Japanese shares mixed on stronger yen, carmakers' rebound
Japanese stocks were mixed Friday as some export-oriented issues were dragged down by a stronger yen but carmakers were bolstered by news that chipmaker Renesas Electronics Corp would resume operations earlier than planned after the March 11 earthquake and tsunami.
The Nikkei 225 Stock Average lost 3.56 points, or 0.04 per cent, to close at 9,682.21. The broader Topix index was up 0.46 points, or 0.05 per cent, at 842.18.
For the week, the Nikkei rose 0.95 per cent while the Topix edged up 0.11 per cent.
Renesas, a key supplier of chips to the automotive industry, helped carmakers rebound in the afternoon. Toyota Motor Corp surged 3.13 per cent, Nissan Motor Co soared 3.62 per cent and Honda Motor Co 2.28 per cent.
The yen rose against major currencies, hovering in the higher 81-yen level to the dollar. A stronger yen makes Japanese goods more expensive abroad and erodes repatriated earnings.
On currency markets at 3 pm (0600 GMT), the dollar traded at 81.86-88 yen, down from Thursday's 5 pm quote of 82.07-09 yen.
The euro traded at 1.4579-4584 dollars, down from 1.4640-4641 dollars Thursday, and at 119.38-40 yen, down from 120.15-19 yen.
Friday, April 22, 2011
US Stocks Finish Week Higher, Boosted By Earnings
U.S. blue-chip stocks pushed to a fresh multi-year high Thursday to end a holiday-shortened week as a round of robust earnings reports overshadowed lackluster U.S. economic data.
The Dow Jones Industrial Average finished up 52.45 points, or 0.42%, at 12505.99, its highest close since June 5, 2008. Travelers rose $2.19, or 3.7%, to 61.32, after the insurer boosted its dividend as first-quarter profit exceeded Street forecasts.
The Nasdaq Composite climbed 17.65, or 0.6%, to 2820.16, its highest close since Feb. 18. The Standard & Poor's 500-stock index added 7.02, or 0.5%, to 1337.38.
Better-than-expected earnings from bellwether companies helped the market extend gains this week, pushing the Dow up 1.3% over four sessions. The stock market will be closed on Friday in observance of Good Friday.
Volume was light on Thursday ahead of the three-day weekend. Only 3.7 billion shares traded hands in New York Stock Exchange Composite volume, below the average daily volume of roughly 4.46 billion shares.
Apple helped lead the technology sector higher on Thursday, rising 8.29, or 2.4%, to 350.70, after the computer and electronics-devices maker reported quarterly profits that nearly doubled as consumers snapped up iPhones.
Verizon Communications slid 88 cents, or 2.3%, to 36.91, after its first-quarter profit more than tripled, but its average revenue per user rose by less than analysts expected.
Still, investors said first-quarter earnings have added to the market's upward momentum.
"Apple's earnings seem to indicate that the consumer is doing well," said Tom Villalta, lead portfolio manager at the Jones/Villalta Opportunity Fund. That has eased some fears that companies would get hit in the first quarter if rising crude-oil prices made consumers more reluctant to spend. "What we're seeing in earnings is it's not having as pronounced an effect as we had thought," he said.
U.S. economic data eroded some of the market's confidence in the recovery. The Federal Reserve Bank of Philadelphia's regional business index was 18.5 in April, falling below analysts' estimates for a 35.0 reading. Separately, the number of weekly jobless claims declined, but by less than expected, and the previous week's figures were revised up.
"We're not out of the woods just yet," cautioned Kevin Mahn, chief investment officer at Hennion & Walsh. "It's going to be very difficult for our economy to produce the number of jobs that we need."
Among other companies reporting earnings, Morgan Stanley's shares jumped 44 cents, or 1.7%, to 26.48, after earnings beat Wall Street's estimates, though revenue fell short of forecasts.
Shares of McDonald's fell 1.49, or 1.9%, to 76.91, after the fast-food giant's earnings beat analyst estimates, but its operating margin edged higher. General Electric shed 45 cents, or 2.2%, to 19.95, after the the industrial conglomerate's earnings beat forecasts and GE boosted its quarterly dividend by a penny, but analysts noted margin concerns.
Mutual-fund company T.Rowe Price fell 2.29, or 3.5%, to 64.08, after its first-quarter earnings and revenue missed Street forecasts.
The U.S. dollar weakened against both the euro and the yen. The euro was trading recently at $1.4548, up from $1.4523 late Wednesday in New York.
Demand for U.S. Treasurys rose, pushing yield on the 10-year note down to 3.40%.
Crude-oil prices settled above $112 a barrel, while Comex gold futures for April delivery settled at a record high above $1,503 per ounce.
U.S. blue-chip stocks pushed to a fresh multi-year high Thursday to end a holiday-shortened week as a round of robust earnings reports overshadowed lackluster U.S. economic data.
The Dow Jones Industrial Average finished up 52.45 points, or 0.42%, at 12505.99, its highest close since June 5, 2008. Travelers rose $2.19, or 3.7%, to 61.32, after the insurer boosted its dividend as first-quarter profit exceeded Street forecasts.
The Nasdaq Composite climbed 17.65, or 0.6%, to 2820.16, its highest close since Feb. 18. The Standard & Poor's 500-stock index added 7.02, or 0.5%, to 1337.38.
Better-than-expected earnings from bellwether companies helped the market extend gains this week, pushing the Dow up 1.3% over four sessions. The stock market will be closed on Friday in observance of Good Friday.
Volume was light on Thursday ahead of the three-day weekend. Only 3.7 billion shares traded hands in New York Stock Exchange Composite volume, below the average daily volume of roughly 4.46 billion shares.
Apple helped lead the technology sector higher on Thursday, rising 8.29, or 2.4%, to 350.70, after the computer and electronics-devices maker reported quarterly profits that nearly doubled as consumers snapped up iPhones.
Verizon Communications slid 88 cents, or 2.3%, to 36.91, after its first-quarter profit more than tripled, but its average revenue per user rose by less than analysts expected.
Still, investors said first-quarter earnings have added to the market's upward momentum.
"Apple's earnings seem to indicate that the consumer is doing well," said Tom Villalta, lead portfolio manager at the Jones/Villalta Opportunity Fund. That has eased some fears that companies would get hit in the first quarter if rising crude-oil prices made consumers more reluctant to spend. "What we're seeing in earnings is it's not having as pronounced an effect as we had thought," he said.
U.S. economic data eroded some of the market's confidence in the recovery. The Federal Reserve Bank of Philadelphia's regional business index was 18.5 in April, falling below analysts' estimates for a 35.0 reading. Separately, the number of weekly jobless claims declined, but by less than expected, and the previous week's figures were revised up.
"We're not out of the woods just yet," cautioned Kevin Mahn, chief investment officer at Hennion & Walsh. "It's going to be very difficult for our economy to produce the number of jobs that we need."
Among other companies reporting earnings, Morgan Stanley's shares jumped 44 cents, or 1.7%, to 26.48, after earnings beat Wall Street's estimates, though revenue fell short of forecasts.
Shares of McDonald's fell 1.49, or 1.9%, to 76.91, after the fast-food giant's earnings beat analyst estimates, but its operating margin edged higher. General Electric shed 45 cents, or 2.2%, to 19.95, after the the industrial conglomerate's earnings beat forecasts and GE boosted its quarterly dividend by a penny, but analysts noted margin concerns.
Mutual-fund company T.Rowe Price fell 2.29, or 3.5%, to 64.08, after its first-quarter earnings and revenue missed Street forecasts.
The U.S. dollar weakened against both the euro and the yen. The euro was trading recently at $1.4548, up from $1.4523 late Wednesday in New York.
Demand for U.S. Treasurys rose, pushing yield on the 10-year note down to 3.40%.
Crude-oil prices settled above $112 a barrel, while Comex gold futures for April delivery settled at a record high above $1,503 per ounce.
Friday, April 8, 2011
OTC Signal Daily Stock Watch
Coyote Resources Inc. recently announced the appointment of Mr. David C. Beling to the Board of Directors. Mr. Beling brings a combination of project and corporate experience to Coyote Resources, with over 47 years experience in the global precious metal, base metal and energy mineral sectors. Mr. Beling has evaluated or been directly involved with 84 underground mines, 127 open pit mines and 163 process plants worldwide, working with major corporations and several Canadian and US junior mining companies.
Since 1981 Mr. Beling has served as a senior executive and member of the Board of Directors of eight public mining companies and several private corporations. In addition to managing operations he has contributed to the initiation and closing of debt and equity financings, commodity and asset sales, mergers, acquisitions and joint ventures. Mr. Beling recently retired from Geovic Mining Corp. after nearly eight years as their Executive Vice President & COO. He was responsible for developing their cobalt-nickel-manganese project in Cameroon, Africa.
Coyote Resources Coyote Resources Inc. is a precious metals exploration company focused on acquisition and exploration of silver and gold production potential. Based in Reno, Nevada, Coyote Resources has a portfolio of exploration properties in Nevada.
For more information on Coyote Resources, visit: www.coyoteresourcesinc.com.
ABOUT OTC Signal
OTC Signal (www.otcsignal.com) is a stock watch website that provides free daily alerts on stocks. OTC Signal's alerts include news releases or daily e-mails on stocks in all sectors of the market. These include stocks with high or low volume, penny stocks, stocks with technical indicators and much more. OTC Signal tracks stocks that may be moving upwards or downwards. OTC Signal also features companies on its website with company profiles, research reports, analysis, and newsletters.
OTC Signal is an independent electronic publication that provides information on selected publicly traded companies. OTC Signal is not a registered investment advisor or broker-dealer. OTC Signal including affiliates, officers, directors, contractors and employees may buy, sell or hold shares in any company mentioned herein and may profit in the event those shares increase or decrease in value. Please do your own Due Diligence before investing in any of the stocks mentioned above.
To join and start receiving our FREE e-mail alerts and newsletter, please visit: http://www.otcsignal.com
Disclaimers-
Release of Liability: Through use of this website viewing or using you agree to hold OTCSignal.com, its operators, owners, and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. Neither the information presented nor any statement or expression of opinion, or any other matter herein, directly or indirectly constitutes a representation by the publisher nor a solicitation of the purchase or sale of any securities.
The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. The owner, publisher, editor and their associates are not responsible for errors and omissions. They may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. Any opinions expressed are subject to change without notice. OTC Signal encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and OTC Signal makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies or the information contained herein. OTC Signal has been advised that the investments in companies profiled are considered to be high risk and use of the information provided is at the investor's sole risk. OTC Signal also advises that the purchase of such high risk securities may result in the loss of some or all of the investment. Investors should not rely solely on the information presented. Rather, investors should use the information provided by the profiled companies as a starting point for doing additional independent research on the profiled companies in order to allow the investor to form his or her own opinion regarding investing in the profiled companies. Factual statements made by the profiled companies are made as of the date stated and are subject to change without notice. Investing in any stock (large-cap, small-cap, or micro-cap security) is highly speculative and carries an extremely high degree of risk. It is possible that an investor's entire investment may be lost or impaired due to the speculative nature of the companies profiled. OTC Signal makes no recommendation that the securities of the companies profiled should be purchased, sold or held by individuals or entities that learn of the profiled companies through OTCSignal.com. OTC Signal owners may or may not hold positions in any of the companies that are profiled.
SAFE HARBOR: The information contained herein contains forward-looking information within the meaning of Section 27A of the Securities Act of 1993 and Section 21E of the Securities Exchange Act of 1934 including statements regarding expected continual growth of the company and the value of its securities. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 it is hereby noted that statements contained herein that look forward in time which include everything other than historical information, involve risk and uncertainties that may affect the company's actual results of operation. These statements are not guarantees of future performance and involve significant risks and uncertainties. Actual results may vary materially from those in the forward-looking statements. Factors that could cause actual results to differ include but are not limited to; the size and growth of the market for the company's products, the company's ability to fund its capital requirements in the near term and in the long term, pricing pressures, unforeseen and/or unexpected circumstances in happenings, the effectiveness of management's strategies and decisions, general economic and business conditions, new or modified statutory or regulatory requirements and changing price and market conditions. Investing in securities is speculative and carries risk. Past performance does not guarantee future results. No assurance can be given that these are all the factors that could cause actual results to vary materially from the forward-looking statements. The following report is neither an offer to buy or sell securities. Never invest in any stock featured on the OTC Signal Stock Watch website unless you can afford to lose your entire investment. This disclaimer is to be read and fully understood before using our site, or joining our email list.
Coyote Resources Inc. recently announced the appointment of Mr. David C. Beling to the Board of Directors. Mr. Beling brings a combination of project and corporate experience to Coyote Resources, with over 47 years experience in the global precious metal, base metal and energy mineral sectors. Mr. Beling has evaluated or been directly involved with 84 underground mines, 127 open pit mines and 163 process plants worldwide, working with major corporations and several Canadian and US junior mining companies.
Since 1981 Mr. Beling has served as a senior executive and member of the Board of Directors of eight public mining companies and several private corporations. In addition to managing operations he has contributed to the initiation and closing of debt and equity financings, commodity and asset sales, mergers, acquisitions and joint ventures. Mr. Beling recently retired from Geovic Mining Corp. after nearly eight years as their Executive Vice President & COO. He was responsible for developing their cobalt-nickel-manganese project in Cameroon, Africa.
Coyote Resources Coyote Resources Inc. is a precious metals exploration company focused on acquisition and exploration of silver and gold production potential. Based in Reno, Nevada, Coyote Resources has a portfolio of exploration properties in Nevada.
For more information on Coyote Resources, visit: www.coyoteresourcesinc.com.
ABOUT OTC Signal
OTC Signal (www.otcsignal.com) is a stock watch website that provides free daily alerts on stocks. OTC Signal's alerts include news releases or daily e-mails on stocks in all sectors of the market. These include stocks with high or low volume, penny stocks, stocks with technical indicators and much more. OTC Signal tracks stocks that may be moving upwards or downwards. OTC Signal also features companies on its website with company profiles, research reports, analysis, and newsletters.
OTC Signal is an independent electronic publication that provides information on selected publicly traded companies. OTC Signal is not a registered investment advisor or broker-dealer. OTC Signal including affiliates, officers, directors, contractors and employees may buy, sell or hold shares in any company mentioned herein and may profit in the event those shares increase or decrease in value. Please do your own Due Diligence before investing in any of the stocks mentioned above.
To join and start receiving our FREE e-mail alerts and newsletter, please visit: http://www.otcsignal.com
Disclaimers-
Release of Liability: Through use of this website viewing or using you agree to hold OTCSignal.com, its operators, owners, and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. Neither the information presented nor any statement or expression of opinion, or any other matter herein, directly or indirectly constitutes a representation by the publisher nor a solicitation of the purchase or sale of any securities.
