U.S. Indexes Recover From Worst Levels

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

U.S. indexes recovered from their worst levels of the day. Oil, copper and silver decreased. Euro zone GDP expanded barely in the last quarter of 2009 indicating uneven recovery. China raised bank reserve requirements ahead of a weeklong holiday period.

[R]4:00 PM New York, 9:00 PM London, 8:00 AM Sydney – U.S. indexes recovered from their worst levels of the day. Oil, copper and silver decreased. Euro zone GDP expanded barely in the last quarter of 2009 indicating uneven recovery. China raised bank reserve requirements ahead of a weeklong holiday period.[/R]

U.S. stock indexes recovered from nearly 1.4% decline to close down 0.4%. January retail sales increased 0.5%. Commodities and resource linked stocks led the decliners after China increased bank reserve ratios unexpectedly. For the week the S&P 500 index added 0.9%.

Euro declined as much as 1.2% but recovered to close down 0.6%. Worldwide miners and metals stocks fell on weak commodities.

Blue Nile dropped nearly 8% after it estimated lower than expected earnings. Buffalo Wild Wings plunged 12% after it reported lower than expected adjusted earnings.

European markets traded mixed and the euro fell more than 1% against the dollar. Gross domestic product increased 0.1% in the fourth quarter in the euro zone and declined 4% in 2009.

Asian market indexes closed higher. Profit upgrades at several companies in Tokyo and the EU pledge to support Greece helped the indexes to advance. China lifted bank reserve ratios to curb lending boom. Markets in India were closed to celebrate Maha Shivratri.

Stocks in Shanghai and Hong Kong closed higher ahead of the one week of holidays. China lifted bank reserve requirements by 0.5%. January power consumption surged 40% from a year ago and 2.7% from December. Commodities and resource stocks closed higher.

Stocks in Tokyo trading close higher after Asahi Glass, Pacific Metals and GS Yuasa lift earnings estimate. Yamaha estimates better results in the current year. Consumer confidence rises in January. U.S. sales of Nintendo video-game console declines 31% in January. Kirin profit falls 39% in 2009.

Australian stocks barely closed higher after weakness in the commodities prices in the late trading. Newcrest Mining first half net increased 14% from a year ago on 9% higher price of gold. Leighton Holdings first half profit soared 160%.

North American Markets

Dow Jones Industrial Average decreased 45.05 or 0.4% to a close of 10,099.14, S&P 500 Index edged lower 2.96 or 0.3% to 1,075.51, and Nasdaq Composite Index added 6.12 or 0.3% to close at 2,183.53. Toronto TSX Composite Index added 34.32 or 0.3% to 11,469.81.

Latin American Markets Indexes

Mexico Bolsa Index increased 160.11 or 0.5% to 31,005.74 and Brazil Bovespa Stock Index declined 273.97 or 0.4% to 65,854.97.

Europe Markets Review

In London FTSE 100 Index closed lower 19.03 or 0.37% to 5,142.45, in Paris CAC 40 Index decreased 17.68 or 0.49% to close at 3,599.07, in Frankfurt DAX index lower 3.54 or 0.06% to close at 5,500.39. In Zurich trading SMI increased 12.78 or 0.20% to close at 6,416.20.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 128.20 or 1.29% to 10,092.19, and Hang Seng index in Hong Kong decreased 22.00 or 0.11% to 20,268.69, and CSI 300 index in China higher 30.88 or 0.96% to 3,251.28. ASX 200 index in Australia increased 7.80 or 0.17% to 4,562.10. The FTSE Bursa KL Composite index in Malaysia was higher 3.97 or 0.32% to 1,253.39.

The Kospi Index in South Korea decreased 4.15 or 0.26% to close at 1,593.66. SET index in Thailand closed higher 2.62 or 0.38% to 698.03. JSE Index in Indonesia increased 26.39 or 1.05% to 2,534.14.

Markets in India were closed today.

Commodities, Metals, and Currencies

Crude oil decreased $1.08 to $74.20 a barrel for a front month contract, natural gas edged up 6 cents to $5.45 per mBtu and gasoline decreased 0.62 cents to 192.5 cents.

Soybean future closed up 2 cents to $9.54 a bushel. Wheat futures closed down 7.25 cents in Chicago trading to $5.01 a bushel. Sugar closed down 0.57 cents at 26.33 cents per pound.

Gold decreased $0.60 in New York trading to close at $1,094.10 per ounce, silver closed down $0.05 to $15.53 per ounce and copper for the front month delivery decreased 5 cent to $3.10 per pound.

Dollar closed higher against euro to $1.3624 and edged lower against the Japanese yen to 90.024.

Yield on 10-year U.S. bonds closed down at 3.69% and with 30-year maturities closed lower at 4.64%.