Gold decline as eure weaken against USD
Global Market
The U.S. SEC may require Wall Street banks to keep more cash on hand during market stress.
The SEC makes a discussion with Wall Street banks to raising capital and reviewing the need to seek loans to support less-liquid positions.
The SEC focused on requirements to increase resiliency when banks can't easily secure funding. Any change may crimp profits, so firms have to hold more cash instead of lending money or making investments.
The SEC monitors Bear Stearns, Goldman Sachs Group Inc., Lehman Brothers Holdings Inc., Merrill Lynch & Co. and Morgan Stanley to make sure they have enough capital and liquidity.
They require firms to have enough funding to meet expected obligations for one year. This assumes securities firms still able to get loans by putting up assets as collateral.
The SEC is reevaluating liquidity requirements after a report that recommending more authority for Fed over Wall Street banks.
Congress may have to improve SEC oversight by passing legislation to back investment banks and providing the agency with funding to pay.
Stock Market
U.S. stocks rose after better-than-estimated profits at technology, industrial and tobacco company overshadowed declines in banks and commodity producers.
EMC Corp., Boeing Co. and Philip Morris International Inc. leaded the advance as their results bolstered speculation as overseas demand counter the U.S. slowdown. Safeco Corp. jumped after they agreed to be bought for $6.2 billion.
The Standard & Poor's 500 Index rose 3.99 points to 1,379.93. The Dow Jones Industrial Average added 42.99 to 12,763.22. The Nasdaq Composite Index climbed 28.27 to 2,405.21, helped by Apple Inc.
EMC gained 30 cents to $15.89. Their first-quarter profit and sales beat analysts' estimates. Boeing added $3.53 to $82.09. Their first-quarter profit increased more than expected, as they delivered more planes. Boeing reiterated its forecast for 2008 earnings at $5.85 a share on $68 billion sales. Philip Morris rallied $1.93 to $52. Their first-quarter profit rose faster than estimate after new product and acquisitions spurred sales in Indonesia, Pakistan and Mexico.
Safeco rallied $20.71 to $65.94. Liberty Mutual Group Inc. agreed to buy them for $68.25 a share. It will create the fifth- largest U.S. property and casualty insurer.
Apple gained $2.69 to $162.89 before they reported fiscal second-quarter results. They posted a jump in second-quarter profit on demand for Macintosh PC. The earnings forecast fell short of some projections. Apple added 1 cent to $162..
Broadcom Corp. added $3.84 to $27.39. Their first-quarter net income advanced to 14 cents a share, sales climbed to $1.03 billion. While analyst estimates profit of 7 cents a share and sales of $991.7 million.
Microsoft Corp. climbed $1.20 to $31.45. They don't plan to raise his offer for Yahoo! Inc., setting the stage for a fight to control the board.
Yahoo dropped 46 cents to $28.08 after the forecast for this quarter met analysts estimates, disappointing investors looking for evidence the company will get a higher offer from Microsoft.
Schering-Plough Corp. climbed $1.13 to $18.27. Their first-quarter profit fell less than expected as revenue jumped.
The S&P 500 slipped 0.3 percent, led by financial companies and commodity producers. Citigroup Inc., American International Group Inc. and Merrill Lynch & Co. dropped after Ambac reported $3.1 billion of mortgage-related charges. The shares tumbled $2.57 to $3.46. Citigroup lost 49 cents to $24.63. AIG retreated $1.41 to $43.86. Merrill lost $1.59 to $44.91.
Newmont Mining Corp. dropped 80 cents to $43.85. Gold prices fell eroding the precious metal's appeal as an alternative investment.
XTO Energy Inc. send energy shares lower. They earned 91 cents a share in the first quarter. XTO lost $2.80 to $66.30.
United Parcel Service Inc. and Norfolk Southern Corp. spurred losses in transportation after they see no evidence that the economy will strengthen this year. UPS said first-quarter shipments fell on a slowing economy. Rising fuel costs squeezed profit while some customers seek cheaper options. The shares dropped 23 cents to $71.67.
