Early Gains in U.S. Stocks Fade; Oil Jumps

Mukesh Buch
12 Oct, 2009
New York City

Markets in New York and Europe traded higher ahead of barrage of earnings this week and weak trading on Columbus Day. Black & Decker surged after it lifted its third quarter earnings outlook. Markets in Canada, Brazil and Japan were closed today.

[R]4:30 PM New York, 9:30 PM London, 6:30 AM Sydney – Markets in New York and Europe traded higher ahead of barrage of earnings this week and weak trading on Columbus Day. Black & Decker surged after it lifted its third quarter earnings outlook. Markets in Canada, Brazil and Japan were closed today.[/R]

Stocks in New York extended gains in Europe. Asian markets closed lower. The dollar hovered near low against the yen and the euro for the year. Gold, silver, copper, oil and natural gas edged higher. Electronics maker Philips N.V. reported earnings that lifted European trading sentiment.

The Black and Decker Corporation surged after it estimated third quarter earnings of 91 cents a share, higher than its previous estimate between 35 cents and 45 cents a share. Fastenal Co third quarter net income falls 35%. Ford Motor Company increased 7% after it said that sales in Europe increased 12% in September.

Digital River plunged after Symantec said it will not extend its e-commerce contract. Blackstone Group surged after it plans to list eight portfolio companies.

Barclays is planning to sell its risky loans portfolio that may raise £4 billion. Qatar increases its stake in Songbird Estate that owns Canary Wharf real estate. Vodafone shifted its ADR traded in the U.S. to Nasdaq Group from NYSE Euronext.

European markets closed higher as a rally in the region lifted tech and banking stocks. Philips NV reported better than expected earnings. Vivendi SA sued two French shareholders and an association for participating in a class action lawsuit in New York. Dollar trades weak against euro.

Stocks in Mumbai advanced after Prime Minister reassured investors that economic stimulus will continue. Indiabulls Power initial public offering was oversubscribed five times. Rupee edged higher as international investors increase net exposure to stocks.

North American Markets

Dow Jones Industrial Average increased 20.86 or 0.2% to a close of 9,885.80, S&P 500 Index added 4.70 or 0.5% to 1,076.19, and Nasdaq Composite Index declined 0.14 or 0.01% to close at 2,139.14. Toronto TSX Composite Index in Friday’s trading decreased 47.59 or 0.4% to 11,436.92. Toronto markets were closed today.

Of the stocks in S&P 500 index, 356 increased, 139 declined and 5 were unchanged.

KB Home led decliners in the S&P 500 index with a loss of 7.9% followed by losses in Dynegy Inc of 2.3%, in Gannett Co., Inc of 1.8%, in Symantec Corporation of 1.6% and in The New York Times Company of 1.3%.

The Black and Decker Corporation led gainers in the S&P 500 index with a rise of 8.1% followed by gains in Advanced Micro Devices, Inc 5.5%, in Fastenal Company of 4.7% and in Abercrombie & Fitch Co of 3.6%.

South American Markets Indexes

Mexico Bolsa Index increased 435.72 or 1.5% to 30,475.43 and Brazil Bovespa Stock Index on Friday added 311.14 or 0.5% to 64,071.01. Brazil markets were closed today.

In Friday’s trading Argentina Merval Index closed advanced 0.93% and Chile Stock Market Select index increased 1% and Colombia IGBC General Index decreased 1%. In today’s trading Peru Lima General Index increased 0.8%.

Europe Markets Review

In London FTSE 100 Index closed higher 48.30 or 0.94% to 5,210.17, in Paris CAC 40 Index increased 46.19 or 1.22% to close at 3,845.80, in Frankfurt DAX index higher 71.35 or 1.25% to close at 5,783.23. In Zurich trading SMI increased 86.14 or 1.37% to close at 6,377.78.

Asian Markets Review

The Hang Seng index in Hong Kong decreased 200.09 or 0.93% to 21,299.35, and CSI 300 index in China lower 12.08 or 0.38% to 3,151.63. ASX 200 index in Australia decreased 13.10 or 0.28% to 4,738.80. The FTSE Bursa KL Composite index in Malaysia was lower 0.49 or 0.04% to 1,233.33. The Tokyo markets were closed today.

The Kospi Index in South Korea decreased 6.98 or 0.42% to close at 1,639.81 SET Index in Thailand closed higher 4.99 or 0.67% to 751.86. JSE Index in Indonesia decreased 17.71 or 0.72% to 2,456.69. The Sensex index in India increased 384.01 or 2.31% to 17,026.67.

Commodities, Metals, and Currencies

Crude oil increased $1.40 to $73.17 a barrel for a front month contract, natural gas edged up 11 cents to $4.88 per mBtu and gasoline increased 2.90 cents to 179.70 cents.

Soybean future closed up 35 cents to $9.99 a bushel. Wheat futures closed up 26.25 cents in Chicago trading to $4.94 a bushel. Sugar edged up 0.39 cents a pound to 21.63 cents.

Gold increased $8.00 in New York trading to close at $1,056.60 per ounce, silver closed up $0.085 to $17.77 per ounce and copper for the front month delivery increased 0.60 cent to $2.844 per pound.

Dollar edged lower against euro to $1.4779 and closed up against the Japanese yen to 89.86.

Yield on 10-year U.S. bonds increased to 3.38% and with 30-year maturities was unchanged at 4.22%.