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Elite |
09-Nov-2010 07:17
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Stocks step down as gold steps up
NEW YORK (CNNMoney.com) -- Stocks ended lower Monday, as investors took a step back from last week's run-up and shifted their focus to the global economic picture. The Dow Jones industrial average (INDU) lost 38 points, or 0.3%, to end at 11,406.84. The S&P 500 (SPX) dropped 3 points, or 0.2%, to close at 1,223.25, and the Nasdaq (COMP) added 1 point to end at 2,580.05. Instead, investors turned to commodities. Gold surged to a new record high, settling at a record $1,403.20 an ounce, as jittery investors continue to see it as a hedge against inflation.
Stocks rallied last week on two major pieces of news. Tuesday's midterm elections saw the Republican party win control of the House. On Wednesday, the Federal Reserve said it will buy $600 billion in U.S. Treasuries by the middle of next year to stimulate the economy.
After a busy week of domestic news, this week will turn investors' attention overseas. On Thursday, leaders of the world's major economies -- including President Obama -- will start a two-day summit in South Korea. The Group of 20 is expected to discuss recent currency tensions and other global economic challenges. Stocks ended slightly higher Friday, but it was enough for all three major indexes to close at fresh two-year highs. Both the Dow and S&P also logged their biggest weekly gains in more than two months. Economy: After the opening bell, a report from Federal Reserve Bank of New York said total consumer debt was $11.6 trillion at the end of September. That's down 7.4%, or $922 billion, from the peak reached in the third quarter of 2008. Companies: Before the bell, Sysco (SYY, Fortune 500) reported earnings per share of 51 cents -- meeting the expectations of analysts surveyed by Thomson Reuters. But net earnings for the quarter dropped 8.3% over the year, and shares ended down 2.7% Monday. AOL (AOL) has hired financial advisers to explore the possibility of a merger with rival Yahoo (YHOO, Fortune 500), the Wall Street Journal reported Monday. Meanwhile, the Wall Street Journal also reported that the Securities and Exchange Commission has subpoenaed a number of former Citigroup (C, Fortune 500) brokers, who contend the bank misled investors on risky bond funds. Shares of JDS Uniphase (JDSU) ended 4.8% higher after the company reported results for its fiscal first quarter after the close of trade Thursday. The telecom's revenue was was $405.2 million, which came in below estimates but was still a 36.3% growth over the year. Warner Chilcott (WCRX) shares closed almost 14% lower after the drugmaker reported third-quarter earnings that missed estimates and lowered its revenue forecast for the full fiscal year. World markets: European stocks lost their earlier gains and ended lower. Britain's FTSE 100 dropped 0.4%, while the DAX in Germany and France's CAC 40 ended down less than 0.1%.
Currencies and commodities: The dollar strengthened against the euro and British pound, but it fell against the Japanese yen. Oil for December delivery rose 36 cents to settle at $86.85 a barrel. Gold broke through the $1,400 ceiling, settling at a record high of $1403.20 an ounce. Earlier in the session, it hit an intraday record at $1,408.70 an ounce. Cotton futures hit an all-time high Monday morning, after news reports said China's cotton harvest may fall 5% this year due to natural disasters in major production areas. Bonds: The price on the benchmark 10-year U.S. Treasury ticked down slightly, pushing the yield up to 2.56% from 2.54% late Friday. |
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08-Nov-2010 14:41
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Nov 8, 2010Asian shares mixed at middayTOKYO Tokyo shares rose 1.00 per cent by midday on Monday, tracking a rise on Wall Street after US data showed the economy created many more jobs than expected last month, dealers said. The Nikkei index of the Tokyo Stock Exchange was 96.67 points higher at 9,722.66 by the break. The Topix index of all first-section shares rose 0.76 per cent, or 6.36 points, to 841.34. SHANGHAI China's key stock index was up 0.67 per cent by midday on Monday, with Shanghai-based companies such as Shanghai Qiangsheng Holdings Co Ltd outperforming after Walt Disney Co signed an agreement with the city to build its first mainland theme park. Analysts said investors were still flush with cash, with many switching from real estate and bonds to stocks, chasing the market?s recent rally. The Shanghai Composite Index was at 3,150.59, after closing up 1.4 per cent on Friday, near a seven-month high. The Shanghai A-share index added 0.18 per cent, or 6.02 points, to 3,284.47, while the Shenzhen A-share index gained 0.33 per cent, or 4.73 points, to 1,419.80. HONG KONG Hong Kong shares slipped 0.10 per cent in the morning on Monday as dealers cashed in after five straight days of advances. The benchmark Hang Seng Index edged down 25.66 points to 24,851.16. Turnover was 57.17 billion Hong Kong dollars (S$9.5 billion). KUALA LUMPUR At 12.30pm on Monday, there were 510 gainers, 271 losers and 272 counters traded unchanged on the Bursa Malaysia.. The FBM-KLCI was at 1,519.69 up 7.95 points, the FBMACE was at 4,505.13 up 61.04 points, and the FBMEmas was at 10,286.54 up 55.25 points. Turnover was at 830.247 million shares valued at RM1.108 billion (S$482 million). |
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04-Nov-2010 07:28
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Dow, Nasdaq at 2-year highs
NEW YORK (CNNMoney.com) -- U.S. stocks seesawed Wednesday amid a widely-anticipated Republican victory and the Federal Reserve's announcement of a second round of economy-boosting asset purchases, but managed to end the session with modest gains, pushing the Dow and Nasdaq to their highest levels in over two years. The Dow Jones industrial average (INDU) rose 27 points, or 0.2%, to finish at 11,215, the highest since September 2008. The tech-heavy Nasdaq (COMP) increased 7 points, or 0.2%, to close at 2,540, highest since June 2008.
The Fed said it will buy$600 billion in long-term Treasuries by the middle of next year, at the pace of $75 billion a month.