The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. The owner, publisher, editor and their associates are not responsible for errors and omissions. They may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. Any opinions expressed are subject to change without notice. OTC Signal encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and OTC Signal makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies or the information contained herein. OTC Signal has been advised that the investments in companies profiled are considered to be high risk and use of the information provided is at the investor's sole risk. OTC Signal also advises that the purchase of such high risk securities may result in the loss of some or all of the investment. Investors should not rely solely on the information presented. Rather, investors should use the information provided by the profiled companies as a starting point for doing additional independent research on the profiled companies in order to allow the investor to form his or her own opinion regarding investing in the profiled companies. Factual statements made by the profiled companies are made as of the date stated and are subject to change without notice. Investing in any stock (large-cap, small-cap, or micro-cap security) is highly speculative and carries an extremely high degree of risk. It is possible that an investor's entire investment may be lost or impaired due to the speculative nature of the companies profiled. OTC Signal makes no recommendation that the securities of the companies profiled should be purchased, sold or held by individuals or entities that learn of the profiled companies through OTCSignal.com. OTC Signal owners may or may not hold positions in any of the companies that are profiled.
SAFE HARBOR: The information contained herein contains forward-looking information within the meaning of Section 27A of the Securities Act of 1993 and Section 21E of the Securities Exchange Act of 1934 including statements regarding expected continual growth of the company and the value of its securities. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 it is hereby noted that statements contained herein that look forward in time which include everything other than historical information, involve risk and uncertainties that may affect the company's actual results of operation. These statements are not guarantees of future performance and involve significant risks and uncertainties. Actual results may vary materially from those in the forward-looking statements. Factors that could cause actual results to differ include but are not limited to; the size and growth of the market for the company's products, the company's ability to fund its capital requirements in the near term and in the long term, pricing pressures, unforeseen and/or unexpected circumstances in happenings, the effectiveness of management's strategies and decisions, general economic and business conditions, new or modified statutory or regulatory requirements and changing price and market conditions. Investing in securities is speculative and carries risk. Past performance does not guarantee future results. No assurance can be given that these are all the factors that could cause actual results to vary materially from the forward-looking statements. The following report is neither an offer to buy or sell securities. Never invest in any stock featured on the OTC Signal Stock Watch website unless you can afford to lose your entire investment. This disclaimer is to be read and fully understood before using our site, or joining our email list.
Friday, April 1, 2011
Hot OTC Stocks To Watch (UNDT, CYBL, DKAM, CTSO)
Universal Detection Technology (OTC:UNDT) dropped 7.69% to $0.0012 with over 25.07 million shares. The average trading volume of the stock is 65.65 million shares. So far in last six months the stock has surged 50.00%. Universal Detection Technology is engaged in the research, development and marketing of bioterrorism detection devices.
Cyberlux Corporation (OTC:CYBL) plunged 23.08% to $0.0010 on over a volume of 16.70 million shares. The average daily trading volume of the stock is 8.44 million shares. So far in last six months the stock has surged 84.62%.
Drinks Americas Holdings, Ltd. (OTC:DKAM) surged 10.00% to $0.0022 with over 17.28 million shares. The average daily trading volume of the stock is 3.46 million shares. So far in last one month the stock has plunged 46.34%.
CytoSorbents Corporation (OTC:CTSO) soared 85.29% to $0.310 with over 9.43million shares. The average daily trading volume of the stock is 898,580.00 shares.
Universal Detection Technology (OTC:UNDT) dropped 7.69% to $0.0012 with over 25.07 million shares. The average trading volume of the stock is 65.65 million shares. So far in last six months the stock has surged 50.00%. Universal Detection Technology is engaged in the research, development and marketing of bioterrorism detection devices.
Cyberlux Corporation (OTC:CYBL) plunged 23.08% to $0.0010 on over a volume of 16.70 million shares. The average daily trading volume of the stock is 8.44 million shares. So far in last six months the stock has surged 84.62%.
Drinks Americas Holdings, Ltd. (OTC:DKAM) surged 10.00% to $0.0022 with over 17.28 million shares. The average daily trading volume of the stock is 3.46 million shares. So far in last one month the stock has plunged 46.34%.
CytoSorbents Corporation (OTC:CTSO) soared 85.29% to $0.310 with over 9.43million shares. The average daily trading volume of the stock is 898,580.00 shares.
Friday, March 25, 2011
BEFORE THE BELL: US Stock Futures Higher
U.S. stock futures rose on Friday, with technology stocks in the spotlight after a mixed set of results from Oracle Corp. and Research In Motion Ltd.
Futures for the Dow Jones Industrial Average rose 47 points to 12163 and Standard & Poor's 500 index futures added 4.70 points to 1309.90. Nasdaq 100 futures were up 9 points at 2,317.50.
The move for futures came after strong gains for Wall Street on Thursday as U.S. markets posted their fifth gain in six sessions. The Dow Jones Industrial Average closed up nearly 85 points.
Oracle Corp. (ORCL) was one of the early gainers Friday, climbing 4% in premarket trading after rising software sales to new corporate customers helped it beat earnings expectations.
Mobile-device maker Research In Motion Ltd. (RIMM) , on the other hand, slumped nearly 13% in premarket action after its guidance for the current quarter fell short of expectations. The group said its guidance reflects a greater proportion of lower-end devices in its sales mix as well as additional spending related to its BlackBerry Playbook, a tablet computer intended to compete with Apple Inc.'s (AAPL) iPad.
On the economic front, the final revision to fourth-quarter gross domestic product will be released at 8:30 a.m., EDT, followed after the open by the University of Michigan's consumer sentiment survey for March.
The dollar held broadly steady against the euro and edged up 0.2% against the yen to Y81.196, while crude futures were also largely unmoved from Thursday's close. Crude for May delivery rose 6 cents to $105.66 a barrel in electronic trading on Globex.
Among other stocks in focus, Accenture PLC (ACN) late Thursday reported fiscal second-quarter earnings of 75 cents a share, beating the consensus forecast of 71 cents.
International markets were also mostly higher Friday. Japan's Nikkei Stock Average closed up 1.1% and in Europe, Germany's DAX 30 index rose 0.7% in late morning trading.
-Simon Kennedy; 44 207 842 9427; AskNewswires@dowjones.com
Among the companies whose shares are expected to actively trade in Friday's session are Accenture PLC (ACN), Research In Motion Ltd. (RIMM) and Wet Seal Inc. (WTSLA).
Accenture PLC's (ACN) fiscal second-quarter earnings jumped 26% amid a surge in new bookings and the company boosted its revenue outlook as it expects corporate spending to keep strengthening. Shares rose 5.3% to $54.73 after hours.
Research In Motion posted fiscal fourth-quarter earnings that slightly beat analyst expectations, but its guidance for the current quarter fell short, sending the stock 10.5% lower in after-hours trading to $57.35.
Wet Seal's fiscal fourth-quarter earnings dropped after the prior-year period booked a large tax benefit, but the teen-focused retailer's core profit rose above guidance. Shares were up 5% at $3.73 after hours, as the company also forecast revenue in the current quarter above analysts' expectations.
Oracle Corp.'s (ORCL) fiscal third-quarter profit surged 78% to top the business-software company's expectations, as Oracle experienced strength from its traditional software and new hardware businesses. Investors shrugged off a miss on hardware revenue to focus on strong margins and a surge in license revenue. The company's shares rose 4% to $33.44 after hours.
Acacia Research Corp. (ACTG) said it plans to sell at least five million shares of its common stock, as the developer and acquirer of patents seeks to raise money for general corporate purposes, which could include strategic acquisitions. Shares of Acacia slid 4.3% to $32.10 in after-hours trading.
Smart Modular Technologies (WWH) Inc.'s (SMOD) fiscal second-quarter earnings plunged as lower pricing and a restructuring charge hurt the bottom line and the company booked a gain in the year-earlier quarter. After hours, Shares declined 3.1% to $6.92.
Darden Restaurants Inc.'s (DRI) fiscal third-quarter earnings rose 13% to beat its own optimistic guidance, but the casual-dining chain had a promotional misfire at its Olive Garden chain late in the quarter. Shares were down 1.1% at $47.50 after hours.
HealthSpring Inc. (HS) said it plans to sell 7.5 million shares of its common stock in an underwritten public offering. The managed care organization said it expects to use at least half of the net proceeds from the offering for the repayment of indebtedness and the balance of net proceeds for general corporate purchases, which may include acquisitions. Shares fell 4.7% to $36.20 in extended trading.
Standard & Poor's said it would move maker of replacement heart valves Edwards Lifesciences Corp. (EW) to its S&P 500 index, replacing Qwest Communications International Inc. (Q), which is set to be acquired by CenturyLink Inc. (CTL). Shares in Edwards rose 2.5% to $87.50 in after-hours trading.
Body Central Corp. (BODY) fourth-quarter earnings surged 86% as the apparel company gave an upbeat outlook. Shares were up 11% at $20.61 after hours.
Watch List:
Cephalon Inc. (CEPH) on Thursday said the U.S. District Court in Delaware found Watson Pharmaceuticals Inc.'s (WPI) generic version of the biopharmaceutical company's pain drug Fentora infringed on a valid patent.
Finish Line Inc.'s (FINL) fiscal fourth-quarter profit jumped 12% as the athletic outfitter posted better-than-expected revenue growth on strong same-store sales.
Saba Software Inc. (SABA) swung to a slim loss in its fiscal third quarter, but the decline in its adjusted profit was not as steep as analysts expected. The company, which provides software to create and deploy global networks, again reduced its forecast for full-year results.
Synnex Corp.'s (SNX) fiscal first-quarter profit declined 14% on a year-ago gain on the sale of discontinued operations, although the information-technology distributor reported higher revenue and margins in the latest quarter.
U.S. stock futures rose on Friday, with technology stocks in the spotlight after a mixed set of results from Oracle Corp. and Research In Motion Ltd.
Futures for the Dow Jones Industrial Average rose 47 points to 12163 and Standard & Poor's 500 index futures added 4.70 points to 1309.90. Nasdaq 100 futures were up 9 points at 2,317.50.
The move for futures came after strong gains for Wall Street on Thursday as U.S. markets posted their fifth gain in six sessions. The Dow Jones Industrial Average closed up nearly 85 points.
Oracle Corp. (ORCL) was one of the early gainers Friday, climbing 4% in premarket trading after rising software sales to new corporate customers helped it beat earnings expectations.
Mobile-device maker Research In Motion Ltd. (RIMM) , on the other hand, slumped nearly 13% in premarket action after its guidance for the current quarter fell short of expectations. The group said its guidance reflects a greater proportion of lower-end devices in its sales mix as well as additional spending related to its BlackBerry Playbook, a tablet computer intended to compete with Apple Inc.'s (AAPL) iPad.
On the economic front, the final revision to fourth-quarter gross domestic product will be released at 8:30 a.m., EDT, followed after the open by the University of Michigan's consumer sentiment survey for March.
The dollar held broadly steady against the euro and edged up 0.2% against the yen to Y81.196, while crude futures were also largely unmoved from Thursday's close. Crude for May delivery rose 6 cents to $105.66 a barrel in electronic trading on Globex.
Among other stocks in focus, Accenture PLC (ACN) late Thursday reported fiscal second-quarter earnings of 75 cents a share, beating the consensus forecast of 71 cents.
International markets were also mostly higher Friday. Japan's Nikkei Stock Average closed up 1.1% and in Europe, Germany's DAX 30 index rose 0.7% in late morning trading.
-Simon Kennedy; 44 207 842 9427; AskNewswires@dowjones.com
Among the companies whose shares are expected to actively trade in Friday's session are Accenture PLC (ACN), Research In Motion Ltd. (RIMM) and Wet Seal Inc. (WTSLA).
Accenture PLC's (ACN) fiscal second-quarter earnings jumped 26% amid a surge in new bookings and the company boosted its revenue outlook as it expects corporate spending to keep strengthening. Shares rose 5.3% to $54.73 after hours.
Research In Motion posted fiscal fourth-quarter earnings that slightly beat analyst expectations, but its guidance for the current quarter fell short, sending the stock 10.5% lower in after-hours trading to $57.35.
Wet Seal's fiscal fourth-quarter earnings dropped after the prior-year period booked a large tax benefit, but the teen-focused retailer's core profit rose above guidance. Shares were up 5% at $3.73 after hours, as the company also forecast revenue in the current quarter above analysts' expectations.
Oracle Corp.'s (ORCL) fiscal third-quarter profit surged 78% to top the business-software company's expectations, as Oracle experienced strength from its traditional software and new hardware businesses. Investors shrugged off a miss on hardware revenue to focus on strong margins and a surge in license revenue. The company's shares rose 4% to $33.44 after hours.
Acacia Research Corp. (ACTG) said it plans to sell at least five million shares of its common stock, as the developer and acquirer of patents seeks to raise money for general corporate purposes, which could include strategic acquisitions. Shares of Acacia slid 4.3% to $32.10 in after-hours trading.
Smart Modular Technologies (WWH) Inc.'s (SMOD) fiscal second-quarter earnings plunged as lower pricing and a restructuring charge hurt the bottom line and the company booked a gain in the year-earlier quarter. After hours, Shares declined 3.1% to $6.92.
Darden Restaurants Inc.'s (DRI) fiscal third-quarter earnings rose 13% to beat its own optimistic guidance, but the casual-dining chain had a promotional misfire at its Olive Garden chain late in the quarter. Shares were down 1.1% at $47.50 after hours.
HealthSpring Inc. (HS) said it plans to sell 7.5 million shares of its common stock in an underwritten public offering. The managed care organization said it expects to use at least half of the net proceeds from the offering for the repayment of indebtedness and the balance of net proceeds for general corporate purchases, which may include acquisitions. Shares fell 4.7% to $36.20 in extended trading.
Standard & Poor's said it would move maker of replacement heart valves Edwards Lifesciences Corp. (EW) to its S&P 500 index, replacing Qwest Communications International Inc. (Q), which is set to be acquired by CenturyLink Inc. (CTL). Shares in Edwards rose 2.5% to $87.50 in after-hours trading.
Body Central Corp. (BODY) fourth-quarter earnings surged 86% as the apparel company gave an upbeat outlook. Shares were up 11% at $20.61 after hours.
Watch List:
Cephalon Inc. (CEPH) on Thursday said the U.S. District Court in Delaware found Watson Pharmaceuticals Inc.'s (WPI) generic version of the biopharmaceutical company's pain drug Fentora infringed on a valid patent.
Finish Line Inc.'s (FINL) fiscal fourth-quarter profit jumped 12% as the athletic outfitter posted better-than-expected revenue growth on strong same-store sales.
Saba Software Inc. (SABA) swung to a slim loss in its fiscal third quarter, but the decline in its adjusted profit was not as steep as analysts expected. The company, which provides software to create and deploy global networks, again reduced its forecast for full-year results.
Synnex Corp.'s (SNX) fiscal first-quarter profit declined 14% on a year-ago gain on the sale of discontinued operations, although the information-technology distributor reported higher revenue and margins in the latest quarter.
Friday, March 11, 2011
Gold Price Steady Near $1,415
The gold price stabilized near $1,415 Friday morning, showing a muted reaction to an 8.9 magnitude earthquake that rocked Japan earlier today. While the price of gold moved marginally higher, silver came under heavy selling pressure – falling 2% to $34.51 per ounce. Both precious metals have moved off their record highs posted in recent weeks on the back of a stronger U.S. dollar.
