5:00PM New York, 11:00PM Frankfurt, 9:00AM Sydney

U.S. market averages declined after a day of sharp rise. Asian and European markets in overnight trading surged on the back of market rise in New York in the previous session. Macy’s reported that same-store sales are likely to decline in the fourth quarter and revenue may rise at a slower pace then earlier estimated. Apparel retailers fell after the Macy’s forecast. Sears, Kohl’s, Dillards, and JC Penney declined.

Macy’s reported third quarter earnings of 8 cents compared to 3 cents a year ago on 0.3% sales increase to $5.91 billion. Macy’s expects sales in the fourth quarter to be between down 2% to up 1% and expects to be between $8.7 billion and $8.9 billion.

United Rental fell more than 30% after Cerberus Capital withdrew its offer. Cerberus had agreed to acquire the company at $34.50 per share or $7 billion.

The rental company said in a statement, “The Company noted that Cerberus has specifically confirmed that there has not been a material adverse change at United Rentals. United Rentals views this repudiation by Cerberus as unwarranted and incompatible with the covenants of the merger agreement.”

Merrill Lynch has reportedly appointed John Thain as its chief executive. Thain is currently heading NYSE Euronext and will be the first outsider to head the company at Merrill Lynch.

Global Markets Indexes

Dow Jones Industrial Average fell 92.75 or 0.70% to a close of 13,214.34, S&P 500 dropped 0.78% or 11.53 to 1,469.52, and Nasdaq Composite Index declined 29.33 or 1.10% to a close of 2,644.32. In Toronto TSX Composite added 69.08 or 0.50% to close at 13,774.22.

Of the 30 stocks in Dow Jones Industrial Average, 7 closed higher, 23 closed lower, and none were unchanged.


Disney led the decliners in the index with a fall of 3.64% followed by losses in IBM of 2.1%, in Microsoft of 1.8%, and in Caterpillar of 1.6%. Wal-Mart Stores led the gainers in the index with a rise of 0.8% followed by increases in Honeywell International of 0.6%, in Coca-Cola of 0.52%.

Of the stocks in S&P 500, 138 closed higher, 359 fell, and 3 were unchanged. Fifty Eight stocks fell more than 3% and seven stocks rose more than 3%.

E*Trade Financial led the gainers in the index for the second day in a row with a rise of 10% followed by increases in Allegheny Technology of 5.6%, in Leggett & Pratt of 5.4%, in Ambac Financial of 5.1%, in McCormick of 4.33%, in Monster Worldwide of 3.1%, and in Bear Stearns of 3%. Avery Dennison led the decliners in the index with a fall of 7.4% followed by losses in Macy’s of 7%, Jones Apparel of 6.5%, in Sun Microsystems of 6%, in Family Dollar of 5.5%, and in Tesoro Corp of 5.2%.

In London FTSE 100 Index closed up 69.70 or 1.10% to 6,432.10, in Paris CAC 40 Index increased 74.69 or 1.35% to close at 5,613.60, and in Frankfurt DAX index gained 5.55 or 0.07% to close at 7,783.11. In Zurich trading SMI added 130.40 or 1.53% to close at 8,631.04.

In Tokyo Nikkei 225 Index surged 372.93 or 2.47% to close at 15,499.56, in Hong Kong Hang Seng index closed up 1,362.66 or 4.90% to 29,166.01, in Australia ASX 200 closed up 83.40 or 1.28% to close 6,598.60. India soared 4.69% or 893.58 in largest one-day gain to 19,929.06.

In South Korea Kospi Index increased 39.69 or 2.05% to close at 1,972.58, Thailand closed up 3.85 or 0.45% to 861.51, and Indonesia edged higher 37.66 or 1.42% to 2,691.87.

Philippines increased 82.13 or 2.28% to 3,681.62. Singapore increase 49.44 or 1.42% to 3,524.91 and Malaysia increased 1.15 or 0.08% to 1,384.58.

In Latin Markets Brazil led the gainers with a rise in Bovespa Index of 2.71% followed by increases in IGBC General Index in Colombia of 2.46%, in Lima General Index in Peru of 2.18%, in Chile Stock Market Select of 1.43%, and in Bolsa Index in Mexico of 0.73%. Merval Index in Argentina edged 0.2% higher but Venezuela Stock Market Index dropped 0.7%.

Bond Yields edged higher on 10-year U.S. bonds to 4.26% and 30-year bonds were unchanged to 4.60%.

Commodities, Metals, and Currencies

Crude oil rose $2.92 to close at $94.09 per barrel for a front month contract, up 43.00% for the year, natural gas decreased 11 cents to $7.84 per mBtu, and gasoline futures increased 5.37 cents to close at 237.04 cents per gallon.

Gold edged higher $15.70 in New York trading to close at $814.70 per ounce, silver closed up 46 cents to $15.06 per ounce, and copper for front month delivery added 18.95 cents to 329.65 cents per pound and in London trading closed down $27.50 to $6,891.00.