Midday Market Update: Markets Extend Prior Week's Gains

April 7, 2008

By Jennifer Yousfi, Contributing Writer, Money Morning

By Jennifer Yousfi
Managing Editor

The U.S. markets extended last week's gains on news that the largest U.S. savings and loan was close to securing a deal to receive much-needed capital.

At midday in New York, the blue-chip Dow Jones Industrial Average Index was up 68.88 points (0.55%), to trade at 12,678.30. The tech-laden Nasdaq Composite Index increased 9.67 points (0.418%), to reach 2,380.65. And the broader Standard & Poor's 500 Index rose 9.07 points (0.66%), to hit 1,379.47.

The basic materials sector (up 2.09%) and the energy sector (up 1.54%) posted the biggest gains, while the consumer non-cyclical sector (down 0.07%) posted the only decline.

Story continues below…

Shares Washington Mutual Inc. (WM) surged over 20% by midday on news that the mortgage lender is close to a deal with private equity firm TPG Inc. that would boost its balance sheet by $5 billion.

Seattle-based WaMu, as the thrift is often called, is the latest financial firm to seek an outside capital infusion due to heavy subprime-related losses.

Citigroup Inc. (C) analysts upgraded projections for copper, nickel, lead and aluminum, Bloomberg News reported, causing shares of Newmont Mining Corp. (NEM) and other members of the S&P 500's Materials Index to head higher.

In overseas markets, Japan's Nikkei Index gained 157.01 points to close at 13,450.23. Hong Kong's blue-chip Hang Seng Index had a 314.13-point increase, to close at 24,578.76.

European bourses were up with the Paris-based CAC40, London's FTSE 100, Madrid's IBEX 35 and the Frankfurt-based DAX all posting gains.

At midday, the dollar had lost ground against the euro (down 0.019%), but gained ground against the yen (up 0.915%) and the pound sterling (up 0.010%).

News and Related Story Links: