Weak Global Markets; U.S. Indexes Waver

Mukesh Buch
27 Oct, 2009
New York City

Stocks gyrated in New York but markets in Europe, Canada, South America and Asia declined. Earnings related stocks were in focus. Steelmakers declined around the world after U.S. Steel swung to a loss. Mexico, Brazil and Shanghai dropped nearly 3% Japan and HK lost more than 1.5%.

[R]4:30 PM New York, 9:30 PM London, 6:30 AM Sydney – Stocks gyrated in New York but markets in Europe, Canada, South America and Asia declined. Earnings related stocks were in focus. Steelmakers declined around the world after U.S. Steel swung to a loss. Mexico, Brazil and Shanghai dropped nearly 3% Japan and HK lost more than 1.5%.[/R]

U.S. stocks gyrated after the latest measure of consumer confidence showed a decline. Metropolitan home prices increased for the third month in a row as the tax incentives supported the market. Crude oil gained. BP plc reported better than expected earnings on cost control.

More than average interest at the today’s auction of the U.S. Treasuries auction lifted the price of bonds. U.S. Treasury auctioned $44 billion of 2-year notes with a bid-to-cover ratio of 3.63, higher than 2.92 at the last six two-year note auctions.

TD Ameritrade third quarter net declined 9% on a 1.3% increase in revenues. China based ADRs declined after a drop in the benchmark indexes in Shanghai and Hong Kong. Wynn Resorts, Limited led the decliners in the S&P 500 index with a loss of 8.5%. Potlatch Corp announces senior notes offering.

UK stocks in volatile trading edged higher. Commodities prices increased. Banks declined as investors feared tighter EU bailout conditions. BP Plc gained nearly 5% after it reported higher than expected earnings on tighter cost control. Reckitt Benckiser third quarter net increased 25%.

European markets declined in the region with banks leading the losers. ING Groep was suspended from trading on the NYSE Euronext. Dassault Systems intends to acquire certain software related assets from IBM. Daimler Benz net plunged 80%. Michelin SCA quarterly sales fell 11%.

North American Markets

Dow Jones Industrial Average increased 14.21 or 0.14% to a close of 9,882.17, S&P 500 Index fell 3.54 or 0.3% to 1,063.41, and Nasdaq Composite Index declined 25.76 or 1.2% to close at 2,116.09. Toronto TSX Composite Index fell 181.34 or 1.6% to 11,053.54.

Of the stocks in S&P 500 index, 88 increased, 410 declined and 2 were unchanged.

Wynn Resorts, Limited led the decliners in the S&P 500 index with a loss of 8.5% followed by losses in V.F. Corporation of 7.4%, in Franklin Resources, Inc of 6.1%, in AK Steel Holding Corporation of 5.3% and in Tenet Healthcare Corporation of 4.6%.

Cabot Oil & Gas Corporation led gainers in the S&P 500 index with a rise of 9.9% followed by gains in Bemis Company, Inc 6.5%, in Textron Inc of 6.7% and in Avery Dennison Corporation of 5.2%.

South American Markets Indexes

Mexico Bolsa Index decreased 867.50 or 2.9% to 29,412.58 and Brazil Bovespa Stock Index dropped 1,924.51 or 2.96% to 63,161.04.

Argentina Merval Index decreased 1.1% and Chile Stock Market Select index fell 1% and Colombia IGBC General Index decreased 0.8% and Peru Lima General Index decreased 1.8%.

Europe Markets Review

In London FTSE 100 Index closed higher 25.47 or 0.49% to 5,217.21, in Paris CAC 40 Index increased 5.86 or 0.16% to close at 3,750.31, in Frankfurt DAX index higher 1.42 or 0.03% to close at 5,643.58. In Zurich trading SMI increased 71.56 or 1.14% to close at 6,374.91.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 150.16 or 1.45% to 10,212.46, Hang Seng index in Hong Kong decreased 420.14 or 1.86% to 22,169.59, and CSI 300 index in China lower 99.52 or 2.91% to 3,314.72. ASX 200 index in Australia decreased 76.80 or 1.59% to 4,753.50. The FTSE Bursa KL Composite index in Malaysia was higher 0.38 or 0.03% to 1,260.30.

The Kospi Index in South Korea decreased 7.58 or 0.46% to close at 1,649.53, SET index in Thailand closed higher 2.71 or 0.38% to 714.54. JSE Index in Indonesia decreased 42.51 or 1.72% to 2,425.20. The Sensex index in India decreased 387.10 or 2.31% to 16,353.40.

Commodities, Metals, and Currencies

Crude oil increased $0.63 to $78.31 a barrel for a front month contract, natural gas edged up 9 cents to $4.60 per mBtu and gasoline increased 2.95 cents to 204.90 cents.

Soybean future closed down 12.25 cents to $9.76 a bushel. Wheat futures closed down 23.75 cents in Chicago trading to $5.03 a bushel. Sugar closed down 0.29 cent 22.65 cents.

Gold decreased $3.40 in New York trading to close at $1,039.40 per ounce, silver closed down $0.42 to $16.68 per ounce and copper for the front month delivery decreased 0.25 cent to $3.008 per pound.

Dollar edged up against euro to $1.4795 and fell against the Japanese yen to 91.81.

Yield on 10-year U.S. bonds decreased to 3.45% and with 30-year maturities decreased to 4.28%.