Foreign Market

Thursday, the US stock market continue to close higher for the third consecutive day for the week backed by the upward revision to the first quarter economic growth rate and a sharp drop in crude prices. The retailer stocks posted a solid gain on the back of mixed batch of earnings reports from Costco and Big Lots both posted better-than-expected quarterly earnings results. However, Sears Holdings unexpectedly lost $0.53 per share in its latest quarter, excluding items, compared to a profit of $1.15 per share in the prior year.
On the economic front, the first quarter GDP was revised higher to 0.9% from 0.6% matching the consensus estimate. The reading remains below the 3% normal growth rate.
Further, the number of weekly jobless claims reading held mostly steady at 372,000, which was roughly in-line with expectations.

The Dow Jones Industrial Average (DJIA) advanced by 52.19 points to close at 12,646.22. The S&P 500 (SPX) index increased by 7.42 points to close at 1,398.26 and the NASDAQ Composite (RIXF) grew 21.62 points to close at 2,508.32.

Among the Dow’s 30 components, 24 components ended in green mainly led by the stocks like Johnson & Johnson and Citigroup up nby 2.4% and 2% respectively.

A total of 0.8bn shares were traded on the NASDAQ, with advancing stocks outpaced the declining stocks by 8 to 5. On NYSE around 1.2bn shares traded for the day, with advancing stocks outpaced the declining stocks by 2 to 1.

Crude oil futures for the month of June delivery closed lower by $4.40 at $126.62 per barrel on New York Mercantile Exchange. The crude prices fell after the dollar strengthened against its rival currencies and also after the inventory report announced by the Energy Department showed a large weekly drop in crude inventory levels since 2004. As per the weekly inventory report by the Energy Department, crude supplies dropped by 8.8 million barrels to 311.6 million for the week ended 23 May.

The gold prices for the month of June delivery fell by $23.30 to settle at $881.70 an ounce on the New York Mercantile Exchange. The gold prices ended lower for the third consecutive days after the dollar strengthened against its rival currencies.

Foreign Market

Wednesday, the US stock market closed higher for the second consecutive day for the week on the back of some positive economic data and the better-than-expected earnings from select retailers. On the earning’s front, Chico''s FAS and American Eagle Outfitters reported their earnings results that surpassed analysts’ estimates for the most recent quarter.

On the economic front, the Commerce Department reported that durable goods orders for the month of April fell 0.5%, which is a less substantial downturn than economists forecast. Excluding transportation, durable goods orders increased 2.5%.

The Dow Jones Industrial Average (DJIA) advanced by 45.68 points to close at 12,594.03. The S&P 500 (SPX) index increased by 5.49 points to close at 1,390.84 and the NASDAQ Composite (RIXF) grew 5.46 points to close at 2,486.70.

Among the Dow’s 30 components, 17 components ended in green mainly led by the stocks like Alcoa up by 3%

A total of 0.8bn shares were traded on the NASDAQ, with advancing stocks just outpaced the declining stocks. On NYSE around 1.2bn shares traded for the day, with advancing stocks outpaced the declining stocks by 9 to 7.

Crude oil futures for the month of June delivery closed higher by $2.18 at $131.03 per barrel on New York Mercantile Exchange. The crude prices grew after the dollar regains its strength as against its rival currencies.

The gold prices for the month of June delivery fell by $7.80 to settle at $900.50 an ounce on the New York Mercantile Exchange. The gold prices ended lower for the second consecutive days after the dollar strengthened against its rival currencies.

Foreign Market

Tuesday, the US stock market in green after the crude prices eased a bit and managed to settle below the $130 mark. The technology was the session’s best performing economic sector backed by the news that the Apple is taking its iPhone to Nordic and Baltic markets after signing an agreement with a regional telecom operator.
On the Merger & Acquisition front, Blackstone Group and Apollo Management LP are reportedly in talks to acquire chemical company Chemtura.

On the positive side, the new home sales for the month of April were reported at 526,000, which is above the consensus estimate of 520,000, but the monthly new home sales was 17,000 month-over-month.

On the economic front, the Consumer Confidence Index for the month of May came in at 57.2, which is down from the prior month''s 62.8. Further, the S&P/Case-Shiller Home Price Index for the month of March came in at 172.2, which is down from the 176.0 registered in the prior month.

The Dow Jones Industrial Average (DJIA) advanced by 68.72 points to close at 12,548.35. The S&P 500 (SPX) index increased by 9.42 points to close at 1,385.35 and the NASDAQ Composite (RIXF) grew 36.57 points to close at 2,481.24.

Among the Dow’s 30 components, 20G compoments ended in green mainly led by the stocks like Citigroup and IBM up by 2.6% and 2.5% respectively.

A total of 0.7bn shares were traded on the NASDAQ, with advancing stocks outpaced the declining stocks by 2 to 1. On NYSE around 1.1bn shares traded for the day, with advancing stocks outpaced the declining stocks by 2 to 1.

