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Market Update Analysis: 
Financials Lift S&P 500 by 1.75%
Author: 123jump.com Staff
123jump.com
Last Update: 8:56 PM EST January 28 2008


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U.S. stocks rallied ahead of the Fed meeting. Investors hoping that a rate cut of 0.75% last week will be followed by another rate cut of as much as 0.5%. Merger talks between Chicago Merc and Nymex heated up, after both companies confirmed on-going talks. Nymex jumped 11% on the news. Alliance Data Systems plunged 35% after Blackstone Group cited regulatory hurdle to the deal. Alliance disagreed with the assertion. McDonalds dropped 6% after its domestic stores reported weak sales in December.

 
Tokyo Dome Corporation gained on Nikkei news online reports that transactions of office buildings and commercial facilities in Japan soared 31% from a year ago to 177 cases in December buoyed by strong demand for properties in the Tokyo metropolitan area from overseas investors.

KDDI Corporation rose after reporting Friday that net profit for the nine months to December rose 12.4% to 214.8 billion from a year ago period.

The company also reported that revenue increased 7.2% for the period under review to 2.64 trillion yen led by a rise of 1.9 million subscribers to its “au” mobile phone service.

KDDI president Tadashi Onodera added that the company now expects a record operating profit of more than 400 billion yen.

Sumco Corporation led decliners in Nikkei 225 stocks with a plunge of 11.46% followed by losses in Fanuc Limited of 9.09%, in Mitsumi Electric Company of 8.85%, in Fuji Electric House of 8.19%, in Mitsumi Engineering & Shipbuilding of 8.17%.

Exporters also fell after the yen gained from 106.72 to 106.08 against the dollar at the close of trade. Canon Incorporated fell 4.94%, Sony Corporation shed 3.52% and Toyota Motor Corporation declined 2.51%.
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