Oil getting higher, it moves on $115 per barrel
Global Market
JPMorgan Chase & Co. plans to raise $6 billion in its preferred stock offering. It priced to yield 419 basis points more than U.S. Treasuries due in 2018 and pay a 7.9 percent fixed for 10 years. If not called, it will begin to float at 347 basis points more than London interbank offered rate, currently set at 2.73 percent.
JPMorgan is raising capital as economy hurt its clients' ability to pay credit cards and consumer loans. JPMorgan has posted about $10 billion of asset writedowns and credit losses. They said it set aside $1.1 billion in first quarter of 2008 for future defaults, after boosting provisions by $395 million. Writedowns have reduced JPMorgan's Tier 1 capital ratio to 8.3 percent. That compares with ratios of 7.5 percent at Wachovia Corp. and 7.1 percent at Citigroup Inc. The minimum rating from regulators is 6 percent. The assets are calculated by weighing its chance of default.
JPMorgan said net income dropped to $2.37 billion or 68 cents a share. They also said that the credit-market crisis is more than halfway finished as financial firms reduce leverage and may be 80 percent over.
Lehman Brothers Holdings Inc. sold $4 billion of preferred shares on April 1 that pay a coupon of 7.25 percent and convertible to stock when shares reach $49.87. In January Citigroup sold preferred stock that pays 8.13 percent. Bank of America Corp. is paying 8 percent on perpetual preferred shares sold the same month.
Stock Market
U.S. stocks rose as better-than-forecast profits from Intel Corp., JPMorgan Chase & Co. and Wells Fargo & Co. eased concern that the slowing economy is dragging down earnings.
Intel posted its gain after they said a weakening economy hasn't hurt sales. JPMorgan advanced after they said the credit-market crisis is nearing an end. Wells Fargo climbed as they limited losses from slumping California home prices.
The Standard & Poor's 500 Index added 30.28 to 1,364.71. The Dow Jones Industrial Average rallied 256.8 to 12,619.27. The Nasdaq Composite Index increased 64.07 to 2,350.11.
Stocks gained even reports showed housing starts and building permits fell more than forecast and economic growth has weakened because of real estate markets bear and consumer spending lower.
Intel climbed $1.22 to $22.13. Intel's sales rose to $9.67 billion. Second-quarter revenue will be $9 to $9.6 billion. They said no signs of economic weakness hurting sales.
KLA-Tencor Corp. rose $3.36 to $43.23.
JPMorgan Chase rallied $2.84 to $44.96. First-quarter profit fell to $2.37 billion or 68 cents a share. The results matched the analyst estimate. They said that the credit-market crisis may be as much as 80 percent over.
Wells Fargo rose $1.20 to $29.01. They earned $2 billion, or 60 cents a share. Analysts estimated a profit of 57 cents a share.
Coca-Cola Co. climbed 21 cents to $61.15. They reported first-quarter profit rose more than analysts estimated and faster-growing soda sales in Mexico.
The dollar fell against the euro as European inflation accelerated, reducing chances ECB will cut interest rates. In the U.S., the consumer price index climbed 0.3 percent.
International Business Machines Corp. rose to $123.89 after the official close of U.S. exchanges. They posted first-quarter profit and sales that topped estimates after winning more orders overseas,
Producers of energy and raw materials rallied as oil and gasoline rose and metal prices advanced. Exxon Mobil Corp. climbed $2.09 to $92.89. Freeport-McMoRan Copper & Gold Inc. jumped $7.72 to $113.22. Titanium Metals Corp. rose $1.44 to $16.70 after their stock rating upgrade to buy.
Nucor Corp. led steelmakers to a 5.3 percent gain. ArcelorMittal plans to boost prices on some steel shipments in the U.S. by $250 a ton to recoup surging costs for energy and iron ore. Nucor rose $3.80 to $72.61. U.S. Steel Corp. added $8.74 to $155.37.
Monsanto Co. rallied $8.86 to $131.54. Analysts raised their earnings estimates and lifted their share-price target to $140.
SLM Corp. fell $1.18 to $16.26. Their rating was reduced to underweight. LSI Corp. is losing 33 cents to $5.04 as analysts downgraded LSI to neutral after revenue and profit in the first quarter fell short of analyst estimates and forecast earnings may trail the average projection. Talbots Inc. is falling to $9.16, they said HSBC Holdings Plc and Bank of America Corp. are canceling their letters of credit to the company.
Currencies
The dollar decline against the euro on speculation ECB won't cut their interest rate. The currency had decline versus the euro to $1.5979 as reports showed European inflation accelerated and U.S. housing starts dropped.
The dollar traded at $1.5949 per euro. The dollar was at 101.80 yen. The euro traded at 162.39 yen. The U.S. currency has decline against the euro since Group of Seven concerned sharp fluctuations in currency markets may hurt the global economy.
