Bulls in Charge on Wall Street; Silver, Sugar Up

Mukesh Buch
28 Sep, 2009
New York City

Stocks in New York trading gained as merger activities pick up. European markets closed higher after ruling party coalition succeed in regaining its majority. In commodities trading silver and sugar traded near their highs.

[R]4:30 PM New York, 9:30 PM London, 6:30 AM Sydney – Stocks in New York trading gained as merger activities pick up. European markets closed higher after ruling party coalition succeed in regaining its majority. In commodities trading silver and sugar traded near their highs.[/R]

Stocks surged after two large deals and three smaller transactions. The risk appetite is returning as companies look to expand in new markets and investors support higher market multiples.

Xerox agreed to pay $6.4 billion for government services outsourcing company Affiliated Computer Services for cash and stock and issue $300 million convertible debt. The expensive deal will position Xerox as one of the largest government contract and business outsourcing companies.

Abbott agreed to pay $6.6 billion to acquire pharmaceutical business of Belgium based Solvay SA.

Gander Mountain surged 34% after it agreed to go private. Pomeroy IT Solutions agrees to be acquired by Platinum Equity. GenTek Inc, the maker of water treatment control valves and inorganic chemical maker surged 40% to $37.67 after it agreed to be acquired by American Securities LLC for $411 million or $38 a share.

UK stocks closed higher after home prices increased in September and rental contracts advanced in the three months. Home builders gained. Wolseley surged after the retailer guided positive earnings outlook. The online casino 888 Holdings signs joint venture with a South Africa based casino.

North American Markets

Dow Jones Industrial Average increased 124.17 or 1.3% to a close of 9,789.36, S&P 500 Index added 18.60 or 1.8% to 1,062.98, and Nasdaq Composite Index advanced 39.82 or 1.9% to close at 2,130.74. Toronto TSX Composite Index added 126.33 or 1.1% to 11,338.72.

Of the stocks in S&P 500 index, 471 increased, 29 declined and none were unchanged.

Xerox Corporation led the decliners in the S&P 500 index with a loss of 14.9% followed by losses in Snap-On Inc of 3.4%, in Deere & Company of 3.1%, in Memc Electronic Materials Inc of 3.1%, in AK Steel Holding of 1.8%, in Sara Lee Corporation of 1.8% and in MetroPCS Communication Corporation of 1.7%.

Affiliated Computer Services, Inc led gainers in the S&P 500 index with a rise of 14% followed by gains in MBIA Inc 11.4%, in Hartford Financial Services of 10.8%, in Genworth Financial of 8.5% and in Principal Financial of 8.4%.

South American Markets Indexes

Mexico Bolsa Index increased 642.01 or 2.2% to 29,401.99 and Brazil Bovespa Stock Index added 960.89 or 1.6% to 61,316.62.

Argentina Merval Index closed up 2.8% and Chile Stock Market Select index increased 1.2%, Peru Lima General Index edged down 0.5% and Colombia IGBC General Index added 1.7%.

Europe Markets Review

In London FTSE 100 Index closed higher 83.50 or 1.64% to 5,165.70, in Paris CAC 40 Index increased 85.86 or 2.30% to close at 3,825.00, in Frankfurt DAX index higher 154.90 or 2.78% to close at 5,736.31. In Zurich trading SMI increased 52.36 or 0.84% to close at 6,289.27.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 256.46 or 2.50% to 10,009.52, Hang Seng index in Hong Kong decreased 435.99 or 2.07% to 20,588.41 and CSI 300 index in China lower 85.88 or 2.81% to 2,972.64. ASX 200 index in Australia decreased 35.90 or 0.76% to 4,677.40. The FTSE Bursa KL Composite index in Malaysia closed lower 11.44 or 0.94% to 1,205.95.

The Kospi Index in South Korea decreased 15.93 or 0.94% to close at 1,675.55. SET index in Thailand closed lower 12.69 or 1.76% to 708.88 and JSE Index in Indonesia decreased 46.76 or 1.91% to 2,397.83. The Indian market was closed today.

Commodities, Metals, and Currencies

Crude oil increased $1.12 to $67.14 a barrel for a front month contract, natural gas edged down 15 cents to $4.80 per mBtu and gasoline increased 2.00 cents to 164.05 cents.

Soybean future closed down 6.50 cents to $9.19 a bushel. Wheat futures closed up 6.00 cents in Chicago trading to $4.55 a bushel. Sugar edged up 0.93 cents a pound to 24.10 cents.

Gold closed unchanged in New York trading to close at $991.60 per ounce, silver closed up $0.12 to $16.18 per ounce and copper for the front month delivery decreased 3.05 cent to $2.71 per pound.

Dollar edged higher against euro to $1.461 and closed lower against the Japanese yen to 89.60.

Yield on 10-year U.S. bonds decreased to 3.28% and with 30-year maturities decreased to 4.03%.