Cautious U.S. Stocks, Light Trading

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

U.S. stocks edged higher in light trading volume and investors did put much weight in weaker than expected holiday sales report. Stocks edged higer after crude oil price rose. In Japan, manufacturing plunged in November but stocks gained. Major markets in Europe were closed.

4:30PM New York, 10:30PM Frankfurt, 7:30AM Sydney[R]– U.S. holiday sales were reported lower than expected. Luxury goods, apparel and furniture reported double digits decline. General Motors gained after its lending arm was approved as a bank.[/R]

Global Markets

The U.S. holiday retail sales were lower than expected but the stock market took the weak sales in stride. Retail stocks edged lower after the holiday sales report. Sales of luxury goods were hit the hardest with a decline of 35% from a year ago and apparel, electronics and furniture dropped more than 20%. Online sales declined 2% from a year ago after rising more than 17% in 2007.

Crude oil price gained on the rising tensions in the South Asia and Middle East. New York Times is close to selling stake in the New England Sports Venture.

Japan manufacturing in November dropped 8.1% after falling 3.1% in October. The sharp drop in manufacturing was the largest in several decades as the companies face falling exports to the U.S. and Europe.

North American Markets

Dow Jones Industrial Average gained 47.07 or 0.6% to a close of 8,515.55, S&P 500 Index increased 4.65 or 0.5% to 872.80, and Nasdaq Composite Index added 5.34 or 0.4% to close at 1,530.24.

Of the stocks in Dow Jones Industrial Average 17 increased and 12 declined and 1 unchanged.

Bank of America led decliners in the Dow with a loss of 1.2% followed by losses in Merck & Company of 0.9%, in General Electric of 0.9% and in Citigroup Inc of 0.7%.

General Motors led gainers in the Dow with a rise of 12.6% followed by increase in Alcoa Inc of 4.1%, in Caterpillar Inc of 1.9%, in ExxonMobil of 1.9% and in coca-Cola Company of 1.1%.

Of the stocks in S&P 500 index, 339 increased, 151 decreased and 10 were unchanged. Of the index stocks, 2 fell more than 3%, 29 closed above 3%.

Jones Apparel led gainers in the S&P 500 index with a rise of 44.5% followed by increase in New York Times of 16.7%, in General Motors of 12.6%, in Advanced Micro of 10%, in Peabody Energy of 9% and in Massey Energy of 7%.

State Street Corp led decliners in the S&P 500 index with a loss of 3.2% followed by declines in Electronic Arts of 3%, in Huntington Banc of 2.9% and in CME Group Inc of 2.9%.

South American Markets Indexes

Argentina led gainers in the region with a rise of 2% followed by increases in Brazil of 1.1%, in Chile of 0.5% and in Colombia of 0.3%. Venezuela closed down 0.6%.

Markets in Peru were closed today.

Europe Markets Review

All European markets were closed today.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 140.02 or 1.63% to 8,739.52, CSI 300 index in China lower 8.67 or 0.46% closed to 1,862.10. The KL Composite index in Malaysia lower 2.27 or 0.26% closed to 867.35. Markets of Hong Kong and Australia were closed today.

The Kospi Index in South Korea decreased 10.65 or 0.94% to close at 1,117.86. SET index in Thailand closed higher 1.98 or 0.45% to 446.62 and JSE Index in Indonesia increased 4.28 or 0.32% to 1,340.89. The Sensex index in India decreased 239.80 or 2.51% closed to 9,328.92.

Commodities, Metals, and Currencies

Crude oil increased 6.7% or $2.43 to close at $37.78 a barrel for a front month contract, natural gas decreased 4 cents to $5.87 per mBtu and gasoline futures increased 5.08 cents to close at 84.35 cents per gallon.

Wheat futures closed up 17.00 cents in Chicago trading and closed at $5.99 a bushel. Sugar decreased 0.04 cents in trading at 10.98 cents a pound. Soybean future closed up 37.5 cent to $9.56 a bushel.

Gold increased $23.10 in New York trading to close at $871.10 per ounce, silver closed up 36 cent to $10.72 per ounce and copper for the front month delivery increased 4.4 cents to $1.3175 per pound.

Dollar edged lower against euro to $1.4039 and fell against yen to 90.79.

Yields on 10-year U.S. bonds increased to 2.13% and with 30-year maturities increased to 2.61%.