U.S. Stocks Close Up; Weak Commodities

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

Stocks closed higher in New York after a three-day sell-off. Home sales declined more than estimated in December but increase in 2009, first time in four years. European markets fell more than 1%. Commodoties edged lower and the dollar hovered near its recent highs.

[R]4:00 PM New York, 9:00 PM London, 8:00 AM Sydney – Stocks closed higher in New York after a three-day sell-off. Home sales declined more than estimated in December but increase in 2009, first time in four years. European markets fell more than 1%.[/R]

Stocks in New York rebounded on the hopes that the Fed Chairman Bernanke will be reappointed after more Senators express their support and confidence for the nomination. Ericsson AB net plunges. Philips Electronics surged on the fourth quarterly profit in a row.

December home sales declined 16.7% from a year ago to 5.45 million. Sales in 2009 increased for the first time since 2005. Housing inventory at the end of the month was at 7.2-month supply.

Apple Inc after the close reported first quarter income of $3.38 billion or $3.67 a share and sales increased 32% to $15.7 billion. In the quarter, Apple sold 8.7 million iPhones and 3.36 million Macs.

Apple also sold 21 million iPod media players that included iPod Nano with camera.

Apple has steadily increased market share in the personal computer and smartphone segments and industry analysts estimate its market share in the personal computer of more than 7.3%.

Apple is also estimated to be the second largest smartphone maker trailing only Research in Motion Ltd’s Blackberry Curve.

AK Steel Holding Corporation led gainers in the S&P 500 index with a rise of 7.7%. Sealed Air''s adjusted net income hits target. Eaton Corp. fourth quarter net up 29.4% and sales off 10%. CNH Global net drops 75%.

European market indexes closed lower more than 1%, however Athens benchmark index surged. Greek government auction of €8 billion five-year bonds auction drew more than three times interests.

UK benchmark indexes declined more than 1% before recovering after the release of weaker than expected home sales data in the U.S. Broker recommendations led Man Group Plc, Johnson Matthey and Reed Elsevier lower. Resource stocks led the decliners.

North American Markets

Dow Jones Industrial Average increased 23.88 or 0.2% to a close of 10,196.89, S&P 500 Index edged higher 5.02 or 0.5% to 1,096.78, and Nasdaq Composite Index increased 5.51 or 0.3% to close at 2,210.80. Toronto TSX Composite Index increased 11.08 or 0.1% to 11,354.51.

Latin American Markets Indexes

Mexico Bolsa Index decreased 365.85 or 1.2% to 30,465.06 and Brazil Bovespa Stock Index fell 50.10 or 0.08% to 66,220.04 in Friday’s close.

Europe Markets Review

In London FTSE 100 Index closed lower 42.68 or 0.80% to 5,260.31, in Paris CAC 40 Index decreased 38.93 or 1.02% to close at 3,781.85, in Frankfurt DAX index lower 63.95 or 1.12% to close at 5,631.37. In Zurich trading SMI decreased 42.66 or 0.66% to close at 6,451.30.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 77.86 or 0.74% to 10,512.69, and Hang Seng index in Hong Kong decreased 127.63 or 0.62% to 20,598.55, and CSI 300 index in China lower 38.18 or 1.13% to 3,328.01. ASX 200 index in Australia decreased 32.70 or 0.69% to 4,717.90. The FTSE Bursa KL Composite index in Malaysia was lower 3.66 or 0.28% to 1,296.79.

The Kospi Index in South Korea decreased 14.15 or 0.84% to close at 1,670.20. SET index in Thailand closed lower 3.71 or 0.52% to 710.39. JSE Index in Indonesia decreased 12.48 or 0.48% to 2,597.86. The Sensex index in India decreased 79.22 or 0.47% to 16,780.46.

Commodities, Metals, and Currencies

Crude oil decreased $0.09 to $75.17 a barrel for a front month contract, natural gas edged down 1 cent to $5.71 per mBtu and gasoline decreased 0.08 cents to 200.00 cents.

Soybean future closed down 11 cents to $9.40 a bushel. Wheat futures closed down 0.25 cents in Chicago trading to $4.98 a bushel. Sugar closed up 1.02 cents at 29.80 cents.

Gold increased $3.40 in New York trading to close at $1,100.20 per ounce, silver closed up $0.015 to $17.16 per ounce and copper for the front month delivery decreased 0.5 cent to $3.3845 per pound.

Dollar closed lower against euro to $1.4153 and edged lower against the Japanese yen to 90.45.

Yield on 10-year U.S. bonds increased to 3.63% and with 30-year maturities closed higher at 4.55%.