U.S. Stocks Rise on High Earnings Expectations

123jump.com Staff
06 Oct, 2009
New York City

U.S. stocks gained after commodities prices gained and investors anticipated higher earnings in the third quarter. Third quarter earnings at S&P 500 index companies are expected to increase at least 22% from a year ago according to the estimates provided by Ticker.com.

[R]11:40 AM New York – U.S. stocks gained after commodities prices gained and investors anticipated higher earnings in the third quarter. Third quarter earnings at S&P 500 index companies are expected to increase at least 22% from a year ago according to the estimates provided by Ticker.com.[/R]

Stocks in early trading in New York scaled higher after Australia lifted its key benchmark rate and commodities prices jumped.

Investors around the world have bid up stocks in anticipation of sharp recovery and stronger than expected third quarter earnings. However there is a growing anxiety among a select group of investors that worry that markets have risen too fast too soon.

Australia increased its key lending rate to 3.25% from 3% as the central bank worries that inflation pressures are mounting. Commodities prices jumped after traders interpreted the rate increase as a sign that demand for commodities are firm in Asia and especially in China.

Crude oil increased 1.4% or $1.28 to $71.69 and gold increased $23.90 to $1,041.70. Corn, coffee and wheat jumped between 5% and 6% and copper gained 6.2 cents to 278.85 for a pound.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 17.31 or 0.18% to 9,691.80, Hang Seng index in Hong Kong increased 382.46 or 1.87% to 20,811.53, ASX 200 index in Australia increased 18.30 or 0.40% to 4,591.60. The FTSE Bursa KL Composite index in Malaysia was lower 3.72 or 0.31% to 1,212.73. CSI 300 index in China were closed today.

The Kospi Index in South Korea decreased 8.46 or 0.56% to close at 1,598.44 SET index in Thailand closed higher 12.92 or 1.80% to 731.39. JSE Index in Indonesia increased 47.73 or 1.92% to 2,528.15. The Sensex index in India increased 92.13 or 0.55% to 16,958.54.

Europe Markets Review

In London FTSE 100 Index traded higher 81.35 or 1.62% to 5,105.68, in Paris CAC 40 Index increased 52.06 or 1.42% to 3,727.07 and in Frankfurt DAX index traded higher 93.85 or 1.70% to 5,602.70. In Zurich trading SMI increased 97.13 or 1.58% to 6,260.03.