Stocks in India snapped a three-day down trend on Thursday but not without experiencing extremes in volatility that saw the benchmark Sensex Index swing 500 points intraday. Traders appear to be putting aside any negative sentiment created by the fuel price hike and snapping up stocks they deem to be undervalued. The Sensex Index had plunged more than 900 points over the past three trading sessions.
"There is a lot of volatility in the market. Unless it gains some stability, it is difficult to take a call on the direction. Nevertheless, valuations are attractive at this stage," said Jignesh Shah of ABN Amro Bank.
The Bombay Stock Exchange's Sensex Index slipped 254.93 points, or 1.64%, to 15,769.72. Here's a look at how some India-based American depositary shares traded in the U.S. on Thursday.
Stifel Nicolaus & Company said it will keep its hold rating on shares of Infosys Technologies(INFY - Cramer's Take - Stockpickr) but raise its estimates for the Indian information technology firm. In a note to clients a Stifel analyst said due to the Indian government's approval of a one-year extension of the software technology park tax exemption, it is raising its EPS estimates for 2009 from $2.47 to $2.54 and for 2010 from $2.79 to $2.82. American depositary shares of Infosys, which trade on the Nasdaq, surged 5.7% to $49.37.
Stifel Nicolaus & Company also reiterated its buy rating for U.S.-based information technology provider Cognizant Technology Solutions(CTSH - Cramer's Take - Stockpickr) and set its price target at $41. Stifel raised its EPS estimates for 2009 from $1.74 to $1.93 and for 2010 from $2.15 to $2.16, citing the software technology park tax exemption. Cognizant has a large exposure to the Indian technology market. Shares of Cognizant moved up 3.5% to $36.78.
Thursday, June 5, 2008
shares gain in early trade
NEW YORK (CNNMoney.com) -- Stocks rallied near midday Thursday, with the Dow up over 100 points, as investors welcomed a surprise dip in weekly jobless claims, strong May sales from Wal-Mart Stores and a merger in the telecom sector.
The Dow Jones industrial average (INDU), the broader Standard & Poor's 500 (SPX) index and the Nasdaq composite (COMP) all gained at least 1% over 2 hours into the session.
Stocks rose modestly at the open, but picked up the pace as the morning wore on, thanks to the mix of economic and company news. Meanwhile, gas and oil prices continued to move higher and the dollar retreated versus the euro after several days of gains.
The better-than-expected retail sales results from discounters such as Wal-Mart and Costco fueled Thursday's rally, said Dave Rovelli, managing director of U.S. equity trading at Canaccord Adams. However, he noted that the improved sales were a result of the economic stimulus checks being mailed out, rather than a bigger indication of the health of the consumer.
On the upside, "a lot of people thought consumers were going to have to hoard their checks because they have to pay their mortgage and $4 a gallon for gas," Rovelli said. "So I guess there is some reassurance that the consumer isn't dead, at least at the lower end of the retail picture."
Stocks were mixed Wednesday after reports that Moody's could lower the credit ratings of bond insurers Ambac and MBIA trumped upbeat economic news and lower oil prices.
Verizon buys Alltel. The Dow component said it's buying the rural wireless carrier from a private equity group for $28.1 billion in a deal that will create the largest U.S. wireless carrier. Verizon shares jumped over 5%. (Full story).
Jobless claims drop. The number of Americans filing new claims for unemployment fell 18,000 last week to 357,000, versus forecasts for an unchanged reading. The report was a positive amid hopes that the economy can avoid a recession. However, the four-week moving average, seen as a more reliable indicator, rose to a more than four-year high. Friday brings the big monthly non-farm payrolls report.
Housing market fallout continues. A report from the Mortgage Bankers' Association showed that the number of homes in foreclosure surpassed 1 million in the first quarter, a record number. (Full story).
Wal-Mart and other chain stores. The world's largest retailer reported higher-than-expected May sales at stores open a year or more, saying it felt the benefit of the first wave of economic stimulus checks having been mailed out. Wal-Mart (WMT, Fortune 500) shares gained more than 3%.
Costco (COST, Fortune 500) also benefited from the economic stimulus checks, with the warehouse club posting a bigger-than-expected rise in May sales. (Full story).
