Stocks Waver; New Home Sales Drop 11.3%

Mukesh Buch
23 Dec, 2009
New York City

U.S. stock traded mixed after November new home sales dropped 11.3% and personal income increased 0.4%. Crude oil futures surged 3% after the release of weekly inventory data. India revised its fiscal year economic growth outlook to 8% from 6.5%.

[R]11:00 AM New York – U.S. stock traded mixed after November new home sales dropped 11.3% and personal income increased 0.4%. Crude oil futures surged 3% after the release of weekly inventory data. India revised its fiscal year economic growth outlook to 8% from 6.5%.[/R]

U.S. stocks in the early trading were mixed after the new home sales dropped in November and personal income increased.

Seasonally adjusted new home sales decreased 11.3% to 355,000 and below 9.0% from a year ago according to the latest data from the Commerce Department. The median sale price of new homes sold in the month was $217,400 and average price was $280,300 with 7.9 months of inventory.

November personal income increased 0.4% and disposable personal income increased 0.5%. Personal consumption expenditure increased 0.5% in the month. In October personal income increased 0.3%, DPI increased 0.5% and PCE increased 0.6%.

In the commodities trading, crude oil increased after the release of weekly inventories data. Oil futures of immediate delivery increased $1.92 to $76.32 and gold increased $6.70 to $1,093 an ounce.

Crude oil inventories at the end of last week decreased 4.9 million barrels to 327.5 million barrels. Motor Gasoline inventories increased 0.9 million barrels and inventories of finished gasoline decreased and distillate inventories decreased by 3.1 million barrels.

The Sensex Index in Mumbai, India surged 3.2% after Finance Minister Pranab Mukherjee said that in the current fiscal year ending in March, the economy is expected to grow at as much as 8% compared to previous estimate of 6.5%.

Earnings Review

American Greetings Corporation, a greetings card maker reported third quarter sales fell 3% to $440.2 million from $454.1 million a year ago. Net income in the quarter was $29.7 million or 75 cents per diluted share compared to net loss of $193.3 million or $4.25 per share a year ago.

Micron Technology, Inc., the semiconductor maker said first quarter sales rose 24.3% to $1.74 billion from $1.40 billion a year ago. Net income in the quarter was $204 million or 23 cents per diluted share compared to net loss of $718 million or 93 cents per share a year ago.

Red Hat Inc., the open-source software developer said third quarter revenues rose 17.5% to $194.3 million from $165.3 million a year ago. Net income in the quarter fell 32.5% to $16.4 million or 8 cents per diluted share compared to net income of $24.3 million or 12 cents per share a year ago.

Asian Markets Review

Hang Seng index in Hong Kong increased 236.70 or 1.12% to 21,328.74, and CSI 300 index in China higher 30.94 or 0.94% to 3,336.48. ASX 200 index in Australia increased 35.10 or 0.75% to 4,739.30. The FTSE Bursa KL Composite index in Malaysia was higher 0.11 or 0.01% to 1,260.53. Markets in Japan were closed today.

The Kospi Index in South Korea increased 5.81 or 0.35% to close at 1,661.35. SET index in Thailand closed higher 5.40 or 0.75% to 729.80. JSE Index in Indonesia increased 7.25 or 0.29% to 2,474.88. The Sensex index in India increased 539.11 or 3.23% to 17,231.11.

Europe Markets Review

In London FTSE 100 Index traded higher 45.71 or 0.86% to 5,374.37, in Paris CAC 40 Index increased 26.05 or 0.67% to 3,924.43 and in Frankfurt DAX index traded higher 28.19 or 0.47% to 5,973.88. In Zurich trading SMI increased 12.07 or 0.18% to 6,594.97.