Nasdaq Up 2.8%, Gold Surges

123jump.com Staff
16 Apr, 2008
New York City

U.S. stock surged after earnings from JP Morgan and Wells Fargo met expectations. Earlier Intel reported positive industry outlook and CSX and Coca Cola advacned on better than expected earnings. Separately March home completion, sales, and starts plunged. Inflation and industrial production in the month rose 0.3%. Crude oil reached another record high and the dollar traded at record low against euro. Of the S&P 500 index 458 stocks gained and 42 declined.

[R]10:00PM Frankfurt, 4:00PM New York, 8:00AM Sydney – U.S. stocks surged after earnings from JP Morgan, Wells Fargo, Coca Cola and CSX calmed investors. Investors chased energy, metals and financials stocks.[/R]

Global Markets Update

U.S. stocks edged higher after March inflation and industrial production increased 0.3%. Housing starts in the month fell 12% to a level last seen in 1991. Separately, earnings from Wells Fargo, JP Morgan, Coca Cola, CSX, and Intel lifted sentiment. Wells Fargo and JP Morgan hinted that credit market turmoil may be near end. Intel surged after it reported healthy sales and met earnings expectations. Talbots trades sharply lower on lack of bank credits.

JP Morgan reported net income declined to $2.4 billion or 68 cents per share compared to $4.8 billion or $1.34 a share a year ago. Sharp losses in mortgage securities, home equity loans and leveraged loans affected the earnings. In the quarter, the bank took $2.5 billion charge of which $1.1 billion is related to home equity loans. The bank also received $1.5 billion in the stake sale of credit card processor Visa through initial public offering.

Stocks in Japan rose after the credit market worries eased and earnings from Intel lifted tech stocks. In Tokyo trading Nikkei 225 rose 1.2% or 155.55 to 13,146.13, and the broader Topix Index gained 1.4% or 17.59 to 1,273.56. Electric utilities have initiated contract negotiations with Xstrata and hope keep the coal at prices level from Australia.

GDP in the first quarter in China dipped to 10.6% from 11.7% a year ago, industrial production rose 16.4% and inflation to 8%. Food prices in the quarter surged 21% on tough weather conditions and rising fuel prices in the international markets. Retail prices in the quarter rose 7.4% and producer prices increased 6.9%. The news sent stocks lower in China and Hong Kong on the worries that the government will take measures to tighten the economy further.

Stocks in India edged higher after a rally in tech stocks. Infosys earnings lifted the tech sector for the second day in a row. Rallies India soared 6% after it reported earnings of 115% to 125 crore rupees and sales increase of 7.6% to 692 crore rupees for the year ended in March. Nicholas Piramal agreed to purchase antibiotics and pain killers drugs from Khandelwal Labs for 116 crore rupees.

UK stocks surged after rally in the U.S. stocks, lower than expected unemployment and possible help from the Bank of England to ease credit markets. Rise in crude oil and precious metals prices helped miners to recover. BHP, Rio Tinto and Antofagasta led the gainers. HSBC, Royal Bank of Scotland and Barclays rose after the earnings report from JP Morgan met analysts expectations. FTSE 100 gained 2.36% or 139.3 to 6,046.20.

Australian stocks raced ahead on rising crude oil and metals prices. ASX 200 index in Sydney added 1.3% or 70 to close at 5,470.30. Woolworths reported its third quarter sales increase of 10.2% on rising sales of wine and groceries. Rio Tinto reported global first quarter iron ore production increase of 16% however copper production declined. Zirconia maker Iluka reported completion of retail stock offering as it completes $1 billion of debt and stock placement.

European Markets indexes

In London FTSE 100 Index closed higher 139.30 or 2.36% to 6,046.20, in Paris CAC 40 Index increased 74.42 or 1.56% to close at 4,855.10 and in Frankfurt DAX index higher 117.79 or 1.79% to close at 6,702.84. In Zurich trading SMI increased 63.28 or 0.88% to close at 7,250.70.

North American Markets indexes

Dow Jones Industrial Average gained 256.80 or 2.08% to a close of 12,619.27, S&P 500 closed up 30.28 or 2.27% to 1,364.71, and Nasdaq Composite Index increased 64.07 or 2.80% to close at 2,350.11. In Toronto TSX Composite closed up 248.53 or 1.79% to 14,099.48.

Of the 30 stocks in Dow Jones Industrial Average, 28 closed higher, 2 closed lower, and none was unchanged.

JP Morgan led the gainers in the Dow Jones index with a rise of 6.3% followed by increases in Intel of 5.9%, in DuPont of 4.5%, in General Motors of 4.1%, and in Caterpillar of 3.9%.

Merck declined 2% and Procter & Gamble fell 1.4%.

Of the stocks in S&P 500 index, 458 stocks increased, 42 declined, and none were unchanged. Of the stocks in the index, 177 stocks fell more than 3% and 14 gained more than 3%.

Titanium Metals led the gainers in the S&P 500 index with a rise of 9.5% followed by increases in KLA Tencor of 8.5%, in CIT Group of 8.3%, in Tesoro of 7.8%, in SanDisk of 7.7%, and in Freddie Mac of 7.6%.

SLM Corp led decliners in the index with a fall of 7.5% followed by losses in LSI Corp of 6.45, in Safeway of 5.2%, in Liz Claiborne of 4.5%, in JC Penney of 3.5%, and in United Health Group of 3.4%.

South American Markets Indexes

Brazil led the gainers in South American trading with a rise of 2.45% followed by increases in Argentina of 1.90%, in Mexico of 1.70%, in Chile of 0.99%, and in Peru of 0.26%. Venezuela fell 0.44%.

Asian Markets
In Tokyo Nikkei 225 Index closed higher 155.55 or 1.20% to 13,146.13, in Hong Kong Hang Seng index decreased 22.98 or 0.10% closed to 23,878.35. In Australia ASX 200 index higher 69.90 or 1.29% to close 5,470.30. In Malaysia KL Composite index increased 9.44 or 0.76% closed to 1,253.64.

In South Korea Kospi Index increased 16.39 or 0.94% to close at 1,758.56, in Thailand SET index closed higher 6.28 or 0.76% to 833.38 and Indonesia JSE Index edged increased 43.67 or 1.90% to 2,337.92. Sensex index in India increased 90.53 or 0.56% to 16,244.19.

Commodities, Metals, and Currencies

Crude oil increased $1.12 to close at $114.91 a barrel for a front month contract, natural gas increased 20 cent to $10.40 per mBtu, and gasoline futures increased 4.99 cents to close at 293.09 cents per gallon.

Gold increased $16.30 in New York trading to close at $948.00 per ounce, silver closed up $0.06 cents to $17.85 per ounce, and copper for front month delivery increased 9.50 cents to $3.955 per pound.

Wheat futures increased 28.5 cents in Chicago trading and closed at $9.39 per bushel. Sugar increased 3.00 cent to $13.34 per pound. Soybean future closed down 36.00 cents to $13.61 a bushel.

Dollar edged lower and traded at a record low against euro to $1.5952 and edged lower against yen to 101.75.

Yields on U.S. bonds increased to 3.68% with 10 years of maturities and increased 4.49% with 30-year of maturities.