U.S. Stocks Weaken; MBIA Loss

Mukesh Buch
10 Nov, 2009
New York City

U.S. stocks traded lackluster after the bond guarantor MBIA reported quarterly loss. Fluor declined 7.5% after it lowered its annual earnings outlook. Energy and agriculture commodities closed lower. European markets closed mixed as the dollar edged higher.

[R]4:30 PM New York, 9:30 PM London, 8:30 AM Sydney – U.S. stocks traded lackluster after the bond guarantor MBIA reported quarterly loss. Fluor declined 7.5% after it lowered its annual earnings outlook. Energy and agriculture commodities closed lower. European markets closed mixed as the dollar edged higher.[/R]

World markets inch higher on the second day after G-20 statement. Earnings were in focus after HSBC and Barclays indicated diverging outlooks. Electronic Arts quarterly net loss widens. U.S. stocks traded sideways as U.S. Treasury bonds edged up.

Barclays and HSBC reported sharply divergent outlooks. HSBC indicated better than a year ago quarterly results and Barclays net dropped in the three months to September. Electronic Arts net loss widens. JA Solar swung to a quarterly profit.

MBIA Inc led the decliners in the S&P 500 index with a loss of 17.0%. Arena Pharmaceuticals, Inc almost halves third quarter net loss. Electronic Arts Inc quarterly loss widens and announces 1,500 lay-offs. Melco Crown Entertainment plunges 14%.

UK stocks were flat after HSBC and Barclays indicated diverging results. Schroders Plc assets under management increased more than expected. Yell Group plans to raise £660 million in an underwritten offering. Cookson Group surged after earnings are expected to be near its upper end of guidance.

North American Markets

Dow Jones Industrial Average increased 20.03 or 0.2% to a close of 10,246.97, S&P 500 Index edged lower 2.98 or 0.2% to 1,093.01, and Nasdaq Composite Index decreased 2.98 or 0.1% to close at 2,151.08. Toronto TSX Composite Index decreased 60.14 or 0.5% to 11,426.74.

Of the stocks in S&P 500 index, 212 increased, 278 declined and 10 were unchanged.

MBIA Inc led the decliners in the S&P 500 index with a loss of 27.0% followed by losses in Zions Bancorp of 7.6%, in Electronic Arts Inc of 6.4%, in Sprint Nextel Corporation of 5.5% and in Marshall & Ilsley of 5.4%.

Priceline.com Incorporated led gainers in the S&P 500 index with a rise of 17.6% followed by gains in Monsanto Company of 5.2%, in American International Group, Inc 3.9%, in Textron Inc of 3.4% and in Dr Pepper Snapple of 3.4%.

South American Markets Indexes

Mexico Bolsa Index increased 141.96 or 0.5% to 30,788.20 and Brazil Bovespa Stock Index increased 89.14 or 0.1% to 66,303.49.

Argentina Merval Index decreased 0.4% and Chile Stock Market Select index decreased 0.4% and Colombia IGBC General Index decreased 0.04% and Peru Lima General Index fell 1%.

Europe Markets Review

In London FTSE 100 Index closed lower 0.76 or 0.01% to 5,234.42, in Paris CAC 40 Index increased 0.63 or 0.02% to close at 3,786.12, in Frankfurt DAX index lower 3.21 or 0.06% to close at 5,616.51. In Zurich trading SMI decreased 17.65 or 0.28% to close at 6,367.49.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 61.74 or 0.63% to 9,870.73, and Hang Seng index in Hong Kong increased 60.61 or 0.27% to 22,268.16, and CSI 300 index in China higher 7.99 or 0.23% to 3,503.78. ASX 200 index in Australia increased 58.70 or 1.26% to 4,733.60. The FTSE Bursa KL Composite index in Malaysia was higher 6.33 or 0.50% to 1,274.08.

The Kospi Index in South Korea increased 17.11 or 0.51% to close at 1,582.30. SET index in Thailand closed lower 5.28 or 0.74% to 708.20. JSE Index in Indonesia decreased 24.48 or 1.02% to 2,381.96. The Sensex index in India decreased 58.16 or 0.35% to 16,440.56.

Commodities, Metals, and Currencies

Crude oil decreased $0.14 to $79.29 a barrel for a front month contract, natural gas edged down 2 cents to $4.65 per mBtu and gasoline decreased 0.13 cents to 198.05 cents.

Soybean future closed up 17.00 cents to $9.72 a bushel. Wheat futures closed up 3 cents in Chicago trading to $5.23 a bushel. Sugar closed lower 0.5 cent 21.91 cents.

Gold increased $4.20 in New York trading to close at $1,105.60 per ounce, silver closed down $0.34 to $17.22 per ounce and copper for the front month delivery decreased 0.60 cent to $2.96 per pound.

Dollar edged higher against euro to $1.4984 and edged lower against the Japanese yen to 89.84.

Yield on 10-year U.S. bonds decreased to 3.47% and with 30-year maturities closed up at 4.41%.