U.S. Stocks Rise, Yahoo, GM Up, Europe Up 2%

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

U.S. stocks trade higher after crude oil prices slide lower, renewed interest from Microsoft to negotiate with Yahoo and talks of asset sale at General Motors. Three widely followed indexes rise between 0.7% and 1.2%. European markets at mid-day trade up 2%. Stocks in emerging markets rebound around the world, after two weeks of selling, led by a 2% rise in Brazil and Hong Kong. The generic drug maker, APP Pharmaceuticals soared 30% after it agreed to purshase from Fresenius SE of Europe.

[R]10:15AM New York – U.S. stocks edge higher after crude oil prices drop and European markets across the region trade higher.[/R]

U.S. stocks rallied after crude oil declined in the morning trading, European stocks rally and renewed interest from Microsoft to pursue Yahoo.

Crude oil dropped 3% or $4.57 to $140.77 and gold declined $12.90 to $920.70.

General Motors rose in the morning trading after a report that suggested that troubled auto maker will sell assets and cut production to stem rising operating losses. The largest U.S. auto maker is reeling from falling sales as consumers avoid a purchase of trucks and sports utility vehicles. General Motors stock in the morning trading rose 45 cents or 4.5% to $10.57.

NBC Universal, a unit of General Electric agreed to purchase a stake in Weather Channel along with two private equity buyout firms.

Yahoo! Inc, the internet portal rose $1.91 or 9% after Microsoft showed a renewed interest in acquiring the company if the company replaced the board. Activist investor Carl Ichan and several other high profile investors have been demanding a change in Yahoo! management stance in negotiating with Microsoft.

Aracruz Celulose S.A, producer paper pulp maker reported second quarter revenues increased 9% to $538.4 million from $494.2 million a year ago. Net income in the quarter decreased 42% to $71.3 million or 69 cents per ADS compared to net income of $122.5 million or $1.19 per ADS, a year ago.

Aracruz fell $1.51 or 2.1% to $70.79 in the morning trading.

Aracruz Celulose S.A ((ARA)) in the last one year traded as high as $92.22 in May 2008 and as low as $49.01 in August 2007. Based on the yesterday’s closing price the company has a market cap of $7.45 billion.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 122.15 or 0.92% to 13,360.04, Hang Seng index in Hong Kong increased 489.24 or 2.28% closed to 21,931.06. ASX 200 index in Australia increased 79.60 or 1.57% to close 5,002.50. The KL Composite index in Malaysia decreased 6.88 or 0.61% closed to 1,127.26.

The Kospi Index in South Korea increased 1.78 or 0.11% to close at 1,579.72, SET index in Thailand closed lower 12.47 or 1.68% to 730.56 and JSE Index in Indonesia decreased 10.93 or 0.47% to 2,303.82. The Sensex index in India increased 71.99 or 0.54% to 13,525.99.