U.S., European Markets Advance on Euro, Dubai

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

U.S. stocks traded higher after jobless claims declined. The euro edged up after the EU leaders appear to endorse bilateral loans and support from the IMF for Greece. Dubai government offered $9.5 billion support to Dubai World, easing concerns of a default.

[R]10:25 AM New York – U.S. stocks traded higher after jobless claims declined. The euro edged up after the EU leaders appear to endorse bilateral loans and support from the IMF for Greece. Dubai government offered $9.5 billion support to Dubai World, easing concerns of a default.[/R]

Investor jitters subsided after Germany appears to support the Greek bailout package with conditions. Dubai government also offered $9.5 billion in assistance to support Dubai World.

European leaders appear to reach an agreement to offer financial assistance to Greece with the help of the IMF. Luxembourg Prime Minister Jean-Claude Juncker told reporters in Brussels that bilateral loans from EU member nations and the IMF will provide a financial guarantee to Greece.

He added that Greece many need this assistance because the nation has a “credible” deficit reduction plan and financial markets “will eventually see that.”

Seasonally adjusted weekly jobless claims decreased 14,000 to 442,000 from the revised previous week claims of 456,000. The preliminary insured unemployment rate in the week ending March 13 was 3.6%, unchanged from the prior week''s unrevised rate.

U.S. Treasuries gained after trading the U.S. Treasury completed the sale of of five-year bonds and is scheduled to offer $32 billion of seven year notes.

UK retail sales in February increased 2.1% according to the latest data released by the Office for National Statistics. Economists were anticipating an increase of 0.7%.

Commodities, Currencies and Bonds

Crude oil futures increased 64 cents to $81.25 a barrel and natural gas futures declined 3 cents to $4.07 per mBtu.

Gold futures increased $3.80 to $1,092 an ounce and copper futures increased 90 cents to $3.3545 per pound.

The euro recovered from a 10-month low and advanced against the dollar to $1.3326 and against the Japanese yen to 92.51.

Yields on 10-year U.S. bonds traded down to 3.84% and 30-year bonds at 4.73%.


Stock Movers

Best Buy Co. soared to 7% after it reported sales and earnings ahead of market expectations.

Citigroup Inc gained 3% after media reports suggested that the U.S. Treasury will begin the sale of its 27% stake in the bank on a pre-determined schedule.

Caterpillar Inc increased 1.3% and the earth moving equipment maker said it will take charge of $100 million for higher healthcare costs according to a regulatory filing.

Deere & Co. increased 1.2% and said that its added healthcare costs will be $150 million after the passage of healthcare reform bill.

ConAgra Foods Inc declined more than 2% after it reported third quarter sales of $3.1 billion.

White Mountains Insurance Group Ltd declined a fraction after it reported an estimate of pre-tax loss related to Chilean earthquake between $40 million and $105 million.

Earnings Review

Paychex, Inc ((PAYX)), the payroll and personnel services provider said third quarter sales fell 4% to $507.8 million from $528.6 million a year ago. Net income in the quarter fell 14.3% to $112.0 million or 31 cents per diluted share compared to net income of $130.8 million or 36 cents per share a year ago.

Red Hat Inc ((RHT)), the software company said fourth quarter revenues rose 18% to $195.9 million from $166.2 million a year ago. Net income in the quarter rose 44.4% to $23.4 million or 12 cents per diluted share compared to net income of $16.2 million or 8 cents per share a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 13.82 or 0.13% to 10,828.85, and Hang Seng index in Hong Kong decreased 230.07 or 1.10% to 20,778.55, and CSI 300 index in China lower 47.54 or 1.45% to 3,229.13. ASX 200 index in Australia decreased 6.10 or 0.12% to 4,885.40. The FTSE Bursa KL Composite index in Malaysia was higher 3.03 or 0.23% to 1,312.48.

The Kospi Index in South Korea increased 7.38 or 0.44% to close at 1,688.39. SET index in Thailand closed lower 2.16 or 0.27% to 784.38. JSE Index in Indonesia increased 24.30 or 0.88% to 2,799.15. The Sensex index in India increased 107.83 or 0.62% to 17,568.85.

Europe Markets Review

In London FTSE 100 Index traded higher 18.65 or 0.33% to 5,696.53, in Paris CAC 40 Index increased 23.20 or 0.59% to 3,973.01 and in Frankfurt DAX index traded higher 42.51 or 0.70% to 6,081.51. In Zurich trading SMI increased 7.63 or 0.11% to 6,887.58.