Weak U.S. Retail Sales, Earnings in Europe

123jump.com Staff
13 May, 2009
New York City

Stocks in New York declined on economic data and in Europe on weak earnings. April sales in the U.S. fell dampening investor sentiment. Earnings were mixed in Japan. More companies are looking to raise capital to repay debts as MGM Mirage filed to raise $2.5 billion.

[R]4:00 PM New York, 9:00 PM London – Stocks in New York declined on economic data and in Europe on weak earnings. Earnings were mixed in Japan. More companies are looking to raise capital to repay debts. MGM Mirage filed to raise $2.5 billion.[/R]

Markets in New York, Canada, Europe and Latin America declined after weak retail sales, earnings worries and weak prospect of economic recovery in the UK.

April retail sales in the U.S. declined 0.4% after falling at revised 1.3% in March and business inventories declined 1% in March. Markets declined after the fall in retail sales and weak earnings. Allianz, ING, Land Securities in London reported weaker than expected results. Nissan reported a loss and Hitachi loss widened.

European markets declined as cautious investors stayed on the side lines. Allianz SE dropped 8% on first quarter net income of near breakeven and Lagardere SCA plunged 7% after revenues declined 2%. Air France-KLM Group declined 6.5% after it reported April traffic decline of 2.8%. ING declined after it reported net loss of €793 million or €0.39 per diluted share in the first quarter.

UK stocks declined after the central bank offered cautionary outlook. Land Securities plunged after it reported weaker than expected results. J. Sainsbury annual net income increased 12%. Johnston Press plunged 38% on debt covenant issues.

Earnings outlook and global economic worries dominated trading in Tokyo. Nissan reported sales decline and net loss but estimated smaller loss in the current year. Olympus and Citizen Holdings increased after it estimated net income in the current year. Hitachi Ltd plunged 10%.

Mumbai stocks in quiet trading gyrated ahead of election results and a prospect of uncertain outcome. DLF raised 3,860 crore rupees after founders sold 10% shares to investors including Fidelity, HSBC and hedge fund manager D.E Shaw & Co.

North American Markets

Dow Jones Industrial Average fell 184.22 or 2.2% to a close of 8,284.89, S&P 500 Index declined 24.23 or 2.7% to 883.92, and Nasdaq Composite Index decreased 51.73 or 3% to close at 1,664.19. In Toronto TSX Composite Index closed down 371.63 or 3.7% to 9,706.07.

Of the stocks in S&P 500 index, 39 increased, 459 declined and 2 were unchanged.

Genworth Financial led decliners in the S&P 500 index with a loss of 20.1% followed by losses in Marshall & Ilsley of 14.8%, in Office Depot Inc of 14.7%, in Fifth Third Bancorp of 14.5% and in Huntington Bancshares of 14.2%.

CME Group led gainers in the S&P 500 index with a surge of 5.8% followed by gains in General Motors of 5.2%, in Dr Pepper Snapple of 3.6%, in Time Warner Inc of 3.5%, in Merck & Company of 2.9% and in Pfizer Inc of 2.4%.

South American Markets Indexes

Mexico Bolsa Index fell 541.48 or 2.3% to 23,155.01. Brazil Bovespa Stock Index declined 1,622.77 or 3.2% to 48,703.01.

Argentina Merval Index dropped 4.2%, Chile Stock Market Select index decreased 1.2% and Peru Lima General Index declined 1.2%. Colombia IGBC General Index edged lower 1.4% and Venezuela Stock Market Index edged down 1%.

Europe Markets Review

In London FTSE 100 Index closed lower 94.17 or 2.13% to 4,331.37, in Paris CAC 40 Index decreased 78.20 or 2.42% to close at 3,152.90 and in Frankfurt DAX index lower 126.50 or 2.61% to close at 4,727.61. In Zurich trading SMI decreased 68.66 or 1.28% to close at 5,277.37.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 41.88 or 0.45% to 9,340.49, Hang Seng index in Hong Kong decreased 94.02 or 0.55% closed to 17,059.62, CSI 300 index in China higher 25.44 or 0.91% closed to 2,814.00. ASX 200 index in Australia decreased 21.10 or 0.54% closed to 3,856.10. The KL Composite index in Malaysia lower 0.18 or 0.02% closed to 1,022.84.

The Kospi Index in South Korea increased 11.01 or 0.78% to close at 1,414.52. SET index in Thailand closed higher 8.17 or 1.50% to 552.71 and JSE Index in Indonesia increased 9.31 or 0.51% closed to 1,851.33. The Sensex index in India decreased 138.38 or 1.14% closed to 12,019.65.

Commodities, Metals, and Currencies

Crude oil decreased $0.88 to close at $57.97 a barrel for a front month contract, natural gas decreased 19 cent to $4.26 per mBtu and gasoline futures increased 2.28 cents to close at 169.07 cents per gallon.

Wheat futures closed down 4.00 cents in Chicago trading and closed at $5.8875 a bushel. Sugar decreased 0.32 cent in trading at 15.40 cents a pound. Soybean future closed up 10.50 cent to $11.28 a bushel.

Gold increased $2.60 in New York trading to close at $926.50 per ounce, silver closed down $0.21 to $14.01 per ounce and copper for the front month delivery decreased 6.40 cents to $2.02 per pound.

Dollar edged higher against euro to $1.3587 and closed down against yen to 95.29.

Yields on 10-year U.S. bonds decreased to 3.11% and with 30-year maturities closed down at 4.09%.