Stocks Rise on Retail Sales; Intel, JP Morgan Up

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

Stocks in early trading in New York increased after the earnings release from Intel, JP Morgan Chase and CSX. China reported smallest decline in exports in September lifting commodities and crude oil prices higher.

[R]10:00 AM New York – Stocks in early trading in New York increased after the earnings release from Intel, JP Morgan Chase and CSX. China reported smallest decline in exports in September lifting commodities and crude oil prices higher.[/R]

In the morning trading in New York stock advanced after the release of retail sales and price indexes for import and exports. Better than expected earnings from Intel and JP Morgan Chase also bolstered investors enthusiasm.

Crude oil increased 79 cents to $74.94 and natural gas edged lower. Gold, silver and copper were firm after China reported smallest monthly decline in exports. September exports decreased 15.2%. Rio Tinto Group, the UK and Australia based iron ore miner said that the ore production increased on the sustained demand from Chinese steel companies.

In the early trading JP Morgan Chase, Intel and CSX increased 3% or better.

Retail sales adjusted for seasonality and calendar decreased 1.5% to $344.7 billion from August and fell 5.7% from September. Total retail sales in the third quarter ending in September declined 6.6% from a year ago period. The sales for two months to August were revised to 2.2% increase from previous estimate of 2.7%

The sales in August had declined 2.2% sparking worries that economic revival may take longer than anticipated. The smaller that expected rise in the sales was viewed positively by most economists.

Auto and parts sales plunged 10% after rising 7.8% in August on the back of government incentive programs. Sales at grocery stores increased 0.9%, at furniture stores gained 1.4% and at department stores added 0.4%.

September import price index increased 0.1% after advancing at 1.6% in August on higher non-fuel prices. The index for export prices decreased 0.3% after rising 0.7% in August.

Earnings Review

Intel Corporation, the chip maker said third quarter revenues fell 8% to $9.4 billion from $10.2 billion a year ago. Net income in the quarter fell 5% to $1.9 billion or 33 cents per diluted share compared to net income of $2 billion or 35 cents per share a year ago.

JPMorgan Chase & Co, the bank reported third quarter revenues rose 81% to $26.6 billion from $14.7 billion a year ago. Net income in the quarter rose 583% to $3.6 billion or 82 cents per diluted share compared to net income of $527 million or 9 cents per share a year ago.

CSX Corporation, a transportation company said third quarter sales fell 23% to $2.3 billion from $3 billion a year ago. Net income in the quarter fell 23% to $293 million or 74 cents per diluted share compared to net income of $382 million or 94 cents per share a year ago.

ASML Holding N.V., the maker of semiconductor equipment said third quarter sales fell 20% to €555.3 million from €696.5 million a year ago. Net profit in the quarter fell 73% to €19.7 million or €0.05 per diluted share compared to net profit of €73.3 million or €0.17 per share a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 16.35 or 0.16% to 10,060.21, Hang Seng index in Hong Kong increased 419.12 or 1.95% to 21,886.48, and CSI 300 index in China higher 28.88 or 0.90% to 3,227.40. ASX 200 index in Australia increased 45.40 or 0.95% to 4,831.10. The FTSE Bursa KL Composite index in Malaysia was higher 13.33 or 1.08% to 1,246.84.

The Kospi Index in South Korea increased 20.16 or 1.24% to close at 1,649.09 SET index in Thailand closed lower 15.20 or 2.04% to 731.47. JSE Index in Indonesia increased 39.73 or 1.61% to 2,511.72. The Sensex index in India increased 204.44 or 1.20% to 17,231.11.

Europe Markets Review

In London FTSE 100 Index traded higher 86.82 or 1.68% to 5,240.97, in Paris CAC 40 Index increased 65.43 or 1.72% to 3,866.82 and in Frankfurt DAX index traded higher 112.34 or 1.97% to 5,826.65. In Zurich trading SMI increased 76.93 or 1.22% to 6,398.19.