Stocks in NY Open Higher; Human Genome Surges

123jump.com Staff
02 Nov, 2009
New York City

Stocks in New York traded higher with industrials leading the gainers. CIT plunges after it files pre-arranged bankruptcy. Ford Motor reports better than expected earnings. Asian markets closed lower. In London trading, Royal Bank of Scotland declined after it prepares to sell more assets.

[R]9:45 AM New York – Stocks in New York traded higher with industrials leading the gainers. CIT plunges after it files pre-arranged bankruptcy. Ford Motor reports better than expected earnings. Asian markets closed lower. In London trading, Royal Bank of Scotland declined after it prepares to sell more assets.[/R]

Stocks in New York opened higher ahead of the release of manufacturing index.

The lender CIT plunged nearly 30% to 42 cents after it filed for a pre-packaged bankruptcy this Sunday according to media reports and later confirmed by 123jump.com. The bankruptcy is expected to wipe out shareholders including equity investment of $2.3 billion made by the U.S. Treasury.

CIT has listed $71 billion in assets and $64.9 billion in liabilities.

Human Genome Sciences ((HGIS)) surged 34.5% to $25.13 after the company and GlaxoSmithKline reported positive indications in the preliminary trials for the treatment of systemic lupus.

Asian markets closed lower tracking losses in New York after the release of consumer spending data. Markets in Europe traded generally with a higher trend by late afternoon.

A drop in gold price dragged resource stocks in Australia and Asia but in New York this morning gold rebounded. Gold trades up $14.20 to $1,54.60 and crude oil edges up 42 cents to $77.42.

Royal Bank of Scotland in London trading declined 9.3% to 37.99 pence after the troubled lender prepares to sell more assets and bank branches to meet EU directive that is still not final. The lender is required to shrink to meet the European Union bailout conditions after it received 20 billion pounds of UK government support.

Earnings Review

Ford Motor Company ((F)) gained more than 8% after it reported adjusted third quarter profit of 26 cents a share. The higher than adjusted profit in the quarter was helped by one-time government stimulus to the auto buyers.

Loews Corp ((LOW)), the insurance, hotel and oil drilling conglomerate reported third quarter net income of $468 million or $1.08 a share compared to a loss of $137 million or 31 cents a share.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 231.79 or 2.31% to 9,802.95, Hang Seng index in Hong Kong decreased 132.68 or 0.61% to 21,620.19 and CSI 300 index in China higher 112.43 or 3.43% to 3,392.80. ASX 200 index in Australia decreased 102.80 or 2.21% to 4,540.40. The FTSE Bursa KL Composite index in Malaysia closed lower 1.47 or 0.12% to 1,241.76.

The Kospi Index in South Korea decreased 21.60 or 1.37% to close at 1,559.09. SET index in Thailand closed lower 8.02 or 1.17% to 677.22 and JSE Index in Indonesia increased 3.94 or 0.17% to 2,371.64. The Indian markets were closed today.

Europe Markets Review

In London FTSE 100 Index traded higher 23.31 or 0.46% to 5,067.86, in Paris CAC 40 Index increased 14.74 or 0.41% to 3,622.43 and in Frankfurt DAX index traded higher 2.54 or 0.05% to 5,417.50. In Zurich trading SMI decreased 21.15 or 0.34% to 6,264.61.