5:00PM NY, 11:00 PM Frankfurt, 2:00AM Mumbai – Global Markets

A shift of focus to earnings from mortgage bonds worries led the averages higher. Tech companies reported better than expected earnings. European and Latin American markets tracked the rise in New York. Asian markets closed higher led by a rise in Japan.

Yields edged lower on 10-year U.S. bonds and closed at 5.03% and 30-year bond rose to close at 5.118%.

Crude oil jumped $0.87 cents to close at $75.92 per barrel, natural gas closed up 20 cent to $6.73 per mBtu, and gasoline futures increased 0.39 cents to close at 219.14 cents per gallon.

Gold traded up $4.80 to close at $678.50 per ounce, silver increased 8.5 cents to close at $13.375 per ounce, and copper futures lost $61 to close at $7,901 per metric ton.

Dow Jones increased 82.19 to 14000.41, Nasdaq advanced 20.55 to 2,720.44, and S&P 500 rose 6.19 to 1,553.08. DAX index in Germany closed up 97.60 to 7,991.21, in Tokyo Nikkei 225 closed at 18,116.57, up 100.99, and Brazil Bovespa gained 568.72 to close at 58,124.57. Dow traded near 14,000 and finally managed to close at a record level above 14,000 mark. European averages traded higher throughout the day. Japan and other Asian index closed higher after falling for three days in a row. India and Hong Kong close at record levels.

Market averages in New York rose in the early morning trading hours lifted by brighter outlook from IBM and earnings from Bank of America, Washington Mutual, and Continental Airlines. Networking gear companies and select semiconductor companies reported a sharp rise in earnings. In Europe, SAP reported solid increase in sales and earnings. China reported second quarter economic growth at 11.9%.

The Fed Chairman on the second day of testimony said that while the core inflation is under control but the rising food and energy prices, slowing productivity growth and falling dollar are concerns. The Fed testimonies in the past have talked about hawkish stand on fighting inflation and but reported data lag in capturing rising inflation. Food, energy and housing prices have risen substantially in the U.S. but the Fed and investors have chosen to ignore recent rise these purchase. Several fixed income investor suspect that actual inflation in the U.S. significantly higher than it is captured in the wholesale and consumer price index.

Tech stocks earnings lifted trading sentiment in the morning trading in New York. IBM reported earnings jump of 15% lifting the stock 4.3%, Juniper Networks jumped 12% and Avici System gained 30% on better than expected earnings. Honeywell reported earnings of 78 cents per share on compared to 63 cents a year ago on 8.1% rise in sales.

Bank of America, Washington Mutual, Continental Airlines, Johnson Controls, and Wyeth reported better than expected earnings. Dow Jones, subject of News Corp takeover reported sharply lower earnings on falling advertising rates and revenue.

MF Global Brokerage, (MF: chart) an options and derivative brokerage unit of UK based hedge fund operator Man Group, priced its IPO in New York at $30 per share. The stock priced 20% below its expected range fell 8.2% on its first day of trading.

Latin American Markets advanced following the gains in New York and European trading. Argentina led the region with a gain of 1.77% followed by a gain of 1% in Brazil and 0.83% in Mexico. Chile closed 0.2% lower.

Argentine soy oil exporter Molinos Rio de la Plata jumped 12% lifting the index on expectations that the operating margins will improve on higher sales in the international markets. Brasil Telecom fell 1.7% on the news that Telecom Italia sold its stake in the company at 29% lower than the closing price. Building materials maker in Brazil, Duratex, jumped 4% on the news that the industry domestic sales in June rose 19%. In Chile Supermercados Unimarc jumped 17% after surging 20% on the news that the second largest operator in the industry, Cencosud is looking to buy the company.


3:00PM New York, 9:00PM Frankfurt – European markets closed higher across the region.

European Markets closed higher across the region led by 1.2% rise in Switzerland and Germany followed by 1.1% rise in UK and France, and 1% rise in Spain, the Netherlands and Italy. Broker upgrades and earnings drove the indexes in the region higher.

SAP earnings rose 8% to 449 million euros on software sales license revenue of 715 million euros with a gain of 18%. SAP stock surged 6.1%. Pharmaceutical company Roche reported net income for the first half 4.92 billion Swiss francs. Roche jumped 3%. Roche chief executive Franz Humer will step down and assume the rose of chairman of the board at the UK based liquor and drinks company Diego.

Vodafone (VOD: chart) reported new subscriber addition in the second quarter ending in June of 9.1 million with a total of 232 million subscribers. The stock gained 0.8%.

Sandvik AB, Swedish maker of cutting tools, reported second quarter earnings surged 38% to 2.62 billion kronor.

Food and snack products companies traded higher amid merger and takeover news. Nestle reportedly held talks with Pepsi to merge two businesses but declined the opportunity. Wall Street Journal reported that the companies could not find enough synergies between businesses. Nestle jumped 2% on the news. Groupe Danone jumped 2.4% and Unilever jumped 2.4%.