Norfolk Southern slipped $2.40 to $58.74 after they posted profit that trailed estimates and said the economy won't rebound until consumer confidence recover in housing market.
American Water Works Co. drop 90 cents to $20.60. RWE AG raised $1.2 billion by selling stocks of Voorhees.
Currencies
The euro was little changed against before a forecast said German business confidence declined, indicating Euro strength is hurting Europe economy.
Euro pulled back yesterday after a signaled concern that the U.S. currency's decline will take a toll on growth. The New Zealand dollar fell after central bank signaled interest rates may cut as the economy slows.
The euro traded at $1.5877. The euro traded at 164.26 yen. The dollar was at 103.45 yen. The New Zealand dollar weakened to 79.40 U.S. cents and to 82.11 yen.
The euro has risen this year on speculation inflation will discourage the European Central Bank from lowering its rate. But euro's decline accelerated yesterday as some investors take profit on euro rise. The currency may weaken before a report show a decline in German business confidence.
The dollar may boost against the euro after report forecast show an increase in durable goods. Demand for products made probably rose 0.1 percent.
ECB are wary inflation will quicken on surge in crude oil. Oil fell to $118.30 a barrel after surging to $119.90.
The implied yield of Euribor future for December has risen to 4.60 percent as traders forecast the likelihood of an ECB rate increase. Meanwhile futures on the Chicago Board of Trade show an 82 percent chance the Fed will cut its benchmark by a quarter-point. The balance of bets is for no reduction.
Commodities
Gold
Gold fell after energy costs declined and the euro eased against the dollar. Silver also dropped. UBS AG said gold will sell for $850 an ounce. Gold futures for June delivery fell $16.20 to $909 an ounce. Silver futures for July delivery tumbled 54.8 cents to $17.276 an ounce.
The euro traded $1.5861. Gold fell on speculation the Federal Reserve will slow the interest-rate cuts, bolstering the dollar. Investment in the StreetTracks Gold Trust remained unchanged at 641.8 metric tons. A drop to $880 may attract jewelers. Jewelers are the biggest buyers, accounting for 61 percent of demand last year.
The U.S. SEC may require Wall Street banks to keep more cash on hand during market stress.
The SEC makes a discussion with Wall Street banks to raising capital and reviewing the need to seek loans to support less-liquid positions.
The SEC focused on requirements to increase resiliency when banks can't easily secure funding. Any change may crimp profits, so firms have to hold more cash instead of lending money or making investments.
The SEC monitors Bear Stearns, Goldman Sachs Group Inc., Lehman Brothers Holdings Inc., Merrill Lynch & Co. and Morgan Stanley to make sure they have enough capital and liquidity.
They require firms to have enough funding to meet expected obligations for one year. This assumes securities firms still able to get loans by putting up assets as collateral.
The SEC is reevaluating liquidity requirements after a report that recommending more authority for Fed over Wall Street banks.
Congress may have to improve SEC oversight by passing legislation to back investment banks and providing the agency with funding to pay.
Stock Market
U.S. stocks rose after better-than-estimated profits at technology, industrial and tobacco company overshadowed declines in banks and commodity producers.
EMC Corp., Boeing Co. and Philip Morris International Inc. leaded the advance as their results bolstered speculation as overseas demand counter the U.S. slowdown. Safeco Corp. jumped after they agreed to be bought for $6.2 billion.
The Standard & Poor's 500 Index rose 3.99 points to 1,379.93. The Dow Jones Industrial Average added 42.99 to 12,763.22. The Nasdaq Composite Index climbed 28.27 to 2,405.21, helped by Apple Inc.
EMC gained 30 cents to $15.89. Their first-quarter profit and sales beat analysts' estimates. Boeing added $3.53 to $82.09. Their first-quarter profit increased more than expected, as they delivered more planes. Boeing reiterated its forecast for 2008 earnings at $5.85 a share on $68 billion sales. Philip Morris rallied $1.93 to $52. Their first-quarter profit rose faster than estimate after new product and acquisitions spurred sales in Indonesia, Pakistan and Mexico.
