World Markets Rally; Nasdaq, Brazil Lead

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

U.S. stocks rallied on the back of global markets strength and the release of retail sales, inventories and price indexes of imports and exports. Strong earnings played a key role in improving sentiment and a smaller decline in exports from China also bolstered worldwide sentiment.

[R]4:30 PM New York, 9:30 PM London, 6:30 AM Sydney – U.S. stocks rallied on the back of global markets strength and the release of retail sales, inventories and price indexes of imports and exports. Strong earnings played a key role in improving sentiment and a smaller decline in exports from China also bolstered worldwide sentiment.[/R]

Stocks in New York advanced 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. Retailers and banks led the gainers. The Dow closed above 10,000 as the index rallied to a one-year high after hitting the bottom on March 9.

Auto dealers gained after Group 1 Automotive estimated higher than expected third quarter earnings. CSX, Intel, JP Morgan advanced after the earnings release. Harley Davidson gains on an analyst upgrade. China and India based ADRs gained on a region rally in Asia.

UK stocks resumed their advance on the back of a rise in commodities prices. Unemployment rate increased to 7.9% in the three months to August. The pound edged higher. Burberry increased after it reported 6.1% increase in first half sales. Punch Taverns plunged 13% on a net loss.

European markets gained on the earnings optimism, improved outlook on the global economy and labor markets in the region. Credit Agricole SA plans to repay €3 billion to France as credit markets improve. Steelmakers increased on a rally in cyclical industrial stocks. ASML Holdings net plunged 73%.

Industrials and infrastructure related stocks advanced in India after positive comments from policymakers and better than expected earnings. HDFC, HDFC Bank, Bajaj Auto Finance and Indus Bank reported higher than expected earnings. Rupee edged higher ahead of Diwali celebration.

North American Markets

Dow Jones Industrial Average increased 144.80 or 1.5% to a close of 10,015.86, S&P 500 Index added 18.83 or 1.8% to 1,092.02, and Nasdaq Composite Index advanced 32.34 or 1.5% to close at 2,172.23. Toronto TSX Composite Index gained 119.24 or 1.1% to 11,532.78.

Of the stocks in S&P 500 index, 194 increased, 297 declined and 9 were unchanged.

Valero Energy Corporation led the decliners in the S&P 500 index with a loss of 1.9% followed by losses in Chesapeake Energy Corporation of 1.6%, in W.W. Grainger, Inc of 1.5%, in CBS Corporation of 1.4% and in Intuitive Surgical, Inc of 1.3%.

Harley-Davidson,Inc led gainers in the S&P 500 index with a rise of 6.8% followed by gains in Ciena Corporation 4.8%, in Genworth Financial, Inc of 4.8% and in AutoNation, Inc of 4.5%.

South American Markets Indexes

Mexico Bolsa Index increased 270.00 or 0.9% to 30,881.10 and Brazil Bovespa Stock Index added 1,555.55 or 2.4% to 66,201.13.

Argentina Merval Index closed up 1.4% and Chile Stock Market Select index decreased 0.5% and Colombia IGBC General Index decreased 0.4% and Peru Lima General Index decreased 0.4%.

Europe Markets Review

In London FTSE 100 Index closed higher 101.95 or 1.98% to 5,256.10, in Paris CAC 40 Index increased 81.28 or 2.14% to close at 3,882.67, in Frankfurt DAX index higher 139.83 or 2.45% to close at 5,854.14. In Zurich trading SMI increased 84.66 or 1.34% to close at 6,405.92.

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.

Commodities, Metals, and Currencies

Crude oil increased $1.32 to $75.47 a barrel for a front month contract, natural gas edged down13 cents to $4.46 per mBtu and gasoline increased 3.00 cents to 186.18 cents.

Soybean future closed up 1 cents to $9.94 a bushel. Wheat futures closed up 1.75 cents in Chicago trading to $5.13 a bushel. Sugar closed down to0.08 cent 22.71 cents.

Gold decreased $1.80 in New York trading to close at $1,063.20 per ounce, silver closed up $0.05 to $17.88 per ounce and copper for the front month delivery increased 6.40 cent to $2.85 per pound.

Dollar edged lower against euro to $1.4923 and closed down against the Japanese yen to 89.38.

Yield on 10-year U.S. bonds increased to 3.42% and with 30-year maturities increased to 4.27%.