Exxon leads Wall Street rally
February 1, 2010
A better than expected manufacturing report and Exxon Mobil’s earnings result sent Wall Street higher Monday. Investors also took the opportunity to buy back into the market following the recent heavy sell-off.
In Washington, President Obama unveiled a US$3.8 trillion budget for 2011, while in manufacturing news, the Institute for Supply Management's manufacturing index rose from 54.9 in December to 58.4 in January. Forecasts were for an increase to 55.5. However, construction spending dropped 1.2%, down on 0.5% expected.
In economic news, according to a Commerce Department report personal income increased a better than expected 0.4% in December. Forecasts were for a rise of 0.3% after a 0.5% increase in November.
Meanwhile, spending rose 0.2%, just below the 0.3% rise expected.
The Dow Jones rallied 118.20 points, or 1.17%, to 10,185.53, the S&P's 500 gained 15.32 points, or 1.43%, to 1,089.19 and the NASDAQ rose 23.85 points, or 1.11%, to 2,171.20.
Exxon Mobil gained 2.7% after the oil giant reported a quarterly profit that was 18% below a year earlier, however still above market estimates.
Chevron and ConocoPhillips put on 2% and 2.2% as the energy sector led the rally.
NYMEX light crude oil for February delivery added US$1.54 to settle at US$74.53 a barrel.
Financials were also stronger, with Goldman Sachs and Morgan Stanley among the best performers, up 3% and 2.9%.
Bank of America, Wells Fargo and JPMorgan were between 1.6% and 1.8% in the black.
Tech majors IBM and Hewlett Packard added 1.9% and 1.6%, while Apple closed 1.2% dearer.
Aluminium producer Alcoa jumped 5% in broad based gain for the Dow. Boeing and Caterpillar advanced 1.8% and 1.3%.
COMEX gold for February delivery rose US$21.30 to settle at US$1,104.30 an ounce.
European Markets
European stocks rallied on the back of stronger than expected manufacturing data locally and out of the US. Miners tracked metals prices higher, while financials were also stronger.
The UK benchmark FTSE 100 gained 58.89, or 1.14% to 5,247.41. The French CAC40 added 22.55, or 0.60% to 3,762.01, while Germany’s DAX put on 45.69, or 0.81% to 5,654.48.
Royal Bank of Scotland led banks higher, rallying 7.9%, on reports a number of companies are interested in its global card-payment processing unit. UK peers Lloyds and Barclays climbed 3.3% and 4.3%.
On the continent Deutsche Bank and BNP Paribas rose 2.9% and 1.4%.
Miners bounced off a couple of weeks of consistent falls. Anglo American, Xstrata and Antofagasta were between 2.5% and 3% higher at the close.
Aussie peers Rio Tinto and BHP Billiton advanced 2.7% and 1.6%.
German chemical maker Lanxess jumped 3.7% as it gave a bullish outlook for the year ahead and added that it was interested in acquisitions.
French media and telecommunications company Vivendi lost 2.4% after being found guilty of misleading investors between 2000 and 2002 by a US court.
Japanese Markets
Japan’s Nikkei edged slightly higher on a mixed day for the market. While investors picked up stocks with bullish earnings, commodity stocks were heavily sold.
The Nikkei 225 added 6.98, or 0.07% to 10,205.02.
Mizuho Financial Group put on 1.7% after the bank reported a profit in the December quarter and reiterated its full-year forecast, which is above market estimates.
Mitsubishi UFJ Financial gained 1.1%.
Fanuc rallied 4.4% after the industrial robot maker raised its sales forecast for the year on Friday.
Despite US regulators being satisfied with the Toyota’s plan for fixing an accelerator pedal problem, the automakers shares weakened 1.2%, adding to the slump over the past week.
Honda shed 2.5% as it announced a recall over a faulty window switch.
Trading houses Mitsui & Co and Mitsubishi Corp fell 2.9% and 2.2% due to the weakening commodity markets.
Inpex Corp lost 1.4% on falling oil prices.
Toshiba dropped 6% after the chipmaker retained an outlook below market consensus.
Hong Kong Markets
The Hong Kong economy made a modest recovery from recent selling as the government’s offer to provide a stimulus package aimed at the construction industry outweighed recent concerns over lending restrictions. Banks on the Hang Seng were stronger, however their Chinese mainland counterparts continued to struggle.
The Hang Seng climbed 121.76, or 0.61% to 20,243.75.
Bank of China and HSBC both put on 0.3%. ICBC rose 1.3%.
In wake of stimulus package aimed at promoting building in rural areas of China, China National Building Material Co, a cement maker, soared 11%.
China’s number two mobile carrier Unicom shares slumped 2.8% after saying profit in 2009 would be down 50% on the back of reduced income after an asset sale.
Larger rival, China Mobile was up 1.4%.
Volatile auto stocks rose, with Goldman Sachs backed Geely Automobiles tacking on 0.6%, while Warren Buffet’s BDY surged 4.3%.