Safeco rallied $20.71 to $65.94. Liberty Mutual Group Inc. agreed to buy them for $68.25 a share. It will create the fifth- largest U.S. property and casualty insurer.
Apple gained $2.69 to $162.89 before they reported fiscal second-quarter results. They posted a jump in second-quarter profit on demand for Macintosh PC. The earnings forecast fell short of some projections. Apple added 1 cent to $162..
Broadcom Corp. added $3.84 to $27.39. Their first-quarter net income advanced to 14 cents a share, sales climbed to $1.03 billion. While analyst estimates profit of 7 cents a share and sales of $991.7 million.
Microsoft Corp. climbed $1.20 to $31.45. They don't plan to raise his offer for Yahoo! Inc., setting the stage for a fight to control the board.
Yahoo dropped 46 cents to $28.08 after the forecast for this quarter met analysts estimates, disappointing investors looking for evidence the company will get a higher offer from Microsoft.
Schering-Plough Corp. climbed $1.13 to $18.27. Their first-quarter profit fell less than expected as revenue jumped.
The S&P 500 slipped 0.3 percent, led by financial companies and commodity producers. Citigroup Inc., American International Group Inc. and Merrill Lynch & Co. dropped after Ambac reported $3.1 billion of mortgage-related charges. The shares tumbled $2.57 to $3.46. Citigroup lost 49 cents to $24.63. AIG retreated $1.41 to $43.86. Merrill lost $1.59 to $44.91.
Newmont Mining Corp. dropped 80 cents to $43.85. Gold prices fell eroding the precious metal's appeal as an alternative investment.
XTO Energy Inc. send energy shares lower. They earned 91 cents a share in the first quarter. XTO lost $2.80 to $66.30.
United Parcel Service Inc. and Norfolk Southern Corp. spurred losses in transportation after they see no evidence that the economy will strengthen this year. UPS said first-quarter shipments fell on a slowing economy. Rising fuel costs squeezed profit while some customers seek cheaper options. The shares dropped 23 cents to $71.67.
Norfolk Southern slipped $2.40 to $58.74 after they posted profit that trailed estimates and said the economy won't rebound until consumer confidence recover in housing market.
American Water Works Co. drop 90 cents to $20.60. RWE AG raised $1.2 billion by selling stocks of Voorhees.
Currencies
The euro was little changed against before a forecast said German business confidence declined, indicating Euro strength is hurting Europe economy.
Euro pulled back yesterday after a signaled concern that the U.S. currency's decline will take a toll on growth. The New Zealand dollar fell after central bank signaled interest rates may cut as the economy slows.
The euro traded at $1.5877. The euro traded at 164.26 yen. The dollar was at 103.45 yen. The New Zealand dollar weakened to 79.40 U.S. cents and to 82.11 yen.
The euro has risen this year on speculation inflation will discourage the European Central Bank from lowering its rate. But euro's decline accelerated yesterday as some investors take profit on euro rise. The currency may weaken before a report show a decline in German business confidence.
The dollar may boost against the euro after report forecast show an increase in durable goods. Demand for products made probably rose 0.1 percent.
ECB are wary inflation will quicken on surge in crude oil. Oil fell to $118.30 a barrel after surging to $119.90.
The implied yield of Euribor future for December has risen to 4.60 percent as traders forecast the likelihood of an ECB rate increase. Meanwhile futures on the Chicago Board of Trade show an 82 percent chance the Fed will cut its benchmark by a quarter-point. The balance of bets is for no reduction.
Commodities
Gold
Gold fell after energy costs declined and the euro eased against the dollar. Silver also dropped. UBS AG said gold will sell for $850 an ounce. Gold futures for June delivery fell $16.20 to $909 an ounce. Silver futures for July delivery tumbled 54.8 cents to $17.276 an ounce.
The euro traded $1.5861. Gold fell on speculation the Federal Reserve will slow the interest-rate cuts, bolstering the dollar. Investment in the StreetTracks Gold Trust remained unchanged at 641.8 metric tons. A drop to $880 may attract jewelers. Jewelers are the biggest buyers, accounting for 61 percent of demand last year.
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