New Highs on Stocks; Bernanke Renomination

Mukesh Buch
25 Aug, 2009
New York City

U.S. market indexes closed to a new high after reports on consumer confidence and home price. Crude oil and natural gas prices decreased. Stocks in China decreased after comments from Chinese Premier. European markets edged higher on telecom and industrial stocks.

[R]4:30 PM New York, 9:30 PM London, 6:30 AM Sydney – U.S. market indexes closed to a new high after reports on consumer confidence and home price. Crude oil and natural gas prices decreased. Stocks in China decreased after comments from Chinese Premier. European markets edged higher on telecom and industrial stocks.[/R]

U.S. stocks edged higher after home price index fell less than expected and consumer confidence surged in August. Fed Chairman Bernanke won the White House appointment for the second term that will need an approval from lawmakers. Ivanhoe Mines surged after Mongolia voted to expire windfall tax.

European markets increased for the sixth day in a row and major indexes are trading at high for the year for the last eleven months. German and French market indexes advanced for the fourth day in a row. Calyon, a unit of Credit Agricole SA is seeking $1.7 billion in damages from IKB Deutsche.

UK stocks advanced for the sixth day in a row to a new high for the year. Mortgage approvals surged to a high since February 2008. Punch Tavern soared 22% after it reiterated earnings outlook for the year. Admiral Group first-half net dropped 5%. Persimmon net drops 63%. Regus surges 14%.

Stocks in Mumbai edged higher after the higher rainfall forecast. Investors are estimating that poor monsoon season is expected to have less than expected impact on earnings. Department of Posts is likely to spend $1 billion to modernize its operations. L&T receives infrastructure orders.

North American Markets

Dow Jones Industrial Average increased 30.01 or 0.3% to a close of 9,539.29, S&P 500 Index increased 2.43 or 0.2% to 1,028.00, and Nasdaq Composite Index edged higher 6.25 or 0.31% to close at 2,024.23. Toronto TSX Composite Index increased 130.56 or 1.2% to 10,920.53.

Of the stocks in S&P 500 index, 289 increased, 204 declined and 7 were unchanged.

Denbury Resources Inc led the decliners in the S&P 500 index with a loss of 6.8% followed by losses in The Manitowoc Company, Inc of 5%, in Sprint Nextel Company of 4.7%, in Southwestern Energy of 3.8% and in Allegheny Tech of 3.8%.

Harman International Industries, Inc led gainers in the S&P 500 index with a rise of 9.8% followed by gains in Hartford Financial Services of 7.5%, in Big Lots, Inc of 6.5%, in Autonation Inc of 5.7%, in Eastman Kodak of 5.6% and in Prologis of 4.7%.

South American Markets Indexes

Mexico Bolsa Index increased 1.19 to 28,005.46 Brazil Bovespa Stock Index decreased 353.94 or 0.6% to 57,421.43.

Argentina Merval Index decreased 0.06%. Chile Stock Market Select index edged higher 0.4%, Peru Lima General Index edged lower 0.4% and Colombia IGBC General Index fell 0.3%.

Europe Markets Review

In London FTSE 100 Index closed higher 20.57 or 0.42% to 4,916.80, in Paris CAC 40 Index increased 28.44 or 0.78% to close at 3,680.61 and in Frankfurt DAX index higher 37.74 or 0.68% to close at 5,557.09. In Zurich trading SMI increased 6.46 or 0.10% to close at 6,200.85.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 83.69 or 0.79% to 10,497.36, Hang Seng index in Hong Kong decreased 100.70 or 0.49% to 20,435.24 and CSI 300 index in China lower 119.77 or 3.71% to 3,109.83. ASX 200 index in Australia decreased 20.30 or 0.46% to 4,405.80. The FTSE Bursa KL Composite index in Malaysia closed lower 3.40 or 0.29% to 1,171.09.

The Kospi Index in South Korea decreased 10.84 or 0.67% to close at 1,601.38. SET index in Thailand closed higher 2.26 or 0.35% to 655.46 and JSE Index in Indonesia increased 4.65 or 0.20% to 2,380.52. The Sensex index in India increased 59.72 or 0.38% to 15,688.47.

Commodities, Metals, and Currencies

Crude oil decreased $2.59 to close at $71.78 a barrel for a front month contract, natural gas decreased 4 cents to $2.88 per mBtu and gasoline decreased 4.14 cents to 200.77 cents.

Wheat futures closed down 0.50 cents in Chicago trading to $4.98 a bushel. Sugar increased 0.13 cent in trading at 21.92 cents a pound. Soybean future closed down 8.50 cent to $9.99 a bushel.

Gold increased $2.70 in New York trading to close at $946.40 per ounce, silver closed up $0.08 to $14.31 per ounce and copper for the front month delivery decreased 7.05 cent to $2.86 per pound.

Dollar edged lower against euro to $1.430 and closed lower against the Japanese yen to 94.17.

Yield on 10-year U.S. bonds decreased to 3.43% and with 30-year maturities edged lower to 4.22%.