This morning’s modest strength in the gold price follows yesterday’s $17 retreat, in which the yellow metal fell victim to widespread liquidation on Wall Street. A bevy of bad news hit the markets yesterday, including Moody’s downgrade of Spain’s credit rating, escalating violence in the Middle East and North Africa, and weak employment data in the U.S. The Dow Jones Industrial Average (DJIA) plunged 228.33 points, or 1.9%, to 11,984.76, its largest single-day decline since August 11, 2010.
Although the gold price suffered its worst day since January 27 of this year, it rebounded $10 from its intra-day low on reports that police in Saudi Arabia fired on protesters. Oil jumped alongside the gold price following the Saudi news, spiking from $100.62 to above $104 per barrel. The violence came one day ahead of planned anti-government protests, termed the “Day of Rage” in which Saudi citizens intended to voice their displeasure with economic and political restrictions. While the most substantial turmoil thus far has occurred in nations with smaller economies – such as Libya, Egypt, and Bahrain – the vast oil reserves of Saudi Arabia make it a more significant threat to the global financial system.
Commenting on the multitude of recent global headwinds, Raoul Pal, author of The Global Macro Investor, contended that the excessive debt level is the key structural economic factor behind the challenges. Mr. Pal, who previously held positions at Goldman Sachs and hedge fund GLG Partners, noted that outstanding debt around the world has reached unprecedented levels. At 300% of total global debt to GDP, “that is simply and utterly mind-blowing and we are making next-to-zero progress in dealing with it.” While “governments around the world have tried their utmost to try and brush it under the carpet and hope it all goes away,” policymakers will eventually have to face the music of defaults or hyperinflation.
Pal went on to say that “The fiat currency system is at the root of this. Without anything of real value to back your currency except vast stores of the fiat debt-based currency of your major trading partners, currencies do not reflect true economic values.” He specifically pointed to export nations in Asia, which “can remain super-competitive for so long that they hole out entire economies, and weaker non-export countries can continue to buy the goods because their currencies remain unrealistically strong.”
“I am no great believer that a gold standard is the right answer but it would correct this issue almost overnight. Without doing something about this problem, the world remains incredibly at risk of a default by non-exporting, consumption-based economies, because that is the main support for the global economy. Sad, but true.”
While Pal did not go into more detail specifically on the gold price, his views suggest the global economy will continue to face significant challenges in the years ahead. Moreover, with the risk of sovereign defaults remaining high, in his opinion, faith in fiat currencies is likely to continue to decline. Historically, such an environment provides a robust recipe for higher gold prices.
The gold price stabilized near $1,415 Friday morning, showing a muted reaction to an 8.9 magnitude earthquake that rocked Japan earlier today. While the price of gold moved marginally higher, silver came under heavy selling pressure – falling 2% to $34.51 per ounce. Both precious metals have moved off their record highs posted in recent weeks on the back of a stronger U.S. dollar.
This morning’s modest strength in the gold price follows yesterday’s $17 retreat, in which the yellow metal fell victim to widespread liquidation on Wall Street. A bevy of bad news hit the markets yesterday, including Moody’s downgrade of Spain’s credit rating, escalating violence in the Middle East and North Africa, and weak employment data in the U.S. The Dow Jones Industrial Average (DJIA) plunged 228.33 points, or 1.9%, to 11,984.76, its largest single-day decline since August 11, 2010.
Although the gold price suffered its worst day since January 27 of this year, it rebounded $10 from its intra-day low on reports that police in Saudi Arabia fired on protesters. Oil jumped alongside the gold price following the Saudi news, spiking from $100.62 to above $104 per barrel. The violence came one day ahead of planned anti-government protests, termed the “Day of Rage” in which Saudi citizens intended to voice their displeasure with economic and political restrictions. While the most substantial turmoil thus far has occurred in nations with smaller economies – such as Libya, Egypt, and Bahrain – the vast oil reserves of Saudi Arabia make it a more significant threat to the global financial system.
Commenting on the multitude of recent global headwinds, Raoul Pal, author of The Global Macro Investor, contended that the excessive debt level is the key structural economic factor behind the challenges. Mr. Pal, who previously held positions at Goldman Sachs and hedge fund GLG Partners, noted that outstanding debt around the world has reached unprecedented levels. At 300% of total global debt to GDP, “that is simply and utterly mind-blowing and we are making next-to-zero progress in dealing with it.” While “governments around the world have tried their utmost to try and brush it under the carpet and hope it all goes away,” policymakers will eventually have to face the music of defaults or hyperinflation.
Pal went on to say that “The fiat currency system is at the root of this. Without anything of real value to back your currency except vast stores of the fiat debt-based currency of your major trading partners, currencies do not reflect true economic values.” He specifically pointed to export nations in Asia, which “can remain super-competitive for so long that they hole out entire economies, and weaker non-export countries can continue to buy the goods because their currencies remain unrealistically strong.”
“I am no great believer that a gold standard is the right answer but it would correct this issue almost overnight. Without doing something about this problem, the world remains incredibly at risk of a default by non-exporting, consumption-based economies, because that is the main support for the global economy. Sad, but true.”
While Pal did not go into more detail specifically on the gold price, his views suggest the global economy will continue to face significant challenges in the years ahead. Moreover, with the risk of sovereign defaults remaining high, in his opinion, faith in fiat currencies is likely to continue to decline. Historically, such an environment provides a robust recipe for higher gold prices.
Saturday, March 5, 2011
US Stocks Fall Friday But Eke Out Small Weekly Gains
Worries about the potential impact of oil's climb above $100 a barrel sent U.S. stocks lower Friday, but came short of wiping out gains recorded earlier in the week.
The Dow Jones Industrial Average fell 88.32 points, or 0.72%, to 12169.88, halting a two-day advance. Leading the drop, General Electric fell 1.8%, while Hewlett-Packard shed 1.4% and American Express declined 1.3%.
The Nasdaq Composite declined 14.07, or 0.50%, to 2784.67. The Standard & Poor's 500-stock index fell 9.82, or 0.74%, to 1321.15, with all its sectors in negative territory. The financial and industrial sectors posted the biggest drop.
Still, the measures managed to post modest weekly gains, with the Dow rising 0.33% on the week while the S&P 500 edged up 0.1% and the Nasdaq Composite added 0.13%, thanks to gains posted earlier in the week.
Friday's declines in U.S. stocks came as crude-oil futures topped $104 a barrel.
"The problem with higher oil prices is that it acts as an indirect tax on consumers and businesses," said Adam Sarhan, chief executive of Sarhan Capital. He noted that the rise in oil prices comes just as investors are also beginning to wonder how the economy will perform after the Federal Reserve winds down its stimulus program in June.
Sarhan added, "what we're seeing now is a confluence of two factors: Can the economy continue growing without the Fed's help, and how will the economy continue to grow if oil spikes higher?"
The rally in oil prices followed sporadic violence in Libya's capital, as a heavy clampdown on the city by Col. Moammar Gadhafi spread fear among residents. Meanwhile, more than 100,000 protesters gathered in the Bahraini capital, and Yemeni soldiers fired rockets on protesters in the restive northern province of Amran, killing three people and injuring seven others.
The escalating violence added to investors' worries heading into the weekend.
"There's concern going into a weekend with all that's going on in North Africa and the Middle East," said Owen Fitzpatrick, head of the equity strategy group at Deutsche Bank Private Wealth Management. "We're probably going to have to get used to these Fridays where maybe the market sells off a bit in reaction to the fact that in two days a lot can happen."
Investors were uninspired by government data showing nonfarm payrolls rose by 192,000 last month while the unemployment rate fell to 8.9%, the first time it has slipped below 9% since April 2009. The data also showed average hourly earnings of all employees increased by a penny to $22.87.
Traders said the market would have needed a stronger employment report in order to outweigh investors' concerns about rising energy prices.
Among stocks in focus, Marvell Technology tumbled 11%. The chip maker's fiscal fourth-quarter earnings rose 8.8% but came in at the low end of the company's projections, and it forecast disappointing first-quarter results on weakness in the mobile and wireless markets.
Citigroup slipped 3%, and Goldman Sachs Group shed 2.1%, after Bank of America Merrill Lynch downgraded its investment ratings on the stocks to "neutral" from "buy." The firm cited expected weakness in first-quarter results from the two banks.
Worries about the potential impact of oil's climb above $100 a barrel sent U.S. stocks lower Friday, but came short of wiping out gains recorded earlier in the week.
The Dow Jones Industrial Average fell 88.32 points, or 0.72%, to 12169.88, halting a two-day advance. Leading the drop, General Electric fell 1.8%, while Hewlett-Packard shed 1.4% and American Express declined 1.3%.
The Nasdaq Composite declined 14.07, or 0.50%, to 2784.67. The Standard & Poor's 500-stock index fell 9.82, or 0.74%, to 1321.15, with all its sectors in negative territory. The financial and industrial sectors posted the biggest drop.
Still, the measures managed to post modest weekly gains, with the Dow rising 0.33% on the week while the S&P 500 edged up 0.1% and the Nasdaq Composite added 0.13%, thanks to gains posted earlier in the week.
Friday's declines in U.S. stocks came as crude-oil futures topped $104 a barrel.
"The problem with higher oil prices is that it acts as an indirect tax on consumers and businesses," said Adam Sarhan, chief executive of Sarhan Capital. He noted that the rise in oil prices comes just as investors are also beginning to wonder how the economy will perform after the Federal Reserve winds down its stimulus program in June.
Sarhan added, "what we're seeing now is a confluence of two factors: Can the economy continue growing without the Fed's help, and how will the economy continue to grow if oil spikes higher?"
The rally in oil prices followed sporadic violence in Libya's capital, as a heavy clampdown on the city by Col. Moammar Gadhafi spread fear among residents. Meanwhile, more than 100,000 protesters gathered in the Bahraini capital, and Yemeni soldiers fired rockets on protesters in the restive northern province of Amran, killing three people and injuring seven others.
The escalating violence added to investors' worries heading into the weekend.
"There's concern going into a weekend with all that's going on in North Africa and the Middle East," said Owen Fitzpatrick, head of the equity strategy group at Deutsche Bank Private Wealth Management. "We're probably going to have to get used to these Fridays where maybe the market sells off a bit in reaction to the fact that in two days a lot can happen."
Investors were uninspired by government data showing nonfarm payrolls rose by 192,000 last month while the unemployment rate fell to 8.9%, the first time it has slipped below 9% since April 2009. The data also showed average hourly earnings of all employees increased by a penny to $22.87.
Traders said the market would have needed a stronger employment report in order to outweigh investors' concerns about rising energy prices.
Among stocks in focus, Marvell Technology tumbled 11%. The chip maker's fiscal fourth-quarter earnings rose 8.8% but came in at the low end of the company's projections, and it forecast disappointing first-quarter results on weakness in the mobile and wireless markets.
Citigroup slipped 3%, and Goldman Sachs Group shed 2.1%, after Bank of America Merrill Lynch downgraded its investment ratings on the stocks to "neutral" from "buy." The firm cited expected weakness in first-quarter results from the two banks.
Thursday, March 3, 2011
US HOT STOCKS: Amylin, Saks, US Airways, Wendy's/Arby's
U.S. stocks traded higher Thursday as the Dow Jones Industrial Average gained 1.5% to 12246, the Standard & Poor's 500 increased 1.6% to 1329 and the Nasdaq Composite rose 1.9% to 2799. Among the companies whose shares are actively trading in the session are Amylin Pharmaceuticals Inc. (AMLN), Saks Inc. (SKS) and US Airways Group Inc. (LCC).
A diabetes drug taken weekly and being developed by Eli Lilly & Co. (LLY, $34.42, +$0.14, +0.41%), Amylin Pharmaceuticals ($11.40, -$3.61, -24.05%) and Alkermes Inc. (ALKS, $12.39, -$1.71, -12.13%) suffered another setback as it failed to prove as effective as a different once-daily treatment.
Shoppers had a spring in their step during February, with retail sales for the month showing solid spending. High-end department stores continued to outperform, with Saks Inc.'s (SKS, $12.43, +$0.70, +5.97%) and Nordstrom Inc.'s (JWN, $44.95, +$0.74, +1.67%) February same-store sales topping Wall Street's expectations. Teen retailer Zumiez Inc. (ZUMZ, $27.45, +$1.51, +5.82%) saw gains in customer traffic and continued its strong sales performance. Fellow teen retailer Hot Topic Inc. (HOTT, $5.59, +$0.31, +5.87%) posted a smaller-than-expected drop in same-store sales.
US Airways ($8.49, +$0.52, +6.52%) said traffic rose 4.5% in February from a year earlier amid an "exceptionally strong" demand environment, as a key industry performance measure continued to improve. The metric of passenger revenue per available seat mile climbed about 10%.
Wendy's/Arby's Group Inc.'s (WEN, $5.07, +$0.33, +6.96%) fourth-quarter loss narrowed amid modest sales gains at both of its restaurant chains and lower overhead and interest costs. The quick-service company has plans to grow its Wendy's burger brand with new products and international development as it "explores strategic alternatives" for its Arby's sandwich chain, including a possible sale.
The U.K. government Thursday approved News Corp.'s (NWS, $18.55, +$0.40, +2.18%) proposed GBP7.8 billion takeover of British Sky Broadcasting Group PLC (BSYBY, $53.75, +$1.10, +2.09%) (BSY.LN) after the media giant agreed to spin off 24-hour news channel, Sky News, into a separate company to avoid a prolonged investigation by the nation's competition regulator. News Corp. owns Dow Jones & Co., publisher of this newswire.
Other Stocks In Focus:
Big Lots Inc.'s (BIG, $41.09, +$1.20, +3.01%) fiscal fourth-quarter earnings rose a better-than-expected 4.5% as the closeout retailer reported sales growth and gave a mostly upbeat view for the current quarter and fiscal year.
Clearwater Paper Corp.'s (CLW, $81.11, +$3.34, +4.29%) fourth-quarter earnings beat the Street's forecast as the producer of tissue and paperboard products' net sales increased 3.3% year-over-year.
Piper Jaffray raised its stock-investment rating on Cognex Corp. (CGNX, $29.10, +$2.29, +8.54%) to overweight from neutral, noting that its shares have pulled back 24% since it reported earnings in mid-February. The firm said it sees earnings growing more rapidly than revenue due to more opportunities for margin expansion.
Stifel Nicolaus raised its view on three health insurers based on a mix of improving fundamentals and 2011 guidance that looks beatable. It upgraded its stock investment ratings on Coventry Health Care (CVH, $32.46, +$1.89, +6.18%), UnitedHealth Group Inc. (UNH, $44.69, +$1.26, +2.89%) and WellPoint Inc. (WLP, $68.98, +$2.17, +3.25%) to buy from hold. Stifel says insurers set a low bar for earnings estimates amid worries about claims-cost regulations, which now appear manageable. "We believe that 2011 is shaping up as a 'beat-and-raise' year across the industry."
The owner of the Applebee's and IHOP restaurant chains DineEquity Inc.'s (DIN, $56.71, +$1.30, +2.35%) fourth-quarter loss widened sharply as revenue fell more than expected and a $111.6-million charge on the extinguishment of debt and preferred stock weighed on the bottom line.