The euro rose against the pound after touching 80.99 pence on the European inflation report. The Bank of England cut its rate to 5 percent on April 10.
Norway's krone touched 4.9459 per dollar on higher crude oil prices. The Canadian dollar rose 1.7 percent, while the Australian dollar increased 1.3 percent.
The yen fell against the Canadian dollar and the Australian dollar on speculation a rally in U.S. stocks encouraged investors to borrow in Japan to buy currencies.
Crude oil and the euro versus the dollar have moved in lockstep. The correlation coefficient was 0.957. It indicates they almost move in the same direction. Expectations for the dollar become less bearish. Analyst turned bearish against the Swiss franc and British pound.
Futures forecast that fed will reduce the rate at least a quarter-percentage point, while traders still believe that ECB will keep the rate unchanged at 4 percent this year. The European inflation rate accelerated to 3.6 percent.
Commodities
Oil
Crude oil and gasoline rose after unexpected declines in U.S. crude inventories and refinery operating rates. Oil climbed to $115.21 a barrel. Oil inventories fell 2.36 million barrels to 313.7 million. Refinery capacity was 81.4 percent.
Crude oil for May delivery rose 28 cents to $115.21 a barrel. Prices are up 4.4 percent this week. Analyst forecast the median price of crude oil will be $91.71 a barrel this year.
Lower refinery margins reduced the incentive for refiners to process oil into products. U.S. refineries ran at 81.4 percent, down 1.6 percent from last week. Crude-oil stockpiles were forecast to rise 1.8 million barrels last week. Gasoline inventories dropped 5.52 million barrels to 215.8 million barrels. A 1.8 million-barrel decline was forecast.
Gasoline for May delivery was up 0.46 cent to $2.9436 a gallon.
Gold
Gold rose after the dollar dropped against the euro. Silver also gained. The euro climbed to $1.5979 on speculation ECB will keep its rate steady to curb inflation. Crude-oil futures also climbed.
Gold futures for June delivery gained $16.30 to $948.30 an ounce. Silver futures for May delivery rose 47.5 cents to $18.325 an ounce. Silver gained 0.7 percent but analyst forecast the metal may trade sideways or lower in the next three weeks. The price will average $20.25 an ounce in 2008.
Investment in Barclays Plc's iShares Silver Trust has been unchanged at 5,746 metric tons. Investment in the StreetTracks Gold Trust has remained at 641.8 metric tons
Gold still is down 8.3 percent from the record.
JPMorgan Chase & Co. plans to raise $6 billion in its preferred stock offering. It priced to yield 419 basis points more than U.S. Treasuries due in 2018 and pay a 7.9 percent fixed for 10 years. If not called, it will begin to float at 347 basis points more than London interbank offered rate, currently set at 2.73 percent.
JPMorgan is raising capital as economy hurt its clients' ability to pay credit cards and consumer loans. JPMorgan has posted about $10 billion of asset writedowns and credit losses. They said it set aside $1.1 billion in first quarter of 2008 for future defaults, after boosting provisions by $395 million. Writedowns have reduced JPMorgan's Tier 1 capital ratio to 8.3 percent. That compares with ratios of 7.5 percent at Wachovia Corp. and 7.1 percent at Citigroup Inc. The minimum rating from regulators is 6 percent. The assets are calculated by weighing its chance of default.
JPMorgan said net income dropped to $2.37 billion or 68 cents a share. They also said that the credit-market crisis is more than halfway finished as financial firms reduce leverage and may be 80 percent over.
Lehman Brothers Holdings Inc. sold $4 billion of preferred shares on April 1 that pay a coupon of 7.25 percent and convertible to stock when shares reach $49.87. In January Citigroup sold preferred stock that pays 8.13 percent. Bank of America Corp. is paying 8 percent on perpetual preferred shares sold the same month.
Stock Market
U.S. stocks rose as better-than-forecast profits from Intel Corp., JPMorgan Chase & Co. and Wells Fargo & Co. eased concern that the slowing economy is dragging down earnings.
Intel posted its gain after they said a weakening economy hasn't hurt sales. JPMorgan advanced after they said the credit-market crisis is nearing an end. Wells Fargo climbed as they limited losses from slumping California home prices.
The Standard & Poor's 500 Index added 30.28 to 1,364.71. The Dow Jones Industrial Average rallied 256.8 to 12,619.27. The Nasdaq Composite Index increased 64.07 to 2,350.11.
Stocks gained even reports showed housing starts and building permits fell more than forecast and economic growth has weakened because of real estate markets bear and consumer spending lower.
Intel climbed $1.22 to $22.13. Intel's sales rose to $9.67 billion. Second-quarter revenue will be $9 to $9.6 billion. They said no signs of economic weakness hurting sales.
KLA-Tencor Corp. rose $3.36 to $43.23.
