Oil price going higher, US producer price rose.
Global Market
U.S. producer prices rose twice as forecast and manufacturing in New York states was grew, reducing the odds that the Fed will cut rates more than a quarter point.
Food and energy stoked the 1.1 percent gain in wholesale prices. The New York State manufacturing index rose to 0.6 from minus 22.2. It indicates that exports are helping prevent a deeper downturn, while higher producer price makes concern on high inflation.
Excluding fuel and food, the producer-price index increased 0.2 percent, producer prices climbed 6.9 percent. The New York report showed an improvement in new orders and shipments. Reports on industrial production in March will be release tomorrow.
Prices paid to factories, farmers and other producers were forecast to rise 0.6 percent. The Labor Department may say that the consumer price index rose 0.3 percent.
A separate report showed that foreign investment in U.S. securities increased as Treasuries rallied. It increased by $72.5 billion, from $57.1 billion. Wholesale costs are up 10.2 percent at an annual pace. The core rate has increased at a 5 percent annual pace.
Food prices rose 1.2 percent, led by increases in vegetables, rice and beef and veal.
Wholesale energy costs climbed 2.9 percent. Diesel fuel rose 15 percent and home heating oil was up 13 percent. Higher prices for soap, pet food and pharmaceuticals led gain in core prices. Costs of intermediate goods and of raw materials also accelerated.
Fed were more focused on the threat of a recession than inflation. The report on economic activity is due tomorrow. The Fed should stop cutting interest rates because the potential damage outweighs the benefits. Confidence among U.S. homebuilders was unchanged, indicating stricter lending rules and falling home values still driving away buyers.
Caterpillar Inc. is among companies trying to recoup the increases in costs. The Peoria said it will raise prices 5 percent worldwide after steel, copper and crude oil became more expensive. Others are having less success. Alcoa Inc. said first- quarter profit was less than last year. Surging energy costs combined with lower metals prices was one reason for the slowdown.
Stock Market
U.S. stocks rose, led by financial and energy shares, on better- than-forecast earnings at regional banks and record prices for oil and gasoline. Regions Financial Corp. and M&T Bank Corp. rallied after profits were boosted by their sale of stakes in Visa Inc. as part of Visa’s initial public offering. Exxon Mobil Corp. and ConocoPhillips led energy producers to the highest level as crude climbed above $114 a barrel.
The Standard & Poor's 500 Index climbed 6.11 points to 1,334.43. The Dow Jones Industrial Average rose 60.41 to 12,362.47. The Nasdaq Composite Index increased 10.22 to 2,286.04.
Stocks also gained after general economic index showed growth in manufacturing, overshadowing a gain in wholesale inflation.
Regions Financial increased $1.56 to $20.12 after saying first-quarter net income increased 1.1 percent. Regions gain from the sale of shares in Visa and a reduction in litigation expenses tied to the bank's ownership in the card network. M&T rallied $5.11 to $85.86. The bank recorded a $29 million gain from its Visa stake.
Northern Trust Corp. also reported a gain from selling shares in Visa’s initial public offering, their first-quarter earnings doubled. Its shares rose $3.04 to $68.04.
Financial shares also advanced after Lehman Brothers Holdings Inc. told that the worst is behind us. The S&P 500 Financials Index climbed 1.1 percent. Morgan Stanley added 55 cents to $43.52. Citigroup Inc. increased 29 cents to $22.80.
Charles Schwab Corp. added $1.64 to $19.95. Their first- quarter profit rose 29 percent as more clients opened.
Exxon Mobil Corp. climbed $1.10 to $90.80. Chevron Corp. added 87 cents to $90.17. Crude oil rose to $114.08 a barrel, while gasoline climbed to $2.881 a gallon. BJ Services Co. added $1.38 to $30.50. Range Resources Corp. increased $2.22 to $69.07.
Industrial shares in the S&P 500 climbed 0.4 percent after manufacturing index rose to 0.6 in April from a March reading of minus 22.2.
Textron Inc. added $1.56 to $59.80. United Technologies Corp. climbed 85 cents to $70.84.
Compuware Corp. added 76 cents to $7.75. Their fourth-quarter sales and earnings exceeded analysts' estimates.
Cognizant Technology Solutions Corp. added $2.35 to $29.32. They rose after rival Infosys Technologies Ltd. said U.S. clients may send more work overseas to cut costs.
EMC Corp. slumped 47 cents to $14.17. Analyst reduced its rating to hold and cut share-price forecast to $17, because the economic crisis is hurting companies outside the financial services industry and countries other than the U.S.
Intel issued a sales forecast that may top analysts' estimates. Second-quarter revenue will be $9 billion to $9.6 billion. The shares jumped 8 percent to $22.58.
