Techs Advance, Oil Falls by $3

123jump.com Staff
27 May, 2008
New York City

The Nasdaq gained, bolstered by stronger tech stocks such as Google and Apple. U.S. light crude oil for July delivery declined to $129 a barrel. GM lost ground and slashed its 12-month price target due to the weaker sales and higher commodity prices. Ford Motor also had its earnings expectations cut. April new home sales rose 3.3% from a revised reading a month ago. The home price index plunged a record 14.1% in the first quarter. Consumer confidence fell to a 16-year low.

Crude oil marked its biggest decline since April, affected by evidence that US fuel consumption is declining on decelerating economy and surging energy prices. Crude oil for July delivery fell 2.6% to $128.73 a barrel. Brent crude oil for July settlement lost 3% to $128.36 a barrel on London''s ICE Futures Europe exchange.

Consumer confidence hit a 15-year low. The dollar increased against the euro, making commodities look less attractive to investors.

The Conference Board''s confidence index decline topped estimates at 57.2, its lowest since October 1992, from a revised 62.8 in April. Property prices in March dropped to the lowest level in seven years.

The euro declined to $1.5714, from $1.5770 yesterday, after climbing to $1.5818, the highest level since April 24.

Tech shares increased. The Nasdaq composite jumped 0.5% after increasing 1% earlier thanks to strength in big tech stocks such as Google and Apple.

Apple stock climbed thanks to the anticipation about the launch of the new iPhone version. GM dropped after its stock was downgraded. The company also slashed its 12-month price target due to the weaker sales and higher commodity prices.

Gold retreated in a reaction to the stronger dollar. COMEX gold for August delivery dropped $16.30 to $914.30 an ounce.

Gas hit a record high with the average price for a gallon of regular unleaded gas up to a record $3.937 from the earlier record of $3.936.

Treasury prices declined, lifting the yield on the 10-year note to 3.90% from 3.87% late Friday.

Global Markets

In Tokyo the Nikkei 225 Index closed 203.12 or 1.48% higher to 13,893.31, in Hong Kong Hang Seng index increased 154.73 or 0.64% to close at 24,282.04. In Australia ASX 200 index was 7.40 or 0.13% higher to close at 5,714.40. In Malaysia KL Composite index increased 0.87 or 0.07% to close at 1,274.24.

In South Korea Kospi Index increased 24.65 or 1.37% to close at 1,825.23, in Thailand SET index closed lower 1.20 or 0.14% to 855.60 and Indonesia JSE Index edged decreased 22.73 or 0.94% to 2,397.00. Sensex index in India decreased 72.91 or 0.45% to 16,275.59.

In London FTSE 100 Index closed lower 28.80 or 0.47% to 6,058.50, in Paris CAC 40 Index decreased 31.28 or 0.63% to close at 4,906.56 and in Frankfurt DAX index higher 4.82 or 0.07% to close at 6,958.66. In Zurich trading SMI increased 54.07 or 0.73% to close at 7,417.97.