Wall Street closes higher after early falls
March 15, 2010
Wall Street recovered losses in afternoon trade as the Dow and S&P 500 eventually closed in the black. However, Google led the Nasdaq to fall off its 18-month highs.
Moody’s comments that the US and the UK are closer to losing their AAA credit ratings weighed on investor’s minds.
In economic news, industrial production increased 0.1% in February. Forecasts were for it to remain unchanged.
Capacity utilisation rose from 72.5% the previous month to 72.7% in February, versus forecasts for an unchanged reading.
Meanwhile, the Empire manufacturing survey dropped from 24.91 in February to 22.86 in March. Forecasts were for the regional reading on manufacturing to drop to 22.
The Dow Jones added 17.46 points, or 0.16% to 10,642.15, the S&P's 500 rose 0.52 points, or 0.05%, to 1,150.51 and the NASDAQ shed 5.45 points, or 0.23%, to 2,362.21.
Senate Banking chief Christopher Dodd, released a draft bill of regulatory changes aimed at preventing another financial crisis. It is expected that it will be a challenge to get the bill passed in the Senate.
Citigroup was the worst performer in a disappointing day for major financials. Its shares were down 2%, while Wells Fargo was 0.9% on the other side of the line.
AIG added 0.3% after announcing it would withhold US$21 million in bonuses that are due to former and current staff of its Financial Products unit.
Google lost 2.8% on reports the search engine is close to closing down its Chinese operations due to stringent government monitoring.
Rival Yahoo! gained 0.9%, while elsewhere in the tech sector Apple fell 1.2% and Oracle put on 0.9%.
A broker upgrade sent Wal-Mart shares 2.8% higher. Target and Costco advanced 0.7% and 0.6%.
Boston Scientific slumped 12.6% after halting sales of its heart-shocking defibrillator implants.
NYMEX light crude oil for April delivery fell US$1.44 to settle at US$79.80 a barrel. Exxon Mobil lost 0.8%.
COMEX gold for April delivery rose US$3.70 to US$1,1105.40 per ounce.
European Markets
European stocks lost ground as US banking reforms concerned investors. The possibility of tightening Chinese monetary policy sent miners lower.
The UK benchmark FTSE 100 shed 31.80, or 0.57% to 5,593.85. The French CAC40 weakened 36.49, or 0.93% to 3,890.91, while the German DAX lost 41.55, or 0.70% to 5,903.56.
Banks took the most points off the index. Societe Generale and Lloyds fell 2.5% and 1.5%, while insurer Prudential dipped 2.7%.
Aussie miners BHP Billiton and Rio Tinto lost 1.5% and 1.4%. Xstrata and Antofagasta dropped 3% and 3.1% as metals prices weakened due to concerns demand from China would deteriorate.
Energy stocks tracked the price of crude lower. BG Group slid 1.3%.
Wolseley shed 3.3% as the supplier of heating and plumbing products received a broker downgrade.
Japanese Markets
The Nikkei eked out the most modest of gains Monday, however the market continued to push to new highs in its recovery. The market is sitting at seven-week highs, lifted by the exporters who gained as the yen weakened.
The Nikkei 225 tacked on just 0.72, or 0.01% to 10,751.98.
Among the banks, 153 million Mizuho Financial shares traded hands, making it the most traded stock on the index, although its share price remained flat.
Mitsubishi UFJ, the country’s largest bank, was 0.6% stronger.
Toshiba slumped 1.8%, while Hitachi was 0.9% below the line.
Shippers were the strongest gainers on the Topix, including Nippon Yusen K.K, which rose 2.6%. Mitsui O.S.K. Lines advanced 2.1%.
Kirin, which last year bought Lion Nathan, fell 1.9% on worries over consumer spending, while another consumer staple, Japan Tobacco, shed 1.7%.
Hong Kong Markets
Hong Kong markets posted their second straight session of declines on a retreating stock market on the Chinese mainland.
The Hang Seng fell 130.64, or 0.62% to 21,079.10.
In a wrap of the banks, Bank of China fell 1.8% and ICBC was down 1.2%.
HSBC lost 0.6%.
On the plus side, Li & Fung rallied 1.8%, while European focused Esprit Holdings was 1.1% above the line.
Coal producer China Shenhua Energy shares slumped 3.9% after the company recorded worse-than-expected earnings figures.
China Coal Energy, the country’s second largest producer, slipped 4.3%.
PetroChina fell 2.3%, while Cnooc shed 0.5%.
