Banks Surge, Nasdaq Soars 3.9%

123jump.com Staff
09 Apr, 2009
New York City

Banks rallied on the hopes that Wells Fargo higher earnings estimate bodes well for others in the industry. The sharp rally in New York was broad and lifted tech stocks index 4%. Retailers reported another weak monthly sales in March and smaller gains at discounters. Textron soared on buyout rumors.

5:00PM New York, 11:00PM Frankfurt, 8:00AM Sydney[R]– Banks rallied on the hopes that Wells Fargo higher earnings estimate bodes well for others in the industry. The sharp rally in New York was broad and lifted tech stocks index 4%. Bank of England left its rate unchanged and Barclays provided 70% financing to sell its iShare unit at $4.4 billion.[/R]

Global Markets

U.S. stocks rallied after Wells Fargo reported better than expected earnings. Jobless claims rose above 600,000 for the fifth moth in a row. Trade deficit in February declined as imports plunged and prices declined.

Retailers traded broadly lower after reporting another weak monthly sale in March. Warehouse retailers surprisingly reported lackluster performance.

Bank of England kept its key rate at 0.5% and will continue £75 billion asset purchase program. U.K. producer prices index rises at 2% in March. While the economy is shrinking, prices are still rising but at a slower pace.

Barclays Plc sells its successful iShare unit for $4.4 billion or £3 billion. The embattled bank will also provide $3.1 billion in financing at 400 basis points above Libor rate to complete the sale and retain right to gains on 20% equity stake under certain conditions.

Stocks in Tokyo surged after ruling party proposed to spend 15.4 trillion yen to arrest the widening recession and falling domestic demand. Nearly 40% of the budget is targeted at long term projects. Investor sentiment was also boosted by 1.4% rise in private sector machinery orders in February.

Stocks in Hong Kong surged on the optimism that economic stimulus will revive the growth. The larger than expected economic package in Japan also lifted stocks in Asia. March auto sales surged 10% on the government subsidies to 772,400 on 40% increase in minivan demand.

Despite a plunge of 73% in foreign direct investment in February, India still managed to receive $25.4 billion in investment in the first eleven months of the current fiscal year. Inflation in the last week in March fell to 0.26% but food prices surge. Essar Oil gains in trading on Kenyan refinery investment.

Statistics Bureau of Australia reported today that the number of unemployed persons in seasonally adjusted terms surged 24.7% from a month earlier, but soared 33.3% from a year ago to 612,000 in March. Total number of employed people declined 5% from February to 10.792 million.

North American Markets

Dow Jones Industrial Average increased 246.27 or 3.14% to a close of 8,083.38, S&P 500 Index increased 31.40 or 3.8% to 856.56, and Nasdaq Composite Index gained 61.88 or 3.9% to close at 1,652.54.

Of the stocks in S&P 500 index, 445 increased, 52 declined and 3 were unchanged.

H&R Block Inc led decliners in the S&P 500 index with a loss of 4.9% followed by losses in Stericycle Inc of 4.1%, in Novell Inc of 3.9%, in Wal-Mart Stores of 3.7%, in Abercrombie & Fitch of 3.5%.

Textron Inc led gainers in the S&P 500 index with a surge of 48.90% followed by gains in Gannett Company of 39%, in Fifth Third Bancorp of 35.6%, in Bank of America of 35.3%, in Wells Fargo of 31.7% and in SunTrust Banks Inc of 30.6%.

South American Markets Indexes

Mexico Bolsa Index was closed for trading. Brazil Bovespa Stock Index gained 1,356.73 or 3.1% to 45,538.71.

Chile added 1.7% and Peru increased 0.2%. Argentina, Colombia and Venezuela markets were closed.

Europe Markets Review

In London FTSE 100 Index closed higher 58.19 or 1.48% to 3,983.71, in Paris CAC 40 Index increased 53.12 or 1.82% to close at 2,974.18 and in Frankfurt DAX index higher 133.20 or 3.06% to close at 4,491.12. In Zurich trading SMI increased 70.80 or 1.42% to close at 5,070.60.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 321.05 or 3.74% to 8,916.06, Hang Seng index in Hong Kong increased 426.55 or 2.95% closed to 14,901.41, CSI 300 index in China higher 38.32 or 1.55% closed to 2,517.67. ASX 200 index in Australia increased 52.10 or 1.44% closed to 3,671.60. The KL Composite index in Malaysia higher 10.02 or 1.10% closed to 917.89.

The Kospi Index in South Korea increased 54.28 or 4.30% to close at 1,316.35. SET index in Thailand closed higher 0.50 or 0.11% to 444.07.The Sensex index in India increased 61.52 or 0.57% closed to 10,803.86. The Markets of Indonesia were closed today.

Commodities, Metals, and Currencies

Crude oil increased $2.68 to close at $52.06 a barrel for a front month contract, natural gas decreased 3 cents to $3.60 per mBtu and gasoline futures increased 3.84 cents to close at 147.80 cents per gallon.

Wheat futures closed down 10.0 cents in Chicago trading and closed at $5.22 a bushel. Sugar increased 36 cent in trading at 13.31 cents a pound. Soybean future closed up 1.00 cent to $10.07 a bushel.

Gold decreased $6.80 in New York trading to close at $879.10 per ounce, silver closed down $0.03 to $12.31 per ounce and copper for the front month delivery increased 7.90 cents to $2.0775 per pound.

Dollar edged lower against euro to $1.3162 and rose against yen to 100.402.

Yields on 10-year U.S. bonds increased to 2.92% and with 30-year maturities closed up to 3.75%.