U.S and European Stocks Gain on Jobs Report

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

U.S. stocks gained in the morning trading after the release of jobs report. Employers eliminated 216,000 jobs in August and unemployment increased to 9.7% from 9.4% in July. European markets trade up 1% ahead of G 20 finance officials meeting in London.

[R]9:45 AM New York – U.S. stocks gained in the morning trading after the release of jobs report. Employers eliminated 216,000 jobs in August and unemployment increased to 9.7% from 9.4% in July. European markets trade up 1% ahead of G 20 finance officials meeting in London.[/R]

The U.S. indexes edged higher in a volatile trading after the release of much awaited labor market report. The unemployment jumped to 9.7%in August from 9.4% in July.

European markets closed higher after the release of jobs report but Asian markets traded sideways ahead of the report in the overnight trading. Rio Tinto halted its price negotiations with China.

Fewer Job Losses in August, Jobless Rate 9.7%

Employers eliminated 216,000 jobs in August and job losses estimate for July was revised higher to 276,000.

The unemployment rate increased to 9.7% from 9.4% in July. Factory payrolls decreased 63,000 after falling 43,000 in the previous month and financial services decreased payrolls by 28,000 after eliminating 17,000 in July.

Department of Labor revised higher job losses in June and July months by 49,000.

Job losses in June were increased to 463,000 from 443,000 and in July were increased to 276,000 from 247,000.

G 20 Finance Officials Meet in London

European markets gained nearly 1% in Germany, France and UK as finance ministers and regulators meet at G 20 meeting in London.

The government officials are signaling that it is too soon to withdraw various government stimulus programs in place and economic recoveries are still tentative.

Earnings Review

H&R Block, Inc, the tax preparer reported first quarter revenues rose 1.3% to $275.5 million from $271.9 million a year ago. Net loss for the quarter was $133.6 million or 40 cents per diluted share compared to net loss of $132.7 million or 41 cents per share a year ago.

H&R Block, Inc ((HRB)) in the last one year traded as high as $27.97 in September 2008 and as low as $13.73 in February 2009. Based on the yesterday’s closing price of $17.01 the company has market cap of $5.70 billion.

Shanda Interactive Entertainment Limited, an interactive entertainment media company in China said second quarter revenues rose 47.7% to Rmb 1.24 billion from Rmb 837.6 million a year ago. Net income in the quarter rose 52.6% to Rmb 426.9 million or Rmb 6.14 per ADS compared to net income of Rmb 279.8 million or Rmb 3.80 per ADS a year ago.

The Cooper Companies, Inc, the contact lens maker said third quarter sales rose 2.4% to $285.2 million from $278.5 million a year ago. Net income in the quarter rose 22% to $21.9 million or 48 cents per diluted share compared to net income of $17.9 million or 39 cents per share a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 27.53 or 0.27% to 10,187.11, Hang Seng index in Hong Kong increased 556.94 or 2.82% to 20,318.62 and CSI 300 index in China higher 25.18 or 0.82% to 3,077.14. ASX 200 index in Australia increased 5.90 or 0.13% to 4,435.50. The FTSE Bursa KL Composite index in Malaysia closed higher 5.08 or 0.43% to 1,178.74.

The Kospi Index in South Korea decreased 4.63 or 0.29% to close at 1,608.90. SET index in Thailand closed higher 2.87 or 0.43% to 668.41 and JSE Index in Indonesia increased 0.49 or 0.02% to 2,322.74. The Sensex index in India increased 290.79 or 1.89% to 15,689.12.

Europe Markets Review

In London FTSE 100 Index traded higher 41.30 or 0.86% to 4,838.05, in Paris CAC 40 Index increased 16.85 or 0.47% to 3,570.36 and in Frankfurt DAX index traded higher 41.40 or 0.78% to 5,342.82. In Zurich trading SMI increased 31.39 or 0.52% to 6,105.11.

ASX 200 Index Movers

Babcock & Brown Infrastructure Group led the decliners in the ASX 200 index of 21.8% followed by losses in Lend Lease Corporation Limited of 4.9%, in Iluka Resources Limited of 4.5%, in PaperlinX Limited of 4.3% and in Murchison Metals Limited of 3.6%.

Lynas Corporation Limited led gainers in the ASX 200 index with a rise of 12.4% followed by gains in Emeco Holdings Ltd of 10.0%, in Dominion Mining Limited of 7.9% and in Macarthur Coal Limited of 7.4%.

Nikkei 200 Average Movers

Daiwa Securities Group Inc led the decliners in the Nikkei 225 index of 6.1% followed by losses in Dainippon Sumitomo Pharma Co Ltd of 6.0%, in Asahi Glass Co Ltd of 4.6%, in Sumco Corp of 4.6% and in Shionogi & Co Ltd of 4.3%.

Toho Zinc Co Ltd led gainers in the Nikkei 225 index with a rise of 3.9% followed by gains in Dowa Holdings Co Ltd of 3.3%, in Nisshin Seifun Group Inc of 2.6% and in Kyocera Corp of 2.1%.