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Market Update : 
Weak Rebound in U.S. Stocks
Author: 123jump.com Staff
123jump.com
Last Update: 4:14 PM EST December 18 2007


U.S. stocks closed higher but traded sideways for the most of the session. Stocks opened higher in the morning after better than expected earnings from Goldman Sachs and Adobe. Best Buy earnings met the expectations and revised the guidance for the year. The European Central Bank auction to offer credit at 4.21% attracted bids of $500 billion from nearly 400 banks in the euro zone. European markets edged higher but brokers declined. Nestle fell on a downgrade. Gold closed above $800.

 
[R]4:00PM New York, 10:00PM Frankfurt, 8:00AM Sydney[/R]

[R]Global Markets Indexes[/R]

Dow Jones Industrial Average closed up 65.27 or 0.48% to a close of 13,232.47, S&P 500 edged higher 0.59% or 9.08 to 1,454.98, and Nasdaq Composite Index traded up 21.57 or 0.77% to a close of 2,596.57. In Toronto TSX Composite lost 19.18 or 0.14% to close at 13,367.93.

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

General Motors led the gainers in the index with a rise of 2.9% followed by increases in Pfizer of 2.4%, in AIG of 2.3%, in IBM of 2.2%, and in Alcoa of 1.9%. DuPont led the decliners in the index with a fall of 0.7% followed by losses in JP Morgan and Proctor & Gamble of 0.6%, and in Citigroup of 0.5%.

Of the stocks in S&P 500, 367 closed higher, 127 fell, and 6 were unchanged.

Three stocks fell more than 3% and twenty one stocks rose more than 3%.

H&R Block led the gainers in the index with a rise of 6% followed by increases in Hess Corp of 5.6%, in Freddie Mac and Fannie Mae of 5.5%, in Gamestop Corp of 4.9%, and in Synovus Financial of 4.8%. E*Trade led the decliners in the index with a fall of 4.5% followed by decreases in Countrywide of 3.4%, in Coach of 3.2%, and in Goldman Sachs of 2.9%.

In London FTSE 100 Index up by 22.30 or 0.36% to 6,300.10, in Paris CAC 40 Index increased 18.42 or 0.33% to close at 5,533.30, and in Frankfurt DAX index also increased 42.70 or 0.55% to close at 7,868.14. In Zurich trading SMI closed down 54.11 or 0.63% to 8,490.48.

In Tokyo Nikkei 225 Index declined 41.93 or 0.27% to close at 15,207.86, in Hong Kong Hang Seng index closed up 136.29 or 0.51% to 26,732.87, in Australia ASX 200 declined by 39.20 or 0.62% to close at 6,292.60.

In South Korea Kospi Index increased 21.65 or 1.18% to close at 1,861.47, Thailand closed down 3.72 or 0.45% to 813.90, and Indonesia edged lower 18.69 or 0.70% to 2,646.23. India closed lower by 181.71 or 0.94% to 19,079.64.

In Latin Markets Brazil led the gainers with a rise of 2.2% followed by increases in Mexico of 4.2%, and in Mexico of 0.9%. Colombia led the decliners with a loss of 2.6% followed by losses in Peru of 1.5%, in Chile and Argentina of 0.07%, and in Venezuela of 0.03%.

Bond Yields decreased on 10-year U.S. bonds to 4.14% and 30-year bonds declined to 4.56%.

[R]Commodities, Metals, and Currencies[/R]

Crude oil fell $0.93 to close at $89.70 per barrel for a front month contract, natural gas increased 10 cents to $7.13 per mBtu, and gasoline futures decreased 3.24 cents to close at 230.30 cents per gallon.

Gold edged higher $8.10 in New York trading to close at $807.40 per ounce, silver closed up 19 cents to $14.165 per ounce, and copper for front month delivery lost 0.45 cents to 288.45 per pound and in London futures fell $165.50 to $6,350.00.

Dollar edged lower against euro to $1.4404 and higher to 113.315 yen.


[R]10:00AM New York – U.S. stocks edged higher after the release of earnings from Goldman Sachs and Adobe and housing starts report. ECB pumped $500 billion of liquidity in euro zone.[/R]

Dow Jones Industrial Average rebounded at the opening 64.61 to 13,232.97, Nasdaq increased 13.04 to 2,587, and S&P 500 edged higher 7.92 to 1,453.82.

Market averages after thirty minutes of trading edged higher on better than expected earnings from Adobe, Goldman Sachs and weak housing start report.
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