Delta Air Lines Inc. and Northwest Airlines Corp. drop as investors questioned whether their merger would be enough to overcome surging fuel bills. It would create the world's largest airline and produce a total of $1 billion in new revenue and cost cuts. Delta fell $1.32 to $9.16. Northwest dropped 94 cents to $10.28.
State Street Corp. fell on concern they will be forced to bail out mortgage-backed debt funds that sitting on $1.49 billion of potential losses. The shares lost $7.63 to $69.23.
Forest Laboratories Inc. fell $3.67 to $36.13. Their forecast sales and profit missed analysts' estimates. Forest boosted spending to develop new products as Lexapro and Namenda face patent expirations in 2012 and 2013.
Northrop Grumman Corp. lost $5.27 to $71.57. They said it will take a charge $360 million because of delays on a new ship.
Manitowoc Co. fell $3.61 to $36.05. Analyst cut their ratings after it purchased Enodis Plc. The acquisition could weigh on shares, given a mixed view to an expanded food- service component.
Affymetrix Inc. tumbled $5.38 to $10.95. They lowered its full-year revenue forecast, citing expectations for reduced research spending by pharmaceutical and industrial customers.
Crocs Inc. fell $7.68 to $10.11. They said it will fire its plant workers after lowering annual earnings and sales forecasts as consumer spending slowed.
Currencies
The dollar may rise against the euro before a report forecast to show U.S. consumer inflation accelerated and bolstering speculation the Federal Reserve will slow the interest-rate cuts. The U.S. currency strengthened after reports showed wholesale prices increased more than forecast and New York state manufacturing unexpectedly expanded.
The dollar traded at $1.5799 per euro. The dollar traded at 101.83 yen. The euro traded at 160.89 yen. The British pound fell versus the euro after touching 80.64 pence as the measure of sentiment in the U.K. housing market decreased to the lowest.
The dollar strengthened to $1.5751 per euro yesterday after prices paid to U.S. producers rose 1.1 percent. It was higher than analyst estimate, analyst expect for an increase of 0.6 percent. U.S. consumer prices probably increased 0.3 percent. The report is scheduled to be released today.
The G-7 said that recent sharp fluctuations in exchange rates risk hurting the global economy. European Central Bank said that they cannot be sure if high interest rates policy can contain inflation.
Commodities
Oil
Crude oil was above $113 a barrel after touching a record as investors purchased commodities to boost their returns. Yesterday oil climbed to $114.08 a barrel. Rising global demand for commodities and a weakening dollar have led to record prices for commodities.
Crude oil for May delivery fell 26 cents to $113.53 a barrel. Gasoline for May delivery climbed 5.92 cents to $2.881 a gallon.
A report today is forecast to show that U.S. gasoline inventories dropped 1.8 million barrels while crude-oil supplies advanced 1.8 million barrels. The UBS Bloomberg Constant Maturity Commodity Index gained 0.9 percent to 1502.886.
Exxon Mobil Corp. and Chevron Corp. led energy shares to the highest level because of rising prices. Exxon climbed $1.10 to $90.80. Chevron added 87 cents to $90.17.
OPEC left its forecast for 2008 oil demand at 86.97 million barrels a day. China increased diesel imports as state refiners China Petroleum & Chemical Corp. and PetroChina Co. bought more to ensure supplies for the spring planting season. Chinese oil demand will rise 4.7 percent to 7.9 million barrels a day. Demand in the U.S. will contract 2 percent to 20.38 million barrels a day this year.
Brent crude for May settlement rose $1.47 to $111.31 a barrel.
Petroleos Mexicanos reopened its oil-export terminals on the Gulf of Mexico after closing them because of heavy winds and rain. The terminals at the ports of Pajaritos and Cayo Arcas opened yesterday morning. The terminal at the port of Dos Bocas reopened yesterday afternoon. The Pacific port of Salina Cruz is still closed.
U.S. supplies of distillate fuels fell 1.65 million barrels. Heating oil for May delivery rose 7.1 cents to $3.2739 a gallon.
Gold
Gold climbed as soaring energy costs increased demand for the precious metal. Silver also rose. Crude oil climbed to $113.93 a barrel, and the U.S. reported prices paid to producers rose twice more that forecast. High gold and oil price make sparking gains in consumer and producer costs.
Gold futures for June delivery climbed $3.30 to $932 an ounce. Silver futures for May delivery rose 6 cents to $17.85 an ounce.
Gold's gains were limited after the dollar rose against the euro. Bear markets for the U.S. currency have pushed gold higher. Gold's rally may stall as investors opt for other commodities.