While the central bank cleared the low end of estimates, that may not be enough for Wall Street. "The market was hoping for something a little more dramatic from the Fed to ensure a more robust economic growth outlook," said Jeff Kleintop, chief market strategist for LPL Financial. "I don't think the Fed exceeded expectations enough to prompt investors who have been waiting on the sidelines to step back into the market today." The S&P has climbed more than 12% since late August on expectations of another round of stimulus from the Federal Reserve. Most of the advance was logged in September, and stocks have been rangebound for the past few weeks. Though the market reaction to the Fed's measures was muted, Kleintop said the October jobs report, the last of three major events this week, could provide investors with more clarity to drive the market's next big move. The Labor Department reports the figures Friday ahead of the market's open. At the conclusion of its two-day meeting Wednesday, the Fed also announced it will reinvest an additional $250 billion to $300 billion in Treasuries with the proceeds of its earlier investments. The central bank kept the federal funds rate, a benchmark for interest rates on a variety of consumer and business loans, at historic lows near zero. Elections: Stocks started the day with slight gains following a widely expected Republican victory in the House and upbeat economic data.
The shifting balance of power on Capitol Hill is largely seen as a positive for Wall Street, since Republican lawmakers are viewed as more business friendly and fiscally conservative than their Democratic rivals. Traders also paid close attention to President Obama's remarks Wednesday afternoon, for hints as to how he will navigate the new political landscape. Kenny Landgraf, principal and founder at Kenjol Capital Management, said investors needed the president to suggest that he is ready to change course. During his address, Obama said he looks forward to working with presumptive House Speaker John Boehner and Senate Republican leader Mitch McConnell. Obama added that he takes responsibility for the fact that Americans across the country are frustrated with the pace of the economic recovery, and hope lawmakers will be able to find common ground in order to make progress. Stocks closed higher Tuesday, after interest rate hikes from the central banks of Australia and India sparked an early rally. World markets: European stocks ended their session lower on news of the election results, and in anticipation of the Fed's next move. Britain's FTSE 100 lost 0.15%, and the DAX in Germany and France's CAC 40 fell 0.6%.
Currencies and commodities: The dollar fell against the euro and the British pound following the Fed announcement -- which could weaken the greenback further. The greenback gained against the Japanese yen.
Bonds: The price on the benchmark 10-year U.S. Treasury fell after the Fed announcement, pushing the yield up to 2.60% from 2.59% late Tuesday. Economy: In addition to the Fed announcement, investors also took in economic reports on the job market, activity in the services sector and factory orders. A report from Automatic Data Processing, which manages payrolls for 500,000 companies, showed that private-sector employers added 43,000 jobs in October -- rebounding from a modest decline in the prior month. In a separate report, employers announced 37,986 job cuts last month -- up 2.2% from September -- according to outplacement firm Challenger, Gray & Christmas. But the October number was still well below the year-ago level. The Institute for Supply Management's services index jumped to 54.3 in October, from 53.2 the previous month. Analysts were expecting the service sector to expand at a more modest pace, with the index rising to 53.4. A government report showed that factory orders improved 2.1% in September. Analysts were expecting orders to tick up 1.7%. Companies: CNNMoney's parent company, Time Warner (TWX, Fortune 500) reported earnings of $1.4 billion and raised its outlook for 2010. Shares of Time Warner slipped 1.1%. AOL (AOL) reported a decline in revenue for the third quarter that exceeded analysts' expectations. The stock gained 3.2%. CVS Caremark (CVS, Fortune 500) said third-quarter earnings and revenue fell, but the results were in line with expectations. CVS shares rose 1.1%. Qwest Communications (Q, Fortune 500) posted a loss, but beat expectations sending shares up 1.2%. Garmin (GRMN) missed estimates thanks to slow sales and cut its forecast for the year. Shares sank 5.3%, and was the biggest loser on the Nasdaq. Health insurer WellPoint (WLP, Fortune 500) posted a third-quarter profit that beat expectations and raised its outlook for the year. Shares of WellPoint were up 0.5%. Hartford Financial Services (HIG, Fortune 500) returned to profit during the third quarter from a year-ago loss, and raised its outlook for the remainder of the year. The stock jumped 9.2% and was the biggest gainer on the S&P 500. Toyota (TM), Ford (F, Fortune 500) and General Motors reported October sales figures throughout the day. Shares of Toyota rose 0.7%, while Ford's stock gained 5.2%. Meanwhile, GM said it plans to sell up about $13 billion in common and preferred shares as part of its initial public offering, one of the largest in U.S. history. After the close, News Corp. (NWSA) posted a profit of $775 million, or 30 cents per share. Revenue rose 3.2% to $7.43 billion. The stock slipped 0.3% after hours. |
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03-Nov-2010 06:00
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Stocks hold gains on election day NEW YORK (CNNMoney.com) -- After an initial boost at the market's open, stocks held steady throughout the day as investors sat on their hands to wait for the outcome of two major events: the mid-term elections and a two-day Fed meeting. The Dow Jones industrial average (INDU) closed ahead 64 points, or 0.6%, with 23 of its 30 components rising. The S&P 500 (SPX) rose 9 points, or 0.8%, and the Nasdaq (COMPX) climbed 29 points, or 1.1%. Early in the morning, stocks got an upward jolt from optimism about rapid growth overseas, after both Australia and India raised their key interest rates in an effort to fight off inflation. The rate hikes weakened the U.S. dollar increasing demand for riskier assets like stocks. As investors refocused on the mid-term elections later in the day, stocks held on to those gains rather steadily on light trading volume. "People are just holding on to their positions, waiting to see what happens overnight and tomorrow, said Brian Lazorishak, portfolio manager at Chase Investment Counsel of Charlottesville, Va. Stocks are coming off a lackluster trading day Monday, which was dominated by jitters about the elections and Fed. Elections and the Fed: Many on Wall Street expect Republicans to win the 39 seats needed to take control of the House. In the Senate, the GOP would need to win 10 of the 37 seats up for grabs to get the majority. A Republican majority could be perceived as pro-business and therefore give a boost to the market. "Most of the people I'm dealing with are hoping Republicans get a firm grip on things, and the thinking is that that ultimately helps out the economy," said Phil Streible, a senior market strategist with futures broker Lind-Waldock. "Spending won't be as loose, budgets will be more in line and fiscal responsibility will kick in." Meanwhile, the Fed ends its two-day meeting, with a highly anticipated policy statement due Wednesday afternoon. The central bank is expected to unveil a new round of asset purchases, as part of a wider quantitative easing plan. Investors are also looking ahead to Friday's jobs report from the Labor Department. Economists expect the report to show that employers added 60,000 jobs last month. Companies: BP (BP), recovering from the Gulf oil spill, reported a third-quarter profit of $1.8 billion that included a $7.7 billion pretax charge related to the disaster. While the income was down from $5 billion a year earlier, it was a turnaround from the $17 billion loss posted in the prior quarter due to spill-related charges.
