GM Sales Lift Indexes

123jump.com Staff
01 Jul, 2008
New York City

U.S. stocks staged a turnaround in the afternoon after the release of June auto sales. Sales declined in the months on three fewer selling days compared to a year ago and consumers held back on large vehicles. The annualized sales decline represent nearly 16% drop from a year ago. Stocks staged a rally, led by a rise in General Motors after it reported a decline of 19% less than estimated. chrysler led the industry with a loss of 36% and Ford sales fell 28%.

4:30PM New York, 10:30AM Frankfurt, 6:30AM Sydney[R]– U.S. stocks staged a turnaround after General Motors posted better than expected June sales.[/R]

U.S. stocks rebounded from its low of 1% decline after the release of auto sales and rating upgrade on American Express. Crude oil hovered at $142 a barrel but reached as high as $143 a barrel. Transportation stocks including railroads, airlines and freight movers led the decliners. Automakers reported a sharp decline in auto sales in June. Sales at GM fell 19%, at Ford declined 28% and at Toyota dropped 21%.

Starbucks Corp expects to take $200 million charge and close 600 stores and reduce its expansion plans for the current fiscal year and in the first half fiscal 2009.

North American Markets indexes

Dow Jones Industrial Average increased 3.50 to a close of 11,350.01, S&P 500 closed up 1.62 or 0.13% to 1,280.00, and Nasdaq Composite Index decreased 22.65 or 0.98% to close at 2,292.98. In Toronto TSX Composite closed up 100.49 or 0.34% to 14,431.61.

Of the 30 stocks in Dow Jones Industrial Average 16 stocks gained and 14 declined.

Alcoa Inc led the decliners in the Dow Jones Industrial Average with a loss of 2.97% or $1.07, to $34.55 followed by losses in Microsoft of 2.29% or $0.63, to $26.88, in United Technology of 1.83% or $1.13, to $60.57, in Coca-Cola of 1.45% or $0.75, to $51.23 and in JP Morgan Chase of 1.42% or $0.49, to $33.82.

American Express led the gainers in the Dow Jones Industrial Average index with a rise of 5.60% or $2.11, to $39.78 followed by increases in General Motors of 2.88% or $0.33, to $11.83, in Procter & Gamble of 1.83% or $1.11, to $61.92, in Merck & Company of 1.80% or $0.68 to $38.37 and in McDonalds Corp of 1.69% or $0.95 to $57.17.

Of the stocks in S&P 500 index, 251 increased 244 declined and 5 remained unchanged. Of the index stocks 36 rose more than 3% and 31 fell more than 3%.

Fortune Brands led the decliners in the S&P 500 index with a loss of 13.28% or $8.29, to $54.12 followed by in losses in Sprint Nextel Company 7% or 66 cents to $8.84, in CME Group of 6.5% or 24.8% to $358.38, in SanDisk Corp of 6.1% or $1.14to $17.56, in Dillards Inc of 5.88% or $0.68, to $10.89.

CIT Group Inc led the gainers in the S&P 500 index with a rise of 28.9% or $1.97, to $8.78 followed by increases in Celgene Corp of 8.3% or $5.31 to $69.18, in MGIC Investment Holdings of 7.8% or 48 cents to $6.59 and in Sherwin Williams of 6.4% or $2.91 to $48.84.

South American Markets Indexes

Brazil led the decliners in Latin American markets with a fall of 2.42% followed by decreases in Chile of 1.95%, in Colombia of 1.9%, in Argentina of 1.56%, in Peru of 0.8% and in Mexico of 0.5%. Venezuela gained 0.3%.

European Markets Indexes

The CAC 40 fell 93.64 or 2.11% to 4,341.21. In Germany the DAX 30 index dropped 102.38 or 1.60% to 6,315.94. Swiss Market index declined 108.84 or 1.56% to 6,849.67. The FTSE 100 closed lower 146.00 or 2.60% to 5,479.90.

Asian markets

In Tokyo Nikkei 225 Index closed lower 18.18 or 0.13% to 13,463.20. In Australia ASX 200 index lower 76.40 or 1.46% to close 5,138.90. In Malaysia KL Composite index decreased 11.74 or 0.99% closed to 1,174.83. Market of Hong Kong was closed today.

In South Korea Kospi Index decreased 8.46 or 0.51% to close at 1,666.46 and Indonesia JSE Index edged increased 29.70 or 1.26% to 2,378.81. Sensex index in India plunged 499.92 or 3.71% to 12,961.68. Thailand markets were closed today.

Commodities, Metals, and Currencies

Crude oil increased $1.32 to close at $141.32 a barrel for a front month contract, natural gas increased 19 cents to $13.54 per mBtu, and gasoline futures increased 2.09 cents to close at 352.00 cents per gallon.

Gold increased $16.20 in New York trading to close at $944.50 per ounce, silver closed up 78.00 cents to $18.29 per ounce, and copper for front month delivery increased 2.800 cent to $3.91 per pound.

Wheat futures increased 6.00 cent in Chicago trading and closed at $8.64 per bushel. Sugar increased 61 cent to $13.71 per pound. Soybean future closed up 36.00 cents to $16.10 a bushel.

Dollar edged lower and traded near record low against euro to $1.5785 and rose against yen to 106.02.

Yields on U.S. bonds increased to 3.99% with 10 years of maturities and increased to 4.54% with 30-year of maturities.