Intel-GE Care Innovations LLC, the newly-formed joint venture from General Electric Co. (GE, $20.83, +$0.51, +2.51%) and Intel Corp. (INTC, $21.82, +$0.33, +1.54%), received U.S. Food and Drug Administration market clearance for its virtual care coordination platform.
Gerber Scientific Inc.'s (GRB, $9.09, +$1.26, +16.09%) fiscal third-quarter's results slightly beat analysts' expectations as its profit increased on higher volume and a higher mix of apparel and industrial sales. The company lifted its 2011 fiscal year forecast, citing its strong quarterly performance and more stable outlook.
Global Defense Technology & Systems Inc. (GTEC, $24.15, +$8.07, +50.19%) agreed to be acquired by private-equity firm Ares Management LLC in a deal valued at $223.1 million, the latest in a series of companies being taken private in recent months. Shareholders of Global Defense, which went public in November 2009, will receive $24.25 a share, a 51% premium over Wednesday's close.
Goldman Sachs added Hologic Inc. (HOLX, $21.04, +$1.06, +5.31%) to its Americas Conviction list, noting that the market underappreciates Hologic's new product cycle in tomosynthesis, which represents a major advance in breast-cancer detection.
KeyCorp (KEY, $9.32, +$0.28, +3.10%) shares are up on some murky takeover speculation. To be sure, the bank is often discussed as a possible takeover it's still holding TARP money and KBW listed it as a potential seller just last month. But many analysts stopped expecting a sale in November when long-term Chief Executive Henry Meyer said he plans to step down May 1. That group of analysts doubt the bank's CEO would leave during negotiations. More so, they doubt President and Chief Operating Officer Beth Mooney would take the reins only to sell.
KongZhong Corp.'s (KONG, $8.08, +$1.01, +14.20%) fourth-quarter earnings more than doubled, beating analysts' consensus estimate, as the Chinese game company predicted revenue would return to sequential growth.
Kroger Co.'s (KR, $23.03, +$0.51, +2.26%) fiscal fourth-quarter profit rose 9.2% as identical supermarket sales climbed and fuel boosted the top line. The core results beat Wall Street's views and the company's board authorized it to buy back $1 billion in shares.
LHC Group's (LHCG, $28.04, -$2.01, -6.69%) fourth-quarter earnings missed consensus estimates and its projected fiscal year 2011 revenue also fell short of expectations. Jefferies cut its stock-investment rating on LHC to hold from buy following the results, noting that it expects LHC to lag its nursing home peers given the deceleration in its growth outlook.
MakeMyTrip Ltd. (MMYT, $26.54, -$0.73, -2.68%) said it and its selling shareholders plan to offer 6 million shares, with the company using some of its proceeds to expand the India-based online travel agency's operations by acquiring or investing in various businesses or assets. The offering would increase the number of shares outstanding.
Midas Inc.'s (MDS, $8.20, +$0.76, +10.21%) shares were up 10% before being halted ahead of the announcement of an arbitration decision. The company's chief executive revealed at end of conference call to discuss the company's fourth-quarter results that the auto-shop chain just received the ruling in a spat with its master licensee in Europe. A statement is due later today with specifics of the ruling.
Motorola Mobility Holdings Inc.'s (MMI, $27.05, -$1.33, -4.69%) time in the spotlight with its Xoom tablet faded pretty quickly. While MMI was seen as the first true competitor to the iPad, Apple Inc. (AAPL, $358.51, +$6.39, +1.82%) one-upped it with its iPad 2, which will come out sooner than expected. Cowen downgraded its stock-investment rating on MMI to neutral from outperform, saying the window of opportunity to establish the Xoom is narrowing more rapidly than expected.
Biopharmaceutical and diagnostics company Opko Health Inc. (OPK, $4.27, -$0.33, -7.17%) said it plans to offer at least $100 million in common stock, saying it plans to use proceeds for general corporate purposes, which could include research and development expenses, clinical trials and acquisitions.
Perry Ellis International Inc. (PERY, $27.65, -$1.17, -4.06%) said it boosted the size of a planned debt offering and its sale of at least 2 million shares priced at $28 a share, a 2.8% discount to its Wednesday close.
Phillips-Van Heusen Corp. (PVH, $61.31, +$2.13, +3.60%) on Wednesday said it amended and restated a senior secured credit facility it entered into in May in connection with the company's $3 billion acquisition of Tommy Hilfiger.
Standard & Poor's Ratings Services upgraded data-storage company Quantum Corp. (QTM, $2.54, +$0.09, +3.67%) by a notch, citing improved performance of late despite declines in its core tape business.
Sigma Designs Inc. (SIGM, $12.04, -$1.66, -12.12%) swung to a fourth-quarter profit as the company's sales and margins improved and it booked fewer charges than a year earlier. But adjusted profit declined and Chairman and Chief Executive Thinh Tran noted that the company saw sequential revenue declines because of lower revenue in three of its market segments.
Standard Motor Products Inc.'s (SMP, $12.32, +$0.62, +5.30%) fourth-quarter results easily topped analysts' estimates. The automotive replacement parts manufacturer and distributor said its strong results were aided by an aging car population and the closing of car dealerships.
Taser International Inc. (TASR, $4.04, +$0.15, +3.86%) said its board of directors has approved a stock buy-back program that authorizes the company, which develops, assembles and markets nonlethal protection systems, to purchase up to $12.5 million of the company's common stock.
Business-data storage company Teradata Corp. (TDC, $49.76, +$2.19, +4.60%) said it has agreed to acquire the 89% of Aster Data it doesn't already own for $263 million, a move it said will increase its customers' ability to analyze large volumes of diverse data.
United Natural Foods Inc.'s (UNFI, $45.39, +$3.70, +8.88%) fiscal second-quarter earnings rose 20% as the wholesale distributor reported revenue that beat analysts' expectations. For the year, the company raised the low end of its earnings guidance and raised its net sales view based on solid performance during the first half of its fiscal year.
Valero Energy Corp. (VLO, $28.86, +$1.96, +7.29%) said it expects its first-quarter earnings to fall within the range of 15 cents to 30 cents a share, including a loss from closing out hedges that totaled about 10% of its annual production. Credit Suisse said in a note that closing the hedges removes a negative for the company, calling them a "near-term overhang."
Oil refiner and retailer Western Refining Inc. (WNR, $16.91, +$1.02, +6.42%) posted a surprise fourth-quarter loss despite improving margins and sharply lower write-downs as low volumes led to slower-than-expected sales growth. Though the company posted a loss, Chief Executive Jeff Stevens said he saw "an extraordinary refining margin environment during a time of year when we traditionally experience seasonally weaker margins."
Zagg Inc. (ZAGG, $8.18, +$1.11, +15.70%) shares rebounded Thursday after the company said some of its main products will work alongside a new cover that Apple Inc. (AAPL, $358.54, +$6.42, +1.82%) announced Wednesday for the iPad 2
U.S. stocks traded higher Thursday as the Dow Jones Industrial Average gained 1.5% to 12246, the Standard & Poor's 500 increased 1.6% to 1329 and the Nasdaq Composite rose 1.9% to 2799. Among the companies whose shares are actively trading in the session are Amylin Pharmaceuticals Inc. (AMLN), Saks Inc. (SKS) and US Airways Group Inc. (LCC).
A diabetes drug taken weekly and being developed by Eli Lilly & Co. (LLY, $34.42, +$0.14, +0.41%), Amylin Pharmaceuticals ($11.40, -$3.61, -24.05%) and Alkermes Inc. (ALKS, $12.39, -$1.71, -12.13%) suffered another setback as it failed to prove as effective as a different once-daily treatment.
Shoppers had a spring in their step during February, with retail sales for the month showing solid spending. High-end department stores continued to outperform, with Saks Inc.'s (SKS, $12.43, +$0.70, +5.97%) and Nordstrom Inc.'s (JWN, $44.95, +$0.74, +1.67%) February same-store sales topping Wall Street's expectations. Teen retailer Zumiez Inc. (ZUMZ, $27.45, +$1.51, +5.82%) saw gains in customer traffic and continued its strong sales performance. Fellow teen retailer Hot Topic Inc. (HOTT, $5.59, +$0.31, +5.87%) posted a smaller-than-expected drop in same-store sales.
US Airways ($8.49, +$0.52, +6.52%) said traffic rose 4.5% in February from a year earlier amid an "exceptionally strong" demand environment, as a key industry performance measure continued to improve. The metric of passenger revenue per available seat mile climbed about 10%.
Wendy's/Arby's Group Inc.'s (WEN, $5.07, +$0.33, +6.96%) fourth-quarter loss narrowed amid modest sales gains at both of its restaurant chains and lower overhead and interest costs. The quick-service company has plans to grow its Wendy's burger brand with new products and international development as it "explores strategic alternatives" for its Arby's sandwich chain, including a possible sale.
The U.K. government Thursday approved News Corp.'s (NWS, $18.55, +$0.40, +2.18%) proposed GBP7.8 billion takeover of British Sky Broadcasting Group PLC (BSYBY, $53.75, +$1.10, +2.09%) (BSY.LN) after the media giant agreed to spin off 24-hour news channel, Sky News, into a separate company to avoid a prolonged investigation by the nation's competition regulator. News Corp. owns Dow Jones & Co., publisher of this newswire.
Other Stocks In Focus:
Big Lots Inc.'s (BIG, $41.09, +$1.20, +3.01%) fiscal fourth-quarter earnings rose a better-than-expected 4.5% as the closeout retailer reported sales growth and gave a mostly upbeat view for the current quarter and fiscal year.
Clearwater Paper Corp.'s (CLW, $81.11, +$3.34, +4.29%) fourth-quarter earnings beat the Street's forecast as the producer of tissue and paperboard products' net sales increased 3.3% year-over-year.
Piper Jaffray raised its stock-investment rating on Cognex Corp. (CGNX, $29.10, +$2.29, +8.54%) to overweight from neutral, noting that its shares have pulled back 24% since it reported earnings in mid-February. The firm said it sees earnings growing more rapidly than revenue due to more opportunities for margin expansion.
Stifel Nicolaus raised its view on three health insurers based on a mix of improving fundamentals and 2011 guidance that looks beatable. It upgraded its stock investment ratings on Coventry Health Care (CVH, $32.46, +$1.89, +6.18%), UnitedHealth Group Inc. (UNH, $44.69, +$1.26, +2.89%) and WellPoint Inc. (WLP, $68.98, +$2.17, +3.25%) to buy from hold. Stifel says insurers set a low bar for earnings estimates amid worries about claims-cost regulations, which now appear manageable. "We believe that 2011 is shaping up as a 'beat-and-raise' year across the industry."
The owner of the Applebee's and IHOP restaurant chains DineEquity Inc.'s (DIN, $56.71, +$1.30, +2.35%) fourth-quarter loss widened sharply as revenue fell more than expected and a $111.6-million charge on the extinguishment of debt and preferred stock weighed on the bottom line.
Intel-GE Care Innovations LLC, the newly-formed joint venture from General Electric Co. (GE, $20.83, +$0.51, +2.51%) and Intel Corp. (INTC, $21.82, +$0.33, +1.54%), received U.S. Food and Drug Administration market clearance for its virtual care coordination platform.
Gerber Scientific Inc.'s (GRB, $9.09, +$1.26, +16.09%) fiscal third-quarter's results slightly beat analysts' expectations as its profit increased on higher volume and a higher mix of apparel and industrial sales. The company lifted its 2011 fiscal year forecast, citing its strong quarterly performance and more stable outlook.
Global Defense Technology & Systems Inc. (GTEC, $24.15, +$8.07, +50.19%) agreed to be acquired by private-equity firm Ares Management LLC in a deal valued at $223.1 million, the latest in a series of companies being taken private in recent months. Shareholders of Global Defense, which went public in November 2009, will receive $24.25 a share, a 51% premium over Wednesday's close.
Goldman Sachs added Hologic Inc. (HOLX, $21.04, +$1.06, +5.31%) to its Americas Conviction list, noting that the market underappreciates Hologic's new product cycle in tomosynthesis, which represents a major advance in breast-cancer detection.
KeyCorp (KEY, $9.32, +$0.28, +3.10%) shares are up on some murky takeover speculation. To be sure, the bank is often discussed as a possible takeover it's still holding TARP money and KBW listed it as a potential seller just last month. But many analysts stopped expecting a sale in November when long-term Chief Executive Henry Meyer said he plans to step down May 1. That group of analysts doubt the bank's CEO would leave during negotiations. More so, they doubt President and Chief Operating Officer Beth Mooney would take the reins only to sell.
KongZhong Corp.'s (KONG, $8.08, +$1.01, +14.20%) fourth-quarter earnings more than doubled, beating analysts' consensus estimate, as the Chinese game company predicted revenue would return to sequential growth.
Kroger Co.'s (KR, $23.03, +$0.51, +2.26%) fiscal fourth-quarter profit rose 9.2% as identical supermarket sales climbed and fuel boosted the top line. The core results beat Wall Street's views and the company's board authorized it to buy back $1 billion in shares.
LHC Group's (LHCG, $28.04, -$2.01, -6.69%) fourth-quarter earnings missed consensus estimates and its projected fiscal year 2011 revenue also fell short of expectations. Jefferies cut its stock-investment rating on LHC to hold from buy following the results, noting that it expects LHC to lag its nursing home peers given the deceleration in its growth outlook.
MakeMyTrip Ltd. (MMYT, $26.54, -$0.73, -2.68%) said it and its selling shareholders plan to offer 6 million shares, with the company using some of its proceeds to expand the India-based online travel agency's operations by acquiring or investing in various businesses or assets. The offering would increase the number of shares outstanding.
Midas Inc.'s (MDS, $8.20, +$0.76, +10.21%) shares were up 10% before being halted ahead of the announcement of an arbitration decision. The company's chief executive revealed at end of conference call to discuss the company's fourth-quarter results that the auto-shop chain just received the ruling in a spat with its master licensee in Europe. A statement is due later today with specifics of the ruling.
Motorola Mobility Holdings Inc.'s (MMI, $27.05, -$1.33, -4.69%) time in the spotlight with its Xoom tablet faded pretty quickly. While MMI was seen as the first true competitor to the iPad, Apple Inc. (AAPL, $358.51, +$6.39, +1.82%) one-upped it with its iPad 2, which will come out sooner than expected. Cowen downgraded its stock-investment rating on MMI to neutral from outperform, saying the window of opportunity to establish the Xoom is narrowing more rapidly than expected.
Biopharmaceutical and diagnostics company Opko Health Inc. (OPK, $4.27, -$0.33, -7.17%) said it plans to offer at least $100 million in common stock, saying it plans to use proceeds for general corporate purposes, which could include research and development expenses, clinical trials and acquisitions.
Perry Ellis International Inc. (PERY, $27.65, -$1.17, -4.06%) said it boosted the size of a planned debt offering and its sale of at least 2 million shares priced at $28 a share, a 2.8% discount to its Wednesday close.
Phillips-Van Heusen Corp. (PVH, $61.31, +$2.13, +3.60%) on Wednesday said it amended and restated a senior secured credit facility it entered into in May in connection with the company's $3 billion acquisition of Tommy Hilfiger.
Standard & Poor's Ratings Services upgraded data-storage company Quantum Corp. (QTM, $2.54, +$0.09, +3.67%) by a notch, citing improved performance of late despite declines in its core tape business.
