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Market Update : 
Recovery in Financials Lifts Averages
Author: 123jump.com Staff
123jump.com
Last Update: 8:19 AM EST January 09 2008


U.S. stocks rebounded in the afternoon rally after Warren Buffett of Berkshire Hathaway said that he may invest in bond insurers. The comments lifted bond insurers from the lows of the day. On the back of the commnets financial services and brokerage firms rallied. Merrill Lynch, Morgan Stanley, and Goldman Sachs advanced. Dupont jumped 5% after lifting earnings estimate for 2007 and raised guidance for 2008.

 
[R]5:00PM New York, 11:00PM Frankfurt, 9:00AM next day Sydney[/R]

European Markets

In London FTSE 100 Index closed lower 83.80 or 1.32% to 6,272.70, in Paris CAC 40 Index decreased 60.25 or 1.10% to close at 5,435.42 and in Frankfurt DAX index lower 67.28 or 0.86% to close at 7,782.71. In Zurich trading SMI closed higher 23.42 or 0.28% to close at 8,339.81.

North American Markets indexes

Dow Jones Industrial Average closed up 146.24 or 1.16% to a close of 12,735.31, S&P 500 closed up 18.94 or 1.36% to 1,409.13, and Nasdaq Composite Index traded up 34.04 or 1.39% to a close of 2,474.55.

In Toronto TSX Composite rose 38.19 or 0.47% to close at 13,579.94.

Of the 30 stocks in Dow Jones Industrial Average, 24 closed higher, 6 closed lower, and none was unchanged.

DuPont led the gainers in the index with a rise of 4.75% followed by increases in Microsoft of 3%, in Hewlett Packard of 2.9%, in Coca Cola of 2.7%, and in American Express of 2.4%.

General Motors led the decliners in the index with a fall of 2.2% followed by losses in Disney of 1.24%, and in AT&T of 0.4%.

Of the stocks in S&P 500, 338 closed higher, 157 fell, and five were unchanged.

Twenty five stocks fell more than 3% and seventy two stocks rose more than 3%.

Unisys led the decliners in the index with a fall of 14% followed by losses in Circuit City of 11%, in Advanced Micro Devices of 7.9%, in CenturyTel of 7.4%, and in Countrywide Financial of 6.4%. Countrywide lost 29% in yesterday’s trading.

Apollo Group led the gainers in the index with a rise of 16% followed by increases in VF Corp of 8.5%, in SLM Corp of 7.8%, in E*Trade Group of 6.7%, in First Horizon of 6.3%, and in CIT Group of 6.1%.

South American Markets Indexes

In Latin Markets Chile led the decliners in the region with a fall of 2.59% followed by decreases in Argentina of 2.40%, in Peru of 2.06%, in Colombia of 0.65%, and in Venezuela of 0.6%.

Brazil led the gainers with a rise of 0.96% followed by increases in Mexico of 0.47%.

Asian Markets

In Tokyo Nikkei 225 Index closed higher 70.49 or 0.49% to 14,599.16, in Hong Kong Hang Seng index increased 502.95 or 1.86% closed to 27,615.85, in Australia ASX 200 index higher 46.20 or 0.74% to close 6,159.50.

In South Korea Kospi Index increased 18.24 or 1.00% to close at 1,844.47, in Thailand SET index closed higher 8.78 or 1.08% to 820.47, and Indonesia JSE Index edged increased 44.64 or 1.60% to 2,830.26. Sensex index in India closed lower 3.55 or 0.02% to 20,869.78.


Bond Yields increased on 10-year U.S. bonds to 3.79% and 30-year bonds increased to 4.34%.
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