Pfizer (PFE, Fortune 500) posted a third-quarter profit that fell from a year earlier, but beat analysts' expectations excluding one-time charges. The drug maker said sales of its blockbusters Lipitor and Celebrex fell. Shares of Pfizer fell about 1% in the trading session. Audio products-maker Harman International Industries (HAR) was the biggest gainer in the S&P 500 Tuesday. Its shares rose 12% on strong earnings. Agriculture processor Archer Daniels Midland (ADM, Fortune 500) reported fiscal first-quarter profit below expectations. Shares fell 6.6%. E-commerce software-maker Art Technology Group (ARTG) announced Tuesday that it has agreed to be acquired by Oracle Corp. (ORCL, Fortune 500) for $6.00 per share in cash, or approximately $1 billion. The deal represents a 46% premium over Monday's closing price. Shares of ATG were up 45% and Oracle rose 1.4%. World markets: European stocks closed the session higher. The CAC 40 in France rose 0.6%, Germany's DAX climbed 0.8%, and Britain's FTSE 100 gained 1.1%.
Currencies and commodities: The dollar eased against the euro, but gained against the British pound and the Japanese yen.
Bonds: The yield on the 10-year Treasury note fell to 2.59%, from 2.63% late Monday. |
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Elite |
02-Nov-2010 08:42
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Stocks at a standstill ahead of Fed
NEW YORK (CNNMoney.com) -- Stocks ended a choppy session little changed Monday as investors remained jittery ahead of the week's three big events -- the midterm elections, the Federal Reserve meeting and the October jobs report. After soaring more than 100 points earlier in the session, the Dow Jones industrial average (INDU) ended just 6 points higher. The S&P 500 (SPX) edged up 1 point, and the Nasdaq (COMP) fell 3 points. Stronger-than-expected readings on U.S. and Chinese manufacturing growth sparked an early buying spree. But gains were muffled as investors turned their focus back to the upcoming election and the Fed's policy statement on Wednesday. Expectations of additional stimulus from the Federal Reserve and bets that Tuesday's congressional elections will favor the Republicans have buoyed markets since late August. But this is a pivotal week. "All that really matters now is the Fed coming in with a boat-load of money," said Joseph Saluzzi, co-head of equity trading at Themis Trading. "The only reason the market has been going higher for the past two months is because of these expectations of Fed money-pumping." The Dow is coming off its best October since 2006, but stocks have moved sideways over the last week. Economy: The Institute for Supply Management's manufacturing index jumped to 56.9 in October from 54.4 in September. That easily beat the reading of 54 expected by economists. Any reading above 50 indicates growth in the sector.
Strong manufacturing numbers out of China, the world's second-biggest economy, also provided a lift to the market and sent Chinese stocks higher overnight. "China is seen as the growth engine for the world, so this data coming in positively adds support to the fact that their economy is continuing to grow," said Luschini. A report on personal income and spending before the bell showed that personal income declined 0.1% while personal spending increased 0.2% in September.
Companies: JPMorgan Chase (JPM, Fortune 500) shares slipped nearly 1% amid reports that the Securities and Exchange Commission is investigating the bank's $1.1 billion deal with hedge fund Magnetar.
Cablevision Systems Corp. announced over the weekend that it has reached an agreement with News Corp. to return Fox programming to Cablevision. That sent shares of Cablevision (CVC, Fortune 500) up 1.7%, and shares of News Corp. (NWSA) edged slightly higher. AIG (AIG, Fortune 500) said early Monday that it has raised nearly $37 billion by selling off one insurance subsidiary, and the initial public offering of a second, AIA Group Ltd. AIG's stock edged down slightly. Before the bell, Loews (L, Fortune 500) reported that its net income dropped in the third quarter to $36 million, compared to $468 million in 2009. That included a one-time charge of $328 million stemming from CNA Financial Corporation, a subsidiary. Excluding that charge, Loews reported earnings of 13 cents per share, topping analyst expectations. Shares were little changed. Shares of Wilmington Trust (WL) sank 41% on news of a bigger-than-expected third quarter loss. The bank also agreed to be bought by M&T (MTB). Companies scheduled to post results this week include BP (BP), MasterCard (MA, Fortune 500), Pfizer (PFE, Fortune 500), CVS Caremark (CVS, Fortune 500) and WellPoint (WLP, Fortune 500). World markets: European shares finished slightly higher. The CAC 40 in France closed 0.2% higher, the DAX in Germany rose less than a percent and Britain's FTSE 100 was up 0.3%.
Currencies and commodities: The dollar rose against the euro, the British pound and the Japanese yen.
Bonds: Prices on U.S. Treasuries fell Monday, pushing the yield on the benchmark 10-year note up to 2.63% from 2.61% late Friday. |
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Elite |
01-Nov-2010 07:16
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Stocks: Betting on a triple play
NEW YORK (CNNMoney.com) -- October was another strong month for markets, but uncertainty kept stocks in a tight range over the past week. Now, some of that uncertainty is about to fade. The first week of November brings three events that have the potential to shake up markets: the Federal Reserve's meeting, the midterm elections and the release of the government's October jobs report. "We have a triple play coming up," said Doug Roberts, a chief investment strategist at Channel Capital Research. "These three events are going to overshadow everything else." While the S&P 500 and Dow logged their best October in several years, major indexes simmered in the last week of the month as investors stayed on the sidelines amid a raft of economic reports.
Elections: Wall Street is banking on a win for Republicans in Tuesday's midterm elections, a change that many investors believe to be pro-business and therefore a boost to the market.
Fed decision: Investors will be pouring over the Federal Open Market Committee's meeting announcement, released Wednesday. The Fed is widely expected to launch another round of monetary stimulus in an effort to boost the economy. Just the anticipation of the move -- referred to as quantitative easing -- has pushed the S&P 500 up 11% since the Fed's intentions were announced in August. Now the question is how big the injection will actually be.
Payroll services firm ADP is forecast to report that employers in the private sector added 25,000 workers to their payrolls in October after cutting 39,000 in the previous month. Outplacement firm Challenger, Gray & Christmas issues its report on planned job cuts in October. Factory orders are due from the Commerce Department. Orders are expected to have edged up 0.6% in September after slipping 0.5% in August. The ISM services sector index for October is expected to have ticked up slightly to 53.6 from 53.2 in September. Auto and truck sales are due throughout the day, and the government's weekly oil inventory report is also released Wednesday. Time Warner (TWC, Fortune 500), AOL (AOL), CVS Caremark (CVS, Fortune 500) and News Corp. (NWSA) are all on tap to release earnings.
