Nasdaq Up 15.7%; Dow, S&P 500 Up 15%

Mukesh Buch
30 Sep, 2009
New York City

The three popular indexes gained around 15% in the third quarter and several European indexes closed up between 15% and 23%. Australia index surged 20% and the benchmark added 17% in India. The Shanghai index fell 6.1%. in the quarter. Gold added 8.7% in the third quarter.

[R]4:30 PM New York, 9:30 PM London, 6:30 AM Sydney – The three popular indexes gained around 15% in the third quarter and several European indexes closed up between 15% and 23%. Australia index surged 20% and the benchmark added 17% in India. The Shanghai index fell 6.1% in the quarter.[/R]

Stocks in New York trading declined after Midwest manufacturing showed a weakness, crude oil price gained on an inventory report and winding down of the third quarter.

The three popular indexes increased in the quarter as investors showed higher appetite for risk. The Dow gained 15% and in the last two quarters added 26.7%. The quarterly performance was the best since the third quarter in 1939 according to the Wall Street Journal.

The S&P 500 index added 15% in the quarter, 3.6% in September and surged 56% since the surge from its low in March. The Nasdaq added 5.6% in the month and 15.7% in the third quarter.

For the quarter indexes in Asia and Europe led the gainers. Indexes in Australia and India led gainers but in China benchmark fell 6.1%. Australia added 20%, its best quarterly performance in 22 years and Japan added 1.8%.

Ameriprise surges after it agreed to acquire Columbia Asset Management from Bank of America for as much as $1.2 billon. CIT plunged 30% after it cited the possibility of bankruptcy filing. Darden Restaurants fell after quarterly sales declined. Hoku Scientific soared on China investment.

Austria, Ireland and Milan led the regional benchmark index gains in the third quarter. German seasonally September unemployment increased 10,000. Bayer was among the leading decliners on a brokerage downgrade and negative results of the initial trials of anti-breast cancer drug.

The UK benchmark index closed lower but surged 20.8%, its best quarterly gain since 1984. The index has gained 46% since its low in March and is below 5.2% from a year ago. Marks & Spencer fell on cautious outlook. Hays dropped on regulatory fine. Man Group assets under management increased.

The benchmark index Sensex 30 close above 17,000 as investors focused on upcoming earnings season. India is facing the driest monsoon season in the last 37 years. Financial Technologies Ltd plans to raise 1,500 crore rupees. Oil India Ltd traded up 10% in its first day of trading.

Bharti Airtel and MTN Group agreed to shelve their merger talks after two companies and South African government failed to agree on management structure. MTN Group stock is expected fall and rand in local trading decreased 2.5%.

North American Markets

Dow Jones Industrial Average decreased 29.92 or 0.3% to a close of 9,712.28, S&P 500 Index fell 3.53 or 0.3% to 1,057.08, and Nasdaq Composite Index declined 1.62 or 0.08% to close at 2,122.42. Toronto TSX Composite Index decreased 0.03 to 11,394.96.

Of the stocks in S&P 500 index, 165 increased, 332 declined and 3 were unchanged.

Darden Restaurants, Inc led the decliners in the S&P 500 index with a loss of 5.6% followed by losses in Convergys Corp of 4.7%, in MeadWestvaco Corporation of 4.1%, in Genworth Financial of 3.9% and in WellPoint Inc of 1.9%.

Ameriprise Financial, Inc led gainers in the S&P 500 index with a rise of 12.4% followed by gains in Jabil Circuit, Inc 9.2%, in Nike, Inc of 7.7% and in Huntington Bancshares Incorporated of 7.1%.

South American Markets Indexes

Mexico Bolsa Index decreased 199.77 or 0.7% to 29,232.24 and Brazil Bovespa Stock Index increased 282.63 or 0.5% to 61,517.89.

Argentina Merval Index closed up 0.5% and Chile Stock Market Select index increased 0.1%, Peru Lima General Index edged up 0.7% and Colombia IGBC General Index added 0.7%.

Europe Markets Review

In London FTSE 100 Index closed lower 25.82 or 0.50% to 5,133.90, in Paris CAC 40 Index decreased 18.69 or 0.49% to close at 3,795.41, in Frankfurt DAX index lower 38.36 or 0.67% to close at 5,675.16. In Zurich trading SMI increased 6.46 or 0.10% to close at 6,323.18.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 33.03 or 0.33% to 10,133.23, Hang Seng index in Hong Kong decreased 57.92 or 0.28% to 20,955.25 and CSI 300 index in China higher 32.52 or 1.09% to 3,004.80. ASX 200 index in Australia decreased 9.50 or 0.20% to 4,743.60. The FTSE Bursa KL Composite index in Malaysia was lower 6.13 or 0.51% to 1202.08.

The Kospi Index in South Korea decreased 16.91 or 1.00% to close at 1,673.14. SET index in Thailand closed higher 1.78 or 0.25% to 717.07. JSE Index in Indonesia increased 23.76 or 0.97% to 2,467.59. The Sensex index in India increased 273.93 or 1.63% to 17,126.84.

Commodities, Metals, and Currencies

Crude oil increased $3.90 to $70.61 a barrel for a front month contract, natural gas edged down 3 cents to $4.84 per mBtu and gasoline increased 11.03 cents to 175.16 cents.

Soybean future closed increased 10 cents to $9.27 a bushel. Wheat futures closed up 8 cents in Chicago trading to $4.76 a bushel. Sugar edged up 0.45 cents a pound to 25.39 cents.

Gold added $14.90 in New York trading to close at $1,009.30 per ounce, silver closed up $0.48 to $16.65 per ounce and copper for the front month delivery increased 9 cent to $2.815 per pound. In the third quarter gold added 8.73%.

Dollar edged lower against euro to $1.463 and closed higher against the Japanese yen to 89.75.

Yield on 10-year U.S. bonds increased to 3.29% and with 30-year maturities decreased to 4.02%.