10:05 AM New York – U.S. indexes edged higher driven by better-than-anticipated earnings but weekly jobless claims jumped 34,000 to 386,000. UnitedHealth lifted full-year outlook and Morgan Stanley swung to profit. Fab.com raised $105 million that valued the online retailer at $1 billion.
U.S. indexes advanced boosted by strong corporate earnings and weekly jobless claims increased in the last week.
UnitedHealth lifted its outlook for the current year and revised earnings higher and Union Pacific said total operating revenues grew to a quarterly record and Morgan Stanley surprisingly posted a gain. Nokia said quarterly loss widened and revenues declined.
Fab.com, the online marketplace for design-centric goods raised $105 million from leading venture capitalists that valued the company at $1 billion.
The New York City based online retail products curator expects revenues in the current year to jump to $100 million, only a year after the company switched from a gay social networking site. The company has more than 5 million registered members.
European indexes wavered after Spanish bond yield surged to a new high in the last sixteen years and spreads with the German bund shot up to a near record of 580 basis points.
Indexes were vulnerable to swinging sentiment ahead of the Bundestag vote in Germany on the Spanish bank bailout and a downbeat report from the International Monetary Fund.
The IMF urged for determined action from leaders towards establishing banking and fiscal unions in the euro area to bolster monetary union.
German lawmakers are scheduled to vote on Spanish bank bailout in Berlin later this afternoon.
The yields on Spain’s benchmark 10-year bonds climbed six basis points to 7.02%
France sold €8.96 billion bonds today at lower borrowing costs. The Agence France Tresor said the yield on five-year notes maturing in July 2017 fell to 0.86% compared to 1.43% in the previous auction. The bid-to-cover ratio was 1.88.
The country also sold €1.81 billion three-year notes and €2.65 billion of four-year notes.
Markets in Japan, Australia, Hong Kong, South Korea and India closed higher and crude oil futures rose for the seventh day in a row in the regional trading.
U.S. Weekly Jobless Claims Surge
Seasonally adjusted weekly jobless claims in the U.S. increased 34,000 to 386,000 in the week ended July 14 from the revised 352,000 claims for the previous week, according to a report released by the U.S. Labor Department today.
The 4-week moving average was 375,500, a decrease of 1,500 from the revised average of 377,000 in the previous week.
Veolia to Sell Solid Waste Business
Veolia Environnement said its American subsidiary agreed to sell the U.S. solid waste activities to a company controlled by Highstar Capital, an infrastructure fund manager, for a total transaction value of $1.909 billion.
Following the completion of this transaction, Veolia’s net debt will be reduced by $1.82 billion or €1.489 billion.
Chevron Acquires Interest in Kurdistan Concessions