Results from Cablevision (CVC, Fortune 500), DirecTV (DTV, Fortune 500) and Sirius XM (SIRI) are on deck. Friday: In addition to the government's big jobs report, the National Association of Realtors releases its pending home sales index, a measure of sales contracts for existing homes. The index is due before the start of trading and is expected to have risen 0.5% in September after rising 4.3% in August. A report on consumer credit is forecast to show a decline of $3.8 billion in September, following a drop of $3.3 billion in the previous month. |
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Elite |
30-Oct-2010 07:51
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Dow has best October since 2006
NEW YORK (CNNMoney.com) -- Stocks ended October with gains, but uncertainty sent investors to the sidelines Friday following a lackluster reading on economic growth and ahead of next week's Federal Reserve meeting. For the month, the Dow logged its best October since 2006, rising 3%. The S&P gained 4%, its best October since 2003; the Nasdaq jumped 6%. But the month ended on a quiet note Friday. TheDow Jones industrial average (INDU) inched up 5 points, the S&P 500 (SPX) ticked down less than a point, and the Nasdaq (COMP) rose less than a point. A report on third-quarter GDP early Friday showed the economy grew at a sluggish pace in the third quarter, signaling that quantitative easing from the Fed is still on its way. But speculation about how far the Fed will go to boost the economy, along with the highly-anticipated Nov. 2 elections, has kept stocks in a tight range this week. Markets ended flat Thursday after a strong start gave way to trepidation. "There are earnings reports that might move the markets a little each way, but until next week we're not going to get much direction, so markets are going to be choppy," said Sandell. Ahead of the opening bell, the government issued its first look at third-quarter gross domestic product -- the broadest measure of the nation's economic activity.
Also before the bell, the Bureau of Labor Statistics reported compensation costs for civilian workers increased 0.4% in the third quarter. After the start of trading, a report on manufacturing activity came in better than expected. The Chicago PMI rose to 60.6 in October from 60.4 in September, beating the reading of 58 expected by economists. Merck (MRK, Fortune 500) and Sony (SNE) were among the big companies reporting results ahead of the opening bell.
Sony (SNE) reported a third-quarter net income of $375 million, driven by higher sales and cost cutting. The electronics maker also raised its income forecast for the rest of the year, despite the expectation of a continued difficult business environment. Meanwhile, shares of Microsoft (MSFT, Fortune 500) rose more than 1.5%, after the software giant said late Thursday that sales and profits in the most recent quarter rose more than analysts expected. Also, Coinstar (CSTR)'s stock soared 24% after it reported earnings that blew past analyst forecasts and raised its full-year guidance. The company's Redbox DVD vending business has been a big boost, and Coinstar recently recently said it planned on expanding into streaming, putting the heat on Netflix (NFLX). World markets: European shares finished little changed. The CAC 40 in France and Britain's FTSE 100 fell by less than a percent, while Germany's DAX rose 0.1%.
Currencies and commodities: The dollar strengthened against the euro, but fell against the British pound and Japanese yen.
Bonds: Prices on U.S. Treasuries rose Friday, pushing the yield on the benchmark 10-year note down to 2.6%, from 2.7% late Thursday. |
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29-Oct-2010 07:16
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Stocks waver amid investor caution
NEW YORK (CNNMoney.com) -- Stocks pared earlier losses and ended virtually unchanged Thursday, as investors remained cautious ahead of next week's Federal Reserve meeting. Starting the session with strong gains, stocks were fueled by optimism from corporate earnings and a report showing fewer people filing for first-time unemployment. However, skittishness prevailed and stocks seesawed throughout the session. The Dow Jones industrial average (INDU) closed 12 points lower, or 0.1%, with 3M (MMM, Fortune 500) and Caterpillar (CAT, Fortune 500) leading the decline. Earlier, the blue chip index had added as many as 53 points and had lost 74 points. The S&P 500 (SPX) finished 1 point higher, or 0.1%, while tech-heavy Nasdaq (COMP) gained 4 points, or 0.2%.
Stocks also ended the session mixed Wednesday as investors lowered their expectations for an aggressive move by the Federal Reserve to stimulate the economy.
Economy: The Department of Labor released its weekly jobless claims figures before the start of trade. The number was much lower than expected.
Companies: 3M (MMM, Fortune 500) reported a third-quarter profit of $1.53 per share on revenue of $6.9 billion. The company beat on earnings but fell short on sales, sending its stock down 6.5% and making it the Dow's biggest loser. Exxon Mobil (XOM, Fortune 500) also beat expectations on profit but not revenue. The oil giant earned $1.44 per share on revenue of $95.3 billion for the third quarter. Shares rose 0.8%. Eastman Kodak (EK, Fortune 500) shares surged 15.3% after the company reported a narrower loss, citing growth in its digital businesses. While total sales edged down 1%, digital sales surged 10% during the latest quarter. Shares of Avon Products (AVO) lost 5.6%, after the company's profit and sales came in weaker than expected. Avon's sales in North America and Latin America fell short of the company's forecast. Halliburton (HAL, Fortune 500) stock sank 8% after a report from federal investigators suggested the oil services company knew the cement it used on the BP oil well was unstable. Motorola (MOT, Fortune 500) reported better-than-expected third-quarter earnings of 16 cents per share, on total sales of $5.8 billion. The company attributed its strong earnings to growth in smartphone sales, particularly in China. Shares rose 0.5%. Shares of Microsoft (MSFT, Fortune 500) spiked 1% after-hours after the company beat expectations with a quarterly profit of $5.41 billion, or 62 cents per share. Sales soared 25% to $16.2 billion, and also topped estimates. Microsoft (MSFT, Fortune 500) will release its quarterly earnings after the market closes. Analysts predict a profit of 55 cents per share on $15.8 billion in revenue. Microsoft's stock edged up 0.9%. General Motors is taking a big step toward repaying taxpayers for last year's $50 billion bailout, announcing it will repurchase $2.1 billion in preferred stock held by the Treasury Department. Verizon Wireless (VZ, Fortune 500) has agreed to pay $25 million to the government to settle an investigation of the "mystery fees" it improperly charged millions of customers for data sessions they never intended to launch, the Federal Communications Commission said Thursday. The stock closed down 0.3%. World markets: European stocks ended higher, with Britain's FTSE 100 and France's CAC 40 adding 0.6%. The DAX in Germany advanced about 0.5%.
