DJI - NEW YORK, April 9 (Reuters) - U.S.
stocks advanced on Tuesday, with the Dow closing at a record high on a rally in
cyclical shares and as earnings season started to heat up.
With the day's advance, the S&P
500 again neared its all-time intraday high of 1,576.09, recovering from steep
losses last week, the index's worst of 2013.
The return to near-record levels
indicates that investors are again using market declines as buying
opportunities. The top sectors of the day, technology and energy, are groups
that are closely tied to the pace of economic growth.
"It's encouraging that we're
seeing cyclical sectors lead the rally. It's a healthy sign - investors believe
the market can continue to run higher," said Joseph Tanious, global market
strategist at J.P. Morgan Funds in New York.
The Dow Jones industrial average advanced 59.98 points, or 0.41 percent, to 14,673.46, a record closing high.
The Standard & Poor's 500 Index gained 5.54 points, or 0.35 percent, to 1,568.61. The Nasdaq Composite Index added 15.61 points, or 0.48 percent, to close at 3,237.86.
Stocks also got a boost from a
promising start to the earnings season. While only 5 percent of S&P 500
companies have reported results so far, almost three-quarters of them have
topped expectations, according to Thomson Reuters data. Still, profits are seen
rising just 1.5 percent from a year-ago quarter, down from estimates in January
for growth of 4.3 percent.
"Expectations have gotten
managed down to the point where we could more easily see companies beat
expectations, making it easier for us to pop," said Kristen Scarpa, a New
York-based investment strategist at Barclays, which has a year-end target of
1,595 for the S&P 500.
Oils - NEW YORK, April 9 (Reuters) - Brent
crude oil futures rose on Tuesday, posting their biggest gain since late
December as a weak dollar and tame Chinese inflation data drew investors to
commodities.
U.S. crude oil prices also rose,
reaching $94.48 during the session and briefly exceeding the 50-day moving average
of$94.44, a technical level closely monitored by chart-watching analysts and
traders.
But Brent prices rose more sharply,
allowing its premium over U.S. crude to widen past $12, a day after it narrowed
to just over $11, the lowest level since June.
"The spread had narrowed
considerably over the past few weeks, so we have some unwinding of that
spread," said Stephen Schork, the editor of commodity newsletter The
Schork Report.
"That, coupled with the selloff
in the dollar, was pushing money into the oil market," Schork said.
The euro rose to $1.31, its highest
since mid-March, making dollar-denom`inated commodities more affordable for
holders of euros.
Chinese government data showed
inflation slowing. This eased concerns the Chinese central bank would tighten
monetary policy.
"The idea that central banks
are going to continue in their monetary policies and we’ll see liquidity
continue to expand makes commodities an attractive investment, and that’s
providing support for oil prices," said Gene McGillian, an analyst at
Tradition Energy in Stamford, Connecticut.
Brent May crude closed at $106.23 per barrel, up $1.57. During the session it fell as low as
$104.27, not far from the lowest price since July, the previous session's low
point of $103.40.
U.S. May crude closed at $94.20 a barrel, up 84 cents. It touched a session low of $92.86.
The spread between Brent and U.S.
West Texas Intermediate (WTI) closed at $12.03 a barrel, widening from $11.30
at the previous session's close.
CBOT Soybean - Soybean futures on the Chicago Board of Trade rose for a second straight session on Tuesday, rebounding off a
10-month low set last week as firm cash markets lifted nearby
contracts, traders said.
·
The
May/July soybean spread peaked at 27 cents, premium
May, its biggest inverse in 6-1/2 months.
·
Traders
adjusted positions a day ahead of USDA's monthly supply/demand
reports. The average estimate of U.S. 2012/13 soy ending
stocks, among analysts surveyed by Reuters, was 136 million
bushels, up 9 percent from USDA's March figure of 125 million,
but some traders covered short positions, wary of a smaller-than-expected
figure.
·
Bull-spreading
noted in soymeal but slowing export demand for U.S.
soymeal limits gains.