U.S. producer prices rose twice as forecast and manufacturing in New York states was grew, reducing the odds that the Fed will cut rates more than a quarter point.
Food and energy stoked the 1.1 percent gain in wholesale prices. The New York State manufacturing index rose to 0.6 from minus 22.2. It indicates that exports are helping prevent a deeper downturn, while higher producer price makes concern on high inflation.
Excluding fuel and food, the producer-price index increased 0.2 percent, producer prices climbed 6.9 percent. The New York report showed an improvement in new orders and shipments. Reports on industrial production in March will be release tomorrow.
Prices paid to factories, farmers and other producers were forecast to rise 0.6 percent. The Labor Department may say that the consumer price index rose 0.3 percent.
A separate report showed that foreign investment in U.S. securities increased as Treasuries rallied. It increased by $72.5 billion, from $57.1 billion. Wholesale costs are up 10.2 percent at an annual pace. The core rate has increased at a 5 percent annual pace.
Food prices rose 1.2 percent, led by increases in vegetables, rice and beef and veal.
Wholesale energy costs climbed 2.9 percent. Diesel fuel rose 15 percent and home heating oil was up 13 percent. Higher prices for soap, pet food and pharmaceuticals led gain in core prices. Costs of intermediate goods and of raw materials also accelerated.
Fed were more focused on the threat of a recession than inflation. The report on economic activity is due tomorrow. The Fed should stop cutting interest rates because the potential damage outweighs the benefits. Confidence among U.S. homebuilders was unchanged, indicating stricter lending rules and falling home values still driving away buyers.
Caterpillar Inc. is among companies trying to recoup the increases in costs. The Peoria said it will raise prices 5 percent worldwide after steel, copper and crude oil became more expensive. Others are having less success. Alcoa Inc. said first- quarter profit was less than last year. Surging energy costs combined with lower metals prices was one reason for the slowdown.
Stock Market
U.S. stocks rose, led by financial and energy shares, on better- than-forecast earnings at regional banks and record prices for oil and gasoline. Regions Financial Corp. and M&T Bank Corp. rallied after profits were boosted by their sale of stakes in Visa Inc. as part of Visa’s initial public offering. Exxon Mobil Corp. and ConocoPhillips led energy producers to the highest level as crude climbed above $114 a barrel.
The Standard & Poor's 500 Index climbed 6.11 points to 1,334.43. The Dow Jones Industrial Average rose 60.41 to 12,362.47. The Nasdaq Composite Index increased 10.22 to 2,286.04.
Stocks also gained after general economic index showed growth in manufacturing, overshadowing a gain in wholesale inflation.
Regions Financial increased $1.56 to $20.12 after saying first-quarter net income increased 1.1 percent. Regions gain from the sale of shares in Visa and a reduction in litigation expenses tied to the bank's ownership in the card network. M&T rallied $5.11 to $85.86. The bank recorded a $29 million gain from its Visa stake.
Northern Trust Corp. also reported a gain from selling shares in Visa’s initial public offering, their first-quarter earnings doubled. Its shares rose $3.04 to $68.04.
Financial shares also advanced after Lehman Brothers Holdings Inc. told that the worst is behind us. The S&P 500 Financials Index climbed 1.1 percent. Morgan Stanley added 55 cents to $43.52. Citigroup Inc. increased 29 cents to $22.80.
Charles Schwab Corp. added $1.64 to $19.95. Their first- quarter profit rose 29 percent as more clients opened.
Exxon Mobil Corp. climbed $1.10 to $90.80. Chevron Corp. added 87 cents to $90.17. Crude oil rose to $114.08 a barrel, while gasoline climbed to $2.881 a gallon. BJ Services Co. added $1.38 to $30.50. Range Resources Corp. increased $2.22 to $69.07.
Industrial shares in the S&P 500 climbed 0.4 percent after manufacturing index rose to 0.6 in April from a March reading of minus 22.2.
Textron Inc. added $1.56 to $59.80. United Technologies Corp. climbed 85 cents to $70.84.
Compuware Corp. added 76 cents to $7.75. Their fourth-quarter sales and earnings exceeded analysts' estimates.
Cognizant Technology Solutions Corp. added $2.35 to $29.32. They rose after rival Infosys Technologies Ltd. said U.S. clients may send more work overseas to cut costs.
EMC Corp. slumped 47 cents to $14.17. Analyst reduced its rating to hold and cut share-price forecast to $17, because the economic crisis is hurting companies outside the financial services industry and countries other than the U.S.
Intel issued a sales forecast that may top analysts' estimates. Second-quarter revenue will be $9 billion to $9.6 billion. The shares jumped 8 percent to $22.58.
