Crude Oil 1-Year High Lifts U.S. Stocks

Mukesh Buch
15 Oct, 2009
New York City

Stocks in New York closed higher on an afternoon rally in energy complex stocks as crude oil futures close near one-year high. Banks closed lower. Bank of American chief will give up his bonus and salary for 2009.

[R]4:30 PM New York, 9:30 PM London, 6:30 AM Sydney – Stocks in New York closed higher on an afternoon rally in energy complex stocks as crude oil futures close near one-year high. Banks closed lower. Bank of American chief will give up his bonus and salary for 2009.[/R]

U.S. stocks in early trading fell after the release of earnings from Goldman Sachs and Citigroup. Goldman net surged three-fold and Citigroup swung to quarterly profit. Stocks in the afternoon recovered as crude oil advanced to its yearly high.

Jobless claims in the week ending October 10 declined 10,000 to 514,000 from the revised 524,000 claims in the previous week. The insured unemployment rate decreased to 4.5%. The index of consumer prices increased 0.2% in September after rising at 0.4% in August. The unadjusted index decreased 1.3% in the last one year to the month.

Refiners led gainers and banks and financial services providers led decliners in New York trading. Crude oil gained in the day to close near one year and lifted stocks in the oil complex. Sunoco Inc surged 10% and Valero Energy and Tesoro Corp more than 7%.

Aptar Group fell on the quarterly sales decline of 11%. Shoe retailer DSW Inc surged after it lifted annual earnings outlook. Nokia plunged 11% after it reported a quarterly loss. Winnebago Industries quarterly loss surges.

Bank of America chief executive Ken Lewis agreed to forego salary and bonus for 2009 to avoid conflict with the pay czar Kenneth Feinberg. Departing Chief Lewis is expected to give up his salary received so far in the year at the base pay of $1.5 million.

European markets hovered near their recent highs. Accor third quarter sales declined 8.4%. Metro AG and Henke AG increased on brokers recommendations. Remy Cointreau SA fell after first half sales were flat. Solar energy modules makers in Germany fell again as lawmakers prepare to cut subsidies.

UK stocks closed lower on weak banking stocks and speculation lifts the pound. Aggreko gained on full-year guidance. WH Smith full-year profits climb. Ashmore Group asset under management surges 25%. J Sainsbury surges 10% on Qatar speculation.

Stocks in India edged lower after a strong run in the last ten days. Indiabulls Power IPO receives 22 times bids on the last day of subscription. Euro Multivision trades lower 7% on its first day of trading.

India’s Wholesale Price Index for the week ended October 3 decreased 0.5% to 241.9 from 243.0 during the previous week. The annual inflation rate for one year period ending in the week increased to 0.92% from 0.7%.

North American Markets

Dow Jones Industrial Average increased 47.08 or 0.5% to a close of 10,062.94, S&P 500 Index added 4.54 or 0.4% to 1,096.56, and Nasdaq Composite Index advanced 1.06 or 1.5% to close at 2,173.29. Toronto TSX Composite Index decreased 28.27 or 0.3% to 11,504.51.

Of the stocks in S&P 500 index, 307 increased, 181 declined and 12 were unchanged.

Southwest Air led the decliners in the S&P 500 index with a loss of 5.7% followed by losses in Anadarko Petroleum of 5.1%, in Citigroup Inc of 5%, in Charles Schwab Corporation of 4.8% and in Baxter International of 4.4%.

Sunoco Inc led gainers in the S&P 500 index with a rise of 10.1% followed by gains in Tesoro Corp 8.6%, in Valero Energy of 7.1%, in Safeway Inc of 6.5% and in Southwestern Energy of 6.1%.

South American Markets Indexes

Mexico Bolsa Index increased 136.63 or 0.4% to 31,017.73 and Brazil Bovespa Stock Index added 502.19 or 0.8% to 66,703.32.

Argentina Merval Index closed up 0.03% and Chile Stock Market Select index decreased 0.8% and Colombia IGBC General Index decreased 0.4% and Peru Lima General Index decreased 0.1%.

Europe Markets Review

In London FTSE 100 Index closed lower 33.15 or 0.63% to 5,222.95, in Paris CAC 40 Index increased 1.16 or 0.03% to close at 3,883.83, in Frankfurt DAX index lower 23.37 or 0.40% to close at 5,830.77. In Zurich trading SMI decreased 22.73 or 0.35% to close at 6,383.19.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 178.44 or 1.77% to 10,238.65, Hang Seng index in Hong Kong increased 112.60 or 0.51% to 21,999.08, and CSI 300 index in China higher 12.24 or 0.38% to 3,239.64. ASX 200 index in Australia increased 28.80 or 0.60% to 4,859.90. The FTSE Bursa KL Composite index in Malaysia was higher 0.02 or 0.00% to 1,246.86.

The Kospi Index in South Korea increased 9.90 or 0.60% to close at 1,658.99 SET Index in Thailand closed lower 38.75 or 5.30% to 692.72. JSE Index in Indonesia increased 3.66 or 0.15% to 2,515.38. The Sensex index in India decreased 35.91 or 0.21% to 17,195.20.

Commodities, Metals, and Currencies

Crude oil increased $2.40 to $77.58 a barrel for a front month contract, natural gas edged up 5 cents to $4.48 per mBtu and gasoline increased 8.70 cents to 194.49 cents.

Soybean future closed down 11 cents to $9.83 a bushel. Wheat futures closed down 8.00 cents in Chicago trading to $5.05 a bushel. Sugar closed up to 1.14 cent 23.85 cents.

Gold decreased $14.10 in New York trading to close at $1,050.60 per ounce, silver closed down $0.49 to $17.41 per ounce and copper for the front month delivery increased 1.45 cent to $2.859 per pound.

Dollar edged lower against euro to $1.4940 and closed up against the Japanese yen to 90.57.

Yield on 10-year U.S. bonds increased to 3.46% and with 30-year maturities increased to 4.30%.