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Market Update

U.S. Leads World Markets Rally on Construction and Manufacturing Strength

Author: Bikram Pandey
Last Update: 4:18 PM ET February 01 2013

4:15 PM Frankfurt Market indexes on Wall Street gained more than 1% and extended gains for the year. The S&P 500 index added 0.6% in the week and added 6.1% in the year so far on the strength in manufacturing and construction industry. World markets gained and the euro advanced to a 14-month high.

Stocks surged in New York after the release of jobs and manufacturing reports.

Investors bid up stocks after construction industry contributed to larger gains in jobs markets and manufacturing expanded at a faster pace in the U.S.

Employers added 157,000 jobs in January and the government revised November data to an increase of 196,000 and 247,000 surge in December.

The larger than expected increases in labor data only added to the positive sentiment in the market. Global markets also gained after China reported slight improvement in manufacturing and the euro zone manufacturing declined at the slowest pace in January.

On the earnings front, Aon fourth quarter net soared 10% and Chevron net soared 41%. Exxon Mobil fourth quarter net climbed 6% and Ingersoll-Rand net slipped 3%. Lear net surged more than seven-fold. Merck fourth quarter net declined 7% and Mattel net plunged 17%.

European markets rebounded at the fastest pace in three weeks after latest economic data in the region indicated improved manufacturing sector. The data in China and U.S. also supported optimism. Spanish index dropped 1.7% after a regulator lifted short selling ban.

In India, markets declined after the largest wireless carrier Bharti Airtel missed earnings expectations by a wide margin.

In other earnings news, Bhel third quarter net declined 18%. Jet Airways swung to Rs 85 crore net income. Marico net jumped 21%. MRPL net swung to a loss. M&M, Maruti Suzuki, TVS January sales slipped.

The Nikkei index added 0.5% and capped weekly gain of 2.6% and extended gains for the 12th week in a row. The yen declined to the low last seen in June 2010. Softbank reported third quarter net doubled. NEC soared 9% swung to a quarterly profit.

Australian markets extended gains after advancing nearly 5% in January. The latest manufacturing data from China indicated slower than expected improvement.

Commodities, Bonds and Currencies

U.S. treasury yield on 10-year bond closed up to 2.01% and on 30-year bond edged up to 3.18%.

The U.S. dollar inched lower to $1.365 to a euro and increased against the Japanese yen to 92.81 yen.

Immediate delivery futures of Texas crude oil increased 51 cents to $97.63 a barrel and Brent crude gained $1.05 to $116.67, futures of natural gas decreased 0.04 cents to $3.23 per mbtu and gasoline traded up 1.57 to 302.58 cents a gallon.

In metals trading, gold increased $8.20 to $1,670.20 per ounce and silver gained 59 cents to $31.96 and copper closed up 5.05 cents to $3.78 a pound.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc