Intel, American Express, Cisco Spark Rally

123jump.com Staff
15 Jul, 2009
New York City

Tech stocks rallied after Intel reported better than expected results and offered optimistic outlook for the economy. Cisco surged nearly 6% after rating upgrade. American Express surged to nine-month high after it lowered its estimate of bad loan charges.

[R]4:00 PM New York, 9:00 PM London, 6:00 AM Sydney – Tech stocks rallied after Intel reported better than expected results and offered optimistic outlook for the economy. Cisco surged nearly 6% after rating upgrade. American Express surged to nine-month high after it lowered its estimate of bad loan charges.[/R]

Intel earnings and outlook set the stocks on fire in New York trading. Technology heavy Nasdaq led the advancing index with a rise of 3.5%. Advanced Micro Devices, Cisco and Microsoft all trended higher. Intel surged 7.3%.

The Intel ((INTC)) earnings follows in the footsteps of Goldman Sachs reporting strong earnings, sparked a wave of enthusiasm among many analysts and investors. Intel predicted the upper end of revenue outlook for the third quarter to as high as $8.9 billion.

Cisco added 6% after Citigroup recommended the stock with a ‘buy’ rating.

American Express ((AXP)) said that net charge offs for bad loans in the first half are likely to be less than previously estimated.

European auto sales in June increased on the government incentives but declined 11% in the first half of this year. Germany based MAN acquired 25% stake in China based Sinotruk. The retailer Casio Guichard second quarter sales declined 1.9%.

Stocks in London surged after the miners and insurance companies rallied. The sharp gain in copper and other base metals lifted the stocks in resource sectors. Insurance companies gained on takeover rumors. UK unemployment claims increase in June, record high in 12 years.

Mizuho Financial set the 530 billion yen offering price at 184 yen a share. The Bank of Japan extended by three months its emergency lending program to December and lowered its economic outlook for this year and the next year.

Metals and shipping related stocks in Shanghai surged and banking and financial service sectors closed higher in Hong Kong. China’s foreign reserves crossed above $2 trillion for the first time and foreign direct investment declined 6.8% in June and 17.9% in the first half.

The Sensex index in Mumbai trading gained 6% or 852 in last two days. Metal stocks shine on rally in LME metal prices. Adani Enterprises Limited and Mundra Port & SEZ Ltd surged after Adani Power Ltd filed to raise $450 million.

North American Markets

Dow Jones Industrial Average increased 256.72 or 3.1% to a close of 8,616.21, S&P 500 Index increased 26.84 or 2.96% to 932.68, and Nasdaq Composite Index edged higher 63.17 or 3.5% to close at 1,862.90. Toronto TSX Composite Index increased 229.31 or 2.3% to 10,215.46.

Of the stocks in S&P 500 index, 482 increased, 17 declined and 1 was unchanged.

YUM! Brands, Inc led the decliners in the S&P 500 index with a loss of 6.0% followed by losses in Abbott Labs of 2.6%, in Total System Services of 1.8%, in Davita Inc of 1.2% and in Darden Restaurant of 1.1%.

Gannett Co., Inc led gainers in the S&P 500 index with a rise of 29% followed by gains in Capital One Financial Corporation 11.8%, in American Express of 11.3%, in Genworth Financial of 11% and Advanced Micro Devices of 8.7%.

South American Markets Indexes

Mexico Bolsa Index increased 995.68 or 4.1% to 24,340.65. Brazil Bovespa Stock Index surged 2,424.08 or 5% to 51,296.66.

Argentina Merval Index increased 4.5%. Chile Stock Market Select index edged higher 2%, Peru Lima General Index added 2% and Colombia IGBC General Index added 0.6%.

Europe Markets Review

In London FTSE 100 Index closed higher 108.78 or 2.57% to 4,346.46, in Paris CAC 40 Index increased 89.40 or 2.90% to close at 3,171.27 and in Frankfurt DAX index higher 146.75 or 3.07% to close at 4,928.44. In Zurich trading SMI increased 108.28 or 2.02% to close at 5,473.33.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 7.44 or 0.08% to 9,269.25, Hang Seng index in Hong Kong increased 372.93 or 2.09% to 18,258.66 and CSI 300 index in China closed higher 38.55 or 1.12% to 3,493.30. ASX 200 index in Australia increased 57.40 or 1.48% to 3,924.50. The FTSE Bursa KL Composite index in Malaysia closed higher 17.61 or 1.63% to 1,097.24.

The Kospi Index in South Korea increased 35.30 or 2.55% to close at 1,420.86. SET index in Thailand closed higher 10.11 or 1.75% to 587.86 and JSE Index in Indonesia increased 66.70 or 3.24% to 2,123.28. The Sensex index in India increased 399.54 or 2.88% to 14,253.24.

Commodities, Metals, and Currencies

Crude oil increased $2.24 to close at $61.76 a barrel for a front month contract, natural gas decreased 0.13 cents to $3.30 per mBtu and gasoline increased 6.81 cents to 171.47 cents.

Wheat futures closed up 4.75 cents in Chicago trading to $5.34 a bushel. Sugar increased 0.09 cent in trading at 17.77 cents a pound. Soybean future closed down 13.50 cent to $9.04 a bushel.

Gold increased $16.50 in New York trading to close at $939.30 per ounce, silver closed up $0.41 to $13.27 per ounce and copper for the front month delivery increased 10.10 cents to $2.40 per pound.

Dollar edged higher against euro to $1.4103 and closed up against the Japanese yen to 94.28.

Yield on 10-year U.S. bond increased to 3.61% and with 30-year maturities increased to 4.49%.