U.S. Indexes Close Lower on Weak Oil

Mukesh Buch
12 Nov, 2009
New York City

Market indexes in New York and Americas declined on weak commodities and energy prices. 3Com surged 31% on a buyout offer from Hewlett Packard. Dow Chemical advanced after it estimated higher than expected earnings.

[R]4:30 PM New York, 9:30 PM London, 8:30 AM Sydney – Market indexes in New York and Americas declined on weak commodities and energy prices. 3Com surged 31% on a buyout offer from Hewlett Packard. Dow Chemical advanced after it estimated higher than expected earnings.[/R]

U.S. indexes traded sideways after comments from world leaders in Asia. Chinese Premier Jiabao observed that world economic recovery will be uneven and slow. U.S. Treasury Secretary Geithner said that early progress is made in solving world economic imbalances.

Energy complex stocks closed lower after crude oil prices declined. The latest weekly crude oil inventories report showed a higher than expected rise in inventories.

Precious metals mining and related stocks closed higher as gold reached a new record high.

North American Markets

Dow Jones Industrial Average decreased 93.79 or 0.9% to a close of 10,197.47, S&P 500 Index edged lower 11.27 or 1% to 1,087.24, and Nasdaq Composite Index decreased 17.88 or 0.8% to close at 2,149.02. Toronto TSX Composite Index decreased 78.99 or 0.7% to 11,360.76.

Of the stocks in S&P 500 index, 329 increased, 162 declined and 9 were unchanged.

Eastman Kodak led the decliners in the S&P 500 index with a loss of 6.3% followed by losses in Dynegy Inc of 5.3%, in Lincoln National Corp Inc of 5.2%, in Unum Group of 5.1% and in Rowan Companies of 5%.

Advanced Micro Devices, Inc led gainers in the S&P 500 index with a rise of 21.8% followed by gains in Dow Chemical 7.1%, in JDS Uniphase of 7.1%, in MetroPCS Communications, Inc of 2.4% and in Nasdaq OMX Group of 2.4%.

South American Markets Indexes

Mexico Bolsa Index decreased 337.79 or 1.1% to 30,759.85 and Brazil Bovespa Stock Index decreased 1,983.31 or 3% to 64,447.93.

Argentina Merval Index decreased 1.4% and Chile Stock Market Select index decreased 0.9% and Colombia IGBC General Index increased 1% and Peru Lima General Index fell 0.7%.

Europe Markets Review

In London FTSE 100 Index closed higher 35.14 or 0.67% to 5,301.89, in Paris CAC 40 Index increased 25.99 or 0.68% to close at 3,840.38, in Frankfurt DAX index higher 49.43 or 0.87% to close at 5,717.78. In Zurich trading SMI decreased 18.94 or 0.30% to close at 6,355.76.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 67.19 or 0.68% to 9,804.49, and Hang Seng index in Hong Kong decreased 229.64 or 1.01% to 22,397.57, and CSI 300 index in China higher 4.32 or 0.12% to 3,499.99. ASX 200 index in Australia decreased 9.10 or 0.19% to 4,747.90. The FTSE Bursa KL Composite index in Malaysia was higher 1.60 or 0.13% to 1,271.75.

The Kospi Index in South Korea decreased 22.09 or 1.39% to close at 1,572.73. SET index in Thailand closed lower 21.18 or 2.95% to 696.72. JSE Index in Indonesia increased 16.40 or 0.68% to 2,420.28. The Sensex index in India decreased 153.57 or 0.91% to 16,696.03.

Commodities, Metals, and Currencies

Crude oil decreased $2.54 to $76.74 a barrel for a front month contract, natural gas edged down 11 cents to $4.39 per mBtu and gasoline decreased 5.58 cents to 193.69 cents.

Soybean future closed up 18.00 cents to $9.90 a bushel. Wheat futures closed up 0.25 cents in Chicago trading to $5.52 a bushel. Sugar closed higher 0.02 cent 22.69 cents.

Gold decreased $8.00 in New York trading to close at $1,106.60 per ounce, silver closed down $0.27 to $17.26 per ounce and copper for the front month delivery decreased 1.80 cent to $2.97 per pound.

Dollar edged higher against euro to $1.4864 and edged lower against the Japanese yen to 90.34.

Yield on 10-year U.S. bonds decreased to 3.45% and with 30-year maturities closed down at 4.39%.