U.S. Indexes, Retailers Rise; Silver Surges

123jump.com Staff
03 Sep, 2009
New York City

U.S. stocks edged higher after the release of mixed August sales. Weekly jobless claims data also were better than expected. Gold and silver gained for the second day in a row. The European Central Bank left its key lending rate unchanged.

[R]4:30 PM New York, 9:30 PM London, 6:30 AM Sydney – U.S. stocks edged higher after the release of mixed August sales. Weekly jobless claims data also were better than expected. Gold and silver gained for the second day in a row. The European Central Bank left its key lending rate unchanged.[/R]

U.S. stocks traded higher after August month retail sales were mixed but ahead of most analysts’ expectations. Gold and silver closed up for the second day in a row on the worries of rising inflation. Chinese benchmark stock indexes surged the most in six months.

Companies in U.S, Asia and Europe are planning to raise at least $25 billion in the next two months. The home builder Hovnanian reports 46% decline in sales but reports a smaller loss.

McGraw Hill ((MHP)) and Moody’s ((MCO)) declined after the U.S. District Judge in New York refused to dismiss the case against the two rating agencies. The rating companies have argued that these opinions are protected under the free-speech rights. The case is brought by the Abu Dhabi Commercial Bank and King County of Washington State that allege that rating companies’ views are integral part of selling structured financing vehicles and they are not just private opinions protected under the First Amendment of the U.S. Constitution.

In July, the California Public Employees’ Retirement System sued the three rating agencies in state court in San Francisco, California for $1 billion.

SAIC, Inc profit increases on new government contracts. UTi Worldwide Inc second quarter profit declines. American Eagle Outfitters, Nordstrom and Costco increase on better than expected August sales. Family Dollar Stores dropped on weaker than expected August sales.

Sepracor agrees to a merger offer from Japan based Dainippon Sumitomo Pharma that values the company at $2.6 billion. DPS will benefit from the sales force of 1,200 at Sepracor and plans to sell its schizophrenia and epilepsy and other nasal aerosols.

The European Central Bank left its key lending rate unchanged at 1% and indicated that economic contraction has ended but the economic recovery is expected to be uneven and bumpy. Steelmakers and miners gained in trading in the region.

Miners and home builders advanced in London trading. Gold and silver mining related stocks led the gainers. Peter Hambro and Fresnillo surged. Unilever and Experian declined. Home builders Taylor Wimpey and Bovis gained on expectations of higher sales.

North American Markets

Dow Jones Industrial Average increased 63.94 or 0.7% to a close of 9,344.61, S&P 500 Index increased 8.49 or 0.9% to 1,003.24, and Nasdaq Composite Index edged higher 16.13 or 0.8% to close at 1,983.20. Toronto TSX Composite Index increased 220.17 or 2.1% to 10,921.49.

Of the stocks in S&P 500 index, 401 increased, 92 declined and 7 were unchanged.

McGraw-Hill Company led the decliners in the S&P 500 index with a loss of 10.2% followed by losses in Family Dollar Stores, Inc of 8.6%, in Moody’s Corporation of 7%, in Abercrombie & Fitch Co of 3.5% and in Textron Inc of 3.1%.

American International Group, Inc led gainers in the S&P 500 index with a rise of 10% followed by gains in Nordstrom Inc 8.8%, in Costco Wholesale Corporation of 8.6% and in The Gap, Inc of 7.6%.

South American Markets Indexes

Mexico Bolsa Index increased 196.75 or 0.7% to 28,150.09 Brazil Bovespa Stock Index added 321.45 or 0.6% to 55,707.17.

Argentina Merval Index closed up 0.06% and Chile Stock Market Select index edged higher 1.4%, Peru Lima General Index edged higher 2.3% and Colombia IGBC General Index decreased 0.7%.

Europe Markets Review

In London FTSE 100 Index closed lower 20.80 or 0.43% to 4,796.75, in Paris CAC 40 Index decreased 19.62 or 0.55% to close at 3,553.51, in Frankfurt DAX index lower 18.42 or 0.35% to close at 5,301.42. In Zurich trading SMI decreased 15.52 or 0.25% to close at 6,073.72.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 65.82 or 0.64% to 10,214.64, Hang Seng index in Hong Kong increased 239.68 or 1.23% to 19,761.68 and CSI 300 index in China higher 161.04 or 5.57% to 3,051.96. ASX 200 index in Australia decreased 8.60 or 0.19% to 4,429.60. The FTSE Bursa KL Composite index in Malaysia closed higher 5.65 or 0.48% to 1,173.66.

The Kospi Index in South Korea increased 0.37 or 0.02% to close at 1,613.53. SET index in Thailand closed higher 11.42 or 1.75% to 665.54 and JSE Index in Indonesia increased 36.32 or 1.59% to 2,322.25. The Sensex index in India decreased 69.13 or 0.45% to 15,398.33.

Commodities, Metals, and Currencies

Crude oil increased 7 cents to $68.12 a barrel for a front month contract, natural gas closed down 20 cents to $2.51 per mBtu and gasoline decreased 1.71 cents to 179.15 cents.

Wheat futures closed down 7.00 cents in Chicago trading to $4.78 a bushel. Sugar edged down to 0.54 cents a pound to 23.14 cents. Soybean future closed down 9.50 cent to $9.41 a bushel.

Gold increased $16.30 in New York trading to close at $994.80 per ounce, silver closed up $0.78 to $16.15 per ounce and copper for the front month delivery increased 4.45 cent to $2.87 per pound.

Dollar edged higher against euro to $1.425 and closed up against the Japanese yen to 92.65.

Yield on 10-year U.S. bonds increased at 3.34% and with 30-year maturities edged higher to 4.16%.