Foreign Markets
Global stocks rallied, erasing earlier losses to close green on the last trading day of the week. The MSCI Asia Pacific Index gained 3.2%. Japan’s Nikkei 225 Stock Average rose 2.7% overnight. In Europe, the FTSE 100 index of leading British shares was up modestly at 0.48%.
U.S. Futures
As of 7:34 EST.
After yesterday’s huge selloff, the Dow has rebounded nicely in futures trading, up 210 points to 7,697. The S&P is up almost 3%, or 20.80 points, while the NASDAQ gained 23.25 to 1,062.75. CitiGroup is in talks to be sold, lifting financials, while gains overseas rallied the energy sector.
Currencies and Commodities
Oil took its first move under $50 since May 2005, however as global equities rebounded so did oil, up 1.58% to $50.20. Gold was up $7.80 or 1.04% as deflationary worries intensify and speculation of further interest rate cuts around the world. The yen fell to 94.82 per dollar from 93.69 yesterday, cutting this week’s gain to 2.3% while the pound rose 2.4% to $1.5057.
Treasuries
The yield on the benchmark 10-year Treasury note sank to 3.00%, the lowest point since 1958. The 30-year bond’s yield fell to 3.46%– the lowest since the government started issuing the bond in 1977. The yield on the 2-year note, meanwhile, fell to 0.97% — the lowest since 1947.
Corporate News
JPMorgan Chase & Co (JPM) is cutting 10% of its investment banking staff, equivalent to around 3,000 as the investment banking model loses profitability.
Dell reported a drop in profit of 5%, while sales missed expectations with $15 billion compared to analyst expectations of $16.2 billion as global tech spending declined. The company did have better than expected EPS of 37 cents/share.
Heinz (HNZ) reported quarter profits of $276.7 million, or 87 cents per share, from $227 million, or 71 cents per share, a year earlier. Revenue rose 4 percent to $2.61 billion from $2.52 billion. These figures bested analyst expectations of a profit of 76 cents per share on revenue of $2.7 billion.
Share This Article