Crude oil futures for the month of June delivery closed lower by $3.34 at $128.85 per barrel on New York Mercantile Exchange. The crude prices fell after the dollar regains its strength as against its rival currencies.

The gold prices for the month of June delivery fell by $17.90 to settle at $907.90 an ounce on the New York Mercantile Exchange. The gold prices ended lower after the crude prices slipped below the $130 mark and also the strengthening of dollar of dollar as against its rival currencies.

Foreign Market

Friday, the US stock market in deep red on the back of high oil prices and as investors booked their profits ahead of the long weekend. On the earnings front, retailers like Gap and Aeropostale announced earnings results that surpassed the consensus earnings per share estimate.
On the Merger & Acquisition news, there was report that the Belgium beverage company InBev is interested in acquiring Anheuser-Busch.
On the economic front, the National Association of Realtors announced that the existing home sales for the month of April declined 1.0% month-over-month to an annualized rate of 4.89 million units. This was better than the economists expectations of a decline by 1.6% from the prior month’s annualized sales rate.

The Dow Jones Industrial Average (DJIA) dropped by 145.99 points to close at 12,479.63. The S&P 500 (SPX) index decreased by 18.42 points to close at 1,375.93 and the NASDAQ Composite (RIXF) fell 19.91 points to close at 2,444.67.

General Motors Corp. led blue-chip losses, fell by 4.5% after the automaker said it anticipates taking a $1.8 billion hit in the second quarter and further cutting production.

Crude oil futures for the month of June delivery closed higher by $1.38 at $132.19 per barrel on New York Mercantile Exchange. During the intraday trading the crude prices have touched a high of $133.69 per barrel. The prices grew mainly due to the weakening of dollar as against its rival currencies.

The gold prices for the month of June delivery grew by $7.50 to settle at $925.80 an ounce on the New York Mercantile Exchange. The gold prices ended higher mainly due to the sharp rally in the crude oil prices eased and also the weakening of dollar against the rivals.

Foreign Market

Thursday, the US stock market managed to close higher after the crude oil prices eased a bit followed by some positive corporate announcements. On the earnings front, Computer Sciences, Limited Brands, Hormel and GameStop all announced better-than-expected earnings results for the recent fiscal quarters and also issued outlooks that were in-line with analysts’ forecasts.

Further, the financial sector, closed higher after Swiss bank UBS announced that it will raise roughly $15 billion through a rights offering to its existing shareholders. The offering comes at a discount of about 31% to yesterday’s closing price.

Among the Merger & Acquisition news, NRG Energy has made a bid to acquire fellow utility Calpine in an all-stock merger, which values Calpine at $22.70 per share.

On the economic front. the initial jobless claims for the week ending May 17 fell by 9,000 to 365,000, which is below the 373,000 economists projected.

The Dow Jones Industrial Average (DJIA) advanced by 24.43 points to close at 12,625.62. The S&P 500 (SPX) index increased by 3.64 points to close at 1,39435 and the NASDAQ Composite (RIXF) grew 16.31 points to close at 2,464.58.

Crude oil futures for the month of June delivery closed lower by $2.30 at $130.81 per barrel on New York Mercantile Exchange. During the intraday trading the crude prices have touched a new record high of $135.09 per barrel. The prices fell mainly due to the rebound in the dolar as against its rival currencies.

The gold prices for the month of June delivery fell by $10.30 to settle at $918.30 an ounce on the New York Mercantile Exchange. The gold prices touched an intraday high of $935 an ounce. The gold prices decreased after crude oil prices eased and the dollar once again rebounded against the rivals.

Foreign Market

Wednesday, the US stock market posted a steep loss for the second straight day after the minutes of the Federal Reserve''s last meeting showed central bankers hesitant to cut interest rates further due to mounting inflation concerns. Further the sharp rise in the crude prices also added to the sentiments.

The FOMC released the minutes from its April 30 meeting said that the Fed expects 2008 real GDP growth of between 0.3% and 1.2%, which is down about 1% from their previous forecast. Several FOMC members said that it was unlikely that it would be appropriate to ease monetary policy in the near term, even if the economy sees a contraction given the current inflation environment.

The shares of Amex Airline Index plunged 12% to its lowest level since its 1994 inception after the company announced a plan to cut its 2008 domestic capacity by 11% to 12%.

On a positive note, Time Warner and Time Warner Cable managed to end on a positive note on the back of the news that the two companies have agreed to completely separate. The deal will involve a special dividend of $10.9 billion, with $9.25 billion going to Time Warner.

The Dow Jones Industrial Average (DJIA) dropped by 227.49 points to close at 12,601.19. The S&P 500 (SPX) index decreased by 22.69 points to close at 1,390.71 and the NASDAQ Composite (RIXF) fell 43.99 points to close at 2,448.27.

Among the Dow’s 30 components, all of its components ended in the negative territory.

A total of 0.9bn shares were traded on the NASDAQ, with declining stocks outpaced the advancing stocks by 2 to 1. On NYSE around 1.4bn shares traded for the day, with declining stocks outpaced the advancing stocks by 2 to 1.

