Techs, Banks Lead Gainers; Google Earnings Surge

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

Technology and banks led the gainers in New York trading. After the close, Google Inc reported higher than expected earnings. In Japan NEC and Renesas are discussing merger to create the largest semiconductor maker in Japan. China reported its slowest quarterly expansion in a decade.

5:00PM New York, 11:00PM Frankfurt, 8:00AM Sydney[R]– Technology and banks led the gainers in New York trading. After the close, Google Inc reported higher than expected earnings. In Japan NEC and Renesas are discussing merger to create the largest semiconductor maker in Japan. China reported its slowest quarterly expansion in a decade.[/R]

Global Markets

Two U.S. economic reports on jobless claims and new home construction confirm the growing belief that current recession may last longer than 2009. The jobless claims declined at the end of last week, but hovered above 600,000. Housing starts plunged in March, a fall in eight of the last nine months.

U.S. stocks edged higher in trading led by a rise in banks and tech stocks.

Hewlett Packard ((HWP)) jumped 5% after the company led the market share in PC in the first quarter of this year according to Garner Inc. In addition, Nokia gained after it reported sharply lower earnings in the latest quarter but reiterated its annual earnings outlook and Texas Instruments Inc gained 4.6% ahead of earnings.

Google Inc ((GOOG)) surged more than 5% after it reported earnings of $5.16 a share ahead of Wall Street consensus estimate of $4.93 a share. Revenues in the first quarter rose 6% to $5.51 billion compared to a year ago and declined 3% from the fourth quarter of 2008. International revenues rose to 52% of total revenues in the quarter compared to 51% a year ago quarter and 50% in the fourth quarter.

JP Morgan Chase ((JPM)) reported first quarter earnings of 40 cents a share or $2.14 billion and stressed in a conference call that the bank will like to return the TARP funds as soon as possible. Banks rallied in trading after the JP Morgan earnings and Regions Finance Corp indicated that the bank will earn a profit in the first quarter. Other regional banks rallied as well.

Japan government is preparing to issue 17 trillion yen or $170 billion of bonds to fund economic expansion. Investor sentiment was low after China reported slowest economic expansion in a decade. NEC plans to merge with Renesas Technology to create the largest semiconductor company in Japan.

China’s first quarter economy expanded at 6.1%, the sharpest decline in two decades and slowest growth in a decade. Inflation in China declines to 1.2% in March as retailers and suppliers face shrinking domestic and export demand.

Australian investor sentiment weakened after Brazil based Vale cuts benchmark contract prices for Chinese steel mills by 30%. Australia based Leighton Holdings Ltd. scrapped plan through a joint venture to build a new terminal at Dubai airport for nearly $1.3 billion. Australian and New Zealand dollars declined after China reported weak economic growth.

North American Markets

Dow Jones Industrial Average increased 95.81 or 1.19% to a close of 8,125.43, S&P 500 Index decreased 13.24 or 1.55% to 865.30, and Nasdaq Composite Index increased 43.64 or 2.68% to close at 1,670.44.

Of the stocks in S&P 500 index, 405 increased, 90 declined and 5 were unchanged.

Southwest Air led decliners in the S&P 500 index with a loss of 7.1% followed by losses in GameStop Corp of 6.9%, in Newmont Mining of 5.9%, in Lincoln National of 4.6%, in Aetna Inc of 4.2% and in Bank of New York Mellon of 4.2%.

Regions Financial led gainers in the S&P 500 index with a surge of 34% followed by gains in Moody’s Corp of 12.4%, in Tiffany & Company of 11.7%, in Sherwin Williams of 11.5%, in Micron Technology of 10.6% and in Tyco Electronics of 9.8%.

South American Markets Indexes

Mexico Bolsa Index increased 327.84 or 1.5% to 22,189.20. Brazil Bovespa Stock Index added 752.13 or 1.7% to 46,024.78.

Argentina Merval Index surged 3.3%, Chile Stock Market Select index added 1.7% and Peru Lima General Index declined 1.6%. Colombia IGBC General Index increased 0.05% and Venezuela Stock Market Index increased 0.8%.

Europe Markets Review

In London FTSE 100 Index closed higher 84.58 or 2.13% to 4,052.98, in Paris CAC 40 Index increased 52.44 or 1.76% to close at 3,038.18 and in Frankfurt DAX index higher 59.67 or 1.31% to close at 4,609.46. In Zurich trading SMI increased 98.52 or 1.94% to close at 5,163.95.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 12.30 or 0.14% to 8,755.26, Hang Seng index in Hong Kong decreased 86.63 or 0.55% closed to 15,582.99, CSI 300 index in China higher 0.12 or 0.00% closed to 2,687.11. ASX 200 index in Australia increased 28.20 or 0.75% closed to 3,775.70. The KL Composite index in Malaysia higher 4.60 or 0.48% closed to 961.28.

The Kospi Index in South Korea increased 3.63 or 0.27% to close at 1,336.72. SET index in Thailand closed lower 0.91 or 0.20% to 452.97 and JSE Index in Indonesia increased 31.42 or 1.97% closed to 1,625.09. The Sensex index in India decreased 337.33 or 2.99% closed to 10,947.40.

Commodities, Metals, and Currencies

Crude oil increased $0.65 to close at $49.90 a barrel for a front month contract, natural gas decreased 10 cent to $3.60 per mBtu and gasoline futures increased 2.57 cents to close at 147.250 cents per gallon.

Wheat futures closed up 9.50 cents in Chicago trading and closed at $5.36 a bushel. Sugar decreased 0.21 cent in trading at 13.35 cents a pound. Soybean future closed up 23.50 cent to $10.58 a bushel.

Gold increased $0.90 in New York trading to close at $892.90 per ounce, silver closed down $0.575 to $12.225 per ounce and copper for the front month delivery decreased 3.35 cents to $2.17 per pound.

Dollar edged higher against euro to $1.3181 and edged lower against yen to 99.36.

Yields on 10-year U.S. bonds increased to 2.8% and with 30-year maturities closed up at 3.71%.