Late rally sees Dow 0.8% higher
November 2, 2009
Wall Street bounced off its worst day in six months as a volatile day's trade ended with a late rally. Earlier in the day, the Dow had reached as much as 145 points above the line and as low as 34 point below it, before settling at 76 points in the black.
In economic news, the Institute for Supply Management revealed manufacturing activity increased from 53 points the previous month to a better than expected 55.7 points in October.
Meanwhile, the Commerce Department said construction spending increased by 0.8%. Forecasts were for a 0.5% slide.
The National Association of Realtors said pending home sales increased 6.1% in September. Forecasts were for a rise of 1.2%.
The Dow Jones put on 76.71 points, or 0.79%, to 9,789.44, the S&P 500 gained 6.69 points, or 0.65%, to 1,042.88 and the NASDAQ added 4.09 points, or 0.20%, to 2,049.20.
CIT Group became the fifth largest company in US history to file for bankruptcy protection. The decision sent the lender's stocks tumbling 65.3%.
American Express led financials higher with a 2.4% gain.
Of the banks, JPMorgan advanced 1.9%, while Bank of America, Goldman Sachs and Wells Fargo added 0.3% each.
Citigroup fell 2.4%.
While the majority of tech stocks closed below the line, gains from a few heavyweights resulted in the NASDAQ closing slightly higher.
Hewlett-Packard put on 1.5%, while Microsoft and Apple added 0.5% and 0.4%.
Google and Yahoo! weakened 0.4% and 0.3%.
BlackBerry maker Research in Motion dropped 5.1% on a broker downgrade.
Ford surged 8.3% after the automaker posted its first quarterly profit in over a year. The company was expected to report a loss.
Telco’s were out of favour, with Verizon and AT&T shedding 0.6% and 0.3%.
Energy majors Exxon Mobil and Chevron tracked the price of crude higher with gains of 0.7% and 0.1% respectively.
NYMEX light crude oil for December delivery gained US$1.13 to settle at US$78.13 a barrel.
COMEX gold for December delivery rose US$19.10 to settle at US$1,059.50 an ounce.
European Markets
European shares closed higher following the release of better than expected manufacturing and housing data out of the US. Banks and commodity stocks led the rally.
The UK benchmark FTSE 100 rose 59.95, or 1.19% to 5,104.50. The French CAC40 added 31.77 points, or 0.88% to 3,639.46, while the German DAX gained 15.86, or 0.29% to 5,430.82.
Financials recovered some of the previous session's losses. Barclays and HSBC put on 2.5% and 1.9%.
BNP Paribas and Commerzbank gained 3.3% and 1.3%.
Royal Bank of Scotland sank 7.8% on concerns it might be forced to sell more assets than planned by the European Union. Lloyds shed 2.3%.
Miners rallied on the back of rises in base metals prices. Xstrata climbed 4.4%, while Anglo American and Antofagasta advanced 3.2% and 2.9%.
Rio Tinto and BHP Billiton rose 4.5% and 2.8%.
Energy stocks tracked the price of crude higher. BP, BG Group and Total put on 2.2%, 1.9% and 1.3% respectively.
German semiconductor maker Infineon Technologies jumped 4.1% on a broker upgrade.
Japanese Markets
The Nikkei closed at a three-week low Monday. A stronger yen battered exporters while a poor read on US economic data prompted a broad sell-off.
The Nikkei 225 gave up 231.79, or 2.31% 9,802.95.
Sumitomo Mitsui Financial Group lost 1.6%. Larger rival Mitsubishi UFJ Financial shed 1.2%.
Mizuho Financial Group bucked the trend, adding 0.5%.
The major gainer was second-tier lender Aiful, which soared 17.29% after the government said it would ease regulations on getting loans.
Sony upgraded its outlook, though still slumped 5.8%. Canon declined 3.1%.
Among the autos Honda and Mazda, which get the majority of their revenue from overseas markets, shed 2.1% and 3.3% respectively.
Copper producer Nippon Mining Holdings retreated 6%.
Hong Kong Markets
Hong Kong stocks lost ground Monday. The losses weren’t as pronounced as its regional neighbours because the market benefited from strong gains from the mainland stocks as earnings and manufacturing data encouraged investors.
The Hang Seng lost 132.68, or 0.61% to 21,620.19.
Bank of China dipped 1.3%, while China’s number one lender ICBC tacked on 0.2%.
HSBC shed 1%.
Clothes manufacturer for Wal-Mart and Pacific Brands, Li & Fung shed 3.7% following poor consumer data out of the US on Friday.
Oil stocks paced a decline in the price of crude with offshore oil and gas producer CNOOC down 1.2%. Top refiner PetroChina was 1.3% below the line.
