U.S. Stocks, Metals Rise Ahead of EU Summit

123jump.com Staff
09 Feb, 2010
New York City

The prospect of a Greek bailout by the EU raised hopes for the euro and the wider euro zone. With the barrage of earnings, investors focused on Coca-Cola, Harmon Industries, IAC Interactive, Martin Marietta Materials and Church & Dwight. The euro was in focus as the EU leaders prepare to meet.

[R]4:00 PM New York, 9:00 PM London, 8:00 AM Sydney – The prospect of a Greek bailout by the EU raised hopes for the euro and the wider euro zone. With the barrage of earnings, investors focused on Coca-Cola, Harmon Industries, IAC Interactive, Martin Marietta Materials and Church & Dwight.[/R]

U.S. stocks advanced after a sell-off that has lasted four weeks on the prospect of financial assistance from the EU to Greece and pervert a threat to the euro.

Broader market indexes increased more than 1.8%. Commodities advanced on the back of the stronger dollar. U.S. Treasury sells $40 billion of 5-year bonds today.

Electronic Arts Inc led the decliners in the S&P 500 index with a loss of 8.5%. Coca-Cola quarterly net income rises 55% and sales increase 5%. Cognizant fourth quarter revenues increase 20% and net income surge 28%. NYSE Euronext swings to profit and beats expectations.

European markets inched higher as optimism grew that the euro zone leaders will offer a bailout plan for Greece. The economic affairs commissioner of the EU, Olli Rehn confirmed in an interview “we are talking about support in the broad sense.”

The European Parliament approved the new European Commission in a vote today. The euro advanced. The Swatch Group surged 5% after it indicated better results in the current year.

UK stocks gyrated with European markets and commodities prices. Metals gained in London trading. The British Land Company swings to profit in third quarter. TUI Travel Plc quarterly net loss widens and sales down. British Sky Broadcasting Group plc sells 10.4% stake in ITV plc. Higher fees lift Southern Cross.

Debts by failed companies in Japan rose 838 billion yen in January as Japan Airline filed bankruptcy. Toyota Motor Corp agreed to recall 223,068 hybrid cars in Japan. Sumitomo Mitsui Financial quarterly profit doubles but leaves annual outlook unchanged.

Stocks advanced in Mumbai after rally in emerging markets. Software exporters led the gainers. Cement makers lift prices. Renault and Mahindra are in joint venture restructuring talks after sales plunged for the second year in a row.

Australian stocks looked for a direction in the global markets. David Jones, the retailer lifted its first half profit outlook. Macquarie Group estimated second half earnings growth of 10%, lower than expected. Newcastle weekly coal exports grow 11.3%.

North American Markets

Dow Jones Industrial Average increased 150.25 or 1.5% to a close of 10,058.64, S&P 500 Index edged higher 13.78 or 1.3% to 1,070.52, and Nasdaq Composite Index increased 24.82 or 1.2% to close at 2,150.87. Toronto TSX Composite Index added 163.09 or 0.6% to 11,278.39.

Latin American Markets Indexes

Mexico Bolsa Index added 169.04 or 0.6% to 30,818.48 and Brazil Bovespa Stock Index added 1,565.08 or 2.5% to 64,718.17.

Europe Markets Review

In London FTSE 100 Index closed higher 19.51 or 0.38% to 5,111.84, in Paris CAC 40 Index increased 5.49 or 0.15% to close at 3,612.76, in Frankfurt DAX index higher 13.41 or 0.24% to close at 5,498.26. In Zurich trading SMI decreased 32.39 or 0.51% to close at 6,314.75.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 18.92 or 0.19% to 9,932.90, and Hang Seng index in Hong Kong increased 239.39 or 1.22% to 19,790.28, and CSI 300 index in China higher 18.20 or 0.58% to 3,169.19. ASX 200 index in Australia decreased 16.30 or 0.36% to 4,505.10. The FTSE Bursa KL Composite index in Malaysia was lower 1.36 or 0.11% to 1,233.86.

The Kospi Index in South Korea increased 17.70 or 1.14% to close at 1,570.49. SET index in Thailand closed lower 2.20 or 0.32% to 685.89. JSE Index in Indonesia increased 13.91 or 0.56% to 2,489.48. The Sensex index in India increased 106.57 or 0.67% to 16,042.18.

Commodities, Metals, and Currencies

Crude oil increased $1.93 to $73.82 a barrel for a front month contract, natural gas edged down 10 cents to $5.30 per mBtu and gasoline increased 3.79 cents to 193.19 cents.

Soybean future closed down 5 cents to $9.24 a bushel. Wheat futures closed down 1.75 cents in Chicago trading to $4.82 a bushel. Sugar closed up 0.47 cents at 27.07 cents.

Gold increased $10.50 in New York trading to close at $1,076.70 per ounce, silver closed up $0.34 to $15.42 per ounce and copper for the front month delivery increased 7.70 cent to $2.99 per pound.

Dollar closed lower against euro to $1.3788 and edged higher against the Japanese yen to 89.59.

Yield on 10-year U.S. bonds closed up at 3.64% and with 30-year maturities closed up at 4.57% as the Treasury completed $40 billion 5-yer bond offering.