Airline woes continue. Continental (CAL, Fortune 500) said it would cut 3,000 jobs from its workforce of 45,000 and ground 67 planes amid soaring fuel prices and the struggling economy. On Wednesday, United parent UAL Corp. (UAUA, Fortune 500) also announced it would cut jobs and ground planes.
Gas hits new record. The national average price for a gallon of regular unleaded gas rose to $3.989 from $3.983 the previous day, AAA reported. It was the 28th record in 29 days.
Oil prices rise. U.S. light crude oil for July delivery rose 80 cents to $123.10 a barrel on the New York Mercantile Exchange, after having slid for the past few sessions.
Other markets: The dollar slipped versus the euro and the yen, after rising for the past few sessions.
Treasury prices fell, lifting the yield on the 10-year note to 4.01% from 3.97% late Wednesday. Bond prices and yields move in opposite directions.
COMEX gold for August delivery fell $11.30 to $872.50 an ounce
The Dow Jones industrial average (INDU), the broader Standard & Poor's 500 (SPX) index and the Nasdaq composite (COMP) all gained at least 1% over 2 hours into the session.
Stocks rose modestly at the open, but picked up the pace as the morning wore on, thanks to the mix of economic and company news. Meanwhile, gas and oil prices continued to move higher and the dollar retreated versus the euro after several days of gains.
The better-than-expected retail sales results from discounters such as Wal-Mart and Costco fueled Thursday's rally, said Dave Rovelli, managing director of U.S. equity trading at Canaccord Adams. However, he noted that the improved sales were a result of the economic stimulus checks being mailed out, rather than a bigger indication of the health of the consumer.
On the upside, "a lot of people thought consumers were going to have to hoard their checks because they have to pay their mortgage and $4 a gallon for gas," Rovelli said. "So I guess there is some reassurance that the consumer isn't dead, at least at the lower end of the retail picture."
Stocks were mixed Wednesday after reports that Moody's could lower the credit ratings of bond insurers Ambac and MBIA trumped upbeat economic news and lower oil prices.
Verizon buys Alltel. The Dow component said it's buying the rural wireless carrier from a private equity group for $28.1 billion in a deal that will create the largest U.S. wireless carrier. Verizon shares jumped over 5%. (Full story).
Jobless claims drop. The number of Americans filing new claims for unemployment fell 18,000 last week to 357,000, versus forecasts for an unchanged reading. The report was a positive amid hopes that the economy can avoid a recession. However, the four-week moving average, seen as a more reliable indicator, rose to a more than four-year high. Friday brings the big monthly non-farm payrolls report.
Housing market fallout continues. A report from the Mortgage Bankers' Association showed that the number of homes in foreclosure surpassed 1 million in the first quarter, a record number. (Full story).
Wal-Mart and other chain stores. The world's largest retailer reported higher-than-expected May sales at stores open a year or more, saying it felt the benefit of the first wave of economic stimulus checks having been mailed out. Wal-Mart (WMT, Fortune 500) shares gained more than 3%.
Costco (COST, Fortune 500) also benefited from the economic stimulus checks, with the warehouse club posting a bigger-than-expected rise in May sales. (Full story).
Airline woes continue. Continental (CAL, Fortune 500) said it would cut 3,000 jobs from its workforce of 45,000 and ground 67 planes amid soaring fuel prices and the struggling economy. On Wednesday, United parent UAL Corp. (UAUA, Fortune 500) also announced it would cut jobs and ground planes.
Gas hits new record. The national average price for a gallon of regular unleaded gas rose to $3.989 from $3.983 the previous day, AAA reported. It was the 28th record in 29 days.
Oil prices rise. U.S. light crude oil for July delivery rose 80 cents to $123.10 a barrel on the New York Mercantile Exchange, after having slid for the past few sessions.
Other markets: The dollar slipped versus the euro and the yen, after rising for the past few sessions.
Treasury prices fell, lifting the yield on the 10-year note to 4.01% from 3.97% late Wednesday. Bond prices and yields move in opposite directions.
COMEX gold for August delivery fell $11.30 to $872.50 an ounce
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