U.S. Stocks, Gold Rally; Dollar Drops

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

U.S. stocks rallied on the back of October retail sales data. Retailers led the gainers. The dollar declined to 15-month low and gold surged to a record high in 27 years. Energy complex stocks increased.

[R]4:30 PM New York, 9:30 PM London, 8:30 AM Sydney – U.S. stocks rallied on the back of October retail sales data. Retailers led the gainers. The dollar declined to 15-month low and gold surged to a record high in 27 years. Energy complex stocks increased.[/R]

U.S. stocks traded higher after the release of October retail sale. The sales increased 1.4% from the revised September sales decrease of 2.3%. Lowe’s quarterly net decreased 30% to $344 million. Markets in China jumped after 21-member nations reassured markets with a pledge to keep stimulus intact.

Lowe’s third quarter net declined 30% to $344 million. EADS, the European defense contractor swung to a quarterly loss. Fiat SpA quarterly net plunged 95%. ThyssenKrupp, the German steelmaker reported full year loss. The platinum miner swung to a full year loss on the sales decline of 53%.

North American Markets

Dow Jones Industrial Average increased 136.49 or 1.3% to a close of 10,406.96, S&P 500 Index edged higher 15.82 or 1.5% to 1,109.30, and Nasdaq Composite Index increased 29.97 or 1.4% to close at 2,197.85. Toronto TSX Composite Index increased 104.58 or 0.9% to 11,512.26.

Of the stocks in S&P 500 index, 459 increased, 39 declined and 2 were unchanged.

MBIA Inc led the decliners in the S&P 500 index with a loss of 8.2% followed by losses in Harman International of 1.9%, in Whole Foods Market of 1.8%, in Archer Daniels Midland Company of 1.8%, in AIG of 1.7% and in MasterCard Inc of 1.7%.

Sprint Nextel Corporation led gainers in the S&P 500 index with a rise of 12.9% followed by gains in Titanium Metals 10%, in AK Steel Holding Corporation of 7.9% and in New York Times of 6.7%.

South American Markets Indexes

In Friday’s trading Mexico Bolsa Index increased 242.24 or 0.8% to 31,002.09 and Brazil Bovespa Stock Index increased 1,301.47 or 2% to 66,627.10.

Argentina Merval Index increased 2.7% and Chile Stock Market Select index decreased 0.4% and Colombia IGBC General Index increased 0.2% in Friday’s trading and Peru Lima General Index added 0.8%.

Europe Markets Review

In London FTSE 100 Index closed higher 86.29 or 1.63% to 5,382.67, in Paris CAC 40 Index increased 57.15 or 1.50% to close at 3,863.16, in Frankfurt DAX index higher 117.99 or 2.07% to close at 5,804.82. In Zurich trading SMI increased 71.73 or 1.13% to close at 6,422.81.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 20.87 or 0.21% to 9,791.18, and Hang Seng index in Hong Kong increased 390.35 or 1.73% to 22,943.98, and CSI 300 index in China higher 107.08 or 3.04% to 3,625.80. ASX 200 index in Australia increased 48.80 or 1.04% to 4,755.20. The FTSE Bursa KL Composite index in Malaysia was higher 7.35 or 0.58% to 1,278.31.

The Kospi Index in South Korea increased 20.48 or 1.30% to close at 1,592.47. SET index in Thailand closed higher 8.42 or 1.21% to 706.75. JSE Index in Indonesia increased 41.87 or 1.73% to 2,468.68. The Sensex index in India increased 183.68 or 1.09% to 17,032.51.

Commodities, Metals, and Currencies

Crude oil increased $0.04 to $78.94 a barrel for a front month contract, natural gas edged up 1 cent to $4.63 per mBtu and gasoline decreased 0.62 cents to 198.06 cents.

Soybean future closed up 23 cents to $10.10 a bushel. Wheat futures closed up 24.00 cents in Chicago trading to $5.83 a bushel. Sugar closed higher 0.51 cent 23.23 cents.

Gold increased $0.20 in New York trading to close at $1,139.40 per ounce, silver closed down $0.04 to $18.36 per ounce and copper for the front month delivery decreased 0.25 cent to $3.12 per pound.

Dollar edged lower against euro to $1.4983 and edged lower against the Japanese yen to 89.01.

Yield on 10-year U.S. bonds decreased to 3.34% and with 30-year maturities closed down at 4.27%.