Sigma Designs Inc. (SIGM, $12.04, -$1.66, -12.12%) swung to a fourth-quarter profit as the company's sales and margins improved and it booked fewer charges than a year earlier. But adjusted profit declined and Chairman and Chief Executive Thinh Tran noted that the company saw sequential revenue declines because of lower revenue in three of its market segments.
Standard Motor Products Inc.'s (SMP, $12.32, +$0.62, +5.30%) fourth-quarter results easily topped analysts' estimates. The automotive replacement parts manufacturer and distributor said its strong results were aided by an aging car population and the closing of car dealerships.
Taser International Inc. (TASR, $4.04, +$0.15, +3.86%) said its board of directors has approved a stock buy-back program that authorizes the company, which develops, assembles and markets nonlethal protection systems, to purchase up to $12.5 million of the company's common stock.
Business-data storage company Teradata Corp. (TDC, $49.76, +$2.19, +4.60%) said it has agreed to acquire the 89% of Aster Data it doesn't already own for $263 million, a move it said will increase its customers' ability to analyze large volumes of diverse data.
United Natural Foods Inc.'s (UNFI, $45.39, +$3.70, +8.88%) fiscal second-quarter earnings rose 20% as the wholesale distributor reported revenue that beat analysts' expectations. For the year, the company raised the low end of its earnings guidance and raised its net sales view based on solid performance during the first half of its fiscal year.
Valero Energy Corp. (VLO, $28.86, +$1.96, +7.29%) said it expects its first-quarter earnings to fall within the range of 15 cents to 30 cents a share, including a loss from closing out hedges that totaled about 10% of its annual production. Credit Suisse said in a note that closing the hedges removes a negative for the company, calling them a "near-term overhang."
Oil refiner and retailer Western Refining Inc. (WNR, $16.91, +$1.02, +6.42%) posted a surprise fourth-quarter loss despite improving margins and sharply lower write-downs as low volumes led to slower-than-expected sales growth. Though the company posted a loss, Chief Executive Jeff Stevens said he saw "an extraordinary refining margin environment during a time of year when we traditionally experience seasonally weaker margins."
Zagg Inc. (ZAGG, $8.18, +$1.11, +15.70%) shares rebounded Thursday after the company said some of its main products will work alongside a new cover that Apple Inc. (AAPL, $358.54, +$6.42, +1.82%) announced Wednesday for the iPad 2
Tuesday, March 1, 2011
U.S. Stocks Decline Amid Concern About Rising Crude-Oil Prices
U.S. stocks declined, sending the Standard & Poor’s 500 Index down for the first time in three days, amid concern rising energy prices will threaten the economic recovery.
Titanium Metals Corp. and AK Steel Holding Corp. fell at least 2.8 percent as materials companies retreated. Crude rose above $98 a barrel. Fifth Third Bancorp dropped 6 percent after receiving a subpoena from the Securities and Exchange Commission. Boston Scientific Corp. climbed 5.6 percent after RBC Capital Markets raised its stock rating for the second- biggest maker of heart devices.
The S&P 500 fell 0.5 percent to 1,320.29 at 10:36 a.m. in New York. The benchmark gauge climbed 1.6 percent over the previous two days. The Dow Jones Industrial Average dropped 44.50 points, or 0.4 percent, to 12,181.84 today.
“There’s geopolitical concern even as we don’t see an oil supply disruption from the situation in the Middle East,” said Stanley Nabi, New York-based vice chairman of Silvercrest Asset Management Group, which oversees $9.5 billion. “Anyone who thinks that a year from now we’re going to look at the Middle East and see nothing but candy and roses, that’s not going to happen. Manufacturing, the overall U.S. economy is doing well. Still, that geopolitical situation will be an overhang.”
February Gain
The S&P 500 rose 3.2 percent in February, extending this year’s gain to 5.5 percent, amid government measures to stimulate the economy and higher-than-estimated corporate earnings. Per-share profit topped estimates at 71 percent of the 463 companies in the S&P 500 that have reported results since Jan. 10, according to data compiled by Bloomberg.
Oil surged 1.7 percent to $98.64 a barrel as unrest threatened to spread from Libya to Iran, OPEC’s second-largest producer. Concern that higher energy costs will hurt consumer spending and corporate profits overshadowed a report showing that American manufacturing expanded in February at the fastest pace since 2004.
Materials companies declined the most of 10 industries in the S&P 500. Titanium Metals retreated 4.3 percent to $18.18, while AK Steel fell 2.8 percent to $15.54.
Fifth Third Bancorp dropped 6 percent to $13.73. Ohio’s largest lender said it received a subpoena from the SEC requesting information regarding accounting on certain commercial loans.
Factories
The Institute for Supply Management’s factory index increased to 61.4 in February from 60.8 a month earlier, the Tempe, Arizona-based group said today. Readings greater than 50 signal growth, and economists projected a gain to 61, according to the median forecast in a Bloomberg News survey. Estimates of the 77 economists ranged from 58.7 to 63.3.
Stocks are likely to gain in the first five trading days of the month, according to a report from Cleve Rueckert, analyst at Birinyi Associates Inc. Since July 2010, the S&P 500 has gained on average 2.9 percent during the first five days of each month, the Birinyi data show. The index has rallied 83 percent of the time since April 2009 during that same five-day period, the report said.
Federal Reserve Chairman Ben S. Bernanke, testifying before Congress today, reiterated that policy makers are concerned about the pace of recovery and the time it’s taking to reduce unemployment even as manufacturing prospers. Tomorrow, he will testify before the House Financial Services Committee.
Commodities Beat Stocks
Metals, crops and fuel beat stocks, bonds and the dollar for a third straight month, the longest stretch since June 2008, as inflation lifted cotton and cocoa and investors speculated violence in the Middle East and northern Africa will restrain energy supplies.
The S&P GSCI Total Return Index of 24 commodities gained 3.8 percent in February and rose for a sixth consecutive month, the longest streak since 2004, data compiled by Bloomberg show. The MSCI All-Country World Index of equities in 45 nations returned 3 percent including dividends, while corporate and government bonds rose 0.13 percent, according to Bank of America Merrill Lynch’s Global Broad Market Index through Feb. 25. The U.S. Dollar Index, a gauge of the currency against six counterparts such as the euro and yen, fell 1.1 percent.
“These commodity price increases are staggering,” said Kevin Rendino, a money manager at New York-based BlackRock Inc., which oversees $3.45 trillion. “Each commodity is different, but there is a supply issue for oil. There has been real economic demand for these commodities since the economy began recovering.”
AutoZone Inc. gained 3.7 percent to $267.39. The auto-parts retails said second-quarter earnings excluding some items of $3.34 a share beat the average analyst estimate in a Bloomberg survey of $3.06.
Boston Scientific climbed 5.6 percent to $7.56. RBC Capital Markets raised its stock recommendation to “outperform” from “sector perform.” The 12-month share-price estimate is $8.
U.S. stocks declined, sending the Standard & Poor’s 500 Index down for the first time in three days, amid concern rising energy prices will threaten the economic recovery.
Titanium Metals Corp. and AK Steel Holding Corp. fell at least 2.8 percent as materials companies retreated. Crude rose above $98 a barrel. Fifth Third Bancorp dropped 6 percent after receiving a subpoena from the Securities and Exchange Commission. Boston Scientific Corp. climbed 5.6 percent after RBC Capital Markets raised its stock rating for the second- biggest maker of heart devices.
The S&P 500 fell 0.5 percent to 1,320.29 at 10:36 a.m. in New York. The benchmark gauge climbed 1.6 percent over the previous two days. The Dow Jones Industrial Average dropped 44.50 points, or 0.4 percent, to 12,181.84 today.
“There’s geopolitical concern even as we don’t see an oil supply disruption from the situation in the Middle East,” said Stanley Nabi, New York-based vice chairman of Silvercrest Asset Management Group, which oversees $9.5 billion. “Anyone who thinks that a year from now we’re going to look at the Middle East and see nothing but candy and roses, that’s not going to happen. Manufacturing, the overall U.S. economy is doing well. Still, that geopolitical situation will be an overhang.”
February Gain
The S&P 500 rose 3.2 percent in February, extending this year’s gain to 5.5 percent, amid government measures to stimulate the economy and higher-than-estimated corporate earnings. Per-share profit topped estimates at 71 percent of the 463 companies in the S&P 500 that have reported results since Jan. 10, according to data compiled by Bloomberg.
Oil surged 1.7 percent to $98.64 a barrel as unrest threatened to spread from Libya to Iran, OPEC’s second-largest producer. Concern that higher energy costs will hurt consumer spending and corporate profits overshadowed a report showing that American manufacturing expanded in February at the fastest pace since 2004.
Materials companies declined the most of 10 industries in the S&P 500. Titanium Metals retreated 4.3 percent to $18.18, while AK Steel fell 2.8 percent to $15.54.
Fifth Third Bancorp dropped 6 percent to $13.73. Ohio’s largest lender said it received a subpoena from the SEC requesting information regarding accounting on certain commercial loans.
Factories
The Institute for Supply Management’s factory index increased to 61.4 in February from 60.8 a month earlier, the Tempe, Arizona-based group said today. Readings greater than 50 signal growth, and economists projected a gain to 61, according to the median forecast in a Bloomberg News survey. Estimates of the 77 economists ranged from 58.7 to 63.3.
Stocks are likely to gain in the first five trading days of the month, according to a report from Cleve Rueckert, analyst at Birinyi Associates Inc. Since July 2010, the S&P 500 has gained on average 2.9 percent during the first five days of each month, the Birinyi data show. The index has rallied 83 percent of the time since April 2009 during that same five-day period, the report said.
Federal Reserve Chairman Ben S. Bernanke, testifying before Congress today, reiterated that policy makers are concerned about the pace of recovery and the time it’s taking to reduce unemployment even as manufacturing prospers. Tomorrow, he will testify before the House Financial Services Committee.
Commodities Beat Stocks
Metals, crops and fuel beat stocks, bonds and the dollar for a third straight month, the longest stretch since June 2008, as inflation lifted cotton and cocoa and investors speculated violence in the Middle East and northern Africa will restrain energy supplies.
The S&P GSCI Total Return Index of 24 commodities gained 3.8 percent in February and rose for a sixth consecutive month, the longest streak since 2004, data compiled by Bloomberg show. The MSCI All-Country World Index of equities in 45 nations returned 3 percent including dividends, while corporate and government bonds rose 0.13 percent, according to Bank of America Merrill Lynch’s Global Broad Market Index through Feb. 25. The U.S. Dollar Index, a gauge of the currency against six counterparts such as the euro and yen, fell 1.1 percent.
“These commodity price increases are staggering,” said Kevin Rendino, a money manager at New York-based BlackRock Inc., which oversees $3.45 trillion. “Each commodity is different, but there is a supply issue for oil. There has been real economic demand for these commodities since the economy began recovering.”
AutoZone Inc. gained 3.7 percent to $267.39. The auto-parts retails said second-quarter earnings excluding some items of $3.34 a share beat the average analyst estimate in a Bloomberg survey of $3.06.
Boston Scientific climbed 5.6 percent to $7.56. RBC Capital Markets raised its stock recommendation to “outperform” from “sector perform.” The 12-month share-price estimate is $8.
WORLD FOREX: Euro Holds Gains Vs Dollar
The euro held onto recent gains against the dollar in Asian trading Tuesday on expectations that euro-zone economic data due later in the global day could reinforce the growing view that the European Central Bank will raise its key interest rate sooner than its U.S. counterpart.
Meanwhile, the greenback got a lift against the yen as buoyant equity markets and a retreat in oil prices prodded investors and traders to dump the safe-haven yen against higher yielding currencies like the euro, sterling and the Australian dollar. Japanese importers also stepped in to pick up the dollar against the yen during the morning, dealers said.
Traders are keeping a close eye on euro-zone inflation data due at 1000 GMT for clues on likely monetary policy direction ahead of the ECB's policy-setting meeting on Thursday. The consumer price index for February is expected to rise 2.4% from a year earlier, according to the median forecast of economists surveyed by Dow Jones Newswires.
Another key event is testimony by U.S. Federal Reserve Chairman Ben Bernanke before the U.S. Senate Banking Committee at 1500 GMT.
If the euro-zone inflation data come in stronger-than-expected, "that would mean it will open the way for the ECB to prepare for a rate hike as early as June," Kazuo Kitazawa, FX sales director at Credit Suisse Securities in Japan. On the other hand, "Mr. Bernanke will probably take a positive stance to maintain the present quantitative credit easing, " Kitazawa said, adding "this won't work in favor of the dollar".
For the rest of the global trading day, Kitazawa expects the euro to stay within a $1.3750-$1.3850 range, with no sharper rises expected unless the inflation data deviate from the forecast. At 0450 GMT, the euro was at $1.3806 compared with $1.3805 late Monday in New York, according to trading platform EBS via CQG. The dollar was at Y82.16 from Y81.79, while the euro was at Y113.43 from Y112.90.
Bank of Japan Gov. Masaaki Shirakawa said the strong yen is "not working as an additional risk factor" for the economy, with business sentiment remaining strong and the currency's strength curbing import costs. In an interview with The Wall Street Journal and Dow Jones Newswires, Shirakawa said he won't rule out further easing if needed, saying the BOJ is assessing the effectiveness of its bank lending facility and may look to expand it.
Masamichi Adachi, economist at J.P. Morgan Securities Japan said, "The BOJ appears a little bit less concerned on the pressures to the downside" as data show the export-driven recovery is trickling through to improvement in the jobs market.
"They're deliberately balancing concerns over oil price rises and other negatives with pressure from the outside to ease further. They can stay on hold and wait to see how conditions develop," Adachi added.
The ICE Dollar Index, which tracks the U.S. dollar against a trade-weighted basket of currencies, was at 76.913 from about 76.898.
Meanwhile, the Australian dollar weakened against the dollar after the Reserve Bank of Australia signaled it is unlikely to hike interest rates in the coming months. RBA Governor Glenn Stevens said in a statement after a regular policy-setting meeting, at which the central bank left its cash rate target at 4.75%, that inflation is currently "consistent with the medium-term objective of monetary policy."
The Australian dollar dropped to $1.0160 at 0450 GMT following the statement, down from an earlier high of $1.0199.
Yuzo Sakai, manager of FX business promotion at Tokyo Forex & Ueda Harlow, said that the selling came as "the RBA policy statement fell a bit short of expectations for a more hawkish tone."
The euro held onto recent gains against the dollar in Asian trading Tuesday on expectations that euro-zone economic data due later in the global day could reinforce the growing view that the European Central Bank will raise its key interest rate sooner than its U.S. counterpart.
Meanwhile, the greenback got a lift against the yen as buoyant equity markets and a retreat in oil prices prodded investors and traders to dump the safe-haven yen against higher yielding currencies like the euro, sterling and the Australian dollar. Japanese importers also stepped in to pick up the dollar against the yen during the morning, dealers said.
Traders are keeping a close eye on euro-zone inflation data due at 1000 GMT for clues on likely monetary policy direction ahead of the ECB's policy-setting meeting on Thursday. The consumer price index for February is expected to rise 2.4% from a year earlier, according to the median forecast of economists surveyed by Dow Jones Newswires.
