Tech Stocks Lead U.S. Markets; Oil Drops

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

Tech stocks closed higher after Apple, Palm and Research in Motion were the focus of investors. Crude oil price fell after analysts stressed the investor driven demand has been behind the recent surge in prices. Mexico and Colombia lowered interest rates.

[R]4:00 PM New York, 9:00 PM London, 6:00 AM Sydney – Tech stocks closed higher after Apple, Palm and Research in Motion were the focus of investors. Crude oil price fell after analysts stressed the investor driven demand has been behind the recent surge in prices. Mexico and Colombia lowered interest rates. European leaders sound optimistic tone regarding economic outlook.[/R]

U.S. stocks closed mixed today but tech stocks managed to rally. Apple and Palm gained attention as more people prefer to purchase smart phones. Research in Motion fell after the release of earnings and rising competition in the market place.

Crude oil declined after weekly inventories data suggested that supply is rising at a faster pace than the demand in the U.S. and the recent gains in prices are driven by the investors demand and not the economic fundamentals.

E*Trade public offering managed to raise more than earlier expected after it prices its offering at 23% discount to yesterday price. The stock in the early trading drops another 15%.

CarMax reported first quarter sales declined 17% and earnings fell 2.7%. Carnival Corp advanced after the cruise operator indicated higher prices for tours. E*Trade raised more than expected in a public offering priced at 23% discount. Research in Motion quarterly sales jump 53% and earnings rise 33%.

In a widely expected move, Mexico lowered its key lending rate by 50 basis points to 4.75% and issued a downbeat outlook for the prospect of exports and the Mexican economy. The exports for the year are running nearly 33% lower than a year ago and economy may face a contraction more than last seen in 1995.

Colombia lowered its key lending rate by 50 basis points to 4.5% and Chile authorized additional $4 billion and repatriate assets to finance domestic economy stimulus. Chilean peso added 0.4% today and surged 5.1% for the week.

European markets edged higher after European leaders talks of early signs of sustained recovery. Porsche nine months sales declined 15% and issued cautionary outlook. HeidelbergCement renegotiated its debt that will pay 425 basis points above interbank rate.

UK stocks closed higher after miners rallied for the second day this week. On a triple witching day, the stocks edged higher on a quiet day. Carnival, Candover, Mitchells & Butlers led gainers in London trading. Xstrata, Antofagasta, Vedanta and other miners closed up more than 2.5%.

Real estate and commodities stocks closed higher in Tokyo trading. Banks rebounded on higher earnings expectations in the second quarter. Foreign investors lower their holdings in Japanese equities.

Stocks in Mumbai closed up as expectations run high on infrastructure spending ahead of the government budget. Suzlon calls bond holders meeting. The market regulator Sebi simplifies guidelines and permits anchor investor concept in rights offerings.

Australian dollar gained against the U.S. dollar and Japanese yen as short term yields rise above 3%, the highest since March. The Australian government priced A$770 million bonds at a higher yields that drew mostly domestic investors.

North American Markets

Dow Jones Industrial Average decreased 15.87 or 0.2% to a close of 8,539.73, S&P 500 Index increased 2.86 or 0.3% to 921.23, and Nasdaq Composite Index edged higher 19.75 or 1.1% to close at 1,827.47. Toronto TSX Composite Index closed up 166.45 or 1.6% to 10,287.95.

Of the stocks in S&P 500 index, 282 increased, 214 declined and 4 were unchanged.

E*Trade Financial Corporation led the decliners in the S&P 500 index with a loss of 11.9% followed by losses in Tenet Healthcare of 6.1%, in Sprint Nextel Corp of 4.2%, in Chesapeake Energy of 4.1% and in Federated Investments of 3.7%.

Genworth Financial, Inc led gainers in the S&P 500 index with a rise of 13.3% followed by gains in Novell Inc 10.1%, in Wyndham Worldwide of 9.8% and in Eastman Kodak Company of 8.8%.

South American Markets Indexes

Mexico Bolsa Index decreased 65.93 or 0.3% to 24,274.72. Brazil Bovespa Stock Index increased 470.75 or 0.9% to 51,373.77.

Argentina Merval Index increased 1.9%, Chile Stock Market Select index added 0.4%, Peru Lima General Index advanced 0.4% and Colombia IGBC General Index increased 0.4%.

Europe Markets Review

In London FTSE 100 Index closed higher 65.07 or 1.52% to 4,345.93, in Paris CAC 40 Index increased 27.21 or 0.85% to close at 3,221.27 and in Frankfurt DAX index higher 1.98 or 0.04% to close at 4,839.46. In Zurich trading SMI increased 44.75 or 0.83% to close at 5,421.59.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 82.54 or 0.85% to 9,786.26, Hang Seng index in Hong Kong increased 144.27 or 0.81% to 17,920.93 and CSI 300 index in China closed higher 22.57 or 0.74% to 3,080.00. The ASX 200 index in Australia increased 7.50 or 0.19% to 3,899.60. The KL Composite index in Malaysia closed higher 5.09 or 0.48% to 1,059.50.

The Kospi Index in South Korea increased 7.58 or 0.55% to close at 1,383.34.SET index in Thailand closed higher 18.55 or 3.25% to 588.98 and JSE Index in Indonesia increased 39.48 or 2.02% to 1,990.47. The Sensex index in India increased 256.36 or 1.80% to 14,521.89.

Commodities, Metals, and Currencies

Crude oil decreased $1.78 to close at $69.59 a barrel for a front month contract, natural gas decreased 4 cent to $4.05 per mBtu and gasoline decreased 9.7 cents to 193.27 cents.

Wheat futures closed down 5.00 cents in Chicago trading to $5.55 a bushel. Sugar increased 0.23 cent in trading at 16.07 cents a pound. Soybean future closed down 37.50 cents to $10.006 a bushel.

Gold increased $1.10 in New York trading to close at $935.70 per ounce, silver closed down $0.04 to $14.20 per ounce and copper for the front month delivery decreased 3.45 cents to $2.24 per pound.

Dollar edged lower against euro to $1.3944 and closed down against the Japanese yen to 96.26.

Yields on 10-year U.S. bonds decreased to 3.77% and with 30-year maturities closed down at 4.50%.