U.S. Home Sales Rise; Banks Raise Capital

123jump.com Staff
02 Jun, 2009
New York City

U.S. stocks edged higher as banks, healthcare and construction stocks gained. JP Morgan Chase, SunTrust Banks and American Express raise capital as required by the regulatory agencies. Morgan Stanley plans to raise additional $2.2 billion. EU unemployment rises and UK mortgage approvals gain.

[R]5:00 PM New York, 10:00 PM London, 8:00AM Sydney – U.S. stocks edged higher as banks, healthcare and construction stocks gained. JP Morgan Chase, SunTrust Banks and American Express raise capital as required by the regulatory agencies. Morgan Stanley plans to raise additional $2.2 billion.[/R]

U.S. benchmark indexes closed higher for the fifth day in a row after healthcare, construction and home builder stocks gained.

The 6.7% rise in existing home sales in April according to National Association of Realtors was the largest gain in monthly sales in seven years. The sharp rebound was taken in stride by investors as home builders only edged up a fraction.

EMC proposed to acquire Data Domain for $30 a share or $1.8 billion. SunTrust increased 11.7% after it completed $1.6 billion offering and Morgan Stanley said it plans to raise $2.2 billion. The Pepsi Bottling Group increased after it raised its quarterly and annual earnings estimate.

Barclays Plc declined 12% after Abu Dhabi based investor sold stake in the bank with a profit of more than 50%. JP Morgan Chase fell 4.5% after it completed $5 billion in offering. Daktronics, the maker of electronic displays declined 13% after quarterly revenues declined 5.7%. American Express decreased 5%.

UK stocks declined on weak banking stocks. Strategic investor in Barclays sold stock only after holding the stake for less than seven months. Kingfisher net sales and earnings increased. The advertising giant WPP Plc fell after it reported 6.7% decrease in revenues in the first four months.

The euro region unemployment increased in April with Spain and Baltic nations leading. French producer price index declined in April at a faster rate in the last three months. Volkswagen surged on potential merger with Porsche. Bouygues SA operating profit plunged 55%.

Stocks in Japan continue to edge higher on a rise in commodities prices, optimistic views on the global economy and international trade and a prospect of market share gains after the fall of GM. Sony Financial plunged 14% after it lowered its estimate of net holdings.

Stocks in India edged higher for the fifth day. Net inflows from foreign investors, rising commodities prices and expanding manufacturing has sustained recent gains. Markets are rallying ahead of the release of government agenda on June 4.

North American Markets

Dow Jones Industrial Average increased 19.43 or 0.2% to a close of 8,740.33, S&P 500 Index added 1.87 or 0.2% to 944.74, and Nasdaq Composite Index edged higher 8.12 or 0.4% to close at 1,836.80. Toronto TSX Composite Index closed down 15.27 or 0.1% to 10,588.79.

Of the stocks in S&P 500 index, 259 increased, 238 declined and 3 were unchanged.

General Motors led decliners in the S&P 500 index with a loss of 18.7% followed by losses in Hess Corp of 11.4%, in Cardinal Health of 10.8%, in CIT Group Inc of 10.3% and in Prologis of 8.1%.

SunTrust Banks led gainers in the S&P 500 index with a surge of 15.5% followed by gains in Legg Mason Inc of 13.6%, in Dow Chemical of 9.5%, in Sears Holdings of 8.9%, in Waters Corp of 7.2% and in Alcoa Inc of 7%.

South American Markets Indexes

Mexico Bolsa Index decreased 327.53 or 1.3% to 24,331.71. Brazil Bovespa Stock Index added 156.99 or 0.3% to 53,197.73.

Argentina Merval Index increased 0.8%, Chile Stock Market Select index decreased 0.4% and Peru Lima General Index surged 1.8%. Colombia IGBC General Index edged lower 0.6% and Venezuela Stock Market Index edged down 0.4%.

Europe Markets Review

In London FTSE 100 Index closed lower 29.17 or 0.65% to 4,477.02, in Paris CAC 40 Index decreased 1.45 or 0.04% to close at 3,378.04 and in Frankfurt DAX index higher 1.50 or 0.03% to close at 5,144.06. In Zurich trading SMI increased 82.48 or 1.54% to close at 5,432.22.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 26.56 or 0.27% to 9,704.31, Hang Seng index in Hong Kong decreased 499.51 or 2.64% closed to 18,389.08, CSI 300 index in China higher 6.76 or 0.24% closed to 2,865.10. ASX 200 index in Australia increased 60.90 or 1.56 % closed to 3,955.30. The KL Composite index in Malaysia higher 1.82 or 0.17% closed to 1,063.62.

The Kospi Index in South Korea decreased 2.25 or 0.16% to close at 1,412.85. SET index in Thailand closed lower 5.68 or 0.98% to 574.30 and JSE Index in Indonesia increased 0.06 or 0.00% closed to 1,998.64. The Sensex index in India increased 34.28 or 0.23% closed to 14,874.91.

Commodities, Metals, and Currencies

Crude oil increased 9 cents to close at $68.67 a barrel for a front month contract, natural gas decreased 10 cent to $4.14 per mBtu and gasoline increased 1.27 cents to 193.70 cents.

Wheat futures closed down 5.00 cents in Chicago trading and closed at $6.69 a bushel. Sugar decreased 0.41 cent in trading at 15.44 cents a pound. Soybean future closed down 9.50 cent to $12.09 a bushel.

Gold increased $3.10 in New York trading to close at $983.10 per ounce, silver closed up $0.25 to $15.99 per ounce and copper for the front month delivery decreased 2.25 cents to $2.29 per pound.

Dollar edged lower against euro to $1.4304 and closed down against the Japanese yen to 95.76.

Yields on 10-year U.S. bonds decreased to 3.61% and with 30-year maturities closed down at 4.48%.