Oil Reaches $70; Copper ,Tech Stocks Rise

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

U.S. stocks closed mixed but tech stocks closed higher on revised outlook from Texas Instruments. Crude oil reached intra-day high of $70 a barrel since October last year. Copper and other base metal prices increased.

[R]5:00 PM New York, 10:00 PM London, 8:00AM Sydney – U.S. stocks closed mixed but tech stocks closed higher on revised outlook from Texas Instruments. Crude oil reached intra-day high of $70 a barrel since October last year. Copper and other base metal prices increased.[/R]

The U.S. Energy administration lifted its estimate of average crude oil price for the year to $58.70 a barrel from $52 a barrel and average price in 2010 to $67.42 a barrel from $58 a barrel.

The Men''s Wearhouse surged after it reported better than expected earnings. Harley Davidson and Hartford Financial declined after negative comments from brokers. FuelCell Energy surged after it reported smaller than expected loss. Pep Boys-Manny, Moe & Jack increased 7% on steady sales.

European markets closed mixed after German exports fell more than expected in April and industrial production declined. Business confidence in France in May increased. Arcandor filed for insolvency and bankers will sell its majority stake in Thomas Cook. Air France-KLM traffic declined.

U.K. house prices rise 1.1% in April. BlackRock values investment management unit of Barclays at $13 billion. Thomas Cook majority stake is likely to be auctioned after Arcandor files for insolvency. Greene King acquires 30 pubs at £30.4 million from Punch Taverns.

Financial stocks in Tokyo led the decliners after the proposed merger between two insurance companies faced resistance. Executives at Nipponkoa expressed dissatisfaction with Sompo Japan merger. Investors have turned cautious after recent sharp gains in the commodities and benchmark indexes.

China auto and commercial vehicles sales surge in May and for the year after the government offered tax rebates. China also boosted tax incentives to exporters of electronics and other products. Financials rallied on media speculation of a merger between Ping An and Shenzhen Development Bank.

Stocks in Mumbai trading rebounded after Prime Minister said economy is likely to grow at 7% in the current fiscal year. Satyam Computer Services surged after it reported net income in the third quarter. Tech Mahindra surged 25%. Infosys along with EDS and IBM were selected for A$450 million deal.

North American Markets

Dow Jones Industrial Average decreased 1.43 or 0.02% to a close of 8,763.06, S&P 500 Index increased 3.29 or 0.4% to 942.43, and Nasdaq Composite Index edged higher 17.73 or 1% to close at 1,860.13. Toronto TSX Composite Index closed down 1.26 or 0.01% to 10,547.86.

Of the stocks in S&P 500 index, 305 increased, 191 declined and 4 were unchanged.

Jabil Circuit led the decliners in the S&P 500 index with a loss of 7.4% followed by losses in Masco Corp of 5.3%, in Verisign Inc of 4.9% and in CIGNA Corporation of 4.1%.

LSI Corp led gainers in the S&P 500 index with a rise of 10.7% followed by gains in of AK Steel Holdings 9.8%, in US Steel Corp of 7.9%, in Pall Corporation of 7.8% and in MEMEC Electric Materials of 7.1%.

South American Markets Indexes

Mexico Bolsa Index increased 174.55 or 0.70% to 25,107.43. Brazil Bovespa Stock Index declined 473.26 or 0.9% to 53,157.13.

Argentina Merval Index increased 1%, Chile Stock Market Select index increased 0.5% and Peru Lima General Index added 1.4%. Colombia IGBC General Index edged higher 0.25% and Venezuela Stock Market Index increased 1.2%.

Europe Markets Review

In London FTSE 100 Index closed lower 0.43 or 0.01% to 4,404.79, in Paris CAC 40 Index increased 7.07 or 0.21% to close at 3,296.73 and in Frankfurt DAX index lower 6.86 or 0.14% to close at 4,997.86. In Zurich trading SMI decreased 3.05 or 0.06% to close at 5,388.67.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 78.81 or 0.80% to 9,786.82, Hang Seng index in Hong Kong decreased 194.90 or 1.07% closed to 18,058.49, CSI 300 index in China higher 12.08 or 0.41% closed to 2,960.56. ASX 200 index in Australia decreased 36.30 or 0.91% closed to 3,934.90. The KL Composite index in Malaysia lower 1.06 or 0.10% closed to 1,071.79.

The Kospi Index in South Korea decreased 21.46 or 1.54% to close at 1,371.84.SET index in Thailand closed higher 7.70 or 1.28% to 607.73 and JSE Index in Indonesia increased 36.65 or 1.78% closed to 2,093.29. The Sensex index in India increased 461.08 or 3.14% closed to 15,127.00.

Commodities, Metals, and Currencies

Crude oil increased $1.78 to close at $69.87 a barrel for a front month contract, natural gas increased 1 cent to $3.74 per mBtu and gasoline increased 2.95 cents to 196.55 cents.

Wheat futures closed up 15.75 cents in Chicago trading and closed at $6.13 a bushel. Sugar increased 0.09 cent in trading at 16.60 cents a pound. Soybean future closed up 6.10 cent to $12.43 a bushel.

Gold increased $3.00 in New York trading to close at $955.50 per ounce, silver closed up $0.26 to $15.21 per ounce and copper for the front month delivery increased 10.40 cents to $2.3570 per pound.

Dollar edged lower against euro to $1.4062 and closed down against the Japanese yen to 97.408.

Yields on 10-year U.S. bonds decreased to 3.86% and with 30-year maturities closed up at 4.65%.