising 2% and Alcoa Inc. ((AA)), moving up 1.6%. Altria Group ((MO)) also provided a boost with its shares rising 1.6%, as the company is expected to announce a spinoff of its cigarette business, Philip Morris International.

Among companies in focus, DaimlerChrysler ((DAI)) released its first full earnings report without Chrysler. The car maker said its net income fell 14% to $2.5 billion, or $2.36 a share, with revenue down 3% to $32.24 billion. It also noted that it will take a smaller charge that it had previously expected from selling most of the U.S. automaker. Daimler also said its financial services division produced a flat operating profit of $297 million. Company''s shares rose 3.5%.

Further on the earnings news front, Big Lots ((BIG)) jumped 8.5% after it said its Q2 profit rose on higher same-store sales and lower costs, beating analyst estimates. The closeout retailer also lifted its full-year profit guidance. Williams-Sonoma ((WSM)), a household goods and decor retailer, reported better-than-expected Q2 earnings and raised its full-year profit target. The stock climbed 7.6%. Double Hull Tankers ((DHT)) posted 11% profit increase in Q2 on strong charter rates and continued demand for its vessels.

The Dow rose 91.04, or 0.70%, to 13.132.89, after falling 280 points on Tuesday. The Standard & Poor''s 500 index added 10.76, or 0.75%, to 1,443.12, while the Nasdaq composite index gained 21.08, or 0.84%, to 2,521.72. Bonds fell slightly Wednesday, with the yield on the benchmark 10-year Treasury note at 4.53%, up from 4.52% late Tuesday.


[R]09:00AM U.S. stock futures pointed to a higher opening after Tuesday rout.[/R]

U.S. stock futures pointed to recovery Wednesday after a huge sell-off in the previous session, sparked by renewed concerns about economic growth and uncertainty whether the Fed Reserve will cut interest rates to stop credit turmoil from spreading further. On Wednesday, investors decided to take advantage of cheap buying on hopes that the stock market will soon overcome its volatility. As there are no major economy reports due out today, credit markets and corporate news will be in the spotlight.

Among companies in focus, Altria Group ((MO)) is expected to announce a spinoff of its cigarette business, Philip Morris International. Company’s shares rose 1.9% in the pre-open. Alltel Corp. ((AT)) also attracted attention, as its shareholders are scheduled to vote on a $24.7 billion takeover by private investors.

In earnings news, bookseller Borders Group ((BGP)) posted late Tuesday smaller-than-expected net income loss in Q2, blaming heavy charges which outweighed a boost in sales. DaimlerChrysler''s ((DAI)) U.S. shares gained after it said its Chrysler Group posted a 18% rise in profit.

In other corporate news, Google ((GOOG)) said that its chief financial officer George Reyes considers leaving the company. Google didn''t name a replacement. The stock gained 0.5% in pre-market trading.

In pre-market trading, Dow futures expiring in September rose 40, or 0.30%, to 13,135, while S&P''s 500 index futures rose 5.30, or 0.37%, to 1,443.60. Nasdaq 100 index futures rose 8.25, or 0.43%, to 1,916.00. Bonds were poised to open flat Wednesday, with the yield on the benchmark 10-year Treasury note at 4.52%, the same as late Tuesday.


[R]8:00AM Big Lots posted higher Q2 profit and lifted full-year forecast.[/R]

Big Lots ((BIG)), closeout retailer, said its Q2 profit jumped on higher same-store sales and lower costs, beating analyst estimates. The retailer reported net income rise to $23.4 million, or 22 cents per share, up from $4.3 million, or 4 cents per share a year ago. Income from continuing operations soared to $22.1 million, or 21 cents per share, from $4.7 million, or 4 cents per share.

Big Lots lifted its full-year forecast for profit of continuing operations, due to the upbeat Q2 financial results and current business trends. The company expects 2007 earnings from continuing operations to come in the range of $1.43 to $1.48 per share, up from earlier guidance of $1.25 to $1.30 per share. Analysts expect earnings of $1.31 per share.

The estimated figures are based on expectations of a same-store sales increase between 3% and 4%. Big Lots also released Q3 profit guidance in a range of 9 cents to 13 cents per share, assuming same-store sales will increase from 1% to 3%. At the same time, analysts anticipate a profit of 11 cents per share in the period. The retailer projected Q4 earnings between 87 cents and 92 cents per share, assuming the same increase in same-store sales as in Q3. Analysts expect Q4 earnings of 82 cents per share.


[R]7:00AM New York, 8:00PM Tokyo - Japanese stocks slide second day running following lower U.S. shares, as investor confidence hit new low. Yen continues on firm path with Finance Minister Fukushiro Nukaga planning government intervention in foreign currency market. Prices of wheat based products to rise.[/R]

Japanese stocks fell in a steep decline after a sharp sell-off in the U.S. Japan closed down 1.7% after plunging 3% in the morning trading. Exporters fell sharply on rising yen. Of the 225 Tokyo stocks, 206 dropped, 18 gained and 1 unchanged. Of the index stocks, 6 shares lost over 4% and 22 sank more than 3%, and only 13 stocks gained over 1%.

In Tokyo trading Nikkei 225 slipped 1.69% or 274.66 to 16,012.83 in a massive sell off led by exporters. At close, yen firmed to 114.49 against one American dollar from over 115 on Tuesday.

New Finance Minister Fukushiro Nukaga announced today that government will keep an eye on yen movements, and possibly intervene when needed to help economic growth. He told Japanese media today: “We must make efforts to avoid drastic changes of foreign- exchange rates to ensure that the economy maintains sustainable growth.” Previously, the Japanese central bank has intervened in the foreign exchange markets to buy US dollars to curb rising yen. Many fear that a strong yen could retard economic growth.

Japanese wheat based-products are expected to rise after government announced last week wheat sale prices for the six months from October will be raised 10%, in response to rising global wheat prices. Listed firms Nisshin Seifun Group Inc and Nippon Flour Mills Co said today they would decide on flour price hike by late September. Nisshin Seifun closed lower 1.04%.

Of the Nikkei 225 shares, exporters dropped sharply on concern a stronger yen will hurt foreign earnings. Japan Steel Work led decliners falling 4.7% followed by Ricoh Co Ltd down 4.5% while Mitsubishi Corp lost 4.3%. Mitsubishi Heavy Industries shed 4.25% while CSK Holdings finished down 4.10%. Financial shares fell on worries that there may be hidden subprime exposure. Mitsubishi UFJ Financial, Chiyoda Corp and Chiba Bank fell 3.6%, 3.34% and 2.96% respectively. Industrial stocks, Mitsubishi Industries, Yokogama Electric, Suzuki Motor, Sumitomo Electric all fell above 3%.

Yahoo Japan Corp continued racing higher pacing advancers up 4.6% after rolling out a new email service that allows consumers to send SMS from computers to cell phones. Isuzu Motors rose 4.4%. Tosoh Corp added 2.6% while Nippon Meat Pack gained 2.4% and Meiji Seika rose 2.37%. Some 5 stocks gained below 1%.

The Tokyo Stock Exchange Group Inc. announced Tuesday it had concluded an agreement with NYSE Euronext, which will advise the TSE Group on several key areas of information technology. Engineers from NYSE Euronext will provide recommendations to the TSE on various areas including network management and operation, exchange system capacity and performance management. Atsushi Saito, President & CEO, TSE Group, commented: “I am delighted that both exchanges have established further co-operative relationships. We see that, based on this agreement, receiving advice from the NYSE Euronext will enhance our system operations and benefit a variety of market participants”.