Currencies and commodities: The dollar fell against the euro, Japanese yen and the British pound.
Bonds: Prices on U.S. Treasuries rose, pushing the yield on the benchmark 10-year bond down to 2.7%. |
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28-Oct-2010 07:06
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Stocks falter on questions about Fed stimulus
NEW YORK (CNNMoney.com) -- Stocks closed mixed Wednesday, with technology shares posting small gains, as investors lowered their expectations for an aggressive move by the Federal Reserve to stimulate the economy. After falling over 130 points earlier in the day, the Dow Jones industrial average (INDU) closed down 43 points, or 0.4%. The S&P 500 (SPX) slid 3 points, or 0.3%. But the Nasdaq (COMP) gained 6 points, or 0.2%, to close above 2,500 points.
In addition, Bill Gross of PIMCO, the largest U.S. bond fund, wrote in his most recent outlook that he thinks the Fed is setting the stage for a future bout of inflation.
Shares of energy companies led decliners on the Dow, with Chevron (CVX, Fortune 500) and Exxon (XOM, Fortune 500) both down about 2%. Industrial names Caterpillar (CAT, Fortune 500) and Boeing (BA, Fortune 500) were also down sharply.
Shares of some big banks, which had been beaten down recently, were also higher. Bank of America (BAC, Fortune 500) gained 2% and JPMorgan (JPM, Fortune 500) edged up nearly 1%. After the market closed, Visa (V, Fortune 500) said fiscal fourth-quarter profits rose 51% over last year on strong sales performance across all business lines. But shares of the credit card provider fell 1.5% in after hours trading.
Companies: Shares of Sprint (S, Fortune 500) fell nearly 10% after the company reported a loss of 30 cents per share, which the company said was caused by a massive tax-related charge. German software maker SAP (SAP) said third-quarter earnings rose 11% versus last year, though results were below analysts' forecast. Shares fell 5%. Chipmaker Broadcom (BRCM, Fortune 500) reported strong third-quarter results and said it expects growing demand for wireless services to support profits in the future. The company's stock gained over 11%.
Comcast (CMCSA, Fortune 500) also beat analyst expectations, reporting earnings per share of 30 cents -- a decrease from the 33 cents posted last year. The company said a large chunk of revenue loss is due to NBC Universal integration-related costs. Shares gained nearly 3%. Tech infrastructure firm CommScope (CTV) announced that it has reached an agreement to be purchased by asset manager The Carlyle Group, in a transaction valued at about $3.9 billion. The New York Post reported that Google (GOOG, Fortune 500) is close to striking a $2 billion deal for a building in Manhattan that occupies an entire city block. Google currently rents office space in the building. Economy: The Commerce Department said new orders for manufactured durable goods in September increased $6.3 billion or 3.3%, after falling 1.3% in August.
A separate report showed that sales of newly built single-family homes rose 6.6% in September to an annual rate of 307,000 units. Economists had expected an annual rate of 299,000 units in the month, compared with 288,000 units the month before. World markets: European stocks also tumbled. Britain's FTSE 100 dropped 1%, the DAX in Germany lost 0.7% and France's CAC 40 declined 0.9%.
Currencies and commodities: The dollar continued to strengthen against the euro, the British pound and the Japanese yen. Oil futures for December delivery dropped 59 cents to $81.96 a barrel. The government's weekly oil inventory report showed Wednesday that oil and gas supplies rose more than expected last week. The drop in oil prices followed a U.S. Geological Survey report that showed revised estimate for the amount of conventional, undiscovered oil in the National Petroleum Reserve in Alaska. The agency said untapped oil reserves are about 90% less than previously estimated.
Bonds: Prices on U.S. Treasuries fell, pushing yields higher. The benchmark 10-year note yield rose to 2.7% from 2.64% late Tuesday. The government is expected to auction off $35 billion of 5-year notes on Wednesday. |
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27-Oct-2010 09:49
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27-Oct-2010 07:08
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Stocks claw out small gains
NEW YORK (CNNMoney.com) -- Stocks ended in slightly positive territory Tuesday after seesawing throughout the session, as investors weighed readings on consumer confidence and housing against a slew of earnings reports. The Dow Jones industrial average (INDU) ticked up 5 points, the S&P 500 (SPX) rose less than a point, and the Nasdaq (COMP) gained 6 points. Stocks climbed to six-month highs Monday, propelled higher by a stronger-than-expected report on existing home sales. But with so much uncertainty underlying the daily economic and corporate reports, volatility will continue to dominate.
With the Nov. 2 elections approaching and the Federal Reserve's next policy meeting on tap early next month, the possibility of quantitative easing is also in the back of investors' minds.
Economy: The Case-Shiller 20-City index of home prices in major metropolitan areas indicated that the housing market remained sluggish in August, with prices falling 0.2% from July. From a year earlier, prices edged up a modest 1.7%, missing the 2% rise economists had been expecting.
After the start of trading, the Conference Board released a report showing that consumer confidence inched up in October, but remained at historically low levels. The index rose to 50.2 from 48.6 in September, coming in slightly higher than the reading of 49 economists had forecast.
Companies: After the market close Tuesday, Barnes & Noble (BKS, Fortune 500) unveiled a new full-color, touchscreen version of its Nook e-reader. The company did not immediately announce the price of the new Nook Color. Shares of Coach Inc. (COH) jumped 12% after the company posted a 34% rise in first-quarter profit and earnings of 63 cents a share -- topping analysts' estimates. Ford (F, Fortune 500) reported third-quarter earnings that beat analysts' expectations. The automaker reported a profit of $1.7 billion, or 43 cents per share. Ford also announced plans to further pay down its debt. Shares rose 1.5%. DuPont (DD, Fortune 500) exceeded forecasts by reporting quarterly earnings of 40 cents per share early Monday, despite a decline in pharmaceutical income related to patent expirations. Shares of the company slipped 1%. Shares of Sony (SNE) rose 1% Tuesday, on media speculation that the electronics maker might be a takeover target for Apple (AAPL, Fortune 500). Shares of Lexmark (LXK) tumbled 21% after the printer-maker's CEO Paul Curlander announced that he will retire in the spring of 2011. Late Monday, insurance giant AIG (AIG, Fortune 500) disclosed that its chief executive, Robert Benmosche, has been diagnosed with cancer and is undergoing "aggressive" treatment. AIG shares jumped 2.3%. World markets: European stocks finished with losses. Britain's FTSE 100 dropped 0.8%, and the DAX in Germany was down 0.4%. France's CAC 40 slipped 0.5%.
