Stocks: Thursday's review
The Nikkei 225 (NKY) Stock Average slipped for the first time in eight days after the government’s top energy official said nuclear reactors may not be restarted until stress tests are completed, driving down utilities and sparking concern manufacturers may face power shortages.
Kansai Electric Power Co., a utility that generates almost half of its power with nuclear plants, sank 8.4 percent after Trade Minister Banri Kaieda said reactors will have to undergo more safety checks following the earthquake disaster that crippled Tokyo Electric Power Co.’s Fukushima Dai-Ichi plant. Nissan Motor Corp., one of many manufacturers required to cut power usage, led carmakers lower.
European stock-index futures advanced before a report that may show the number of Americans filing claims for jobless benefits fell.
ASML Holding NV (ASML) and Solvay SA (SOLB) may be active as UBS AG recommended buying both stocks. ThyssenKrupp AG (TKA) might fall as Germany’s largest steelmaker said it plans to raise as much as 1.68 billion euros ($2.4 billion) in a share sale to help it reduce debt. Man Group Plc (EMG) may move after reporting increased funds under management.
The benchmark Stoxx Europe 600 Index slipped 0.3 percent yesterday, snapping the longest winning streak in two months, as China raised interest rates and Moody’s Investors Service cut Portugal’s credit rating to junk. The measure has fallen 5.6 percent from its February high amid speculation the region’s fiscal crisis will derail the economic recovery.
The number of Americans making initial claims for jobless benefits fell to 420,000 last week from 428,000 the prior period, according to a Bloomberg News survey of economists. The data comes a day before the Labor Department’s monthly payrolls report.
European stocks extended their advance as European Central Bank President Jean-Claude Trichet said the bank will suspend collateral rules for Portugal.
U.S. stocks jumped, sending the Standard & Poor’s 500 Index to an almost two-month high, as retail and job market data bolstered confidence in the economy.
Target Corp. (TGT), the second-largest U.S. discount retailer, and Kohl’s Corp. (KSS) rose at least 6.8 percent as June retail sales surpassed analysts’ projections. Urban Outfitters Inc. (URBN) rallied 6.9 percent to lead gains in the S&P 500 after Morgan Stanley recommended investors buy the shares. JPMorgan Chase & Co. (JPM) climbed 2.4 percent as banking shares soared.
The S&P 500 Index (SPX) climbed 1.3 percent to 1,356.16 at 2:37 p.m. in New York, its highest level since May 10 on a closing basis. The Dow Jones Industrial Average rose 125.98 points, or 1 percent, to 12,752, as a report by ADP Employer Services showed U.S. companies added more jobs than forecast in June.
U.S. stocks rose yesterday as gains in transportation and consumer-staple companies overshadowed a slowdown in service- industry growth and China’s interest-rate increase. The S&P 500 climbed 5.6 percent last week, its biggest weekly advance since July 2009.