PC maker Lenovo Group lost 2.2%. The company denied a report that it may buy Citic Securities’ stake in China Securities.
Moody’s comments that the US and the UK are closer to losing their AAA credit ratings weighed on investor’s minds.
In economic news, industrial production increased 0.1% in February. Forecasts were for it to remain unchanged.
Capacity utilisation rose from 72.5% the previous month to 72.7% in February, versus forecasts for an unchanged reading.
Meanwhile, the Empire manufacturing survey dropped from 24.91 in February to 22.86 in March. Forecasts were for the regional reading on manufacturing to drop to 22.
The Dow Jones added 17.46 points, or 0.16% to 10,642.15, the S&P's 500 rose 0.52 points, or 0.05%, to 1,150.51 and the NASDAQ shed 5.45 points, or 0.23%, to 2,362.21.
Senate Banking chief Christopher Dodd, released a draft bill of regulatory changes aimed at preventing another financial crisis. It is expected that it will be a challenge to get the bill passed in the Senate.
Citigroup was the worst performer in a disappointing day for major financials. Its shares were down 2%, while Wells Fargo was 0.9% on the other side of the line.
AIG added 0.3% after announcing it would withhold US$21 million in bonuses that are due to former and current staff of its Financial Products unit.
Google lost 2.8% on reports the search engine is close to closing down its Chinese operations due to stringent government monitoring.
Rival Yahoo! gained 0.9%, while elsewhere in the tech sector Apple fell 1.2% and Oracle put on 0.9%.
A broker upgrade sent Wal-Mart shares 2.8% higher. Target and Costco advanced 0.7% and 0.6%.
Boston Scientific slumped 12.6% after halting sales of its heart-shocking defibrillator implants.
NYMEX light crude oil for April delivery fell US$1.44 to settle at US$79.80 a barrel. Exxon Mobil lost 0.8%.
COMEX gold for April delivery rose US$3.70 to US$1,1105.40 per ounce.
European Markets
European stocks lost ground as US banking reforms concerned investors. The possibility of tightening Chinese monetary policy sent miners lower.
The UK benchmark FTSE 100 shed 31.80, or 0.57% to 5,593.85. The French CAC40 weakened 36.49, or 0.93% to 3,890.91, while the German DAX lost 41.55, or 0.70% to 5,903.56.
Banks took the most points off the index. Societe Generale and Lloyds fell 2.5% and 1.5%, while insurer Prudential dipped 2.7%.
Aussie miners BHP Billiton and Rio Tinto lost 1.5% and 1.4%. Xstrata and Antofagasta dropped 3% and 3.1% as metals prices weakened due to concerns demand from China would deteriorate.
Energy stocks tracked the price of crude lower. BG Group slid 1.3%.
Wolseley shed 3.3% as the supplier of heating and plumbing products received a broker downgrade.
Japanese Markets
The Nikkei eked out the most modest of gains Monday, however the market continued to push to new highs in its recovery. The market is sitting at seven-week highs, lifted by the exporters who gained as the yen weakened.
The Nikkei 225 tacked on just 0.72, or 0.01% to 10,751.98.
Among the banks, 153 million Mizuho Financial shares traded hands, making it the most traded stock on the index, although its share price remained flat.
Mitsubishi UFJ, the country’s largest bank, was 0.6% stronger.
Toshiba slumped 1.8%, while Hitachi was 0.9% below the line.
Shippers were the strongest gainers on the Topix, including Nippon Yusen K.K, which rose 2.6%. Mitsui O.S.K. Lines advanced 2.1%.
Kirin, which last year bought Lion Nathan, fell 1.9% on worries over consumer spending, while another consumer staple, Japan Tobacco, shed 1.7%.
Hong Kong Markets
Hong Kong markets posted their second straight session of declines on a retreating stock market on the Chinese mainland.
The Hang Seng fell 130.64, or 0.62% to 21,079.10.
In a wrap of the banks, Bank of China fell 1.8% and ICBC was down 1.2%.
HSBC lost 0.6%.
On the plus side, Li & Fung rallied 1.8%, while European focused Esprit Holdings was 1.1% above the line.
Coal producer China Shenhua Energy shares slumped 3.9% after the company recorded worse-than-expected earnings figures.
China Coal Energy, the country’s second largest producer, slipped 4.3%.
PetroChina fell 2.3%, while Cnooc shed 0.5%.
PC maker Lenovo Group lost 2.2%. The company denied a report that it may buy Citic Securities’ stake in China Securities.
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