S&P 500, Nasdaq in Feb Up; AIG Drops 10%

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

President Obama''s bipartisan summit on healthcare reform appears to be heading for a stalement. AIG led the decline in S&P index after fourth quarter loss narrowed to $8.9 billion. The Nasdaq Composite added 4.2%, the S&P 500 index increased 2.9% and the Dow advanced 2.6% in February.

[R]4:00 PM New York, 9:00 PM London, 8:00 AM Sydney – President Obama’s bipartisan summit on healthcare reform may not generate a plan that both Democrats and Republicans want. AIG led the decline in S&P index after fourth quarter loss narrowed to $8.87 billion. Fluor Corp dropped 5% after it lowered its 2010 earnings estimate.[/R]

U.S. existing home sales in January declined 7.2%, second monthly decline in a row. The second estimate of the U.S. GDP showed an expansion of 5.9%. Stocks declined after weaker than expected home sales. The Gap Inc increased 5.5% after quarterly net surged 45%.

American International Group, Inc led the decliners in the S&P 500 index with a loss of 7.8%. Fluor Corp reports lower profit and cuts outlook. The Gap, Inc fourth quarter net ahead of expectations. Rosetta Stone Inc surged 26%.

European markets rallied on the expectations that Germany is closer to providing details of financial assistance to Greece.

Bayer AG net for the year dropped 21%. Parmalat SpA 2009 net declined 23% on sales decline of 1.5%. Telefonica SA fourth quarter net surged 22% on Latin American businesses. Volkswagen 2009 sales increased 1.1% and net dropped 80% from a year ago.

UK stocks closed higher led by commodities and resource stocks. The revised estimate of the GDP indicated 0.3% expansion and index of service sector declined 1.4% in Dec.

Lloyds Banking Group Plc reported new mortgage lending in 2009 declined to £35 billion from £78 billion in 2008 and overall mortgage loans at the end of Dec 2009 declined 3.7% from a year ago to £345.9 billion.

Serco Group 2009 net surged 31% and indicated larger order book. Rightmove Plc 2009 profit before tax falls and maintains dividend. Rolls-Royce announced £154 million offer for ODIM ASA. Lloyds Banking Group declined smaller loss but bad loans increase.

Japan’s industrial production increases 2.5% in January. Consumer prices declined in Japan for the eleventh month in a row as higher unemployment and declining wages curb consumer spending.

The fiscal 2011 budget plan of India looks to raise $9 billion in stake sale through the government controlled companies and $8 billion through the sale of wireless telecom licenses. Infrastructure spending will increase 24% and government debt sale is estimated to increase 1.3%.

Finance Minister Mukherjee estimated deficit to decline to 5.5% in the next fiscal year from 6.9%.

Positive earnings drove the market sentiment. Higher commodities prices also contributed the gains in the benchmark index. ANZ profit surged 16% to A$1.6 billion in January. Woolworths first half profit increased 11.4% to A$1.1 billion.

North American Markets

Dow Jones Industrial Average increased 4.23 or 0.04% to a close of 10,325.26, S&P 500 Index edged higher 1.55 or 0.1% to 1,104.49, and Nasdaq Composite Index added 4.04 or 0.18% to close at 2,238.22. Toronto TSX Composite Index decreased 1.81 or 0.02% to 11,629.63.

Latin American Markets Indexes

Mexico Bolsa Index decreased 14.56 to 31,634.54 and Brazil Bovespa Stock Index rose 382.23 or 0.6% to 66,503.27.

Europe Markets Review

In London FTSE 100 Index closed higher 76.30 or 1.45% to 5,354.52, in Paris CAC 40 Index increased 68.03 or 1.87% to close at 3,708.80, in Frankfurt DAX index higher 66.13 or 1.20% to close at 5,598.46. In Zurich trading SMI increased 67.03 or 1.01% to close at 6,710.99.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 24.07 or 0.24% to 10,126.03, and Hang Seng index in Hong Kong increased 209.13 or 1.03% to 20,608.70, and CSI 300 index in China lower 10.46 or 0.32% to 3,281.67. ASX 200 index in Australia increased 43.60 or 0.95% to 4,637.70. Markets in Malaysia were closed today.

The Kospi Index in South Korea increased 7.07 or 0.45% to close at 1,594.58. SET index in Thailand closed higher 4.27 or 0.60% to 721.37. The Sensex index in India increased 175.35 or 1.08% to 16,429.55. Markets in Indonesia were closed today.

Commodities, Metals, and Currencies

Crude oil increased $1.51 to $79.68 a barrel for a front month contract, natural gas edged up 3 cents to $4.80 per mBtu and gasoline increased 4.07 cents to 218.84 cents.

Soybean future closed up 11.00 cents to $9.61 a bushel. Wheat futures increased 15.50 cents in Chicago trading to $5.19 a bushel. Sugar closed down 0.1 cents at 23.60 cents per pound.

Gold increased $8.10 in New York trading to close at $1,116.60 per ounce, silver closed up $0.35 to $16.49 per ounce and copper for the front month delivery increased 7.60 cent to $3.286 per pound.

Dollar edged lower against euro to $1.363 and declined against the Japanese yen to 88.81.

Yield on 10-year U.S. bonds closed down to 3.61% and with 30-year maturities closed lower at 4.55%.