Another key event is testimony by U.S. Federal Reserve Chairman Ben Bernanke before the U.S. Senate Banking Committee at 1500 GMT.
If the euro-zone inflation data come in stronger-than-expected, "that would mean it will open the way for the ECB to prepare for a rate hike as early as June," Kazuo Kitazawa, FX sales director at Credit Suisse Securities in Japan. On the other hand, "Mr. Bernanke will probably take a positive stance to maintain the present quantitative credit easing, " Kitazawa said, adding "this won't work in favor of the dollar".
For the rest of the global trading day, Kitazawa expects the euro to stay within a $1.3750-$1.3850 range, with no sharper rises expected unless the inflation data deviate from the forecast. At 0450 GMT, the euro was at $1.3806 compared with $1.3805 late Monday in New York, according to trading platform EBS via CQG. The dollar was at Y82.16 from Y81.79, while the euro was at Y113.43 from Y112.90.
Bank of Japan Gov. Masaaki Shirakawa said the strong yen is "not working as an additional risk factor" for the economy, with business sentiment remaining strong and the currency's strength curbing import costs. In an interview with The Wall Street Journal and Dow Jones Newswires, Shirakawa said he won't rule out further easing if needed, saying the BOJ is assessing the effectiveness of its bank lending facility and may look to expand it.
Masamichi Adachi, economist at J.P. Morgan Securities Japan said, "The BOJ appears a little bit less concerned on the pressures to the downside" as data show the export-driven recovery is trickling through to improvement in the jobs market.
"They're deliberately balancing concerns over oil price rises and other negatives with pressure from the outside to ease further. They can stay on hold and wait to see how conditions develop," Adachi added.
The ICE Dollar Index, which tracks the U.S. dollar against a trade-weighted basket of currencies, was at 76.913 from about 76.898.
Meanwhile, the Australian dollar weakened against the dollar after the Reserve Bank of Australia signaled it is unlikely to hike interest rates in the coming months. RBA Governor Glenn Stevens said in a statement after a regular policy-setting meeting, at which the central bank left its cash rate target at 4.75%, that inflation is currently "consistent with the medium-term objective of monetary policy."
The Australian dollar dropped to $1.0160 at 0450 GMT following the statement, down from an earlier high of $1.0199.
Yuzo Sakai, manager of FX business promotion at Tokyo Forex & Ueda Harlow, said that the selling came as "the RBA policy statement fell a bit short of expectations for a more hawkish tone."
Friday, February 18, 2011
US Stocks Rise To 2 1/2 Year Intraday Highs
U.S. stocks rose Friday, setting fresh 2 1/2-year intraday highs as the market continued its uptrend despite another round of tightening in China and continued unrest in the Middle East.
The Dow Jones Industrial Average climbed 53 points, or 0.4%, to 12370, and reached its highest intraday level since June 2008 at 12370.67. Among the measure's top performers, Travelers rose 1.6%, Cisco Systems added 1.5% and Caterpillar gained 1.5%. Limiting the advance, Pfizer fell 1%, Disney slipped 0.8% and American Express shed 0.7%.
The Nasdaq Composite rose 0.3% to 2840. The Standard & Poor's 500 index added 0.3% to 1344, led by the energy sector as crude-oil futures climbed.
"It looks like a continuation of an upward drift in the market," said Phil Dow, director Of equity strategy at RBC Wealth Management. "You've had a pretty good dose of negative news and yet the market just keeps going up," he said, noting that the market's gains have come in the face of turmoil in Egypt and the Middle East.
Friday marks the final session of the U.S. stock market's third-straight week in the black, which is also the DJIA's 11th positive week out of the past 12 weeks.
Still, RBC's Dow said, the upcoming three-day weekend is likely keeping a lid on Friday's climb, especially with a Group of 20 meeting going on in Paris and while the unrest in the Middle East continues.
"A three-day weekend always cautions traders," Dow said. "One less day of liquidity scares people."
At the G-20 meeting, the group of industrial and developing nations appeared headed toward an agreement on setting four indicators as guidelines for measuring global economic imbalances, according to senior G-20 officials.
Also at the meeting, Federal Reserve Chairman Ben Bernanke offered his most pointed rebuttal yet to foreign critics who say the U.S. central bank's easy-money policies are causing inflation and asset bubbles abroad. The rest of the world has an interest in the U.S. recovery that his policies are spurring, Bernanke argued in prepared remarks.
In the Middle East, Bahraini protesters said security services opened fire on demonstrators Friday evening as they marched toward the capital's Pearl roundabout, dramatically escalating the standoff between the country's Sunni Muslim rulers and its Shiite majority population. The country's crown prince, in an emotional TV appearance, appealed for calm and asked protesters to leave the square to begin "dialogue."
The unrest helped lift crude-oil futures above $90 a barrel.
The materials sector, which gets much of its demand from China, fell as China's central bank said it will raise banks' reserve-requirement ratio by half a percentage point, the second increase this year to withdraw excess liquidity from the economy and curb inflation.
But the broader market largely shrugged off the move, given that it was widely expected as the People's Bank of China hasn't been able to withdraw sufficient funds from the market in its open-market operations, and because consumer-price inflation accelerated in January.
The U.S. Dollar Index, tracking the U.S. currency against a basket of six others, slipped 0.4%. Treasurys declined, lifting the yield on the 10-year note up to 3.62%. Gold futures climbed.
Among stocks in focus, Campbell Soup fell 4.9%, after the company cut its earnings outlook for its current fiscal year amid heated competition for soups, sauces and drinks. The lowered guidance comes after Campbell reported a 7.7% decline in fiscal second-quarter earnings as more promotions again failed to boost soup sales. Revenue missed analysts' expectations.
Red Robin Gourmet Burgers jumped 13%. The casual restaurant chain's fourth-quarter earnings rose 37% to beat its downbeat forecast as higher traffic boosted revenue. Chief Executive Steven Carley said the company is implementing "significant initiatives" to increase same-store sales, reduce expenses, improve restaurant level margins and drive overall corporate profitability.
U.S. stocks rose Friday, setting fresh 2 1/2-year intraday highs as the market continued its uptrend despite another round of tightening in China and continued unrest in the Middle East.
The Dow Jones Industrial Average climbed 53 points, or 0.4%, to 12370, and reached its highest intraday level since June 2008 at 12370.67. Among the measure's top performers, Travelers rose 1.6%, Cisco Systems added 1.5% and Caterpillar gained 1.5%. Limiting the advance, Pfizer fell 1%, Disney slipped 0.8% and American Express shed 0.7%.
The Nasdaq Composite rose 0.3% to 2840. The Standard & Poor's 500 index added 0.3% to 1344, led by the energy sector as crude-oil futures climbed.
"It looks like a continuation of an upward drift in the market," said Phil Dow, director Of equity strategy at RBC Wealth Management. "You've had a pretty good dose of negative news and yet the market just keeps going up," he said, noting that the market's gains have come in the face of turmoil in Egypt and the Middle East.
Friday marks the final session of the U.S. stock market's third-straight week in the black, which is also the DJIA's 11th positive week out of the past 12 weeks.
Still, RBC's Dow said, the upcoming three-day weekend is likely keeping a lid on Friday's climb, especially with a Group of 20 meeting going on in Paris and while the unrest in the Middle East continues.
"A three-day weekend always cautions traders," Dow said. "One less day of liquidity scares people."
At the G-20 meeting, the group of industrial and developing nations appeared headed toward an agreement on setting four indicators as guidelines for measuring global economic imbalances, according to senior G-20 officials.
Also at the meeting, Federal Reserve Chairman Ben Bernanke offered his most pointed rebuttal yet to foreign critics who say the U.S. central bank's easy-money policies are causing inflation and asset bubbles abroad. The rest of the world has an interest in the U.S. recovery that his policies are spurring, Bernanke argued in prepared remarks.
In the Middle East, Bahraini protesters said security services opened fire on demonstrators Friday evening as they marched toward the capital's Pearl roundabout, dramatically escalating the standoff between the country's Sunni Muslim rulers and its Shiite majority population. The country's crown prince, in an emotional TV appearance, appealed for calm and asked protesters to leave the square to begin "dialogue."
The unrest helped lift crude-oil futures above $90 a barrel.
The materials sector, which gets much of its demand from China, fell as China's central bank said it will raise banks' reserve-requirement ratio by half a percentage point, the second increase this year to withdraw excess liquidity from the economy and curb inflation.
But the broader market largely shrugged off the move, given that it was widely expected as the People's Bank of China hasn't been able to withdraw sufficient funds from the market in its open-market operations, and because consumer-price inflation accelerated in January.
The U.S. Dollar Index, tracking the U.S. currency against a basket of six others, slipped 0.4%. Treasurys declined, lifting the yield on the 10-year note up to 3.62%. Gold futures climbed.
Among stocks in focus, Campbell Soup fell 4.9%, after the company cut its earnings outlook for its current fiscal year amid heated competition for soups, sauces and drinks. The lowered guidance comes after Campbell reported a 7.7% decline in fiscal second-quarter earnings as more promotions again failed to boost soup sales. Revenue missed analysts' expectations.
Red Robin Gourmet Burgers jumped 13%. The casual restaurant chain's fourth-quarter earnings rose 37% to beat its downbeat forecast as higher traffic boosted revenue. Chief Executive Steven Carley said the company is implementing "significant initiatives" to increase same-store sales, reduce expenses, improve restaurant level margins and drive overall corporate profitability.
Tuesday, February 15, 2011
FOREX-Euro bounces from 3-wk low; dollar at 8-wk high vs yen
The euro outperformed the dollar for the first time in four days on Tuesday, bouncing from a three-week low as investors' appetite for risk improved, but gains could be fleeting as technical factors point to losses.
The euro rose above the pivotal level of $1.35 and traded off a 3-week low of $1.3428 in the overnight session, with options expirations noted at $1.3500. The euro faces obstacles from several directions, however, with sovereign debt risk and interest rate differentials working decidedly against the single currency.
In early New York trading the euro EUR= was up 0.3 percent against the dollar at $1.3522 after breaking its 100-day moving average at $1.3541.
Camilla Sutton, chief currency strategist at Scotia Capital in Toronto, said near-term technicals are warning of the potential of further downside for the euro and suggest that a test down to $1.3425 is likely.
The dollar trimmed gains against the yen but remained at an 8-week high after data showed U.S. retail sales rose less than expected in January. For the retail sales report, click on [ID:nN15221247].
Higher Treasury yields have increased the appeal of the dollar versus the yen in recent weeks, with the greenback last up 0.6 percent to 83.79 yen JPY=.
"Loose monetary policy in Japan and a slow drift higher in the expectation for the Fed has put significant upward pressure on the U.S.-Japan 2-year spread," Sutton said, which in turn is pressuring dollar-yen higher. "We expect that USDJPY will continue to drift higher in the near-term and accordingly are in favor of short-term, long-USDJPY positions."
U.S. Treasury prices fell early on Tuesday and two-year note yields rose to their highest levels since May.
"Overall the euro is very vulnerable, and any rebound is likely to be unsustainable," said Ian Stannard, currency strategist at BNP Paribas. "There are concerns about the banking system, and yield differentials (between the euro zone and the U.S.) are heading lower, so all the ingredients are there for the euro to come under more pressure."
Peripheral euro-zone yield spreads have been widening in the past week on uncertainty over a rescue package for the region, and there was little sign the recent unease had been tempered by an agreement from European finance ministers on Monday.
Finance ministers agreed on Monday that a permanent rescue mechanism be set up from 2013 would total 500 billion euros, but there was no agreement over how to beef up its existing rescue fund. [ID:nLDE71D0JU]
The euro showed little reaction to German analyst and investor sentiment rising slightly in February amid confidence in Germany's economic recovery, according to a survey by the ZEW economic think tank on Tuesday. [ID:nLDE71E1HR]
Yield differentials were less favorable for the euro, with two-year German bonds yielding 0.54 percentage points more than U.S. Treasuries, the narrowest yield spread in nearly a month and sharply below a two-year high of 0.82 percentage points hit in January.
Scotia Capital's Sutton said while bond yield spreads between euro-zone periphery debt and Germany are still being pressured higher, 2-year spreads appear to be topping out.
"This will be positive for the euro," she said. "In the medium term we expect the euro to retrace recent losses and believe that by year-end the euro will have sustainably retraced all of its late 2010 losses."
Sterling rallied 0.7 percent after data showed for the thirteenth consecutive month the United Kingdom's inflation rate is above the upper target of the Bank of England. This fueled speculation that interest rates will rise in the near term as the Bank of England seeks to contain price pressures.
Wednesday's Bank of England's inflation report is expected to be hawkish and revise up near-term inflation projections, which could boost expectations that interest rates will rise soon and help the pound retain broad gains made this year.
The euro outperformed the dollar for the first time in four days on Tuesday, bouncing from a three-week low as investors' appetite for risk improved, but gains could be fleeting as technical factors point to losses.
The euro rose above the pivotal level of $1.35 and traded off a 3-week low of $1.3428 in the overnight session, with options expirations noted at $1.3500. The euro faces obstacles from several directions, however, with sovereign debt risk and interest rate differentials working decidedly against the single currency.
In early New York trading the euro EUR= was up 0.3 percent against the dollar at $1.3522 after breaking its 100-day moving average at $1.3541.
Camilla Sutton, chief currency strategist at Scotia Capital in Toronto, said near-term technicals are warning of the potential of further downside for the euro and suggest that a test down to $1.3425 is likely.
The dollar trimmed gains against the yen but remained at an 8-week high after data showed U.S. retail sales rose less than expected in January. For the retail sales report, click on [ID:nN15221247].
Higher Treasury yields have increased the appeal of the dollar versus the yen in recent weeks, with the greenback last up 0.6 percent to 83.79 yen JPY=.
"Loose monetary policy in Japan and a slow drift higher in the expectation for the Fed has put significant upward pressure on the U.S.-Japan 2-year spread," Sutton said, which in turn is pressuring dollar-yen higher. "We expect that USDJPY will continue to drift higher in the near-term and accordingly are in favor of short-term, long-USDJPY positions."
U.S. Treasury prices fell early on Tuesday and two-year note yields rose to their highest levels since May.
"Overall the euro is very vulnerable, and any rebound is likely to be unsustainable," said Ian Stannard, currency strategist at BNP Paribas. "There are concerns about the banking system, and yield differentials (between the euro zone and the U.S.) are heading lower, so all the ingredients are there for the euro to come under more pressure."
Peripheral euro-zone yield spreads have been widening in the past week on uncertainty over a rescue package for the region, and there was little sign the recent unease had been tempered by an agreement from European finance ministers on Monday.
Finance ministers agreed on Monday that a permanent rescue mechanism be set up from 2013 would total 500 billion euros, but there was no agreement over how to beef up its existing rescue fund. [ID:nLDE71D0JU]
The euro showed little reaction to German analyst and investor sentiment rising slightly in February amid confidence in Germany's economic recovery, according to a survey by the ZEW economic think tank on Tuesday. [ID:nLDE71E1HR]
Yield differentials were less favorable for the euro, with two-year German bonds yielding 0.54 percentage points more than U.S. Treasuries, the narrowest yield spread in nearly a month and sharply below a two-year high of 0.82 percentage points hit in January.
