Pending Home Sales Index Worries; Stocks Fall

123jump.com Staff
05 Jan, 2010
New York City

Stocks in New York fell after housing market worries resurfaced. European markets closed lower and German unemployment was unchanged in December. Google launches its wireless phone as more users access Internet from their phones.

[R]4:30 PM New York, 9:30 PM London, 8:30 AM Sydney – Stocks in New York fell after housing market worries resurfaced. European markets closed lower and German unemployment was unchanged in December. Google launches its wireless phone as more users access Internet from their phones.[/R]

U.S. stocks traded lower as gasoline and crude oil futures advanced. Freezing weather from Beijing to Miami has driven up the demand for energy around the world.

The stocks in New York trading lost their early enthusiasm after the release pending homes under contract index data. The index declined to 96 from the revised 114.3 in October. The larger than expected drop set off alarm bells and investors worried that the extension of tax credit may have run its course in attracting first time new home buyers.

Kraft revised its offer for Cadbury ahead of regulatory deadline in less than two weeks. The offer of $16 billion has 20% more cash than the previous offer but is still at least 5% below the price that most investors are seeking. Kraft sold its frozen pizza division to Nestle for $3.7 billion.

Kraft and Cadbury declined after the revised offer from Kraft was rejected by the UK chocolate maker. Tenet Healthcare increased on a recommendation from a broker. China based casino operators increased on the hopes that China will relax travel rules. Aegean Marine surges after it acquired marine bunker fuel seller.

Google Inc launched its wireless phone named Nexus One that will retail for $529 and provide access to email, Internet search and voice communication.

The phone, built by Taiwan based HTC Corp and uses Snapdragon chip from Motorola, rivals the iPhone from Apple and is expected to benefit from the growing popularity of Internet computing as users spend more time away from their personal computers.

European markets closed lower in light trading. German unemployment rate was unchanged in December at 8.1%. BNP Paribas unit plans covered bond issue. Airbus hopes A400 million negotiations will be concluded by the end of January. Vinci SA unit buys Keolis stakes in four French airport operators.

Nestle SA says no plan to make or participate in Cadbury plc offer. Next celebrates Christmas sales surge. Balfour Beatty Gammon wins £180 million of new contracts. Premier Oil agrees to an oil field stake deal with Serica. Speedy Hire signs 5-year deal with Carillion in the Middle East.

North American Markets

Dow Jones Industrial Average decreased 11.94 or 0.11% to a close of 10,572.02, S&P 500 Index edged higher 3.53 or 0.3% to 1,136.52, and Nasdaq Composite Index increased 0.29 or 0.01% to close at 2,308.71. Toronto TSX Composite Index added 21.18 or 0.2% to 11,888.08.

Latin American Markets Indexes

Mexico Bolsa Index decreased 25.77 or 0.08% to 32,732.76 and Brazil Bovespa Stock Index added 194.74 or 0.3% to 70,239.82.

Europe Markets Review

In London FTSE 100 Index closed higher 22.16 or 0.40% to 5,522.50, in Paris CAC 40 Index decreased 1.06 or 0.03% to close at 4,012.91, in Frankfurt DAX index lower 16.44 or 0.27% to close at 6,031.86. In Zurich trading SMI decreased 52.18 or 0.79% to close at 6,579.26.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 27.04 or 0.25% to 10,681.83, and Hang Seng index in Hong Kong increased 456.30 or 2.09% to 22,279.58, and CSI 300 index in China higher 28.81 or 0.81% to 3,564.04. ASX 200 index in Australia increased 48.00 or 0.98% to 4,924.30. The FTSE Bursa KL Composite index in Malaysia was higher 12.49 or 0.98% to 1,288.24.

The Kospi Index in South Korea decreased 5.52 or 0.33% to close at 1,690.62. SET index in Thailand closed lower 0.17 or 0.02% to 732.11. JSE Index in Indonesia increased 29.86 or 1.16% to 2,605.28. The Sensex index in India increased 127.51 or 0.73% to 17,686.24.

Commodities, Metals, and Currencies

Crude oil increased $0.05 to $81.56 a barrel for a front month contract, natural gas edged down 21 cents to $5.67 per mBtu and gasoline decreased 0.02 cents to 210.42 cents.

Soybean future closed up 3.00 cents to $10.61 a bushel. Wheat futures closed down 4.75 cents in Chicago trading to $5.53 a bushel. Sugar closed up 0.02 cents at 27.64 cents.

Gold increased $0.60 in New York trading to close at $1,118.90 per ounce, silver closed up $0.34 to $17.81 per ounce and copper for the front month delivery increased 1.40 cent to $3.42 per pound.

Dollar closed higher against euro to $1.4368 and edged lower against the Japanese yen to 91.71.

Yield on 10-year U.S. bonds decreased to 3.76% and with 30-year maturities closed higher at 4.67%.