Delta Air Lines Inc. and Northwest Airlines Corp. drop as investors questioned whether their merger would be enough to overcome surging fuel bills. It would create the world's largest airline and produce a total of $1 billion in new revenue and cost cuts. Delta fell $1.32 to $9.16. Northwest dropped 94 cents to $10.28.
State Street Corp. fell on concern they will be forced to bail out mortgage-backed debt funds that sitting on $1.49 billion of potential losses. The shares lost $7.63 to $69.23.
Forest Laboratories Inc. fell $3.67 to $36.13. Their forecast sales and profit missed analysts' estimates. Forest boosted spending to develop new products as Lexapro and Namenda face patent expirations in 2012 and 2013.
Northrop Grumman Corp. lost $5.27 to $71.57. They said it will take a charge $360 million because of delays on a new ship.
Manitowoc Co. fell $3.61 to $36.05. Analyst cut their ratings after it purchased Enodis Plc. The acquisition could weigh on shares, given a mixed view to an expanded food- service component.
Affymetrix Inc. tumbled $5.38 to $10.95. They lowered its full-year revenue forecast, citing expectations for reduced research spending by pharmaceutical and industrial customers.
Crocs Inc. fell $7.68 to $10.11. They said it will fire its plant workers after lowering annual earnings and sales forecasts as consumer spending slowed.
Currencies
The dollar may rise against the euro before a report forecast to show U.S. consumer inflation accelerated and bolstering speculation the Federal Reserve will slow the interest-rate cuts. The U.S. currency strengthened after reports showed wholesale prices increased more than forecast and New York state manufacturing unexpectedly expanded.
The dollar traded at $1.5799 per euro. The dollar traded at 101.83 yen. The euro traded at 160.89 yen. The British pound fell versus the euro after touching 80.64 pence as the measure of sentiment in the U.K. housing market decreased to the lowest.
The dollar strengthened to $1.5751 per euro yesterday after prices paid to U.S. producers rose 1.1 percent. It was higher than analyst estimate, analyst expect for an increase of 0.6 percent. U.S. consumer prices probably increased 0.3 percent. The report is scheduled to be released today.
The G-7 said that recent sharp fluctuations in exchange rates risk hurting the global economy. European Central Bank said that they cannot be sure if high interest rates policy can contain inflation.
Commodities
Oil
Crude oil was above $113 a barrel after touching a record as investors purchased commodities to boost their returns. Yesterday oil climbed to $114.08 a barrel. Rising global demand for commodities and a weakening dollar have led to record prices for commodities.
Crude oil for May delivery fell 26 cents to $113.53 a barrel. Gasoline for May delivery climbed 5.92 cents to $2.881 a gallon.
A report today is forecast to show that U.S. gasoline inventories dropped 1.8 million barrels while crude-oil supplies advanced 1.8 million barrels. The UBS Bloomberg Constant Maturity Commodity Index gained 0.9 percent to 1502.886.
Exxon Mobil Corp. and Chevron Corp. led energy shares to the highest level because of rising prices. Exxon climbed $1.10 to $90.80. Chevron added 87 cents to $90.17.
OPEC left its forecast for 2008 oil demand at 86.97 million barrels a day. China increased diesel imports as state refiners China Petroleum & Chemical Corp. and PetroChina Co. bought more to ensure supplies for the spring planting season. Chinese oil demand will rise 4.7 percent to 7.9 million barrels a day. Demand in the U.S. will contract 2 percent to 20.38 million barrels a day this year.
Brent crude for May settlement rose $1.47 to $111.31 a barrel.
Petroleos Mexicanos reopened its oil-export terminals on the Gulf of Mexico after closing them because of heavy winds and rain. The terminals at the ports of Pajaritos and Cayo Arcas opened yesterday morning. The terminal at the port of Dos Bocas reopened yesterday afternoon. The Pacific port of Salina Cruz is still closed.
U.S. supplies of distillate fuels fell 1.65 million barrels. Heating oil for May delivery rose 7.1 cents to $3.2739 a gallon.
Gold
Gold climbed as soaring energy costs increased demand for the precious metal. Silver also rose. Crude oil climbed to $113.93 a barrel, and the U.S. reported prices paid to producers rose twice more that forecast. High gold and oil price make sparking gains in consumer and producer costs.
Gold futures for June delivery climbed $3.30 to $932 an ounce. Silver futures for May delivery rose 6 cents to $17.85 an ounce.
Gold's gains were limited after the dollar rose against the euro. Bear markets for the U.S. currency have pushed gold higher. Gold's rally may stall as investors opt for other commodities.
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