Stocks: Tuesday's review
Japanese stocks rose, sending the Nikkei 225 Stock Average to its biggest gain in three weeks, on renewed confidence Greece will be rescued from a default that could destabilize Europe.
Nissan Motor Co., a carmaker that gets 15 percent of its revenue in the region, advanced 3.1 percent.
Aeon Co. jumped 3.8 percent after the Nikkei newspaper said profit at Japan’s second-largest retailer by market value increased 30 percent in the three months through May.
Kubota Corp. (6326), a maker of farm equipment that had delayed earnings forecasts because of damage from March’s earthquake, advanced 2.9 percent after saying profit will increase this year.
Among stocks that fell, Tokyo Electric Power Co., battling the worst nuclear crisis since Chernobyl, lost 2.9 percent to 305 yen, the most on the Nikkei.
Dainippon Screen Manufacturing Co., a maker of chip equipment, retreated 1.3 percent to 661 yen. JPMorgan Chase & Co. yesterday cut its rating on the company to “neutral” from “overweight,” citing higher costs for employment and research and development.
European stocks climbed the most in two months amid speculation that Greek Prime Minister George Papandreou will win a confidence vote that moves the nation a step closer to avoiding a default.
EFG Eurobank Ergasias SA (EUROB) led a rally in Greek banks, jumping 9 percent.
Misys Plc (MSY) surged 9 percent after the software provider said it has received a preliminary takeover approach.
Syngenta AG (SYNN) rose 3.6 percent after the chemical maker said sales growth in the second quarter has been “robust.”
Petropavlovsk Plc (POG) surged 7.6 percent to 729.5 pence, the biggest advance since November. The producer of gold in Russia said sales of the precious metal increased 64 percent through the first five months of this year as prices gained.
Nokia Oyj (NOK1V) rallied 3.9 percent to 4.21 euros, paring yesterday’s 4.3 percent selloff, after the company unveiled the N9 smartphone in Asia to fend off competition from phones powered by Google Inc.’s Android. The company will start shipping the product later this year.
SABMiller Plc (SAB) lost 3.6 percent after Australia’s Foster’s Group Ltd. rejected its $10 billion cash offer.
Stocks were solidly higher Tuesday, with technology shares leading gains, as investors waited for the confidence vote for Greek Prime Minister George Papandreou later tonight.
Company: Aloca (AA, Fortune 500), Caterpillar (CAT, Fortune 500) and DuPont (DD, Fortune 500) led the gains, with shares up more than 3%. Procter & Gamble (PG, Fortune 500) was the biggest laggard, down 1%.
Tech stocks also performed well, with AMD (AMD, Fortune 500), Priceline (PCLN), Western Digital (WDC, Fortune 500) and Netflix (NFLX) all up more than 3%. Research in Motion (RIMM) shares, which crumbled more than 20% last week, were up 8% in late-afternoon trading.
Economy: Existing home sales fell 3.8% to an annualized rate of 4.81 million in May, from a rate of 5 million in April, according to the National Association of Realtors. The figure was better than the 4.79 million pace economists had forecast.
The Federal Reserve Open Market Committee starts its two-day meeting Tuesday. The central bank's interest rate decision will be announced on Wednesday.