Property developers lost ground with State-owned Sino Land down 2.4%.
Brilliance China Automotive Holdings, a partner of German’s BMW, jumped 25%.
In economic news, the Institute for Supply Management revealed manufacturing activity increased from 53 points the previous month to a better than expected 55.7 points in October.
Meanwhile, the Commerce Department said construction spending increased by 0.8%. Forecasts were for a 0.5% slide.
The National Association of Realtors said pending home sales increased 6.1% in September. Forecasts were for a rise of 1.2%.
The Dow Jones put on 76.71 points, or 0.79%, to 9,789.44, the S&P 500 gained 6.69 points, or 0.65%, to 1,042.88 and the NASDAQ added 4.09 points, or 0.20%, to 2,049.20.
CIT Group became the fifth largest company in US history to file for bankruptcy protection. The decision sent the lender's stocks tumbling 65.3%.
American Express led financials higher with a 2.4% gain.
Of the banks, JPMorgan advanced 1.9%, while Bank of America, Goldman Sachs and Wells Fargo added 0.3% each.
Citigroup fell 2.4%.
While the majority of tech stocks closed below the line, gains from a few heavyweights resulted in the NASDAQ closing slightly higher.
Hewlett-Packard put on 1.5%, while Microsoft and Apple added 0.5% and 0.4%.
Google and Yahoo! weakened 0.4% and 0.3%.
BlackBerry maker Research in Motion dropped 5.1% on a broker downgrade.
Ford surged 8.3% after the automaker posted its first quarterly profit in over a year. The company was expected to report a loss.
Telco’s were out of favour, with Verizon and AT&T shedding 0.6% and 0.3%.
Energy majors Exxon Mobil and Chevron tracked the price of crude higher with gains of 0.7% and 0.1% respectively.
NYMEX light crude oil for December delivery gained US$1.13 to settle at US$78.13 a barrel.
COMEX gold for December delivery rose US$19.10 to settle at US$1,059.50 an ounce.
European Markets
European shares closed higher following the release of better than expected manufacturing and housing data out of the US. Banks and commodity stocks led the rally.
The UK benchmark FTSE 100 rose 59.95, or 1.19% to 5,104.50. The French CAC40 added 31.77 points, or 0.88% to 3,639.46, while the German DAX gained 15.86, or 0.29% to 5,430.82.
Financials recovered some of the previous session's losses. Barclays and HSBC put on 2.5% and 1.9%.
BNP Paribas and Commerzbank gained 3.3% and 1.3%.
Royal Bank of Scotland sank 7.8% on concerns it might be forced to sell more assets than planned by the European Union. Lloyds shed 2.3%.
Miners rallied on the back of rises in base metals prices. Xstrata climbed 4.4%, while Anglo American and Antofagasta advanced 3.2% and 2.9%.
Rio Tinto and BHP Billiton rose 4.5% and 2.8%.
Energy stocks tracked the price of crude higher. BP, BG Group and Total put on 2.2%, 1.9% and 1.3% respectively.
German semiconductor maker Infineon Technologies jumped 4.1% on a broker upgrade.
Japanese Markets
The Nikkei closed at a three-week low Monday. A stronger yen battered exporters while a poor read on US economic data prompted a broad sell-off.
The Nikkei 225 gave up 231.79, or 2.31% 9,802.95.
Sumitomo Mitsui Financial Group lost 1.6%. Larger rival Mitsubishi UFJ Financial shed 1.2%.
Mizuho Financial Group bucked the trend, adding 0.5%.
The major gainer was second-tier lender Aiful, which soared 17.29% after the government said it would ease regulations on getting loans.
Sony upgraded its outlook, though still slumped 5.8%. Canon declined 3.1%.
Among the autos Honda and Mazda, which get the majority of their revenue from overseas markets, shed 2.1% and 3.3% respectively.
Copper producer Nippon Mining Holdings retreated 6%.
Hong Kong Markets
Hong Kong stocks lost ground Monday. The losses weren’t as pronounced as its regional neighbours because the market benefited from strong gains from the mainland stocks as earnings and manufacturing data encouraged investors.
The Hang Seng lost 132.68, or 0.61% to 21,620.19.
Bank of China dipped 1.3%, while China’s number one lender ICBC tacked on 0.2%.
HSBC shed 1%.
Clothes manufacturer for Wal-Mart and Pacific Brands, Li & Fung shed 3.7% following poor consumer data out of the US on Friday.
Oil stocks paced a decline in the price of crude with offshore oil and gas producer CNOOC down 1.2%. Top refiner PetroChina was 1.3% below the line.
Property developers lost ground with State-owned Sino Land down 2.4%.
Brilliance China Automotive Holdings, a partner of German’s BMW, jumped 25%.
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