Stock Market News for May 29, 2009

Asian stock markets jumped Friday after Japanese production numbers surged the most in 56 years and India’s economy grew faster than economists had forecast.  Japan’s Trade Ministry said industrial output in that country jumped 5.2% in April and India’s economy grew an unexpected 5.8% in the first quarter, beating analysts’ projections.  The numbers buoyed investors’ confidence and trading picked up as the session progressed.  Japan's Nikkei 225 stock average added 0.8% to 9,522.50 while Hong Kong's Hang Seng advanced 1.6% to 18,171.00.  India's Sensex jumped 2.8% to 14,701.98 as news of the country's economic growth took investors by surprise.  South Korea's Kospi edged up 0.3%.

Stock futures show Wall Street is headed for higher open.  Dow futures rose 0.8% at 8,450. Standard & Poor's 500 index futures rose 0.7% to 911.80 and Nasdaq 100 index futures rose 1% to 1,433.00. 

Although government’s ability to fund its massive debt requirements played in the minds of investors throughout the week, on Thursday traders chose to look at the bright side of things sending the DJIA up 1.3% to 8403.80; the NASDAQ up 1.2% to 1751; and the S&P higher by 1.5% to 906.83.  Stocks seesawed through the session as a better-than-expected auction of seven-year Treasury notes helped assure investors of an economic recovery.  And this optimism saw 26 of the DJIA’s 30 ending higher and 77 of the NASDAQ 100 ending the day in the green. AT&T CEO, speaking at an investor conference yesterday, also sounded optimistic, noting, "I'm not seeing green shoots...But we haven't seen any deterioration either."

In last night's speech Dallas Fed President Fisher, speaking on the recent steepening of the Treasury yield curve, whether a result of burgeoning supply or improved recovery prospects, noted "I think it is probably a little bit of both, discounting the supply of new debt, but I detect...there is a pick up in confidence about the future."

As risk appetite grew, financials advanced and led the gainers on the DJIA.  JP Morgan (NYSE:JPM - Analyst Report) jumped 5.7%; Bank of America (NYSE:BAC - Analyst Report) was up 3.6%; and American Express (NYSE:AXP - Analyst Report) recorded a 3.4% rise.  The oil and gas sector rose 3.0%, with Chevron (NYSE:CVX - Analyst Report) increasing 1.9% and ExxonMobil (NYSE:XOM - Analyst Report) rising 1.4% on the DJIA.  Weekly crude inventory levels posted a much sharper 5.413 million barrel drop than the -0.1 million drawdown anticipated, and deeper than last week's 2.1 million decrease. As expected, OPEC maintained production at current levels.  A rise in oil prices also boosted energy producers with Exxon Mobil Corp. (NYSE:XOM - Analyst Report) adding 1.4% to $69.23. Schlumberger (NYSE:SLB - Analyst Report) jumped 5.5% to $56.35. Occidental Petroleum Corp. (NYSE:OXY - Analyst Report) advanced 4.2% to $65.47.