Currencies and commodities: The dollar strengthened against the euro and the Japanese yen, but fell against the British pound.
Bonds: The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 2.65% from 2.57% late Monday. |
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26-Oct-2010 07:07
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Stocks rally to 6-month highs
NEW YORK (CNNMoney.com) -- Stocks climbed to 6-month highs Monday after a report on housing sales came in much better than expected. The Dow Jones industrial average (INDU) added 31 points, or 0.3%, to close at 11,164, its highest level since April. The S&P 500 (SPX) increased 3 points, or 0.2%, to 1,185 and the Nasdaq (COMP) was up 11 points, or 0.5%, to 2,491. All three indexes had been up nearly 1% earlier in the morning, after the release of a strong report on existing home sales. Gains receded slightly as the day continued, but most sectors were still strong -- 23 of the 30 blue-chip Dow components were higher at the closing bell.
Economy: Before Monday's open, Federal Reserve Chairman Ben Bernanke said that a federal agency review of foreclosure procedures at the nation's largest mortgage servicers should be completed next month. Bank stocks have been under pressure in recent weeks, though, as mortgage servicers reviewed documents after allegations of sloppy paperwork surfaced. Bank stocks felt the blow, with JPMorgan (JPM, Fortune 500) down 1.7% and Bank of America (BAC, Fortune 500) off 2.5% Monday. In its October industry survey, the National Association for Business Economics (NABE) said Monday that employment conditions improved in the third quarter to the highest level since the start of the 2008-2009 recession. The survey also showed expectations for hiring over the next 6 months rose to the highest level since 2006.
Companies: After the bell, Texas Instruments (TXN, Fortune 500) reported third-quarter earnings per share of 71 cents, stronger than the 69 cents per share expected by analysts. Shares of the company rose 0.2% in evening trading. Office Depot (ODP, Fortune 500) announced that CEO Steve Odland, who has led the company since 2005, is resigning his post effective Nov. 1.
World markets: European stocks closed higher Monday. Britain's FTSE 100 added 0.2%, Germany's DAX rose 0.5% and France's CAC 40 gained less than 0.1%.
Currencies and commodities: The dollar edged lower against the euro and British pound, and it fell against the yen to as much as ¥80.41 -- a 15-year low.
Bonds: The price on the benchmark 10-year U.S. Treasury fell slightly late in the afternoon, pushing the yield up to 2.57% from 2.56% on Friday. |
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25-Oct-2010 13:54
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SINGAPORE'S inflation rose by 3.7 per cent in September from a year ago, due to higher transport, housing and food costs. Higher prices of cars and car insurance premium contributed to the year-on-year 9.1 per cent rise in the cost of transport, according to the Consumer Price Index released by the Department of Statistic on Monday. Housing cost went up by 4.7 per cent, resulting from higher accommodation costs and electricity tariffs, while food prices rose by 1.7 per cent. Excluding accommodation costs, the consumer price index was 3.8 per cent higher in September compared with a year ago. Inflation in the first nine months of this year came in at 2.4 per cent, from last year. Excluding accommodation costs, the consumer price index increased by 3.1 per cent. The CPI was up marginally by 0.1 per cent over August. With the economy nearing full employment, labour costs and food prices have risen and will continue to do so into next year. All this could push Singapore's inflation rate to around 4 per cent by the end of this year and stay high in the first half of next year, said the Monetary Authority of Singapore (MAS) earlier this month. It expects inflation to be between 2.5 and 3 per cent this year and between 2 and 3 per cent next year. In a surprise move on Oct 14, MAS allowed the rising Singapore dollar to strengthen further, citing concerns over inflation. |
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25-Oct-2010 13:53
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Asian stocks mixed at middayTOKYO JAPANESE shares fell 0.29 per cent Monday morning amid investor concern over a strong yen, after a weekend G20 meeting fell short of offering specific targets to diffuse currency market tensions, dealers said. The Nikkei index of the Tokyo Stock Exchange eased 26.91 points to 9,399.80 in morning trade. The Topix index of all first section shares also declined 0.49 per cent or 4.07 points to 820.81 in the early session. KUALA LUMPUR AT 12.30PM today, there were 397 gainers, 261 losers and 288 counters traded unchanged on the Bursa Malaysia. The FBM-KLCI was at 1,492.48 up 1.84 points, the FBMACE was at 4,284.61 up 25.30 points, and the FBMEmas was at 10,103.45 up 26.44 points. Turnover was at 556.072 million shares valued at RM593.099 million. SHANGHAI CHINESE shares were down 0.23 per cent in early trade on Monday as profit taking continued after recent gains, dealers said. The Shanghai Composite Index, which covers both A and B shares, was down 6.95 points at 2,968.10. The Shanghai A-share index shed 0.24 per cent, or 7.34 points, to 3,109.86, while the Shenzhen A-share index added 0.52 per cent, or 6.81 points, to 1,327.78. HONG KONG HONG Kong shares were 0.94 per cent higher by the break on Monday as dealers welcomed a pledge by G20 finance ministers at the weekend to avoid a currency war and balance global imbalances. The benchmark Hang Seng Index was up 220.55 points at 23,738.09. Turnover was 48.82 billion Hong Kong dollars (6.30 billion US). |
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23-Oct-2010 17:34
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Wonder how the market will react on Monday with regards to the G20. Any comments? | ||
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23-Oct-2010 17:32
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Oct 23, 2010Fed to keep zero rates until...NEW YORK - THE US Federal Reserve will likely hold its policy rate target near zero until core inflation rises to at least 2 per cent, analysts at Citigroup said on Friday. The core rate on personal consumption expenditures (PCE), the Fed's preferred inflation gauge, is running at 1 per cent, far below the desired level among some Fed policy-makers. They deem this slow pace of price growth as a risk to the recovery, with the potential outcome a damaging spiral of falling prices, a phenomenon known as deflation. Last Friday, Fed Chairman Ben Bernanke said Fed officials would like to see inflation at about 2 per cent, rather than 1 percent or so right now. Mr Bernanke and other Fed policy-makers have expressed support for a second bout of Treasuries purchases, dubbed 'QE2' by traders. 'Through speeches and hints in the media over the past four weeks, the intermediate goal of further monetary easing shifted from lowering long-term nominal rates to managing long-term inflation expectations,' analysts at Citigroup's research and analysis unit said in a research report released on Friday. They said the U.S. central bank will likely announce an initial commitment to buy US$500 billion (S$648.5 billion) to US$700 billion in bonds after its Nov 2-3 policy meeting - at a monthly clip of US$100 billion. St Louis Fed President James Bullard said on Thursday he would back Fed purchases of Treasuries in US$100 billion increments meeting-by-meeting if the Fed decides monetary easing is necessary, but stressed no decision has been made. |