In M&A news, TPV Technology Ltd., the world’s largest maker of computer monitors said it might receive a takeover bid from China Electronics Corp.
In Washington, President Obama unveiled a US$3.8 trillion budget for 2011, while in manufacturing news, the Institute for Supply Management's manufacturing index rose from 54.9 in December to 58.4 in January. Forecasts were for an increase to 55.5. However, construction spending dropped 1.2%, down on 0.5% expected.
In economic news, according to a Commerce Department report personal income increased a better than expected 0.4% in December. Forecasts were for a rise of 0.3% after a 0.5% increase in November.
Meanwhile, spending rose 0.2%, just below the 0.3% rise expected.
The Dow Jones rallied 118.20 points, or 1.17%, to 10,185.53, the S&P's 500 gained 15.32 points, or 1.43%, to 1,089.19 and the NASDAQ rose 23.85 points, or 1.11%, to 2,171.20.
Exxon Mobil gained 2.7% after the oil giant reported a quarterly profit that was 18% below a year earlier, however still above market estimates.
Chevron and ConocoPhillips put on 2% and 2.2% as the energy sector led the rally.
NYMEX light crude oil for February delivery added US$1.54 to settle at US$74.53 a barrel.
Financials were also stronger, with Goldman Sachs and Morgan Stanley among the best performers, up 3% and 2.9%.
Bank of America, Wells Fargo and JPMorgan were between 1.6% and 1.8% in the black.
Tech majors IBM and Hewlett Packard added 1.9% and 1.6%, while Apple closed 1.2% dearer.
Aluminium producer Alcoa jumped 5% in broad based gain for the Dow. Boeing and Caterpillar advanced 1.8% and 1.3%.
COMEX gold for February delivery rose US$21.30 to settle at US$1,104.30 an ounce.
European Markets
European stocks rallied on the back of stronger than expected manufacturing data locally and out of the US. Miners tracked metals prices higher, while financials were also stronger.
The UK benchmark FTSE 100 gained 58.89, or 1.14% to 5,247.41. The French CAC40 added 22.55, or 0.60% to 3,762.01, while Germany’s DAX put on 45.69, or 0.81% to 5,654.48.
Royal Bank of Scotland led banks higher, rallying 7.9%, on reports a number of companies are interested in its global card-payment processing unit. UK peers Lloyds and Barclays climbed 3.3% and 4.3%.
On the continent Deutsche Bank and BNP Paribas rose 2.9% and 1.4%.
Miners bounced off a couple of weeks of consistent falls. Anglo American, Xstrata and Antofagasta were between 2.5% and 3% higher at the close.
Aussie peers Rio Tinto and BHP Billiton advanced 2.7% and 1.6%.
German chemical maker Lanxess jumped 3.7% as it gave a bullish outlook for the year ahead and added that it was interested in acquisitions.
French media and telecommunications company Vivendi lost 2.4% after being found guilty of misleading investors between 2000 and 2002 by a US court.
Japanese Markets
Japan’s Nikkei edged slightly higher on a mixed day for the market. While investors picked up stocks with bullish earnings, commodity stocks were heavily sold.
The Nikkei 225 added 6.98, or 0.07% to 10,205.02.
Mizuho Financial Group put on 1.7% after the bank reported a profit in the December quarter and reiterated its full-year forecast, which is above market estimates.
Mitsubishi UFJ Financial gained 1.1%.
Fanuc rallied 4.4% after the industrial robot maker raised its sales forecast for the year on Friday.
Despite US regulators being satisfied with the Toyota’s plan for fixing an accelerator pedal problem, the automakers shares weakened 1.2%, adding to the slump over the past week.
Honda shed 2.5% as it announced a recall over a faulty window switch.
Trading houses Mitsui & Co and Mitsubishi Corp fell 2.9% and 2.2% due to the weakening commodity markets.
Inpex Corp lost 1.4% on falling oil prices.
Toshiba dropped 6% after the chipmaker retained an outlook below market consensus.
Hong Kong Markets
The Hong Kong economy made a modest recovery from recent selling as the government’s offer to provide a stimulus package aimed at the construction industry outweighed recent concerns over lending restrictions. Banks on the Hang Seng were stronger, however their Chinese mainland counterparts continued to struggle.
The Hang Seng climbed 121.76, or 0.61% to 20,243.75.
Bank of China and HSBC both put on 0.3%. ICBC rose 1.3%.
In wake of stimulus package aimed at promoting building in rural areas of China, China National Building Material Co, a cement maker, soared 11%.
China’s number two mobile carrier Unicom shares slumped 2.8% after saying profit in 2009 would be down 50% on the back of reduced income after an asset sale.
Larger rival, China Mobile was up 1.4%.
Volatile auto stocks rose, with Goldman Sachs backed Geely Automobiles tacking on 0.6%, while Warren Buffet’s BDY surged 4.3%.
In M&A news, TPV Technology Ltd., the world’s largest maker of computer monitors said it might receive a takeover bid from China Electronics Corp.
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