U.S. Indexes Inch Higher; AIG, Citi, Boeing Rise

123jump.com Staff
27 Aug, 2009
New York City

U.S. stocks traded sideways in light trading. Final read on the second quarter GDP, a decline in weekly unemployment claims and a rise in auto sales helped the sentiment. AIG and Citigroup surged on speculation. Weak earnings in Europe dragged indexes lower. U.S. sold $28 billion of bonds.

[R]4:30 PM New York, 9:30 PM London, 6:30 AM Sydney – U.S. stocks traded sideways in light trading. Final read on the second quarter GDP, a decline in weekly unemployment claims and a rise in auto sales helped the sentiment. AIG and Citigroup surged on speculation. Weak earnings in Europe dragged indexes lower.[/R]

In New York trading, the stocks in the broader market edged higher in light trading as investors focused on retail and auto sales due in less than a week. The unemployment claims declined and the final read on GDP suggested a healthier view of the economy than feared by most economists.

The Dow Jones index increased for the eight day in a row to new highs for the year and Citigroup edged above $5 since January and natural gas traded above $3 level. AIG surged on the optimism that recently appointed chief executive Benmosche and Greenberg, the largest individual investor and CEO of the company for four decades may work together to rebuild the company.

Unemployment claims decreased 10,000 in the last week and cash-for-clunkers program helped to sell 700,000 vehicles before it ended this week.

The dollar and U.S. Treasuries edged lower after the government completed the sale of $28 billion 7-year notes.

Coldwater Creek Inc swings to a net loss in the second quarter. Jo-Ann Stores, Inc second quarter sales rise. American Eagle said second quarter sales fell 5% and net dropped 52%. Boeing increased 8.4% after the company estimated first flight of 787 Dreamliner by the end of the year.

European benchmark indexes declined after weak earnings reports. German consumer price index was flat in august and consumer spending increased on auto rebate program. Accor reported first-half net loss and Casino Guichard net flat but Credit Agricole net surges.

UK stocks edged lower for the second day after financials and miners closed lower. Arriva Plc and Diaego Plc reported weaker than expected results. Kazakhmys increased after it estimated higher production volumes and lower operating costs in the current year. Savills Plc decreased 8.2%.

Stocks in Mumbai increased after the revival of monsoon and rising capital spending by government and private sector companies. Tata Steel swung to a loss. Automakers are gearing up for the festival season with the expectations of higher sales. Bharti- MTN talks progress.

Australian stocks closed unchanged after a weakness in global commodities prices. Woolworths reported higher earnings and guided a rise between 8% and 11% in the current fiscal year. Toll Holdings swung to a net income. Crown wrote down its disastrous foray into international casinos.

North American Markets

Dow Jones Industrial Average increased 37.11 or 0.4% to a close of 9,580.63, S&P 500 Index increased 2.86 or 0.3% to 1,030.98, and Nasdaq Composite Index edged higher 3.30 or 0.2% to close at 2,027.73. Toronto TSX Composite Index increased 21.79 or 0.20% to 10,933.96.

Of the stocks in S&P 500 index, 259 increased, 231 declined and 10 were unchanged.

Eastman Kodak Company led the decliners in the S&P 500 index with a loss of 7.2% followed by losses in Massey Energy of 3.4%, in Integrys Energy Group, Inc of 2.9%, in Janus Capital of 2.4% and in Big Lots Inc of 2.4%.

AIG led gainers in the S&P 500 index with a rise of 27.0% followed by gains in MBIA Inc 17.5%, in Precision Castparts Corp of 9.5% and in Citigroup Inc of 9.1%.

South American Markets Indexes

Mexico Bolsa Index increased 224.41 or 0.8% to 28,437.26 Brazil Bovespa Stock Index decreased 61.84 or 0.1% to 57,703.85.

Argentina Merval Index closed unchanged and Chile Stock Market Select index edged lower 1.1%, Peru Lima General Index edged higher 1.1% and Colombia IGBC General Index fell 0.5%.

Europe Markets Review

In London FTSE 100 Index closed lower 21.23 or 0.43% to 4,869.35, in Paris CAC 40 Index decreased 19.81 or 0.54% to close at 3,648.53 and in Frankfurt DAX index lower 51.64 or 0.94% to close at 5,470.33. In Zurich trading SMI decreased 7.78 or 0.13% to close at 6,169.19.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 165.74 or 1.56% to 10,473.97, Hang Seng index in Hong Kong decreased 213.57 or 1.04% to 20,242.75 and CSI 300 index in China lower 16.08 or 0.51% to 3,156.30. ASX 200 index in Australia decreased 3.70 or 0.08% to 4,450.80. The FTSE Bursa KL Composite index in Malaysia closed higher 4.34 or 0.37% to 1,176.90.

The Kospi Index in South Korea decreased 14.79 or 0.92% to close at 1,599.33. SET index in Thailand closed lower 5.88 or 0.89% to 652.40 and JSE Index in Indonesia decreased 24.02 or 1.01% to 2,356.06. The Sensex index in India increased 11.22 or 0.07% to 15,781.07.

Commodities, Metals, and Currencies

Crude oil increased $1.27 to close at $72.70 a barrel for a front month contract, natural gas decreased 11 cents to $3.18 per mBtu and gasoline increased 4.99 cents to 203.25 cents.

Wheat futures closed down 3.75 cents in Chicago trading to $5.03 a bushel. Sugar increased 0.12 cent in trading at 22.49 cents a pound. Soybean future closed down 0.50 cent to $9.96 a bushel.

Gold increased $4.70 in New York trading to close at $950.50 per ounce, silver closed up $0.04 to $14.32 per ounce and copper for the front month delivery increased 1.80 cent to $2.89 per pound.

Dollar edged lower against euro to $1.435 and closed lower against the Japanese yen to 93.54.

Yield on 10-year U.S. bonds increased at 3.46% and with 30-year maturities edged higher to 4.23%.