Crude oil futures for the month of June delivery closed higher by $4.19 at $133.17 per barrel on New York Mercantile Exchange. During the intraday trading the crude prices have touched a new record high of $133.50 per barrel after government data showed a substantial and unexpected decrease in crude inventories, marking their first decline in five weeks. Further the weakening if dollar as against euro also added to its gains. As per the weekly inventory report announced by the Energy Department, crude supplies fell by 5.4 million barrels to 320.4 million for the week ended 16 May as against the market expectation of a rise of 900,000 barrels for the latest week.

The gold prices for the month of June delivery rose by $8.40 to settle at $928.60 an ounce on the New York Mercantile Exchange. The gold prices touched an intraday high of $933 an ounce. The gold prices increased mainly due to the sharp rally in the crude oil prices and also the weakening of dollar as against its rival currencies.

Foreign Market

Tuesday, the US stock market closed sharply lower after the crude touched near $130 barrel mark fueled concern about the US economy. The financial sector acted as the major drag on the back of negative forecasts from two brokerages firms. AIG was also under selling pressure after the company said it will raise a total of $20 billion, up from its previous plan to raise $12.5 billion.

On the economic front, the total PPI came in better than expected, but core PPI was higher than estimates. The April Producer Price Index rose 0.2%, while core-PPI, which excludes food and energy costs, rose 0.4%. Economists expected the opposite, forecasting a 0.4% rise in PPI and a 0.2% rise in core-PPI.

The Dow Jones Industrial Average (DJIA) dropped by 199.48 points to close at 12,828.68. The S&P 500 (SPX) index decreased by 13.23 points to close at 1,413.40 and the NASDAQ Composite (RIXF) fell 23.83 points to close at 2,492.26.

Among the Dow’s 30 components, 28 components ended in the negative territory mainly led by the stocks like American Express, AIG and Citigroup down by 2.6%, 2.1% and 3.8% respectively.
A total of 0.8bn shares were traded on the NASDAQ, with declining stocks outpaced the advancing stocks by 17 to 11. On NYSE around 1.2bn shares traded for the day, with declining stocks outpaced the advancing stocks by 2 to 1.

Crude oil futures for the month of June delivery closed higher by $2.02 at $129.07 per barrel on New York Mercantile Exchange. During the intraday trading the crude prices have touched a new record high of $129.60 per barrel after one of the hedge-fund manager Boone Pickens said prices will reach $150 a barrel this year due to the supply demand concern. Further the weakening of dollar against euro also added to the gains. The dollar fell after the International Monetary Fund said the U.S. housing slump still poses serious risks to financial markets.

The gold prices for the month of June delivery rose by $14.40 to settle at $920.20 an ounce on the New York Mercantile Exchange. The gold prices closed above the $900 mark for the second straight day after it touched an intraday high of $923.80 an ounce. The gold prices increased mainly due to the sharp rally in the crude oil prices and also the weakening of dollar as against its rival currencies.

Rupee Recovers To 39.51 Against Dlr

MUMBAI: The rupee on Friday recovered slightly to 39.5150/5250 against the dollar in late morning deals on selling of the US currency by exporters amid sluggish stock markets.

In lacklustre trade at the Interbank Foreign Exchange (Forex) market, the Indian currency opened at 39.53/55 a dollar against the previous close of 39.53/54 per dollar.

However, the rupee improved marginally to quote at 39.5150/5250 in late morning deals.

The rupee got support from dollar liquidation by exporters and lack of any major intervention by the Reserve Bank of India.

Besides Nikkei, most of the other Asian markets are closed today for the Lunar New Year holiday. The benchmark Sensex was down by over 127 points at 1045 hours today.

Rupee Ends Slightly Up Against Dollar

MUMBAI: The rupee today ended slightly up at 39.2950/3050 against the greenback on fairly heavy capital inflows amid weakess in equity markets and some dollar demand from banks.

The local currency drew support from strong portfolio inflows through the IPO route. Reliance Power initial public offer fetched nearly USD 1.0 billion this week.

In fairly active trade at the Interbank Foreign Exchange (forex) market, the rupee resumed weak at 39.35/37 a dollar and later moved in a range of 39.27 and 39.37 during the day against its Thursday's close of 39.3050/3150 a dollar.

Banks bought dollar due to reporting Friday today, forex dealers said adding "they absorbed part of dollar sales by traders at initial stages".

Initial dollar sales was triggered by indications that the US central bank was willing to cut the benchmark Fed funds rate aggressively this month, commented a dealer.

The US unit was near two-year low against Japanese yen in overseas markets.

Easing global crude oil prices and fears of a possible recession in the US also aided the rupee sentiment.

Meanwhile, Asian indices, which traded in red during the day, later ended with moderate gains. The Indian benchmark Sensex, however, plunged by 687 points or 3.5 per cent due to heavy FII pullout.

The central bank, which was very active in the past few days, remained sidelined during the day, traders said.

Foreign Institutional Investors (FIIs) withdrawals were amounted to about USD 1.0 billion in the current week.