4:15 PM New York – Stocks in New York traded higher on rising hopes of a speedy bank bailout in Spain. The S&P 500 index’s weekly gain was the best in the year so far. U.S. trade gap narrowed and German export declined for the first time in April and Italian output fell. Gold declined 2% in the week.
Wall Street retained positive bias as the expectations rose of a speedy approval for the bailout request from Spain. For the week, indexes advanced in a choppy trading with the news flow from the euro zone and China.
The Nasdaq index advanced 0.8% today and gained in four of the five days this week and added 3.8% in the period. The S&P 500 index gained 0.6% today and closed up 3.5% in the week. The advance was the best weekly gain in the year so far.
Commodities traded volatile in the week and gold fell in the last three sessions and closed down 2% in the week as the euro zone debt contagion reached to Spain and Greece prepares for election on June 17.
President Barack Obama stepped up pressure on European leaders and urged Greece to stay in the euro zone. President Obama also urged European leaders to facilitate recapitalization of banks in the currency union.
On the corporate front, Chesapeake Energy plans to sell its midstream assets for $4 billion in cash. Cooper second quarter net surged 55% to $54.9 million and revised outlook. McDonald''s May same store sales growth slows.
European markets closed lower but flirted with 1% decline as politicians, bankers and regulators work to finalize bank bailout in Spain. Trading volume across Europe fell in May as investors stay on the sidelines. The euro eased and commodities fell.
German exports declined in April for the first time this year and French business confidence fell and Italian output declined.
Stocks in Japan plunged on global worries despite better than expected domestic economic data. The GDP in the final quarter of fiscal year ending in March increased 1.2% and current account surplus was lower than expected in April. The Nikkei halted nine week of losing streak.
Australian indexes fell more than 1% after resources linked stocks eased as commodities prices declined. Three of the four largest banks in Australia passed on most of the latest rate cut from central bank. Qantas plunged 10% and extended losses for the fourth day.
Commodities, Bonds and Currencies
The yields on 10-year U.S. bonds decreased to 1.65% and 30-year U.S. bonds edged up to 2.77%.
The U.S. dollar edged down 0.4% to $1.251 to one euro and gained against the Japanese yen to 79.46 in New York trading.
Immediate delivery futures of Texas crude oil decreased 44 cents to $84.35 a barrel and Brent crude futures fell 24 cents to $99.68. Futures of natural gas increased 0.02 cents to $2.29 per mbtu and gasoline price increased 0.6 cents to 269.17cents a gallon.
In metals trading, copper decreased 6.3 cents to $3.30 per pound, gold increased $6.70 to $1,586.60 per ounce and silver fell 9 cents to $28.51.