U.S. Stocks, Commodities Rise; PPI Declines

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

U.S. stocks and commodities traded higher after the producer price index decreased in February and the Fed

[R]10:30 AM New York – U.S. stocks and commodities traded higher after the producer price index decreased in February and the Fed’s pledge rates low supported the sentiment. European markets gained on earnings. Markets in Asia advanced after Japan doubled its direct lending program.[/R]

U.S. stocks and commodities advanced after the Fed pledged to keep the rates low for an extended period of time, the Bank of Japan nearly doubled its direct lending program to corporations and banks to $220 billion and earnings the Europe bolstered optimism.

The Producer Price Index in the U.S. decreased 0.6% in February on a seasonally adjusted basis after rising 1.4% rate in January and rising 0.4% in December. On an unadjusted basis prices of finished goods increased 4.4% fourth consecutive increase in a year.

Stock Movers

Blockbuster Inc dropped more than 31% after the video retailer said it may file bankruptcy protection.

Discover Financial Services increased more than 1% after it reported fiscal first quarter net loss narrower than a year ago. The credit card company also said it will pay back $1.2 billion to the Troubled Asset Relief Program.

Fuqi International Inc dropped more than 33% after jewelry maker said it will miss its fourth quarter earnings estimate and delay its annual reports filing.

Hartford Financial Services Group Inc gained more than 5% said it plans to sell bonds and stocks to raise funds and repay $3.4 billion to the Troubled Asset Relief Program.

Teekay Offshore Partners LP dropped more than 5% after the oil tanker fleet operator said it will sell 4.4 million shares to lower its debt and pay for future tanker purchases.

Commodities, Currencies and Bonds

Crude oil futures increased 95 cents to $82.65 a barrel and natural gas futures decreased 5 cents to $4.30 per mBtu.

Gold futures gained $3.90 an ounce and copper futures increased 5 cents to 341.60 cents per pound.

The dollar traded lower to $1.37 against one euro and edged up against the yen to 90.53.

U.S. Treasury 10-year bonds traded at 3.64% and 30-bonds at 4.57%.

Earnings Review

Discover Financial Services ((DFS)), the credit card issuer said first quarter net interest income fell 2.5% to $1.15 billion from $1.18 billion a year ago. Net loss in the quarter was $122.2 million or 22 cents per diluted share compared to net loss of $196.3 million or 41 cents per share a year ago.

Industria de Diseno Textil SA, the textile industry said 2009 sales rose 7% to €11.08 billion from €10.4 billion a year ago. Net profit for the year rose 5% to €1.31 billion or 211 cents per diluted share compared to net profit of €1.25 billion or 202 cents per share a year ago.

Porsche Automobil Holding SE, the car manufacturer said first half revenues rose 3.7% to €3.16 billion from €3.04 billion a year ago. Net profit for the first half fell 83% to €957 million or €40.36 per diluted share compared to net profit of €5.51 billion or €31.36 per share a year ago.

UniCredit SpA, the bank said 2009 net interest income fell 9% to €17.6 billion from €19.4 billion a year ago. Net profit for the year fell 57.5% to €1.7 billion compared to net profit of €4.0 billion a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 125.27 or 1.17% to 10,846.98, and Hang Seng index in Hong Kong increased 361.56 or 1.72% to 21,384.49, and CSI 300 index in China higher 69.94 or 2.18% to 3,273.92. ASX 200 index in Australia increased 56.00 or 1.17% to 4,853.20. The FTSE Bursa KL Composite index in Malaysia was higher 3.09 or 0.24% to 1,301.95.

The Kospi Index in South Korea increased 34.85 or 2.11% to close at 1,682.86. SET index in Thailand closed higher 13.34 or 1.77% to 765.54. JSE Index in Indonesia increased 86.65 or 3.25% to 2,756.26. The Sensex index in India increased 106.90 or 0.61% to 17,490.08.

Europe Markets Review

In London FTSE 100 Index traded higher 34.14 or 0.61% to 5,654.57, in Paris CAC 40 Index increased 26.46 or 0.67% to 3,965.41 and in Frankfurt DAX index traded higher 49.59 or 0.83% to 6,020.58. In Zurich trading SMI increased 37.06 or 0.54% to 6,911.49.