U.S. Investors Focus On Low Inventories

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

U.S. stocks edged higher but tech stocks were weak. Treasuries declined after California plans to sell new bonds that will incur federal taxes. U.S. oil inventories are edging at 18-year high but crude oil price hovered near $50 a barrel. Rio Tinto reported a fall in iron ore production.

5:00PM New York, 11:00PM Frankfurt, 8:00AM Sydney[R]– U.S. stocks edged higher but tech stocks were weak. Treasuries declined after California plans to sell new bonds that will incur federal taxes. U.S. oil inventories are edging at 18-year high but crude oil price hovered near $50 a barrel.[/R]

Global Markets

U.S. stocks edged higher in the morning trading after the latest read on industrial production and consumer price index showed decline. The decline in both indexes was viewed by the market as deferring inflation and decline in inventories ahead of adding new productive capacity. Capacity utilization fell to the lowest since data collection began in 1967.

While the broader market indexes gained tech stocks were weak after Intel reported 55% decline in earnings.

Capital One Financial Corporation led the decliners in the S&P 500 index with a loss of 9.2%. CSX Corporation first quarter profit slides to 62 cents a share. Intel Corporation first quarter sales fall 26%. Peabody Energy first quarter revenue triples but falls short of expectations.

American Express ((AXP)) surged after it said that charge-off rates declined at a slower pace in March after it sold of weaker consumer loans as reported by Bloomberg News but did not name the source and 123jump.com could not verify the data. The rally in Amex also lifted stocks in the financial sector.

New condo offerings in Tokyo metropolitan area decline 46.2% to 2,390 units in March. Nomura seeks Japanese government approval to raise $4 billion in the UK after it successfully raised $100 million in South Africa. The benchmark index Nikkei 225 Average fell 1.1%.

Stocks in Hong Kong and Shanghai edged higher after a note in the official China Securities Journal suggested revised taxes and fiscal guidelines. The revision was interpreted by market experts as additional measures from the government to stimulate economic growth.

Rio Tinto reported a sharp fall in mining output in iron ore, aluminum and copper and coking coal output rose. Leading indicator index in Australia fell sharply in February as the economy struggles with falling domestic demand, tight lending conditions and weak exports growth.

North American Markets

Dow Jones Industrial Average increased 109.44 or 1.38% to a close of 8,029.62, S&P 500 Index decreased 10.56 or 1.25% to 852.06, and Nasdaq Composite Index increased 14.49 or 0.16% to close at 1,626.80.

Of the stocks in S&P 500 index, 98 increased, 400 declined and 2 were unchanged.

Gannett Company led decliners in the S&P 500 index with a loss of 19.5% followed by losses in Fifth Third Bancorp of 17.1%, in Marshall & Ilsley of 14.3%, in Prologis of 14.5%, in Principal Financial of 12.9% and in Hartford Financial Services of 12.8%.

Tenet Healthcare led gainers in the S&P 500 index with a surge of .02% followed by gains in Dynegy Inc of 8.15%, in E*Trade Financial of 7.5%, in AIG of 7.1%, in Express Script of 5.95% and in Citigroup Inc of 5.53%.

South American Markets Indexes

Mexico Bolsa Index decreased 57.24 or 0.3% to 21,861.36. Brazil Bovespa Stock Index declined 145.53 or 0.32% to 45,272.65.

Argentina Merval Index added 0.70%, Chile Stock Market Select index declined 0.2% and Peru Lima General Index declined 0.5%. Colombia IGBC General Index increased 0.3% and Venezuela Stock Market Index decreased 0.2%.

Europe Markets Review

In London FTSE 100 Index closed lower 20.59 or 0.52% to 3,968.40, in Paris CAC 40 Index decreased 14.48 or 0.48% to close at 2,985.74 and in Frankfurt DAX index lower 7.22 or 0.16% to close at 4,549.79. In Zurich trading SMI decreased 33.89 or 0.66% to close at 5,065.43.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 99.72 or 1.13% to 8,742.96, Hang Seng index in Hong Kong increased 89.46 or 0.57% closed to 15,669.62, CSI 300 index in China higher 10.12 or 0.38% closed to 2,686.99. ASX 200 index in Australia decreased 5.40 or 0.14% closed to 3,747.50. The KL Composite index in Malaysia higher 2.97 or 0.31% closed to 956.68.

The Kospi Index in South Korea decreased 9.54 or 0.71% to close at 1,333.09.JSE Index in Indonesia increased 23.40 or 1.49% closed to 1,593.66. The Sensex index in India increased 317.51 or 2.90% closed to 11,284.73.The Markets of Thailand were close today.

Commodities, Metals, and Currencies

Crude oil increased $0.37 to close at $49.78 a barrel for a front month contract, natural gas increased 1 cent to $3.70 per mBtu and gasoline futures decreased 0.26 cents to close at 145.50 cents per gallon.

Wheat futures closed down 7.00 cents in Chicago trading and closed at $5.27 a bushel. Sugar decreased 0.11 cent in trading at 13.56 cents a pound. Soybean future closed down 1.00 cent to $10.35 a bushel.

Gold increased $0.90 in New York trading to close at $892.90 per ounce, silver closed down $0.015 to $12.75 per ounce and copper for the front month delivery increased 11.20 cents to $2.24 per pound.

Dollar edged higher against euro to $1.3232 and rose against yen to 99.37.

Yields on 10-year U.S. bonds decreased to 2.76% and with 30-year maturities closed unchanged at 3.66%.