U.S. Stocks Meander; Dollar Slides

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

U.S. stocks struggled after consumer sentiment waned and investors faced full valuations. An increase in February Retail sales offered another data point for economic recovery. The dollar edged lower against the euro. Lehman investigation puts JP Morgan Chase, Citigroup and former chief at fault.

[R]4:00 PM New York, 9:00 PM London, 8:00 AM Sydney – U.S. stocks struggled after consumer sentiment waned and investors faced full valuations. An increase in February Retail sales offered another data point for the uneven economic recovery. The dollar edged lower against the euro. A federal judge report on Lehman collapse put the blame on JP Morgan Chase, Citigroup among others after they revised credit terms.[/R]

U.S. stocks seesaw after the release of consumer sentiment index. A rise in February retail sales drove the indexes higher but the lower than expected sentiment index drove indexes in a tailspin.

KKR & Co. plans to raise $2.2 billion as it prepares list the company in New York. Terra Industries and CF Industries edge closer to a merger pact.

Potash Corp of Saskatchewan surged after it lifted first quarter earnings estimate as much as 50%. Yara International left its bid for Terra Industries unrevised. Aeropostale gained after fourth quarter sales increased 16%. AnnTaylor Stores declined on lower quarterly sales.

Earnings and economic outlook drove the sentiment higher in Europe. Talks of Greek bailout orchestrated by the EU also contributed to the positive sentiment. BMW AG reported 2009 net declined by 36% and Italian energy explorer Eni SpA 2009 sales fell 23%.

UK stocks traded higher on a global optimism. Commodities advanced. Climate Exchange surged 9% after it swung to a net income in 2009. Liberty Plc surged on takeover talks. BSkyB soars 5% on media speculation that News Corp may increase its stake in the company.

Stocks in Japan closed higher on the optimistic view of the economy and a rise in industrial production. The yen strength prompted more calls to lower the currency and the continuation of loose monetary policy.

The benchmark indexes in Shanghai and Hong Kong declined. Air China fell after it plans to raise more capital in a stock offering to repay debt. Property developers in Shanghai fell on the worries that tighter regulations may hamper future land sales. But, developers in Hong Kong edged higher on better 2010 expectations.

India’s industrial production surged in January as industries use up spare capacity. Stocks struggled but edged up and for the week the Sensex increased 1%, fifth weekly gain in a row. Russia and India are expected to sign defense pacts and nuclear power plants contracts during Prime Minister Putin’s visit to New Delhi.

North American Markets

Dow Jones Industrial Average increased 12.85 or 0.12% to close at 10,624.69, S&P 500 Index edged lower 0.25 or 0.02% to 1,149.99 and Nasdaq Composite Index fell 0.80 or 0.03% to close at 2,367.66. Toronto TSX Composite Index increased 14.29 or 0.12% to 11,993.99.

Latin American Markets Indexes

Mexico Bolsa Index decreased 24.89 or 0.08% to 32,578.05 and Brazil Bovespa Stock Index decreased 472.29 or 0.7% to 69,412.32.

Europe Markets Review

In London FTSE 100 Index closed higher 8.75 or 0.16% to 5,626.01, in Paris CAC 40 Index decreased 4.55 or 0.12% to close at 3,924.40, in Frankfurt DAX index higher 15.70 or 0.26% to close at 5,944.33. In Zurich trading SMI decreased 19.91 or 0.29% to close at 6,831.82.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 86.31 or 0.81% to 10,751.26, and Hang Seng index in Hong Kong decreased 18.46 or 0.09% to 21,209.74, and CSI 300 index in China lower 43.58 or 1.33% to 3,233.13. ASX 200 index in Australia increased 3.90 or 0.08% to 4,818.10. The FTSE Bursa KL Composite index in Malaysia was lower 10.23 or 0.77% to 1,311.20.

The Kospi Index in South Korea increased 6.12 or 0.37% to close at 1,662.74. SET index in Thailand closed higher 7.39 or 1.02% to 733.34. JSE Index in Indonesia decreased 10.01 or 0.37% to 2,666.51. The Sensex index in India decreased 1.34 or 0.01% to 17,166.62.

Commodities, Metals, and Currencies

Crude oil decreased $0.91 to $81.20 a barrel for a front month contract, natural gas edged down 6 cents to $4.38 per mBtu and gasoline decreased 1.25 cents to 225.95 cents.

Soybean future closed down 5.00 cents to $9.25 a bushel. Wheat futures increased 6.50 cents in Chicago trading to $4.85 a bushel. Sugar closed up 0.42 cents at 19.67 cents per pound.

Gold decreased $5.80 in New York trading to close at $1,102.40 per ounce, silver closed down $0.10 to $17.06 per ounce and copper for the front month delivery increased 0.80 cent to $3.38 per pound.

Dollar edged lower against euro to $1.37670 and gained against the Japanese yen to 90.46.

Yield on 10-year U.S. bonds closed down to 3.70% and with 30-year maturities closed lower at 4.63%.