U.S. Indexes Hit New Highs

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

The three widely followed indexes increased to new highs for the year as stocks gained for the fifth day in a row. European markets advanced and UK left its rate unchanged at 0.5%. Markets in Asian edged higher as more companies look to raise capital.

[R]4:30 PM New York, 9:30 PM London, 6:30 AM Sydney – The three widely followed indexes increased to new highs for the year as stocks gained for the fifth day in a row. European markets advanced and UK left its rate unchanged at 0.5%. Markets in Asian edged higher as more companies look to raise capital.[/R]

U.S. stocks traded sideways in the morning but closed higher as investors digested economic reports covering trade deficit, weekly jobless claims and crude oil inventories. Procter & Gamble increased after it confirmed earnings outlook and plans to lower prices.

U.S. indexes closed at their highs for the year as investors showed greater willingness to add stocks. Dow closed at a high last seen on November 4, 2008, Nasdaq climbed to the high last seen on Sept 30 and the S&P 500 index closed at a high since October 6, 2008.

U.S. trade deficit in July increased 16.3% from June but fell sharply from a year ago according to the latest data released by the Commerce Department. The monthly increase was the largest in a decade as oil imports surge in the month.

Seasonally adjusted jobless claims in U.S. at the end of last week decreased 4,000 to 570,000 from the revised 574,000 at the end of previous week. Preliminary unemployment rate increased 0.1% to 4.7% according to the latest data from the U.S. Department of Labor.

Crude oil prices edged higher after the U.S. crude oil imports averaged 9.1 million barrels per day last week, down 481,000 barrels a day from the previous week. Commercial crude oil inventories declined 5.9 million barrels and motor gasoline inventories increased 2.1 million barrels and distillate fuel inventories increased 2 million barrels.

Monsanto Company fell after it reaffirmed earnings at the low end of its previous estimate. Korn/Ferry first quarter sales fell and swung to a loss. Lululemon increased after second quarter revenues increased. Airlines surged after positive comments from JP Morgan analyst.

Morgan Stanley said that its chief executive John Mack will resign and will be replaced by James Gorman, the current Co-President. Mack will remain chairman of the board. Walid Chammah will be appointed as chairman of Morgan Stanley International in London and relinquish the title of Co-president.

Chevron signed contracts to sell LNG worth A$70 billion to Japan and Korea after striking A$50 billion deal with PetroChina and A$25 billion with India based Petronet LNG Ltd. Unemployment in August was steady at 5.8%.

European markets advanced and traded at the high for the year. Major indexes in the region are trading at 13-month high. GM agreed to sell majority stake in Opel to Magna International and Russian bank Sberbank. Arcandor may receive little after the banks sold their holdings in Thomas Cook.

The Bank of England left its asset purchase program in place to aid the economic recovery and left its interest rate unchanged at 0.5%. JJB Sports and Sports Direct ar investigated by the fraud and competition authorities.

Stocks in Mumbai trading gain for the fifth day in a row. Varun Industries subsidiary is in a production sharing arrangement with Madagascar based company. Infosys surges after Nomura lifts its view on the outsourcing sector and the company plans to acquire consulting companies.

Australian employers cut staff in August according to the latest data from the statistics bureau. Retailers gained in Sydney trading after the unemployment rate was steady at 5.8%. Myers is expected to announce A$3 billion listing plan.


North American Markets

Dow Jones Industrial Average increased 80.26 or 0.8% to a close of 9,627.48, S&P 500 Index added 10.77 or 1.1% to 1,044.14, and Nasdaq Composite Index advanced 23.63 or 1.1% to close at 2,084.02. Toronto TSX Composite Index increased 154.83 or 1.4% to 11,155.00.

Of the stocks in S&P 500 index, 388 increased, 106 declined and 6 were unchanged.

Monsanto Company led the decliners in the S&P 500 index with a loss of 5% followed by losses in Snap-On Inc of 3.3%, in Ameren Corp of 2.9%, in AIG of 2.6% and in Electronic Arts of 2.6%.

Office Depot Inc led gainers in the S&P 500 index with a rise of 11.4% followed by gains in Eastman Kodak 11.1%, in Hartford Financial Services of 8.6% and in CBS Corp of 8.4%.

South American Markets Indexes

Mexico Bolsa Index increased 218.37 or 0.8% to 29,318.42 Brazil Bovespa Stock Index increased 625.84 or 1.1% to 58,535.79.

Argentina Merval Index closed up 1.8% and Chile Stock Market Select index edged higher 0.9%, Peru Lima General Index edged up 1.1% and Colombia IGBC General Index decreased 0.7%.

Europe Markets Review

In London FTSE 100 Index closed lower 16.62 or 0.33% to 4,987.68, in Paris CAC 40 Index decreased 1.82 or 0.05% to close at 3,705.87, in Frankfurt DAX index higher 20.51 or 0.37% to close at 5,594.77. In Zurich trading SMI increased 6.39 or 0.10% to close at 6,208.43.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 201.53 or 1.95% to 10,513.67, Hang Seng index in Hong Kong increased 218.52 or 1.05% to 21,069.56 and CSI 300 index in China lower 32.00 or 1.00% to 3,162.91. ASX 200 index in Australia increased 48.60 or 1.07% to 4,570.80. The FTSE Bursa KL Composite index in Malaysia closed higher 4.82 or 0.40% to 1,201.28.

The Kospi Index in South Korea increased 36.91 or 2.30% to close at 1,644.68. SET index in Thailand closed higher 7.50 or 1.08% to 703.09 and JSE Index in Indonesia increased 28.52 or 1.20% to 2,411.86. The Sensex index in India increased 33.31 or 0.21% to 16,216.86.

Commodities, Metals, and Currencies

Crude oil increased $0.83 to $72.14 a barrel for a front month contract, natural gas edged up 43 cents to $3.26 per mBtu and gasoline decreased 1.98 cents to 180.83 cents.

Wheat futures closed up 2.50 cents in Chicago trading to $4.58 a bushel. Sugar edged up to 0.89 cents a pound to 23.42 cents. Soybean future closed down 2.00 cent to $9.26 a bushel.

Gold increased $0.70 in New York trading to close at $997.80 per ounce, silver closed up $0.23 to $16.70 per ounce and copper for the front month delivery decreased 4.95 cent to $2.87 per pound.

Dollar edged lower against euro to $1.458 and closed lower against the Japanese yen to 91.76.

Yield on 10-year U.S. bonds decreased to 3.35% and with 30-year maturities edged lower to 4.20%.