U.S. Stocks Turn Lower, Dollar in Focus

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

Stocks in New York closed lower after investors turned cautious. Industrials declined in New York and Europe after GE reported 20% decline in sales. Dollar hovered near lows after EU reported sharply lower trade deficit compared to a year ago.

[R]4:30 PM New York, 9:30 PM London, 6:30 AM Sydney – Stocks in New York closed lower after investors turned cautious. Industrials declined in New York and Europe after GE reported 20% decline in sales. Dollar hovered near lows after EU reported sharply lower trade deficit compared to a year ago.[/R]

U.S. stocks traded lower after weaker than expected earnings from General Earnings and Bank of America. Investors also focused on rising loan losses at Bank of America and 20% sales decline at GE. AMD fell after it reported a quarterly loss and Google earnings surged 27%.

The troubled mortgage loan guarantor dropped 12% to $6.42 after it reported yet another quarterly loss.

September industrial production increased 0.7% after rising at a revised rate of 1.2% in August. In the third quarter output increased at an annual rate of 5.2%. Manufacturing increased 0.9% in the month mining output increased 0.7%.

Euro-zone’s seasonally adjusted exports declined 5.8% in August from July as euro continues to advance against the dollar and the pound. Imports declined 1.3% and the trade surplus declined to €4 billion from €11.3 billion a year ago.

Exports from euro-zone decreased 5.8% in August and imports fell 1.3%. Trade surplus fell to €4 billion from €11.3 billion a year ago. German government lifted its economic outlook for the current year on higher exports but estimated weak domestic consumption.

UK stocks struggled on the weakness in financial and resource stocks. National Express and Stagecoach dropped sharply after a private equity led merger talks were discontinued. The pound rose 2.1% against the euro in the week. Clinton Cards advanced after it estimated better outlook.

Stocks in Mumbai traded higher ahead of Diwali celebration and Hindu New Year 2066. Cairn India surged after Malaysia based Petronas acquired additional stake. Tata Consultancy reported better than expected sales and earnings.

North American Markets

Dow Jones Industrial Average increased 67.03 or 0.7% to a close of 9,995.91, S&P 500 Index declined 8.88 or 0.8% to 1,087.68, and Nasdaq Composite Index decreased 16.49 or 0.8% to close at 2,156.80. Toronto TSX Composite Index increased 0.25 to 11,504.51.

Of the stocks in S&P 500 index, 122 increased, 375 declined and 3 were unchanged.

Micron Technology, Inc. led the decliners in the S&P 500 index of 8.09% followed by losses in Advanced Micro Devices, Inc. of 7.27%, in MBIA Inc. of 6.44%, in Genworth Financial, Inc. of 6.42%, in Discover Financial Services of 6.34%.

IntercontinentalExchange, Inc. led gainers in the S&P 500 index with a rise of 7.73% followed by increase in Harris Corporation of 7.15%, in The Estee Lauder Companies Inc. of 5.09%, in Supervalu Inc. of 4.94%, in Mattel, Inc. of 4.49%.

South American Markets Indexes

Mexico Bolsa Index decreased 291.43 or 0.94% to 31,017.73 and Brazil Bovespa Stock Index fell 502.83 or 0.75% to 66,703.05.

Argentina Merval Index closed fell 17.70% and Chile Stock Market Select index increased 0.28% and Colombia IGBC General Index increased 0.73% and Peru Lima General Index decreased 0.1%.

Europe Markets Review

In London FTSE 100 Index closed lower 32.71 or 0.63% to 5,190.24, in Paris CAC 40 Index decreased 56.23 or 1.45% to close at 3,827.60, in Frankfurt DAX index lower 87.38 or 1.50% to close at 5,743.39. In Zurich trading SMI decreased 37.93 or 0.59% to close at 6,345.26.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 18.91 or 0.18% to 10,257.56, Hang Seng index in Hong Kong decreased 69.18 or 0.31% to 21,929.90, and CSI 300 index in China higher 2.07 or 0.06% to 3,241.71. ASX 200 index in Australia decreased 23.50 or 0.48% to 4,836.40. The FTSE Bursa KL Composite index in Malaysia was higher 9.91 or 0.79% to 1,256.77.

The Kospi Index in South Korea decreased 18.63 or 1.12% to close at 1,640.36 SET Index in Thailand closed higher 24.40 or 3.52% to 717.12. JSE Index in Indonesia increased 0.42 or 0.02% to 2,515.81. The Sensex index in India increased 127.62 or 0.74% to 17,322.82.

Commodities, Metals, and Currencies

Crude oil increased $1.06 to $78.64 a barrel for a front month contract, natural gas edged up 31 cents to $4.79 per mBtu and gasoline increased 3.71 cents to 198.20 cents.

Soybean future closed down 5.50 cents to $9.77 a bushel. Wheat futures closed down 6.25 cents in Chicago trading to $4.98 a bushel. Sugar closed up to 0.06 cent 23.91 cents.

Gold increased $3.50 in New York trading to close at $1,054.10 per ounce, silver closed up $0.07 to $17.48 per ounce and copper for the front month delivery decreased 2.10 cent to $2.838 per pound.

Dollar edged up against euro to $1.4906 and closed up against the Japanese yen to 90.89.

Yield on 10-year U.S. bonds decreased to 3.41% and with 30-year maturities decreased to 4.24%.