Retail Sales Expectations Lift U.S. Stocks

123jump.com Staff
28 Dec, 2009
New York City

U.S. stocks traded higher as holiday retail sales estimates showed an increase. Apparel retailers and online retailers edged higher. World markets edged higher after China estimated higher economic growth and Japan signaled its first economic expansion in two years. Oil, gold and the dollar gained.

[R]4:00 PM New York, 9:00 PM London, 8:00 AM Sydney – U.S. stocks traded higher as holiday retail sales estimates showed an increase. Apparel retailers and online retailers edged higher. World markets edged higher after China estimated higher economic growth and Japan signaled its first economic expansion in two years. [/R]

U.S. stocks trade higher after holiday spending estimate suggested solid retail spending during the holiday season. European and Asian markets advance on the optimism that economies are recovering and the current quarter earnings are better than expected. The dollar held firm but the real in Brazil gained.

U.S. stocks pared early gains. Better than expected holiday sales lifted select retailers. Airlines trended lower after an attempted terrorist attack on December 25. Cal-Maine second quarter net declined 41% and sales fell 4%.

European markets closed higher on the estimates of higher retail sales in the holiday period. Renewable energy companies gained after China approved legislation. Oil and commodities processors advanced on larger than targeted economic expansion in China.

Stocks in Shanghai rose after comments from Chinese Premier Jiabao. China to resist pressures to appreciate the currency and will look for ways to curb the current property market boom. Hong Kong stocks fell after weaker than expected land auction.

Stocks in Japan and Asia traded higher on improved sentiment and sustained economic recovery in the region. Factory production in Japan increased for the ninth month in a row and the Japan estimated economic expansion in the next fiscal year of 1.4%. The steelmaker JFE Holdings said Asian demand is ahead of capacity.

Australia debt soars to A$1.2 trillion. Glencore International considers IPO. The NSW state extends 50% lowered stamp duty on home purchases for another six months.

North American Markets

Dow Jones Industrial Average increased 1.51 or 0.01% to a close of 10,466.44, S&P 500 Index edged higher 2.57 or 0.2% to 1,120.59, and Nasdaq Composite Index increased 16.97 or 0.8% to close at 2,269.64. Toronto TSX Composite Index added 30.72 or 0.3% to 11,658.70.

Latin American Markets Indexes

Mexico Bolsa Index increased 209.91 or 0.7% to 32,450.23 and Brazil Bovespa Stock Index added 170.93 or 0.3% to 67,588.86.

Europe Markets Review

Paris CAC 40 Index increased 34.42 or 0.88% to close at 3,947.15, in Frankfurt DAX index higher 45.48 or 0.76% to close at 6,002.92. In Zurich trading SMI increased 11.03 or 0.17% to close at 6,591.01. Markets in United Kingdom were closed today.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 139.52 or 1.33% to 10,634.23, and Hang Seng index in Hong Kong decreased 36.78 or 0.17% to 21,480.22, and CSI 300 index in China higher 53.65 or 1.57% to 3,478.43. The FTSE Bursa KL Composite index in Malaysia was higher 8.79 or 0.70% to 1,272.73. Markets in Australia were closed today.

The Kospi Index in South Korea increased 3.25 or 0.19% to close at 1,685.59. SET index in Thailand closed higher 3.30 or 0.45% to 733.71. JSE Index in Indonesia increased 34.81 or 1.41% to 2,509.69. Markets in India were closed today.

Commodities, Metals, and Currencies

Crude oil increased $0.63 to $78.68 a barrel for a front month contract, natural gas edged up 34 cents to $5.98 per mBtu and gasoline increased 2.9 cents to 201.95 cents.

Soybean future closed up 30 cents to $10.38 a bushel. Wheat futures closed up 26.25 cents in Chicago trading to $5.50 a bushel. Sugar closed up 18 cents at 27.26 cents.

Gold increased $2.40 in New York trading to close at $1,107.20 per ounce, silver closed up $0.12 to $17.56 per ounce and copper for the front month delivery increased 3.50 cent to $3.32 per pound.

Dollar closed higher against euro to $1.438 and edged higher against the Japanese yen to 91.57.

Yield on 10-year U.S. bonds increased to 3.84% and with 30-year maturities closed higher at 4.69%.