Intel, Dell Fail to Sway U.S. Indexes, Sugar Up

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

U.S. stocks traded sideways when most investors ignored the better sales forecast from Intel and better than expected earnings from Dell. Dollar edged higher. Sugar traded near high and copper rebounded to trade below $3 level.

[R]4:30 PM New York, 9:30 PM London, 6:30 AM Sydney – U.S. stocks traded sideways when most investors ignored the better sales forecast from Intel and better than expected earnings from Dell. Dollar edged higher. Sugar traded near high and copper rebounded to trade below $3 level.[/R]

U.S. stocks edged sideways as investors showed little interest in trading ahead of the lawmakers returning to debate the healthcare bill. Crude oil rebounded and tech stocks staged a mild bounce after Intel expects higher sales in the current quarter Dell reported better than expected earnings.

The dollar gained against the euro, Canadian dollar and pound. Copper rebounded sharply in New York trading and sugar added 4% and traded near recent highs.

Real disposable income decreased 0.1% in July after falling 1.6% in June. Real PCE increased 0.2% after increasing 0.1%. Private wage and salary disbursements increased $6.7 billion in the month after decreasing $24.5 billion in June according to the latest data from the Bureau of Economic Analysis.

UK economy contracted at 0.7% rate in the second quarter, lower than the previous estimate of 0.8% decline by the Office for the National Statistics. The data was revised on higher output in manufacturing and energy sectors and the government rebate of 2,000 pounds to the new car buyers in exchange of old vehicles.

The pound edged higher against dollar to $1.63 and against euro to 87.96.

North American Markets

Dow Jones Industrial Average decreased 36.43 or 0.4% to a close of 9,544.20, S&P 500 Index decreased 2.05 or 0.2% to 1,028.93, and Nasdaq Composite Index edged higher 1.04 or 0.05% to close at 2,028.77. Toronto TSX Composite Index increased 44.01 or 0.40% to 10,977.97.

Of the stocks in S&P 500 index, 215 increased, 273 declined and 12 were unchanged.

Novell, Inc led the decliners in the S&P 500 index with a loss of 7% followed by losses in The Goodyear Tire & Rubber Company of 4.7%, in Lorillard Inc of 3.4%, in Leucadia National of 3.1% and in Supervalu Inc of 3%.

E*Trade Financial led gainers in the S&P 500 index with a rise of 13.1% followed by gains in Tiffany & Company 11.3%, in QLogic Corporation of 9.0% and in Advanced Micro Devices of 5.7%.

South American Markets Indexes

Mexico Bolsa Index increased 162.66 or 0.6% to 28,599.92 Brazil Bovespa Stock Index decreased 3.28 or 0.01% to 57,700.57.

Argentina Merval Index closed up 1.1% and Chile Stock Market Select index edged lower 0.1%, Peru Lima General Index edged lower 0.6% and Colombia IGBC General Index fell 0.2%.

Europe Markets Review

In London FTSE 100 Index closed higher 39.55 or 0.81% to 4,908.90, in Paris CAC 40 Index increased 44.61 or 1.22% to close at 3,693.14 and in Frankfurt DAX index higher 47.02 or 0.86% to close at 5,517.35. In Zurich trading SMI increased 42.39 or 0.69% to close at 6,211.58.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 60.17 or 0.57% to 10,534.14, Hang Seng index in Hong Kong decreased 144.13 or 0.71% to 20,098.62 and CSI 300 index in China lower 109.52 or 3.47% to 3,046.78. ASX 200 index in Australia increased 38.80 or 0.87% to 4,489.60. The FTSE Bursa KL Composite index in Malaysia closed lower 2.63 or 0.22% to 1,174.27.

The Kospi Index in South Korea increased 8.61 or 0.54% to close at 1,607.94. SET index in Thailand closed higher 4.58 or 0.70% to 656.98 and JSE Index in Indonesia increased 21.18 or 0.90% to 2,377.25. The Sensex index in India increased 141.27 or 0.90% to 15,922.34.

Commodities, Metals, and Currencies

Crude oil increased $0.22 to close at $72.71 a barrel for a front month contract, natural gas decreased 19 cents to $3.02 per mBtu and gasoline increased 3.19 cents to 206.33 cents.

Wheat futures closed down 7.75 cents in Chicago trading to $4.95 a bushel. Sugar increased 1.03 cent in trading at 23.52 cents a pound. Soybean future closed up 15 cent to $10.11 a bushel.

Gold increased $9.10 in New York trading to close at $956.40 per ounce, silver closed up $0.54 to $14.79 per ounce and copper for the front month delivery increased 9.40 cent to $2.96 per pound.

Dollar edged higher against euro to $1.43 and closed higher against the Japanese yen to 93.60.

Yield on 10-year U.S. bonds decreased at 3.45% and with 30-year maturities edged lower to 4.20%.