JPMorgan Chase rallied $2.84 to $44.96. First-quarter profit fell to $2.37 billion or 68 cents a share. The results matched the analyst estimate. They said that the credit-market crisis may be as much as 80 percent over.
Wells Fargo rose $1.20 to $29.01. They earned $2 billion, or 60 cents a share. Analysts estimated a profit of 57 cents a share.
Coca-Cola Co. climbed 21 cents to $61.15. They reported first-quarter profit rose more than analysts estimated and faster-growing soda sales in Mexico.
The dollar fell against the euro as European inflation accelerated, reducing chances ECB will cut interest rates. In the U.S., the consumer price index climbed 0.3 percent.
International Business Machines Corp. rose to $123.89 after the official close of U.S. exchanges. They posted first-quarter profit and sales that topped estimates after winning more orders overseas,
Producers of energy and raw materials rallied as oil and gasoline rose and metal prices advanced. Exxon Mobil Corp. climbed $2.09 to $92.89. Freeport-McMoRan Copper & Gold Inc. jumped $7.72 to $113.22. Titanium Metals Corp. rose $1.44 to $16.70 after their stock rating upgrade to buy.
Nucor Corp. led steelmakers to a 5.3 percent gain. ArcelorMittal plans to boost prices on some steel shipments in the U.S. by $250 a ton to recoup surging costs for energy and iron ore. Nucor rose $3.80 to $72.61. U.S. Steel Corp. added $8.74 to $155.37.
Monsanto Co. rallied $8.86 to $131.54. Analysts raised their earnings estimates and lifted their share-price target to $140.
SLM Corp. fell $1.18 to $16.26. Their rating was reduced to underweight. LSI Corp. is losing 33 cents to $5.04 as analysts downgraded LSI to neutral after revenue and profit in the first quarter fell short of analyst estimates and forecast earnings may trail the average projection. Talbots Inc. is falling to $9.16, they said HSBC Holdings Plc and Bank of America Corp. are canceling their letters of credit to the company.
Currencies
The dollar decline against the euro on speculation ECB won't cut their interest rate. The currency had decline versus the euro to $1.5979 as reports showed European inflation accelerated and U.S. housing starts dropped.
The dollar traded at $1.5949 per euro. The dollar was at 101.80 yen. The euro traded at 162.39 yen. The U.S. currency has decline against the euro since Group of Seven concerned sharp fluctuations in currency markets may hurt the global economy.
The euro rose against the pound after touching 80.99 pence on the European inflation report. The Bank of England cut its rate to 5 percent on April 10.
Norway's krone touched 4.9459 per dollar on higher crude oil prices. The Canadian dollar rose 1.7 percent, while the Australian dollar increased 1.3 percent.
The yen fell against the Canadian dollar and the Australian dollar on speculation a rally in U.S. stocks encouraged investors to borrow in Japan to buy currencies.
Crude oil and the euro versus the dollar have moved in lockstep. The correlation coefficient was 0.957. It indicates they almost move in the same direction. Expectations for the dollar become less bearish. Analyst turned bearish against the Swiss franc and British pound.
Futures forecast that fed will reduce the rate at least a quarter-percentage point, while traders still believe that ECB will keep the rate unchanged at 4 percent this year. The European inflation rate accelerated to 3.6 percent.
Commodities
Oil
Crude oil and gasoline rose after unexpected declines in U.S. crude inventories and refinery operating rates. Oil climbed to $115.21 a barrel. Oil inventories fell 2.36 million barrels to 313.7 million. Refinery capacity was 81.4 percent.
Crude oil for May delivery rose 28 cents to $115.21 a barrel. Prices are up 4.4 percent this week. Analyst forecast the median price of crude oil will be $91.71 a barrel this year.
Lower refinery margins reduced the incentive for refiners to process oil into products. U.S. refineries ran at 81.4 percent, down 1.6 percent from last week. Crude-oil stockpiles were forecast to rise 1.8 million barrels last week. Gasoline inventories dropped 5.52 million barrels to 215.8 million barrels. A 1.8 million-barrel decline was forecast.
Gasoline for May delivery was up 0.46 cent to $2.9436 a gallon.
Gold
Gold rose after the dollar dropped against the euro. Silver also gained. The euro climbed to $1.5979 on speculation ECB will keep its rate steady to curb inflation. Crude-oil futures also climbed.
Gold futures for June delivery gained $16.30 to $948.30 an ounce. Silver futures for May delivery rose 47.5 cents to $18.325 an ounce. Silver gained 0.7 percent but analyst forecast the metal may trade sideways or lower in the next three weeks. The price will average $20.25 an ounce in 2008.
Investment in Barclays Plc's iShares Silver Trust has been unchanged at 5,746 metric tons. Investment in the StreetTracks Gold Trust has remained at 641.8 metric tons
Gold still is down 8.3 percent from the record.
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