U.S. Stocks Rise on Global Sentiment

123jump.com Staff
01 Apr, 2010
New York City

U.S. stocks traded higher in the morning after weekly jobless claims declined and manufacturing accelerated in China, Europe, Switzerland and UK and India said exports and imports surged. Business sentiment in Japan improved sharply in a quarter.

[R]10:30 AM New York - U.S. stocks traded higher in the morning after weekly jobless claims declined and manufacturing accelerated in China, Europe, Switzerland and UK and India said exports and imports surged. Business sentiment in Japan improved sharply in a quarter.[/R]

U.S. Treasury is preparing to release a schedule of $80 billion bond auction plan for the next week that may include $35 billion in 3-year bonds and $20 billion in 10-year bonds and $12 billion in 30-year bonds.

The Treasury offering has been heavily dominated by shorter term duration securities indicating reluctance of the market and in the anticipation of higher inflation risk.

Seasonally adjusted weekly jobless claims decreased 6,750 to 439,000 from the revised previous week claims of 445,000. The preliminary insured unemployment rate in the week ending March 20 was 3.6%, unchanged from the prior week''s unrevised rate.

Swiss franc surged to record 1.42 euros after it reported sharpest gain in manufacturing in March.

Europe’s manufacturing index expanded at the fastest pace in nearly 40 months and the UK index rose the most since December 2008.

In Japan business sentiment improved sharply according to the latest survey released by the government.

Commodities, Currencies and Yields

The dollar declined for the fourth day in a row as one euro traded in New York at $13.51 and gained against the yen to 93.91.

Crude oil futures increased $1.12 to $84.88 a barrel and natural gas futures decreased 3 cents to $3.84 per mBtu.

Gold futures surged $10.20 to $1,124. 70 and copper futures increased 4.10 cents to $3.5945.

Yields on 10-year U.S. bonds increased to 3.88% and on 30-year U.S. bonds traded at 4.76%.

Stock Movers

CarMax Inc increased 3% after the used-car dealer sales and earnings rose and made positive comments for the current year.

China Gren Tech Corp dropped 18% after the company lost 4 cents in the fourth quarter and estimated lower sales in the first quarter from a year ago.

Global Payments Inc surged above 7% after it reported 11% increase in third quarter and lifted its 2010 earnings higher.

JPMorgan Chase & Co. gained more than 1% after chief executive said under certain business condition the bank may raise dividend between 75 cents and $1 a share.

Micron Technology Inc soared 6% after it reported second quarterly profit in a row as memory price increase lifted sales.

Research in Motion Ltd dropped 5% after it reported sales earnings growth that disappointed analysts.

Earnings Review

Global Payments Inc ((GPN)), the processor of online credit card transactions said third quarter revenues rose 11% to $398.5 million from $359.5 million a year ago. Net income in the quarter was $48.5 million or 59 cents per diluted share compared to net loss of $106.8 million or $1.32 per share a year ago.
Immucor, Inc ((BLUD)), the blood-testing products maker said third quarter sales rose 7% to $80.5 million from $75.3 million a year ago. Net income in the quarter rose 3% to $20.1 million or 28 cents per diluted share compared to net income of $19.5 million or 27 cents per share a year ago.
Micron Technology, Inc ((MU)), the semiconductor maker said second quarter sales rose 97.4% to $1.96 billion from $993 million a year ago. Net income in the quarter was $365 million or 39 cents per diluted share compared to net loss of $763 million or 99 cents per share a year ago.

Research In Motion Limited ((RIMM)), the maker of mobile phones said fourth quarter revenues rose 18% to $4.08 billion from $3.46 billion a year ago. Net income in the quarter rose 37% to $710.1 million or $1.27 per diluted share compared to net income of $518.3 million or 90 cents per share a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 154.46 or 1.39% to 11,244.40, and Hang Seng index in Hong Kong increased 297.65 or 1.40% to 21,537.00, and CSI 300 index in China higher 46.33 or 1.38% to 3,391.94. ASX 200 index in Australia increased 32.20 or 0.66% to 4,907.70. The FTSE Bursa KL Composite index in Malaysia was higher 9.27 or 0.70% to 1,329.84.

The Kospi Index in South Korea increased 26.32 or 1.55% to close at 1,719.17. SET index in Thailand closed higher 13.34 or 1.69% to 801.32. JSE Index in Indonesia increased 52.70 or 1.90% to 2,830.00. The Sensex index in India increased 164.85 or 0.94% to 17,692.62.

Europe Markets Review

In London FTSE 100 Index traded higher 29.54 or 0.52% to 5,709.18, in Paris CAC 40 Index increased 42.19 or 1.06% to 4,016.20 and in Frankfurt DAX index traded higher 52.14 or 0.85% to 6,205.69. In Zurich trading SMI increased 11.88 or 0.17% to 6,885.25.