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23-Oct-2010 17:23
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GYEONGJU (South Korea) - THE G-20 industrial powers agreed on Saturday to avoid 'competitive devaluation of currencies' and limit excessive trade imbalances, in a bid to defuse severe economic tensions. In a statement after a two-day meeting in South Korea, G-20 finance ministers and central bankers agreed to 'refrain from competitive devaluation of currencies' and aim for 'more market-determined exchange-rate systems'. The Group of 20 committed to 'pursue the full range of policies conducive to reducing excessive imbalances and maintaining current-account imbalances at sustainable levels", the text said. |
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22-Oct-2010 07:13
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Stocks eke out gains
NEW YORK (CNNMoney.com) -- U.S. stocks ended a shade higher Thursday after seesawing throughout the session, as investors balanced strong earnings with building speculation that the Fed's next round of asset-buying won't be as dramatic as anticipated. The Dow Jones industrial average (INDU) rose 39 points, or 0.35%, the S&P 500 ticked (SPX) up 2 points, or 0.2%, and the Nasdaq (COMP) edged up 2 points, or 0.1%. Stocks have been on a roller coaster this week -- starting with gains on Monday, diving to 2-month lows on Tuesday, and ending sharply higher Wednesday. Investors have been taking in mixed earnings results, and waiting for clues about the next round of asset purchases from the Federal Reserve.
China's growth cools: Helping to spur the market's early run-up, government figures released Thursday showed China's economic growth slowed for the second quarter in a row, easing fears that its economy is growing at an unsustainable pace.
China's gross domestic product, the broadest measure of economic output, grew at an annual rate of 9.6% during the third quarter of 2010. While that number was still higher than many analysts expected, investors welcomed the report as a sign that China's economy will continue to lead the world recovery. "If it was too weak it would have scared everyone that their economy is weakening," Schrader said. Economy: The government's weekly jobless claims report showed that the number of Americans filing for first-time unemployment insurance was lower than expected, with 452,000 claims filed in the week ended Oct. 16.
Companies: Traders also welcomed a slew of upbeat earnings reports Thursday. After the market close, Amazon (AMZN, Fortune 500) posted a 39% jump in sales and third-quarter earnings per share of 51 cents, topping the 48 cents expected by analysts. Before the opening bell,McDonald's Corp (MCD, Fortune 500). logged a 10% jump in third-quarter profit -- beating expectations and sending the fast-food chain's stock up 2.6% to a record high of $79.48 per share in early trading. Nokia (NOK) beat estimates when it announced a third-quarter profit of $737.9 million, compared with a $783 million loss a year earlier. But the mobile phone maker also said it will cut as many as 1,800 jobs as it streamlines its operations. Shares of Nokia rose 4%. UPS (UPS, Fortune 500) and Caterpillar (CAT, Fortune 500) also both beat forecasts on income and revenue. AT&T (T, Fortune 500) beat estimates on revenue, but its profit was skewed by a $8.3 billion gain related to its acquisition of Cingular Wireless in 2006. Netflix (NFLX) shares surged 13%, after it posted stronger-than-expected earnings after the closing bell Wednesday. EBay (EBAY, Fortune 500) reported better-than-expected earnings results after the market close Wednesday, sending shares of the company up 6% Thursday. World markets: Asian markets finished mixed. Japan's benchmark Nikkei was a few points lower, while the Hang Seng in Hong Kong rose 0.4%. Shares in Shanghai eased 0.7%.
Commodities and Currencies: The dollar climbed against the euro, the Japanese yen, and the British pound. Oil prices for December delivery slipped $1.98 to settle at $80.56 a barrel. Gold futures for December delivery dropped $18.60 to $1,325.60 an ounce. Meanwhile, coffee futures settled more than 2% higher after soaring to the highest level in 13 years amid supply crunch concerns. Bonds: The price on the benchmark 10-year U.S. Treasury fell, boosting the yield to 2.55%. |
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21-Oct-2010 08:23
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Dow holds triple-digit gains
NEW YORK (CNNMoney.com) -- Stocks have fallen into a pattern: Rise, rise, rise for several sessions, then sell off after a spot of bad news. Recover the next day, and repeat. This week has been no exception. Stocks rebounded to end sharply higher Wednesday, following the worst session in more than two months. Investors digested a mixed batch of financial results and shrugged off a tepid report on regional economic conditions. The Dow Jones industrial average (INDU) added 129 points, or 1.2%, to end at 11,107.97. The S&P 500 (SPX) gained 12 points, or 1.1%, to close at 11,178.17, and the Nasdaq (COMP) rose 20 points, or 0.8%, to settle at 2,457.39. Gains were broad-based in the recovery from Tuesday's rout, with 27 of the 30 blue-chip Dow components ending higher. Airline stocks received a boost following Boeing's upbeat earnings, but financial shares lagged on mixed reports from big banks. Stocks have been rising on speculation that the Federal Reserve will announce plans to resume large-scale purchases of U.S. Treasuries, a policy called quantitative easing, when it meets next month. "Everyone's thinking, the Fed's got my back, and when they run out of money they'll just find some more," said Joseph Saluzzi, co-head of equity trading at Themis Trading. But investors fled stocks Tuesday after China unexpectedly raised interest rates, heightening concerns that cooling growth in China would drag on global growth. Major U.S. stock indexes posted the biggest one-day declines since early August. Saluzzi said the market is in a cycle of rising for weeks on an expectation of Fed moves -- then selling off for a day on disappointing news, followed by a rebound session. "It's more of the same, with