Manufacturing Index Lead U.S. Indexes Higher

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

U.S. stocks closed higher on a rise in manufacturing index. Ford Motor swung to a quarterly profit. Gold and oil gained. Dean Foods dropped 8.5% after it indicated weaker than expected earnings in the fourth quarter. Stanley Works agreed to buy Black & Decker for $3.5 billion.

[R]5:30 PM New York, 10:30 PM London, 3:30 AM Sydney – U.S. stocks closed higher on a rise in manufacturing index. Ford Motor swung to a quarterly profit. Gold and oil gained. Dean Foods dropped 8.5% after it indicated weaker than expected earnings in the fourth quarter. Stanley Works agreed to buy Black & Decker for $3.5 billion.[/R]

Stocks in New York traded higher with industrials leading the gainers after manufacturing index showed expansion in October. 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.

Ford Motor Company led gainers in the S&P 500 index with a rise of 9.5%. Ford Motor Co swings to a profit in the third quarter of $997 million. Denbury Resources agreed to acquire Encore Acquisition Corp for $4.5 billion in an exchange of cash and stock.

UK stocks closed higher after mining and resource stocks regained some of the lost ground. UAE based ENOC agreed to acquire the remaining stake in Dragon Oil for £1.1 billion. UK manufacturing expanded in October. Allied Irish plc and Royal Bank of Scotland fell on the worries of asset sale.

European markets closed higher after trading lower for the last four trading sessions. Manufacturing indexes expanded in the US and UK. French auto sales increased 20.1% in October. Hugo Boss dropped 9% after it reported third quarter net down 25%. Linde AG third quarter net dropped 4.5%.

Stocks in Australia declined tracking the losses in New York and Europe. The department store chain Myer Holdings Ltd initial public offering closed 8.5% lower on the first day of its trading. NAB agreed to acquire 80% stake in the private wealth management unit of Goldman Sachs JBWere.


North American Markets

Dow Jones Industrial Average increased 76.71 or 0.8% to a close of 9,789.44, S&P 500 Index added 6.69 or 0.7% to 1,036.19, and Nasdaq Composite Index added 4.09 or 0.2% to close at 2,049.20. Toronto TSX Composite Index decreased 32.40 or 0.3% to 10,878.35.

Of the stocks in S&P 500 index, 18 increased, 482 declined and none were unchanged.

Denbury Resources Inc led the decliners in the S&P 500 index with a loss of 7.6% followed by losses in Dean Foods Company of 6.7%, in Office Depot, Inc of 4.1%, in Moody’s Corporation of 2.9% and in Wynn Resorts, Limited of 2.6%.

Ford Motor Company led gainers in the S&P 500 index with a rise of 9.5% followed by gains in Varian Medical Systems, Inc 6.4%, in Tenet Healthcare Corporation of 4.6% and in BB&T Corporation of 4.1%.

South American Markets Indexes

Markets in Brazil and Mexico were closed today. In Friday’s trading, Mexico Bolsa Index decreased 601.80 or 2.1% to 28,646.03 and Brazil Bovespa Stock Index surged 2,175.08 or 3.4% to 61,545.50.

Argentina Merval Index increased 1.4% and Chile Stock Market Select index declined 0.8% and Colombia IGBC General Index decreased 2.2% and Peru Lima General Index added 0.2%.

Europe Markets Review

In London FTSE 100 Index closed higher 55.08 or 1.09% to 5,099.63, in Paris CAC 40 Index increased 33.01 or 0.91% to close at 3,640.70, in Frankfurt DAX index higher 15.38 or 0.28% to close at 5,430.34. In Zurich trading SMI increased 12.13 or 0.19% to close at 6,297.89.

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.

Commodities, Metals, and Currencies

Crude oil increased $1.10 to $78.10 a barrel for a front month contract, natural gas edged down 19 cents to $4.86 per mBtu and gasoline increased 3.01 cents to 198.96 cents.

Soybean future closed up 21.50 cents to $9.98 a bushel. Wheat futures closed up 22.50 cents in Chicago trading to $5.16 a bushel. Sugar closed up 63 cents 23.44 cents.

Gold increased $18.90 in New York trading to close at $1,059.30 per ounce, silver closed up $0.16 to $16.42 per ounce and copper for the front month delivery decreased 0.55 cent to $2.95 per pound.

Dollar edged up against euro to $1.476 and edged up against the Japanese yen to 90.34.

Yield on 10-year U.S. bonds increased to 3.42% and with 30-year maturities closed higher to 4.27%.