Scotia Capital's Sutton said while bond yield spreads between euro-zone periphery debt and Germany are still being pressured higher, 2-year spreads appear to be topping out.
"This will be positive for the euro," she said. "In the medium term we expect the euro to retrace recent losses and believe that by year-end the euro will have sustainably retraced all of its late 2010 losses."
Sterling rallied 0.7 percent after data showed for the thirteenth consecutive month the United Kingdom's inflation rate is above the upper target of the Bank of England. This fueled speculation that interest rates will rise in the near term as the Bank of England seeks to contain price pressures.
Wednesday's Bank of England's inflation report is expected to be hawkish and revise up near-term inflation projections, which could boost expectations that interest rates will rise soon and help the pound retain broad gains made this year.
US STOCKS-Wall St stocks slip; weakness in energy, tech
U.S. stocks slid on Tuesday as energy shares pulled back, creating a breather in the market's recent rally.
Volume was lighter than average, totaling about 3.5 billion shares around midday. Volume on Monday was the lowest so far this year.
Energy stocks have been among the market's leaders in the recent rally, with the S&P energy index up 45 percent since the start of September, while the benchmark S&P 500 is up 26 percent.
On the day, Exxon Mobil (XOM.N) was down 2.2 percent to $83.06, while the S&P energy index .GSPE was down 1.1 percent, as oil prices slumped.
Technology, too, has outperformed the broader market in that period, with the S&P tech index .GSPT up 33 percent.
Shares of JDS Uniphase Corp (JDSU.O) dropped 7.5 percent to $25.81 after Bernstein cut its rating on the stock to "market-perform" from "outperform."
An index of semiconductors .SOX was down 0.8 percent.
"It's getting a little sloppy after the huge run we've had," said Robert Francello, head of equity trading for Apex Capital in San Francisco.
But he said the market could still end higher. "No matter what we throw at it, there seems to be a bid for the market."
Shares of NYSE Euronext (NYX.N) fell 3.3 percent at $38.14 after it agreed to be acquired by Deutsche Boerse (DB1Gn.DE) to create the world's largest exchange operator. The deal dodges key questions that could threaten its completion.
U.S. stocks slid on Tuesday as energy shares pulled back, creating a breather in the market's recent rally.
Volume was lighter than average, totaling about 3.5 billion shares around midday. Volume on Monday was the lowest so far this year.
Energy stocks have been among the market's leaders in the recent rally, with the S&P energy index up 45 percent since the start of September, while the benchmark S&P 500 is up 26 percent.
On the day, Exxon Mobil (XOM.N) was down 2.2 percent to $83.06, while the S&P energy index .GSPE was down 1.1 percent, as oil prices slumped.
Technology, too, has outperformed the broader market in that period, with the S&P tech index .GSPT up 33 percent.
Shares of JDS Uniphase Corp (JDSU.O) dropped 7.5 percent to $25.81 after Bernstein cut its rating on the stock to "market-perform" from "outperform."
An index of semiconductors .SOX was down 0.8 percent.
"It's getting a little sloppy after the huge run we've had," said Robert Francello, head of equity trading for Apex Capital in San Francisco.
But he said the market could still end higher. "No matter what we throw at it, there seems to be a bid for the market."
Shares of NYSE Euronext (NYX.N) fell 3.3 percent at $38.14 after it agreed to be acquired by Deutsche Boerse (DB1Gn.DE) to create the world's largest exchange operator. The deal dodges key questions that could threaten its completion.
Friday, February 11, 2011
FOREX-Euro falls as debt nerves return, dollar gains
The euro fell on Friday following a new bout of market jitters over the euro zone's sovereign debt problems, while the dollar struck a one-month high against the yen after data underscored recovery in the U.S. jobs market.
U.S. Treasury yields have spiked this month, shoring up the dollar while improving data has supported the view that economic recovery in the United States is on more durable ground.
Data on Thursday showed new applications for unemployment benefits dropped to a 2-1/2 year low last week, consistent with other indicators suggesting a strengthening labour market.
"The focus is on interest rates and the U.S. has lagged behind most especially the euro zone," said Paul Robson, currency strategist at RBS Global Banking.
"The improvement in the labour market bodes well for the dollar while for the euro, there is a risk of disappointment as peripheral debt problems return."
The dollar index .DXY, which measures the greenback's performance against a basket of currencies, was up 0.5 percent at 78.640. The dollar touched its highest level in a month at 83.60 yen JPY= to trade up 0.3 percent on the day.
Traders highlighted a chunky dollar/yen expiry for Friday's New York cut at 84.00 yen, with more sizeable interest at the same level also reported to come on Monday.
The dollar also benefited from safe-haven flows after Egypt's President Hosni Mubarak refused to step down as had been expected, keeping alive the risk of a possible showdown between protestors and the military and more political chaos in the Middle East
The euro fell on Friday following a new bout of market jitters over the euro zone's sovereign debt problems, while the dollar struck a one-month high against the yen after data underscored recovery in the U.S. jobs market.
U.S. Treasury yields have spiked this month, shoring up the dollar while improving data has supported the view that economic recovery in the United States is on more durable ground.
Data on Thursday showed new applications for unemployment benefits dropped to a 2-1/2 year low last week, consistent with other indicators suggesting a strengthening labour market.
"The focus is on interest rates and the U.S. has lagged behind most especially the euro zone," said Paul Robson, currency strategist at RBS Global Banking.
"The improvement in the labour market bodes well for the dollar while for the euro, there is a risk of disappointment as peripheral debt problems return."
The dollar index .DXY, which measures the greenback's performance against a basket of currencies, was up 0.5 percent at 78.640. The dollar touched its highest level in a month at 83.60 yen JPY= to trade up 0.3 percent on the day.
Traders highlighted a chunky dollar/yen expiry for Friday's New York cut at 84.00 yen, with more sizeable interest at the same level also reported to come on Monday.
The dollar also benefited from safe-haven flows after Egypt's President Hosni Mubarak refused to step down as had been expected, keeping alive the risk of a possible showdown between protestors and the military and more political chaos in the Middle East
Japanese shares open lower
Japanese shares opened slightly lower Thursday as investors took profits ahead of a long weekend, analysts said.
The Nikkei index at the Tokyo Stock Exchange lost 0.33 per cent or 35.15 points to 10,582.68 shortly after the opening bell.
The headline index should receive support from a weaker yen, especially against the euro, with the European unit trading at 113.10 yen in early trade compared with 112.43 yen late Wednesday in Tokyo.
The dollar was at 82.43 yen, also slightly firming from 82.35 in New York Wednesday. Against the dollar, the euro eased slightly to $1.3718 from $1.3727 in New York late Wednesday.
But major shares may come under pressure as investors lock in profits before a three-day weekend from Friday to observe the national foundation day, Kenichi Hirano, operating officer at Tachibana Securities , told Dow Jones Newswires.
Hirano expected the Nikkei to move in the range of 10,575-10,675, against Wednesday's close of 10,617.83.
He also pointed to possible fluctuations related to the settlement for monthly options contracts as well as the start of the new "J-GATE" next generation derivatives trading system on the Osaka Securities Exchange Monday.
Before the market opened, the government said Japan's core private-sector machinery orders edged up 1.7 per cent in December from the previous month, the first rise in four months but far short of the expected 5.3-per cent rise.
Overnight, US stocks closed mixed in listless trading, with the Dow Jones Industrial Average rising 6.74 points or 0.06 per cent to 12,239.89.
The broader S&P 500 index fell 3.69 points or 0.28 per cent to 1,320.88, while the tech-rich Nasdaq Composite index dropped 7.98 points or 0.29 per cent to 2,789.07.
Japanese shares opened slightly lower Thursday as investors took profits ahead of a long weekend, analysts said.
The Nikkei index at the Tokyo Stock Exchange lost 0.33 per cent or 35.15 points to 10,582.68 shortly after the opening bell.
The headline index should receive support from a weaker yen, especially against the euro, with the European unit trading at 113.10 yen in early trade compared with 112.43 yen late Wednesday in Tokyo.
The dollar was at 82.43 yen, also slightly firming from 82.35 in New York Wednesday. Against the dollar, the euro eased slightly to $1.3718 from $1.3727 in New York late Wednesday.
But major shares may come under pressure as investors lock in profits before a three-day weekend from Friday to observe the national foundation day, Kenichi Hirano, operating officer at Tachibana Securities , told Dow Jones Newswires.
Hirano expected the Nikkei to move in the range of 10,575-10,675, against Wednesday's close of 10,617.83.
He also pointed to possible fluctuations related to the settlement for monthly options contracts as well as the start of the new "J-GATE" next generation derivatives trading system on the Osaka Securities Exchange Monday.
Before the market opened, the government said Japan's core private-sector machinery orders edged up 1.7 per cent in December from the previous month, the first rise in four months but far short of the expected 5.3-per cent rise.
Overnight, US stocks closed mixed in listless trading, with the Dow Jones Industrial Average rising 6.74 points or 0.06 per cent to 12,239.89.
The broader S&P 500 index fell 3.69 points or 0.28 per cent to 1,320.88, while the tech-rich Nasdaq Composite index dropped 7.98 points or 0.29 per cent to 2,789.07.
US Stocks Decline Modestly
U.S. stocks declined modestly Friday as a widening U.S. trade gap and continuing uncertainty over the fate of Egypt's regime prompted investors to retreat to safer assets.
The Dow Jones Industrial Average slipped 7 points, or 0.1%, to 12222. Leading the measure's declines, Kraft Foods dropped 1.9% after its fourth-quarter sales jumped 30% as the food company raised prices and sold more of its products, but higher costs for inputs and integrating its Cadbury acquisition squeezed profits.
Keeping its losses in check, J.P. Morgan rose 1.9%.
The Nasdaq Composite edged down 0.1% to 2787. The Standard & Poor's 500-stock index rose less than one point to 1322, as financials gained, but energy stocks declined.
Home builders weakened after the Obama administration unveiled a proposal Friday for winding down mortgage giants Fannie Mae and Freddie Mac. The steps are likely to mean higher borrowing costs and more limited access to home loans for consumers. Homebuilding company Lennar fell 1.5%, while D.R. Horton lost 1.2%.
Shuttering Fannie and Freddie may dent overall levels of home ownership, noted Lee Partridge, chief investment officer at Salient Partners. However, "in the long run, the demise of Freddie Mac and Fannie Mae would be good for the rest of the financial community," as other firms regain pricing power, he said.
Mortgage insurers surged on the government proposal's suggestion to shrink the size of the Federal Housing Administration, a government-run competitor to the private mortgage insurance industry. Shares of Genworth Financial jumped 4.6%, MGIC Investment surged 11% and PMI Group climbed 7.1%.
Meanwhile, investors registered some anxiety over the intensifying turbulence in Egypt after President Hosni Mubarak shocked protestors late Thursday with a difficult-to-interpret pledge to hand power to his vice president while staying on during the transition to a new governing structure. Egypt's powerful armed forces fell in behind Mubarak as protesters gathered for an 18th day of massive demonstrations.
The jitters over Egypt boosted the dollar, capturing support from its status as a safe retreat. The euro weakened, trading recently at $1.3556, down from $1.3594 late Thursday in New York. Demand for U.S. Treasurys rose, pushing yield on the 10-year note down to 3.61%.
However, crude-oil prices edged down, suggesting that the market may not be worried that the unrest in Egypt could threaten operations at the Suez Canal.
Among stocks in focus, Nokia sank, with U.S.-listed shares dropping 13% after the handset maker said it will adopt Windows Phone as its main smartphone platform, as part of a broad strategic partnership with Microsoft. Nokia offered no guidance for next year or new products, and said 2011 and 2012 are likely to be transition years. Analysts were also concerned that Nokia didn't cut its guidance for research and development costs as a result of the alliance with Microsoft, which most analysts had expected. Meanwhile, shares of Microsoft fell 1%.
Ford Motor rose 1.6% after saying it will cut its debt load by another $3 billion.
In Friday's economic data, the U.S. trade gap widened in December, with the full-year trade gap registering its biggest percentage increase in 10 years on the back of a record shortfall in trade with China, the Commerce Department said. The U.S. deficit in international trade of goods and services increased 5.9% to $40.58 billion from a slightly revised $38.32 billion the month before, topping economists' estimates for a $40.5 billion shortfall.
Separately, the Reuters/University of Michigan consumer sentiment reading for February edged up to 75.1, slightly better than the 75.0 expected by economists.
U.S. stocks declined modestly Friday as a widening U.S. trade gap and continuing uncertainty over the fate of Egypt's regime prompted investors to retreat to safer assets.
The Dow Jones Industrial Average slipped 7 points, or 0.1%, to 12222. Leading the measure's declines, Kraft Foods dropped 1.9% after its fourth-quarter sales jumped 30% as the food company raised prices and sold more of its products, but higher costs for inputs and integrating its Cadbury acquisition squeezed profits.
Keeping its losses in check, J.P. Morgan rose 1.9%.
The Nasdaq Composite edged down 0.1% to 2787. The Standard & Poor's 500-stock index rose less than one point to 1322, as financials gained, but energy stocks declined.
Home builders weakened after the Obama administration unveiled a proposal Friday for winding down mortgage giants Fannie Mae and Freddie Mac. The steps are likely to mean higher borrowing costs and more limited access to home loans for consumers. Homebuilding company Lennar fell 1.5%, while D.R. Horton lost 1.2%.
Shuttering Fannie and Freddie may dent overall levels of home ownership, noted Lee Partridge, chief investment officer at Salient Partners. However, "in the long run, the demise of Freddie Mac and Fannie Mae would be good for the rest of the financial community," as other firms regain pricing power, he said.
Mortgage insurers surged on the government proposal's suggestion to shrink the size of the Federal Housing Administration, a government-run competitor to the private mortgage insurance industry. Shares of Genworth Financial jumped 4.6%, MGIC Investment surged 11% and PMI Group climbed 7.1%.
Meanwhile, investors registered some anxiety over the intensifying turbulence in Egypt after President Hosni Mubarak shocked protestors late Thursday with a difficult-to-interpret pledge to hand power to his vice president while staying on during the transition to a new governing structure. Egypt's powerful armed forces fell in behind Mubarak as protesters gathered for an 18th day of massive demonstrations.
The jitters over Egypt boosted the dollar, capturing support from its status as a safe retreat. The euro weakened, trading recently at $1.3556, down from $1.3594 late Thursday in New York. Demand for U.S. Treasurys rose, pushing yield on the 10-year note down to 3.61%.
However, crude-oil prices edged down, suggesting that the market may not be worried that the unrest in Egypt could threaten operations at the Suez Canal.
Among stocks in focus, Nokia sank, with U.S.-listed shares dropping 13% after the handset maker said it will adopt Windows Phone as its main smartphone platform, as part of a broad strategic partnership with Microsoft. Nokia offered no guidance for next year or new products, and said 2011 and 2012 are likely to be transition years. Analysts were also concerned that Nokia didn't cut its guidance for research and development costs as a result of the alliance with Microsoft, which most analysts had expected. Meanwhile, shares of Microsoft fell 1%.
