S&P 500 Up 2.3%; World Markets Rebound

Mukesh Buch
29 Oct, 2009
New York City

U.S. economic expansion in the third quarter was embraced by markets around the world. Canada, Europe and Latin American markets regained more than the losses of yesterday. Energy and metals prices surged.

[R]4:30 PM New York, 9:30 PM London, 6:30 AM Sydney – U.S. economic expansion in the third quarter was embraced by markets around the world. Canada, Europe and Latin American markets regained more than the losses of yesterday. Energy and metals prices surged.[/R]

Markets in Americas and Europe surged after the release of third quarter U.S. GDP data. The economy expanded at 3.5% annual rate lifting the hopes of revenues and earnings recovery. The dollar, U.S. Treasuries, oil and gold gained on the data.

The surge in the economic was supported by a rise in personal consumption, in exports, inventory investments and federal spending.

First Solar, Inc led the decliners in the S&P 500 index with a loss of 17.3%. Affiliated Managers Group third quarter profit increased 72%. Aetna Inc beats analyst expectations. Owens-Illinois, Inc third quarter profit jumps 61% on cost cutting.

Markets in the emerging economies and resource heavy economies soared. Toronto benchmark recovered all of its yesterday’s losses and Brazil and Mexico regained the lost ground and more. European markets after trading sideways in the early morning closed higher between 1% and 2%.

North American Markets

Dow Jones Industrial Average added 199.89 or 2.1% to a close of 9,962.58, S&P 500 Index gained 23.47 or 2.3% to 1,066.10, and Nasdaq Composite Index advanced 37.94 or 1.8% to close at 2,097.55. Toronto TSX Composite Index increased 241.47 or 2.2% to 11,046.80.

Of the stocks in S&P 500 index, 455 increased, 43 declined and 2 were unchanged.

First Solar, Inc led the decliners in the S&P 500 index with a loss of 17% followed by losses in Meredith Corp of 4.7%, in Sprint Nextel Company of 4.6%, in Iron Mountain of 4% and in Allegheny Energy of 3.9%.

Genworth Financial led gainers in the S&P 500 index with a rise of 16.8% followed by gains in Lincoln National Corp 13.6%, in Symantec Corp of 13.2%, in Akamai Technologies, Inc of 13.2% and in Lincoln National Corporation of 9.8%.

South American Markets Indexes

Mexico Bolsa Index increased 562.30 or 2% to 29,233.20 and Brazil Bovespa Stock Index surged 3,538.74 or 5.9% to 63,701.05.

Argentina Merval Index soared 4.1% and Chile Stock Market Select index added 1.5% and Colombia IGBC General Index increased 0.9% and Peru Lima General Index increased 2.4%.

Europe Markets Review

In London FTSE 100 Index closed higher 51.28 or 1.01% to 5,131.70, in Paris CAC 40 Index increased 46.14 or 1.26% to close at 3,709.92, in Frankfurt DAX index higher 77.29 or 1.41% to close at 5,573.56. In Zurich trading SMI increased 60.21 or 0.96% to close at 6,340.15.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 183.95 or 1.83% to 9,891.10, Hang Seng index in Hong Kong decreased 496.59 or 2.28% to 21,264.99, and CSI 300 index in China lower 82.28 or 2.47% to 3,247.05. ASX 200 index in Australia decreased 110.40 or 2.36% to 4,574.70. The FTSE Bursa KL Composite index in Malaysia was lower 7.30 or 0.58% to 1,241.75.

The Kospi Index in South Korea decreased 23.86 or 1.48% to close at 1,585.85, SET index in Thailand closed lower 13.85 or 1.97% to 690.10. JSE Index in Indonesia decreased 11.28 or 0.48% to 2,344.03. The Sensex index in India decreased 230.77 or 1.42% to 16,052.72.

Commodities, Metals, and Currencies

Crude oil increased $2.49 to $79.95 a barrel for a front month contract, natural gas edged up 5 cents to $5.12 per mBtu and gasoline increased 3.26 cents to 201.90 cents.

Soybean future closed up 16.50 cents to $9.87 a bushel. Wheat futures closed up 9.00 cents in Chicago trading to $5.03 a bushel. Sugar closed up 0.88 cent 22.81 cents.

Gold decreased $7.60 in New York trading to close at $1,027.80 per ounce, silver closed up $0.44 to $16.68 per ounce and copper for the front month delivery increased 10.45 cent to $3.03 per pound.

Dollar edged up against euro to $1.4827 and gained against the Japanese yen to 91.49.

Yield on 10-year U.S. bonds increased to 3.49% and with 30-year maturities increased to 4.33%.