no end in sight," Saluzzi said of Wednesday's session. Companies: Shares of Wells Fargo (WFC, Fortune 500) ended 4.3% higher after the bank posted a profit of $3.15 billion, or 60 cents per share -- up 19% from a year earlier and above what analysts estimated. The San Francisco-based bank's sales were in line with expectations at $20.9 billion. Morgan Stanley (MS, Fortune 500) reported a profit of $313 million, or 5 cents per share, for the third quarter -- down $67% from a year ago, due to a weak trading environment. Revenue also tumbled 20% compared to a year ago. Shares closed flat. Dow component Boeing (BA, Fortune 500) said it earned $837 million, or $1.12 per share, on revenue of $17 billion -- topping expectations for earnings of $1.06 per share on revenue of $16.8 billion. The aircraft maker also raised its guidance for the remainder of the year to between $3.80 and $4 per share, thanks to an improved outlook for commercial airplanes. Shares spiked to end 3.4% higher. Yahoo (YHOO, Fortune 500) reported higher net income from the year-earlier period after U.S. markets closed Tuesday. But the company posted sales that fell short of expectations. Shares rose 2% Wednesday. After the bell Wednesday, Netflix (NFLX) said its third-quarter net income grew as its subscriber base increased 52% over the year. Shares rose almost 8% in after-hours trade. Economy: The Federal Reserve released its Beige Book at 2 p.m. ET, which showed that economic growth in various regions continued at a modest pace last month. Despite the lagging housing market, the Fed reported bright spots in the manufacturing, travel, tourism and auto industries. The Fed's monetary policy has been in focus as investors anticipate the central bank's launch of a new round of quantitative easing at the conclusion of its meeting on Nov. 3. World markets: European markets ended higher. The CAC 40 in France gained 0.4%, DAX in Germany rose 0.5%, and Britain's FTSE 100 posted a 0.4% increase. Asian markets mostly finished lower on Wednesday, as investors got their first chance to react to China's rate hike. Japan's benchmark Nikkei tumbled 1.7% and the Hang Seng in Hong Kong dropped 0.9%. Shares in Shanghai closed a shade higher. Commodities and currencies: The dollar fell against the British pound, euro and Japanese yen. Oil prices for November delivery gained $2.28 to settle at $81.77 a barrel. Gold futures for December delivery rose $8.20 to close at $1,344.20 an ounce. Bonds: The price on the benchmark 10-year Treasury bond was unchanged, and the yield held steady at 2.48%. |
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20-Oct-2010 07:18
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Stocks: Worst day in two months
NEW YORK (CNNMoney.com) -- Stocks fell sharply Tuesday, amid reports that a group of bondholders are trying to force Bank of America to repurchase bad mortgages. Investors also weighed a surprise rate hike by the Chinese government, and mixed data on the housing market and corporate results. The Dow Jones industrial average (INDU) lost 165 points, or 1.5%. All but two of the blue chip index's components were laggards, with Bank of America (BAC, Fortune 500) leading the decline. The S&P 500 (SPX) slipped 19 points, or 1.6%, and the tech-heavy Nasdaq (COMP) shed 44 points, or 1.8%.
"The Chinese are basically telling the rest of the world that they're going to slow down their economy," said Mark McCormick, currency strategist for Brown Brothers Harriman. "It's kind of nerve wracking for the global economy, because China has been the key driver of world growth. This was clearly a major surprise." But other experts said China's move isn't a cause for concern, and markets just needed a reason to take a breather. "China's real estate values are hot, so they're putting a barrier in front of them. But I see it as a normal part of the economic recovery," said Rob Lutts, chief investment officer at Cabot Money Management. "The markets have been rallying for about 8 weeks, so it's not unusual to see them retreat between 2% and 5% -- and China's rate hike is a good excuse to reap profits." China boosted its key lending rate to 2.50% from 2.25%, in an effort to help slow the country's rapid growth. With the rate increase, the Chinese central bank's one-year lending rate now sits at a lofty 5.56%. Stocks ended sharply higher Monday after Citigroup (C, Fortune 500) reported upbeat financial results and a report showed improvements in the housing sector. Companies: Ahead of the opening bell, Bank of America reported a third-quarter net loss of $7.3 billion. The bank said the loss was due to the recently passed financial reform law, for a one-time charge of $10.4 billion in its credit and debit card unit. Goldman Sachs (GS, Fortune 500) reported a 40% plunge in profit to $1.9 billion for the third quarter, citing "challenging" market conditions. But it still managed to beat Wall Street's lowered estimates. The financial firm reported revenue of $8.9 billion, a mild increase from the year-earlier quarter. Shares rose 2%. Johnson and Johnson (JNJ, Fortune 500) reported earnings per share of $1.23 on revenue of $14.98 billion. The stock sank 0.9% after company beat on profit but missed on sales.
After Monday's close, Apple and IBM also posted results that topped analysts' expectations. But investors weren't satisfied, and shares of both companies fell. Shares of Apple (AAPL, Fortune 500) fell by 2.7% and IBM's (IBM, Fortune 500) stock was down 3.4%. Shares of Yahoo (YHOO, Fortune 500) extended declines in after-hours trading Tuesday after the company reported that its quarterly net income more than doubled to $396 million from a year ago but sales missed analysts' forecast. The stock dropped 2.8% Tuesday. Intel (INTC, Fortune 500) announced Tuesday that is investing up to $8 billion in microchip manufacturing plants, creating up to 1,000 permanent high-tech jobs in Arizona and Oregon. Shares were up 0.1%. Shares of SuperValu (SVU, Fortune 500), which operates grocery store chains Albertsons and Shop n' Save, sank 14.9% after the company posted a steep loss in the second quarter. Economy: A reading on September housing starts blew away expectations, but building permits lagged behind.
Economists were expecting the report to show new home construction fell in September, with housing starts -- or the number of new homes being built -- falling to a seasonally adjusted annual rate of 579,000. This expectation was based on the previously reported rate of 598,000 in August.
World markets: European shares ended lower, with the FTSE 100 in Britain sliding 0.6%. The CAC 40 in France fell 0.7% and Germany's DAX slipped 0.4%.
Commodities and Currencies: The dollar rallied against the British pound, the Japanese yen, and the Euro.
Bonds: The price fell on the benchmark 10-year U.S. Treasury, pushing the yield up to 2.48% from 2.51% late Monday. |
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