·
Fears
subside about bird flu hurting feed demand in China; Dalian September
soymeal futuresclose higher, halting a five-session
slide.
·
Brazil's
government supply agency, Conab, lowered its estimate
of the country's 2012/13 soybean harvest to 81.9 million
tonnes, from 82.1 million in March.
·
A
double-blow of heavy rains following drought has lowered soy
production prospects in Argentina, Hamburg-based oilseeds analysts
Oil World said.
·
Indian
soymeal exports to Iran have risen sharply in early 2013
despite trade sanctions and high Indian prices - Oil World.
BMD CPO - SINGAPORE, April 9 (Reuters) -
Malaysian palm oil futures ended slightly lower after hitting a near two-week
high on Tuesday as fears over the bird flu outbreak in China and its impact on
soybean prices outweighed hopes for lower palm inventory in the Southeast Asian
nation, the world's No.2 producer.
Industry regulator, the Malaysian
Palm Oil Board (MPOB), will on Wednesday report stock levels for March, with a
Reuters poll predicting a drop to 2.35 million tonnes from 2.44 million in
February.
"The rise in Dalian palm and
soy and also the overnight gain in U.S. soy are helping the rally, while
traders are also positioning ahead of MPOB data," said Ker Chung Yang,
investment analyst with Phillip Futures in Singapore.
"But the rise may be capped due
to the bird flu situation in China."
Traders are keeping a close watch on
the development of a new strain of bird flu in China, fearing that it could cut
demand for soy used in animal feed in the world's top importer of the bean, although
the World Health Organization said it was no cause for panic.
Soyoil is a close competitor of palm
oil and a fall in soy prices could wean away demand from palm.
The benchmark June contract on the Bursa Malaysia Derivatives Exchange closed 0.2 percent lower at 2,395
ringgit ($789) per tonne. Prices earlier touched a high of 2,419 ringgit, a
level last seen on March 28.
Total traded volumes stood at 29,311
lots of 25 tonnes each, compared to the average 35,000 lots seen so far this
year.
Market participants are also looking
out for Malaysian palm export data for the first 10 days of April, due on
Wednesday. Shipments edged slightly higher for March, the first increase in
four months, thanks to higher demand for refined products.
In other markets, Brent crude oil
rose above $105 per barrel on Tuesday, rallying from an eight-month low after
China's inflation slowed, giving it room to keep monetary policy easy and
support oil demand in the world's second-biggest consumer.
In vegetable oil markets, U.S.
soyoil for May delivery inched up 0.1 percent in late Asian trade.
The most active September soybean oil contract on the Dalian Commodities Exchange closed 0.5 percent higher.
Regional Equities - April 9 (Reuters) - Southeast Asian
stocks ended firmer on Tuesday with Malaysia edging up to a three-month high as
a solid start to the United States earnings season helped boost investor
sentiment.
Malaysia edged up 0.1 percent to hit a near three-month closing high with a $36.53
million foreign inflow.
Singapore .gained 0.4 percent, led by a 1.4 percent rise in Southeast Asia's largest
telecom operator Singapore Telecommunications Ltd
An increase in quarterly profit of
Alcoa Inc helped boost sentiment, easing concerns
about U.S. corporate results in the first three months of 2013.
Indonesian stocks edged up 0.04 percent, recovering from their two-week lows.
Nomura Equity Research said on
Tuesday a correction is likely in Indonesian stocks in the second quarter of
2013 following an expected softness in first quarter earnings due to cost and
competition pressures.
Vietnam,
the region's best performer so far this year, gained 0.8 percent as funds added
blue chips.
Bucking the trend, Thailand stock
market ended 1.3 percent weaker, but the head of
its bourse said buying would return after Songkran holiday from April 13-16.
"Investors should not be too
concerned with the market weakness. After Songkran holiday, I expect investors
to resume buying again," The stock exchange of Thailand president
Charamporn Jotikasthira told reporters on Tuesday.
