GMAC Wins Bank Approval; Oil Plunges 9%

123jump.com Staff
24 Dec, 2008
New York City

U.S. stocks edged higher after crude oil plunged. Japan Cabinet approves largest spending budget. The pound falls against euro and the dollar. China international trade expected to grow 18% in the year. GMAC, the lending arm of General Motors was approved as a bank after the close.

4:30PM New York, 10:30PM Frankfurt, 7:30AM Sydney[R]– U.S. stocks edged higher after crude oil plunged. Japan Cabinet approves budget that is 6.6% higher than a year ago. The pound falls against euro and the dollar. China international trade expected to grow 18% in the year.[/R]

Global Markets

U.S. economic data offered weak outlook as durable goods orders decline and gasoline inventories rise and weekly claims to unemployment surge to a new high in three decades.

At the end of previous week, seasonally adjusted initial jobless claims rose 30,000 to a record high of 586,000. Durable goods orders in November declined 1% to $186.9 billion for manufactured goods, fourth monthly decline in a row after plunging 8.4% in October.
Crude oil fell nearly 10% after the weekly petroleum report in the U.S. showed less than expected decline. Gasoline inventories rose on a fall in demand. Crude oil futures plunged 9%.

The British pound fell against the euro and the dollar after private survey indicated home prices in 2009 may drop as much as 15%. AstraZeneca declined after the U.S. requested more information on its depression treatment drug. Taylor Wimpey received a relief from certain debt covenants.

The Cabinet in Japan approves the largest budget for the fiscal year beginning next April. The budget increased 6.6% despite a fall in tax receipts. The government proposes to spend more for pensioners, payment to states and for emergency economic fund. Denso lowered its annual profit estimate.

The troubled Chinese dairy, Sanlu Group was declared bankrupt by Hebei provincial court after it was closed in September for selling tainted milk formula. Hong Kong visitors in November declined 1.1% and weakness in tourism sector is likely to continue in 2009. China foreign trade gains 18% in 2008.

Mumbai stocks fell on low trading volume along with weak trading in Asia. Rupee gained against the dollar. Telecom sector was the active in the year with a deal total of $9 billion. Tata Motors fell 7% after UK based Jaguar and Land Rover will need additional $1 billion of capital.

Australian banks increase fees and charges collected from loan issuances for mortgages, personal loans and credit cards. The banks have increased charges as rates have been lowered. Instead of cutting management salaries and operating costs banks have looked at customers to collect more revenues.

North American Markets

Dow Jones Industrial Average gained 48.99 or 0.6% to a close of 8,468.48, S&P 500 Index increased 4.99 or 0.60% to 868.15, and Nasdaq Composite Index added 3.36 or 0.2% to close at 1,524.90. In Toronto, TSX Composite Index decreased 0.02% or 1.36 to 8,310.55.

Of the stocks in Dow Jones Industrial Average 22 increased and 8 declined.

General Electric led decliners in the Dow with a loss of 2% followed by losses in Alcoa Inc of 1.9%, in Microsoft Corp of 0.6% and in Merck & Company of 0.5%.

General Motors led gainers in the Dow with a rise of 8.4% followed by increase in Bank of America of 6.1%, in Citigroup Inc of 4%, in JP Morgan Chase of 2.5% and in Caterpillar Inc of 1.9%.

Of the stocks in S&P 500 index, 348 increased, 143 decreased and 9 were unchanged. Of the index stocks, 12 fell more than 3%, 31 closed above 3%.

Prologis led gainers in the S&P 500 index with a rise of 31.5% followed by increase in Micron Tech of 9.8%, in Merrill Lynch of 6.5%, in Merrill Lynch of 6.5%, in Bank of America of 6.1% and in Tesoro Corp of 6%.

Apartment Investment Management led decliners in the S&P 500 index with a loss of 13.8% followed by declines in CIT Group Inc of 10.5%, in Jones Apparel of 6.9% and in New York Times of 5%.

South American Markets Indexes

Peru led gainers in the region with a rise of 0.76% followed by increases in Mexico of 0.75%, in Venezuela of 0.6% and in Chile of 0.05%. Colombia closed down 0.6%.

Markets in Brazil and Argentina were closed.

Europe Markets Review

In London FTSE 100 Index closed lower 39.39 or 0.93% to 4,216.59, in Paris CAC 40 Index decreased 12.20 or 0.39% to close at 3,116.21. Markets of DAX and SMI were closed today.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 206.68 or 2.37% to 8,517.10, Hang Seng index in Hong Kong decreased 36.65 or 0.26% closed to 14,184.14 CSI 300 index in China lower 31.88 or 1.66% closed to 1,887.08. ASX 200 index in Australia increased 50.80 or 1.44% to close 3,582.20. The KL Composite index in Malaysia lower 1.54 or 0.18% closed to 869.62.

The Kospi Index in South Korea decreased 15.80 or 1.38% to close at 1,128.51. SET index in Thailand closed lower 1.23 or 0.28% to 439.17 and JSE Index in Indonesia decreased 7.10 or 0.53% to 1,336.61. The Sensex index in India decreased 118.03 or 1.22% closed to 9,568.72.

Commodities, Metals, and Currencies

Crude oil decreased 9.3% or $3.63 to close at $35.35 a barrel for a front month contract, natural gas increased 17 cents to $5.90 per mBtu and gasoline futures decreased 6.33 cents to close at 79.27 cents per gallon.

Wheat futures closed up 7.00 cents in Chicago trading and closed at $5.82 a bushel. Sugar increased 0.17 cents in trading at 11.02 cents a pound. Soybean future closed up 14 cent to $9.19 a bushel.

Gold increased $9.90 in New York trading to close at $848.00 per ounce, silver closed up 9 cent to $10.35 per ounce and copper for the front month delivery decreased 7.00 cents to $1.274 per pound.

Dollar edged lower against euro to $1.3996 and fell against yen to 90.53.

Yields on 10-year U.S. bonds increased to 2.18% and with 30-year maturities increased to 2.63%.