Commodities Firm; Nasdaq Down 0.6%

Mukesh Buch
20 Oct, 2009
New York City

Weak U.S. housing data raised questions about the health of the housing markets and nature of economic recovery. Home builders fell. Earnings were in focus. Coca Cola, State Street and Boston Scientific were among the most active stocks in trading.

[R]4:30 PM New York, 9:30 PM London, 6:30 AM Sydney – Weak U.S. housing data raised questions about the health of the housing markets and nature of economic recovery. Home builders fell. Earnings were in focus. Coca Cola, State Street and Boston Scientific were among the most active stocks in trading.[/R]

U.S. stocks edged lower after the housing starts and completions declined in September. Home builders led the decliners. Apple increased on strong rise in sales and earnings. The Producer Price Index decreased 0.6% in September. Boston Scientific declined after it lowered 2009 revenues estimate.

Boston Scientific Corporation led the decliners in the S&P 500 index with a loss of 13.0%. Apple Inc fourth quarter net income increased 47%. Atheros Communications, Inc third quarter profit nearly quadruples as sales rise. Brown & Brown, Inc third quarter profit rose 1% on lower expenses. Coca Cola quarterly net income increased 1% and State Street Corp fell 8.4% after it lowered its earnings outlook and was sued by California State.

Brazil index drops 3% after it imposed 2% tax on international investors.

European stocks traded lower in the afternoon after the release of weak U.S. housing data. Deutsche Bank agreed to acquire assets from ABN Amro. Volkswagen fell after it agreed to purchase 49.9% of Porsche SE. Valeo SA reported a net profit in the third quarter and raised its outlook.

Stocks in London traded lower. Autonomy fell nearly 7% after quarterly net rose less than expected. Barclays dropped more than 5% after Qatar based investment fund took a profit of nearly $1 billion and lowered its holding in the bank to 7%. Pearson increased on earnings outlook.

The Reserve Bank of Australia noted in its latest statement after the interest rate hike that maintaining low interest rates many not be the prudent. Woolworths’ sales increase slowed after petrol prices fall. Oil Search completed its $825 million offering.

North American Markets

Dow Jones Industrial Average decreased 50.71 or 0.5% to a close of 10,041.48, S&P 500 Index decreased 6.86 or 0.6% to 1,091.06, and Nasdaq Composite Index decreased 12.85 or 0.6% to close at 2,163.47. Toronto TSX Composite Index decreased 0.27 to 11,538.12.

Of the stocks in S&P 500 index, 108 increased, 388 declined and 4 were unchanged.

Boston Scientific Corporation led the decliners in the S&P 500 index with a loss of 15.7% followed by losses in GameStop Corp of 8.9%, in Marshall & Ilsley of 8.8%, in State Street Corp of 8.4% and in Lockheed Martin of 6.5%.

Lexmark International, Inc led gainers in the S&P 500 index with a rise of 15.9% followed by gains in Tesoro Corp of 6.6%, in The Bank of New York Mellon Corporation 6.1%, in Parker-Hannifin Corporation of 4.9%, in Illinois Tool Works of 5% and Apple of 4.7%.

South American Markets Indexes

Mexico Bolsa Index increased 73.83 or 0.24% to 31,000.94 and Brazil Bovespa Stock Index decreased 1,936.34 or 2.9% to 65,303.11.

Argentina Merval Index fell 0.4% and Chile Stock Market Select index decreased 0.3% and Colombia IGBC General Index decreased 0.9% and Peru Lima General Index decreased 1.2%.

Europe Markets Review

In London FTSE 100 Index closed lower 38.14 or 0.72% to 5,243.40, in Paris CAC 40 Index decreased 20.91 or 0.54% to close at 3,871.45, in Frankfurt DAX index lower 40.79 or 0.70% to close at 5,811.77. In Zurich trading SMI decreased 9.08 or 0.14% to close at 6,427.29.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 100.33 or 0.98% to 10,336.84, Hang Seng index in Hong Kong increased 184.50 or 0.83% to 22,384.96, and CSI 300 index in China higher 48.42 or 1.45% to 3,377.57. ASX 200 index in Australia increased 53.40 or 1.11% to 4,846.20. The FTSE Bursa KL Composite index in Malaysia was higher 4.25 or 0.34% to 1,265.74.

The Kospi Index in South Korea increased 10.08 or 0.61% to close at 1,659.15 SET Index in Thailand closed lower 6.01 or 0.82% to 725.60. JSE Index in Indonesia decreased 18.71 or 0.74% to 2,502.22. The Sensex Index in India decreased 103.00 or 0.59% to 17,223.01.

Commodities, Metals, and Currencies

Crude oil decreased $0.85 to $79.11 a barrel for a front month contract, natural gas edged up 33 cents to $5.17 per mBtu and gasoline increased 0.08 cents to 198.01 cents.

Soybean future closed up 18.75 cents to $9.96 a bushel. Wheat futures closed up 19.00 cents in Chicago trading to $5.17 a bushel. Sugar closed up 0.26 cent 24.17 cents.

Gold increased $11.90 in New York trading to close at $1,063.10 per ounce, silver closed up $0.31 to $17.73 per ounce and copper for the front month delivery increased 11.05 cent to $2.956 per pound.

Dollar edged down against euro to $1.4936 and closed up against the Japanese yen to 90.74.

Yield on 10-year U.S. bonds decreased to 3.34% and with 30-year maturities decreased to 4.16%.