U.S. Stocks Reverse Losses; Foreclosures Rise

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

U.S. indexes closed up more than 1% after investors turned positive on Greece bailout. U.S. jobless claims declined last week. Existing home sales increased to 6.03 million annualized rate in the fourth quarter of 2009 and foreclosure filings increased 15% in January.

[R]4:00 PM New York, 9:00 PM London, 8:00 AM Sydney – U.S. indexes closed up more than 1% after investors turned positive on Greece bailout. U.S. jobless claims declined last week. Existing home sales increased to 6.03 million annualized rate in the fourth quarter of 2009 and foreclosure filings increased 15% in January.[/R]

U.S. stocks traded lackluster after weekly jobless claims decreased and the EU leaders said that Greece will not be left alone and a bailout package is in works. However the lack of details kept investors guessing. Indexes turned positive in the afternoon and traded up more than 1%.

Market indexes turned positive after existing home sales increased in the fourth quarter by 14% to an annualized rate of 6.03 million from 5.29 million in the third quarter according to the National Association of Realtors.

U.S foreclosure filings in January increased 15% from a year ago to 315,716, 11th monthly filings above 300,000 in a row. The bank seizures are expected to total 3 million this year. Nevada, Arizona and Florida lead the foreclosure filings according to RealtyTrac data released today. Filings declined 10% from December.

Only 66,000 of 4 million delinquent mortgages were modified according to the U.S. Treasury department. The slow pace of loan modification is certain to increase mortgage foreclosures in the year.

Nevada topped the foreclosure charts every month for three years in a row and one in 95 household receiving a notice. In the month, 11,854 notices were issued followed by Arizona with one in 129 homes getting a notice. And in the states of Florida and California one in 187 homes received foreclosure notices.

Philips Morris International increased more than 4% after it announced a buyback plan of $12 billion and reported adjusted fourth quarter earnings of 81 cents.

Boston Scientific declined more than 9% to lead the decliners in the S&P 500 index and Allegheny Energy gained 12.3% on a buyout offer to lead gainers in the index. Prudential reports quarterly net of $1.78 billion but lower than expected. Allstate rises on improved fourth quarter net of $518 million. AutoNation, Inc posts higher revenue. JA Solar reported higher than expected sales and earnings. PepsiCo Inc fourth quarter earnings nearly doubled.

European markets traded higher and the euro stabilized after the EU leaders suggested a deal to support Greece will be soon announced but under tough conditions. Markets turned negative after rising as much as 0.6% after the EU leaders offered no details of the Greek bailout.

Total SA fourth quarter sales fell 6.5%. Credit Suisse swings to quarterly profit. Air France-KLM reported a narrower loss and indicated signs of recovery. Renault expects 10% drop in European car market in 2010. Danone net increased on asset sale.

UK stocks pared losses after EU leaders failed to provide any details for the Greece bailout. Rio Tinto reinstated its dividend. BT Group dropped on the pension reserve worries. Anglo American Plc said it will participate fully in the De Beers’ $1 billion rights issue in which it holds 45% stake.

Asian markets rebounded after positive economic news from China and strong consumer demand in India. Australian unemployment drops to an 11-year low.

Markets in Japan were closed today.

China home prices increased 9.5% in January and lending surged to $202 billion, 14% lower than a year ago but higher than the total in the fourth quarter 2009. Mainland China inflation in the month was 1.5%, lower than expected. Stocks surged after lower than inflation and a decline in M2 money supply growth.

Mumbai stocks surged after Reserve Bank of India increased transparency in how it determines interest rates. January exports increased 11.5%. DLF, the real estate developer said residential sales in the month were satisfactory. Unitech sells 7.2% stake in its wireless unit to Telenor Asia. Fortis Healthcare is looking to raise $250 million.

Stocks in Sydney trading gained after employers added 52,000 workers in January. The sharp gain in payrolls dragged unemployment rate to an 11-year low of 5.3%. The Australian dollar strengthened. Telstra first half profit declined 3.3%. Rio Tinto full year profit increased 33%.

North American Markets

Dow Jones Industrial Average increased 105.81 or 1.1% to a close of 10,144.19, S&P 500 Index edged higher 10.34 or 1% to 1,078.47, and Nasdaq Composite Index added 29.54 or 1.4% to close at 2,177.41. Toronto TSX Composite Index added 151.64 or 1.4% to 11,437.97.

Latin American Markets Indexes

Mexico Bolsa Index increased 174.77 or 0.6% to 30,920.82 and Brazil Bovespa Stock Index added 1,077.52 or 1.7% to 66,128.94.

Europe Markets Review

In London FTSE 100 Index closed higher 29.49 or 0.57% to 5,161.48, in Paris CAC 40 Index decreased 18.86 or 0.52% to close at 3,616.75, in Frankfurt DAX index lower 32.44 or 0.59% to close at 5,503.93. In Zurich trading SMI increased 69.43 or 1.10% to close at 6,403.42.

Asian Markets Review

Hang Seng index in Hong Kong increased 368.47 or 1.85% to 20,290.69, and CSI 300 index in China higher 6.27 or 0.20% to 3,220.40. ASX 200 index in Australia increased 40.90 or 0.91% to 4,554.30. The FTSE Bursa KL Composite index in Malaysia was higher 3.25 or 0.26% to 1,249.42. Markets in Japan were closed today.

The Kospi Index in South Korea increased 27.69 or 1.76% to close at 1,597.81. SET index in Thailand closed higher 7.00 or 1.02% to 695.41. JSE Index in Indonesia increased 24.31 or 0.98% to 2,507.75. The Sensex index in India increased 230.42 or 1.45% to 16,152.59.

Commodities, Metals, and Currencies

Crude oil increased $0.65 to $75.17 a barrel for a front month contract, natural gas edged up 10 cents to $5.39 per mBtu and gasoline increased 0.80 cents to 193.7 cents.

Soybean future closed up 5 cents to $9.52 a bushel. Wheat futures closed down 3.25 cents in Chicago trading to $5.08 a bushel. Sugar closed up 0.97 cents at 26.93 cents per pound.

Gold increased $21.20 in New York trading to close at $1,097.50 per ounce, silver closed up $0.41 to $15.705 per ounce and copper for the front month delivery increased 15 cent to $3.139 per pound.

Dollar closed higher against euro to $1.368 and edged lower against the Japanese yen to 89.74.

Yield on 10-year U.S. bonds closed up at 3.73% and with 30-year maturities closed up at 4.68%. U.S. Treasury is scheduled to complete $81 billion of notes and bonds offering this week.