Foreign Markets
Global markets rose again on Tuesday while traders await the results from the Federal Reserve’s “Stress Tests”. After being closed for a holiday, Britain played catch up as the FTSE rose 114.94 points, or 2.7 %, at 4,358.16, while Germany’s DAX rose 17.12 points, or 0.4 %, to 4,919.57. France’s CAC-40 was up 6.86 points, or 0.2 %, at 3,244.83. With a slew of national holidays, trading was subdued in the Far East. Hong Kong’s Hang Seng index gained 49.03 points, or 0.3 %, at 16,430.08, while mainland China’s benchmark Shanghai Composite Index advanced 0.3 % to a nine-month high close of 2,567.34
U.S. Futures
The Fed will deliver the results of the stress tests today to the executives of the 19 U.S. banks. The tests may show 10 lenders will need to raise more capital to withstand a deeper recession, according to people familiar with the matter. In addition, the Institute for Supply Management’s April report on the services sector will be released after the open. Futures are slightly positive after big gains yesterday, with Dow Jones industrial average futures rising 12, or 0.1 %, to 8,371. Standard & Poor’s 500 index futures gained 0.5, or 0.1 %, to 903.30, while Nasdaq 100 index futures added 4.25, or 0.3 %, to 1,426.75.
Wall Street surged on Monday after a host of solid economic data at home and abroad. The National Association of Realtors said its index of pending sales for previously occupied homes rose 3.2 % to 84.6, well ahead of the 82.1 economists had been expecting. In addition, construction spending rose by 0.3% compared to estimates of a 1.5% decline; the measures best reading since last September. The Dow rose 2.6 %, to 8,426.74.The S&P 500 index rose 29.72 to 907.24, gaining 3.4% to its first close above 900 since Jan. 8 and moved the benchmark index into positive territory for the year. The Nasdaq composite index rose 44.36, or 2.6 %, to 1,763.56. The Nasdaq, with a big representation of high-tech and smaller company stocks, has run ahead of the other indexes, and is up 11.8 % in 2009.
Currencies and Commodities
The dollar traded at 98.993 yen, rising 0.2055% in the currency market. The euro depreciated 0.1984% to $1.338 while the pound appreciated 0.587% to $1.51. Precious metals were mixed as gold gained $1.50 to $903.70 an ounce, while silver declined 0.18% or 3 cents to $13.09. Light, sweet crude for June delivery fell 13 cents to $54.34 a barrel on the NYMEX; a 0.24% drop.
Corporate News
General Motors (GM) reported sales in China soared 50 % in April to a monthly record of 151,084 vehicles, thanks to strong demand for Buick brand cars and Wuling minivehicles.
CVS Caremark reported 1st quarter results, earning $738.4 million, or 50 cents per share, down from profit of $745 million, or 51 cents per share, a year prior. Revenue rose 12 % to $23.39 billion from $21.33 billion. Wall Street expected 54 cents per share on revenue of $23.64 billion.
Economic News
7:45 AM
ICSC-Goldman Store Sales: Weekly measure of comparable store sales at major retail chains, published by the International Council of Shopping Centers. The figure accounts for roughly 10% of total retail sales.
10:00
ISM Non-Mfg Index: A compilation from 60 non manufacturing sectors across the economic spectrum. The index helps gauge strengths and weaknesses within the economy. The composite index for the month of April is expected to have a reading of 42; the composite index from the ISM non-manufacturing survey fell n March fell back to 40.8 from 41.6 the month before on declining new orders.
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