Wall Street Wrap for 27 July 2010

Wall Street Wrap for 27 July 2010

After a 3-day run-up, US markets saw indices lose steam on Tuesday, with the Dow ending relatively flat, while the S&P 500 and the Nasdaq lost ground for the day. Good second quarter profit growth reports were offset by a fall in consumer confidence, which fell in July, indicating consumer spending could decline in the coming months. The closely watched index fell to 50.4 from 54.3 in June.

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In corporate news, BP replaced its British CEO Tony Hayward with American Robert Dudley effective 1 October. The company also reported a huge quarterly loss of $17.2 billion as a result of the Gulf of Mexico oil spill. The stock fell 1.7%.

Good news came from several financial companies. Swiss company UBS reporter a higher Q2 profit of $1.9 billion, versus a year-ago loss as a result of better business in its investment bank. Its rival Credit Suisse also announced a higher Q2 net income of 1.6 billion francs. Both stocks soared with Credit Suisse ending up almost four and a half percent and UBS up almost 9%.

Germany’s biggest bank, Deutsche Bank reported a 9% increase in second-quarter earnings due to strong business in transaction banking and asset management, but announced weaker revenues as a result of a fall in its investment banking business. Shares ended higher almost 3%.

Chemical maker DuPont said its quarterly sales tripled to $1.2 billion as a result of better demand and increased prices. Sales from emerging markets grew by 32%. Shares gained 3.6%.

In world markets, European indices ended on a high note. Asian markets ended mixed with Japan’s Nikkei and the Shanghai Composite down slightly and Hong Kong’s Hang Seng up 0.6%.

In commodities, U.S. light crude oil for September delivery was down $1.48 to $77.50, while gold for August delivery fell $25.10 to $1,158 per ounce.

In bonds, the yield on the 10-year note went up to 3.05% from 2.99% on Monday after treasury prices fell.