Earnings Lift Stocks, UK Bonds Drop

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

Earnings from eBay, Apple and Marriott lift stocks in the afternoon trading in New York. Toyota reported sales decline for the full year. UK government bonds and pound are likely to face headwind with the issuance of more debt guarantees.

5:00PM New York, 11:00PM Frankfurt, 8:00AM Sydney[R]– Earnings from eBay, Apple and Marriott lift stocks in the afternoon trading in New York. Toyota reported sales decline for the full year. UK government bonds and pound are likely to face headwind with the issuance of more debt guarantees.[/R]

Global Markets

U.S. stocks edged lower after unemployment claims rise in the last week but managed to rebound in the afternoon trading. March existing home sales declined at 3% annual rate from February to 4.57 million and fell 7.1% from a year ago month. Median home prices declined 12% from a year ago. Northeast sales decline of 8% led the nation.

Pactiv Corporation led gainers in the S&P 500 index with a rise of 21.9%. Torchmark Corporation led the decliners in the S&P 500 index with a loss of 11.3% followed by losses in Thermo Fisher Scientific Inc of 11.2%, in Robert Half International Inc of 9.8%. AllianceBerstein earnings plunge.

Credit Suisse returned to profitability on a rise in income. Tier 1 capital ratio increased as the bank lowered its risk profile. The bank benefitted from the net new asset flows in asset management. The investment bank reported net income of $1.9 billion and tier 1 capital ratio of 14.1%.

UK offered additional support of 50 billion pounds to the issuance of mortgage bonds. With the latest support, UK government has now extended support to 1.4 trillion pounds or $2 trillion with no end in sight. The rising unemployment, shrinking economy and falling exports are all adding pressures for weaker pound. Investors are worried that 220 billion pounds of gilts this year may depress pound and lift bond yields.

Schroders declined 7% after it reported 54% fall in first quarter earnings and Debenhams soared 22% after it reported 25% rise in earnings for the first half. Lonmin Plc, the third largest platinum producer reported fiscal second quarter refined metal production increased at 44% from a year ago when furnace was closed for maintenance.

In other European earnings news, ABB Ltd dropped 7% after it reported 16% decline in first quarter orders to $9.15 billion. Logitech, the computer accessories maker declined 7% after it reported $35 million loss and Akzo Noble declined 3% after it reported first quarter net loss of 7 million euros.

In Tokyo, Toyota reported its quarterly unit sales for the three months ending in March dropped 27% to $1.77 million from 2.41 million a year ago. For the year ending in March sales dropped 12% to 8.33 million.

Mizuho Financial Group, the second largest Japanese bank reported its first annual loss in six years. The bank lost 580 billion yen or $5.84 billion.

North American Markets

Dow Jones Industrial Average increased 70.49 or 0.89% to a close of 7,957.06, S&P 500 Index added 8.37 or 1% to 851.92, and Nasdaq Composite Index gained 6.09 or 0.4% to close at 1,652.21.

Of the stocks in S&P 500 index, 298 increased, 200 declined and 2 were unchanged.

CIT Group led decliners in the S&P 500 index with a loss of 21.1% followed by losses in Torchmark Corp of 13.6%, in National Oilwell Varco of 11.2%, in Robert Half International of 9.3%, in Nucor Corp of 9.3% and in Thermo Fisher of 8%.

Pactiva Corp led gainers in the S&P 500 index with a surge of 21.5% followed by gains in Capital One Finace of 18%, in Host Hotels & Real Estate of 16.8%, in RadioShack Corp of 14.7%, in NYSE Euronext of 13.7% and in Consol energy of 13%.

South American Markets Indexes

Mexico Bolsa Index increased 349.32 or 1.6% to 21,829.33. In Monday’s trading, Brazil Bovespa Stock Index added 912.97 or 2.1% to 45,801.17.

Argentina Merval Index added 0.1%, Chile Stock Market Select index added 0.2% and Peru Lima General Index decreased 1.7%. Colombia IGBC General Index edged up 0.6% and Venezuela Stock Market Index added 0.1%.

Europe Markets Review

In London FTSE 100 Index closed lower 12.43 or 0.31% to 4,018.23, in Paris CAC 40 Index decreased 16.62 or 0.55% to close at 3,008.62 and in Frankfurt DAX index lower 56.21 or 1.22% to close at 4,538.21. In Zurich trading SMI decreased 39.80 or 0.79% to close at 5,023.90.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 119.71 or 1.37% to 8,847.01, Hang Seng index in Hong Kong increased 336.01 or 2.26% closed to 15,214.46, CSI 300 index in China higher 17.28 or 0.67% closed to 2,593.56. ASX 200 index in Australia increased 74.80 or 2.04% closed to 3,743.00. The KL Composite index in Malaysia higher 10.06 or 1.04% closed to 978.64.

The Kospi Index in South Korea increased 12.78 or 0.94% to close at 1,368.80. SET index in Thailand closed higher 5.44 or 1.18% to 466.06 and JSE Index in Indonesia decreased 22.53 or 1.39% closed to 1,592.70. The Sensex index in India increased 317.45 or 2.93% closed to 11,134.99.

Commodities, Metals, and Currencies

Crude oil increased $0.85 to close at $49.70 a barrel for a front month contract, natural gas decreased 13 cent to $3.40 per mBtu and gasoline futures increased 0.34 cents to close at 139.40 cents per gallon.

Wheat futures closed up 12.75 cents in Chicago trading and closed at $5.4075 a bushel. Sugar increased 0.12 cent in trading at 13.67 cents a pound. Soybean future closed down 7 cent to $10.32 a bushel.

Gold increased $11.40 in New York trading to close at $903.90 per ounce, silver closed down $0.13 to $11.97 per ounce and copper for the front month delivery decreased 2.85 cents to $2.0785 per pound.

Dollar edged lower against euro to $1.3151 and edged lower against yen to 97.92.

Yields on 10-year U.S. bonds increased to 2.92% and with 30-year maturities closed up at 3.79%.