Ford Motor rose 1.6% after saying it will cut its debt load by another $3 billion.
In Friday's economic data, the U.S. trade gap widened in December, with the full-year trade gap registering its biggest percentage increase in 10 years on the back of a record shortfall in trade with China, the Commerce Department said. The U.S. deficit in international trade of goods and services increased 5.9% to $40.58 billion from a slightly revised $38.32 billion the month before, topping economists' estimates for a $40.5 billion shortfall.
Separately, the Reuters/University of Michigan consumer sentiment reading for February edged up to 75.1, slightly better than the 75.0 expected by economists.
Thursday, February 3, 2011
US Stocks Pare Losses As Retail Stocks Rise
U.S. stocks pared early Thursday losses as investors eyed encouraging earnings and stronger January sales among retailers, against a backdrop of continued unrest in Egypt.
The Dow Jones Industrial Average was off 6 points, or 0.1%, to 12036 recently. Leading the Dow's decliners, Merck fell 2.7% after swinging to a fourth-quarter loss. While earnings and revenue topped Wall Street's expectations, the drug maker's forecast for full-year adjusted earnings fell below analysts' predictions.
The Nasdaq Composite edged up 1 point to 2750. The Standard & Poor's 500-stock index shed 0.1% to 1303, though consumer discretionary stocks kept the losses in check.
Among retail's gainers, AutoNation's fourth-quarter profit climbed 9.1%, topping analysts' estimates, as the automotive retail dealer reported higher sales of both new and used vehicles. Shares rose 7.8%.
Limited Brands rose 6.3%, after posting a 24% jump in same-store sales for January and raising its guidance for its quarter, which closes at the end of this month.
"The backdrop is, the U.S. economy is still in an improving state, and the majority of the economic data supports that, whether we're talking about retail sales or the GDP report," Jason Pride, director of investment strategy at Glenmede Investment and Wealth Management said.
The market's early mood was subdued as clashes between protesters and supporters of the Egyptian regime spilled over into violence, prompting the military to fire bursts of warning shots and reposition tanks to keep the two sides apart.
However, oil prices edged down in recent trading.
Labor data were a bright spot on Thursday, encouraging optimism for Friday's monthly report. The number of U.S. workers filing new claims for unemployment benefits fell 42,000 to 415,000 in the week ended Jan. 29, the Labor Department said in its weekly report. Economists had expected a drop of 31,000 to 423,000.
Boosted by the data, the U.S. dollar strengthened against both the yen and the euro. The U.S. Dollar Index, which tracks the U.S. currency against a basket of others, rose 0.9%. The euro slumped more than 1% after European Central Bank President Jean-Claude Trichet's comments at a press conference disappointed those hoping an interest-rate rise could come soon. The euro was trading recently at $1.3629, down from $1.3810 late Wednesday in New York.
In the U.S., retailers strengthened as reports from last month showed shoppers largely shrugged off bad weather to help January same-store sales top expectations. Among retailers whose sales last month surpassed analysts' forecasts, Zumiez rose 1.3%, Macy's added 0.5% and Costco, which has more stores in areas that saw fewer winter storms, gained 3%.
TJX, parent of off-price chains T.J. Maxx and Marshalls, also reported January same-store sales that topped analysts' views and said it expects fourth-quarter earnings to beat the forecast it raised last month. Shares rose 3.5%.
BJ's Wholesale Club's January same-store sales climbed 2.7%, or 0.3% excluding the impact of gasoline sales. The warehouse-club retailer also said it will consider options, including a potential sale of the company, sending share surging 13%.
Among companies reporting earnings, cereal maker Kellogg added 2.2% after its fourth-quarter earnings rose 7.4% as the food manufacturer benefited from some lower expenses, though revenue and margins weakened.
In other economic data, the Institute for Supply Management's index of non-manufacturing activity rose to 59.4 in January, topping forecasts for a 57.0 reading. Meanwhile, the Commerce Department said U.S. factory-goods orders unexpectedly rose in December, climbing 0.2%, surprising analysts who had expected a 0.5% decline.
Separately, nonfarm business productivity rose at a 2.6% annual rate in the fourth quarter, surpassing analysts' expectations for a 2.1% increase. The report also showed that unit labor costs--a key gauge of where prices are heading--fell at a 0.6% annual rate last quarter, surprising analysts who had forecast a 0.1% gain.
U.S. stocks pared early Thursday losses as investors eyed encouraging earnings and stronger January sales among retailers, against a backdrop of continued unrest in Egypt.
The Dow Jones Industrial Average was off 6 points, or 0.1%, to 12036 recently. Leading the Dow's decliners, Merck fell 2.7% after swinging to a fourth-quarter loss. While earnings and revenue topped Wall Street's expectations, the drug maker's forecast for full-year adjusted earnings fell below analysts' predictions.
The Nasdaq Composite edged up 1 point to 2750. The Standard & Poor's 500-stock index shed 0.1% to 1303, though consumer discretionary stocks kept the losses in check.
Among retail's gainers, AutoNation's fourth-quarter profit climbed 9.1%, topping analysts' estimates, as the automotive retail dealer reported higher sales of both new and used vehicles. Shares rose 7.8%.
Limited Brands rose 6.3%, after posting a 24% jump in same-store sales for January and raising its guidance for its quarter, which closes at the end of this month.
"The backdrop is, the U.S. economy is still in an improving state, and the majority of the economic data supports that, whether we're talking about retail sales or the GDP report," Jason Pride, director of investment strategy at Glenmede Investment and Wealth Management said.
The market's early mood was subdued as clashes between protesters and supporters of the Egyptian regime spilled over into violence, prompting the military to fire bursts of warning shots and reposition tanks to keep the two sides apart.
However, oil prices edged down in recent trading.
Labor data were a bright spot on Thursday, encouraging optimism for Friday's monthly report. The number of U.S. workers filing new claims for unemployment benefits fell 42,000 to 415,000 in the week ended Jan. 29, the Labor Department said in its weekly report. Economists had expected a drop of 31,000 to 423,000.
Boosted by the data, the U.S. dollar strengthened against both the yen and the euro. The U.S. Dollar Index, which tracks the U.S. currency against a basket of others, rose 0.9%. The euro slumped more than 1% after European Central Bank President Jean-Claude Trichet's comments at a press conference disappointed those hoping an interest-rate rise could come soon. The euro was trading recently at $1.3629, down from $1.3810 late Wednesday in New York.
In the U.S., retailers strengthened as reports from last month showed shoppers largely shrugged off bad weather to help January same-store sales top expectations. Among retailers whose sales last month surpassed analysts' forecasts, Zumiez rose 1.3%, Macy's added 0.5% and Costco, which has more stores in areas that saw fewer winter storms, gained 3%.
TJX, parent of off-price chains T.J. Maxx and Marshalls, also reported January same-store sales that topped analysts' views and said it expects fourth-quarter earnings to beat the forecast it raised last month. Shares rose 3.5%.
BJ's Wholesale Club's January same-store sales climbed 2.7%, or 0.3% excluding the impact of gasoline sales. The warehouse-club retailer also said it will consider options, including a potential sale of the company, sending share surging 13%.
Among companies reporting earnings, cereal maker Kellogg added 2.2% after its fourth-quarter earnings rose 7.4% as the food manufacturer benefited from some lower expenses, though revenue and margins weakened.
In other economic data, the Institute for Supply Management's index of non-manufacturing activity rose to 59.4 in January, topping forecasts for a 57.0 reading. Meanwhile, the Commerce Department said U.S. factory-goods orders unexpectedly rose in December, climbing 0.2%, surprising analysts who had expected a 0.5% decline.
Separately, nonfarm business productivity rose at a 2.6% annual rate in the fourth quarter, surpassing analysts' expectations for a 2.1% increase. The report also showed that unit labor costs--a key gauge of where prices are heading--fell at a 0.6% annual rate last quarter, surprising analysts who had forecast a 0.1% gain.
Wednesday, February 2, 2011
US Stock Futures Slightly Lower After ADP Jobs Data
U.S. stock futures were slightly lower after private-sector employment data beat consensus expectations, as investors awaited another raft of corporate earnings.
Dow Jones Industrial Average futures edged down two points at 11971 recently, while Standard & Poor's 500 futures were off one point at 1301 and Nasdaq 100 futures were slipped three points to 2319. Prior to the data, Dow futures had been up five points, while S&P 500 futures slipped half a point and Nasdaq futures were off two points. Changes in stock futures do not always accurately predict early stock moves after the open.
The market was watching private-sector employment, which increased by 187,000 from December to January, according to the latest report from Automatic Data Processing. While January marked the 12th consecutive month of private-sector employment growth, ADP lowered December's gains, to 247,000 new jobs from a previous estimate of 297,000.
Investors will also be awaiting initial jobless claims data on Thursday ahead of Friday's closely-watched official monthly jobs number.
Wednesday's move came a day after the Dow Jones Industrial Average posted its strongest one-day gain in two months, rising 148.23 points, or 1.3%, to 12040.16. That marked the blue-chip index's first close above the key 12,000 level since June 19, 2008, while the S&P 500 finished above 1300.
In pre-market trading Wednesday, shares of Electronic Arts rose 9.8% after the video game publisher said late Tuesday that its third-quarter fiscal loss widened as sales fell, but announced a better-than-expected forecast for the current quarter and a share buyback plan worth $600 million.
Mattel rose 2.3% in pre-market trading after the toy maker reported improved sales across its major divisions and increased its dividend by 11%, raising the quarterly payout to 23 cents a share.
Hershey was up 3.4% in pre-market trading after fourth-quarter earnings rose 6.9% as the candy maker posted sharply lower restructuring charges, while sales and margins both improved.
Investors were also watching for earnings from Marathon Oil and Allergan before the opening bell, as well as News Corp., which owns the publisher of The Wall Street Journal, and Visa after the market close.
In Europe, stocks rose, with the biggest gains seen in London where mining company shares gained. Shares of Spain's second-largest bank Banco Bilbao Vizcaya Argentaria S.A., or BBVA, fell 0.8% in the wake of fourth-quarter results, while the country's IBEX 35 index rose 1.5%.
Shares of Roche Holding AG fell 2% in Swiss trading after the drugmaker said restructuring charges and slowing U.S. and European sales hit 2010 earnings.
Crude-oil futures slipped, as investors kept a close eye on developments in Egypt, where President Hosni Mubarak said he would not run in upcoming presidential elections after his term expires later this year.
Gold slipped, while copper was little changed at $4.54 a pound, after closing at their highest level ever on Tuesday.
U.S. stock futures were slightly lower after private-sector employment data beat consensus expectations, as investors awaited another raft of corporate earnings.
Dow Jones Industrial Average futures edged down two points at 11971 recently, while Standard & Poor's 500 futures were off one point at 1301 and Nasdaq 100 futures were slipped three points to 2319. Prior to the data, Dow futures had been up five points, while S&P 500 futures slipped half a point and Nasdaq futures were off two points. Changes in stock futures do not always accurately predict early stock moves after the open.
The market was watching private-sector employment, which increased by 187,000 from December to January, according to the latest report from Automatic Data Processing. While January marked the 12th consecutive month of private-sector employment growth, ADP lowered December's gains, to 247,000 new jobs from a previous estimate of 297,000.
Investors will also be awaiting initial jobless claims data on Thursday ahead of Friday's closely-watched official monthly jobs number.
Wednesday's move came a day after the Dow Jones Industrial Average posted its strongest one-day gain in two months, rising 148.23 points, or 1.3%, to 12040.16. That marked the blue-chip index's first close above the key 12,000 level since June 19, 2008, while the S&P 500 finished above 1300.
In pre-market trading Wednesday, shares of Electronic Arts rose 9.8% after the video game publisher said late Tuesday that its third-quarter fiscal loss widened as sales fell, but announced a better-than-expected forecast for the current quarter and a share buyback plan worth $600 million.
Mattel rose 2.3% in pre-market trading after the toy maker reported improved sales across its major divisions and increased its dividend by 11%, raising the quarterly payout to 23 cents a share.
Hershey was up 3.4% in pre-market trading after fourth-quarter earnings rose 6.9% as the candy maker posted sharply lower restructuring charges, while sales and margins both improved.
Investors were also watching for earnings from Marathon Oil and Allergan before the opening bell, as well as News Corp., which owns the publisher of The Wall Street Journal, and Visa after the market close.
In Europe, stocks rose, with the biggest gains seen in London where mining company shares gained. Shares of Spain's second-largest bank Banco Bilbao Vizcaya Argentaria S.A., or BBVA, fell 0.8% in the wake of fourth-quarter results, while the country's IBEX 35 index rose 1.5%.
Shares of Roche Holding AG fell 2% in Swiss trading after the drugmaker said restructuring charges and slowing U.S. and European sales hit 2010 earnings.
Crude-oil futures slipped, as investors kept a close eye on developments in Egypt, where President Hosni Mubarak said he would not run in upcoming presidential elections after his term expires later this year.
Gold slipped, while copper was little changed at $4.54 a pound, after closing at their highest level ever on Tuesday.
Thursday, January 27, 2011
US Stocks Edge Higher After Mixed Earnings
U.S. stocks edged higher on Thursday as a mixed crop of corporate earnings reports and subdued economic readings left the market struggling for direction.
The Dow Jones Industrial Average rose 10 points to 11996. On Wednesday the measure crossed the 12000 threshold, but slipped in late trading to close just below the key level.
The Nasdaq Composite rose 0.2% to 2746. The Standard & Poor's 500-stock index edged up less than one point to 1297.
Thursday's economic data doused earlier optimism over a slew of companies reporting quarterly earnings on Thursday.
Dampening optimism about the jobs market, the Labor Department said the number of U.S. workers filing new claims for unemployment benefits unexpectedly surged last week by 51,000 to 454,000 in the week ended Jan. 22. Economists surveyed by Dow Jones Newswires had expected claims would rise by just 1,000 to 405,000. However, the government cautioned that the week's data was likely distorted by bad weather.
Separately, orders for long-lasting goods unexpectedly declined by 2.5% in December, when forecasters had expected to see a rise of 1.4%.
Quarterly reports from a batch of bellwether consumer companies and a pair of drugmakers found a mixed reaction in the market.
Consumer giant Procter & Gamble sank 3.2% after its fiscal second-quarter profit slid 28% compared to a prior-year period that included a large gain from discontinued operations and margins fell as commodity costs grew.
Colgate-Palmolive, the world's largest toothpaste maker by sales, dropped 2.5% after its fourth-quarter earnings fell 1.1% on lower-than-expected revenue as higher materials costs hit margins. The company also forecast fiscal third-quarter earnings of 95 cents to $1 a share, potentially disappointing analysts looking for 99 cents.
Drug maker Bristol-Myers Squibb rose 0.9%, even after issuing a profit forecast for 2011 that fell short of Wall Street expectations, citing the effects of a product recall and higher costs associated with the health-care overhaul enacted last year. Fourth-quarter earnings plunged 94% from a year-earlier period that was inflated by a large gain on a divestiture.
Fellow drug maker Eli Lilly gained 0.4% after its fourth-quarter earnings rose 28%, as higher sales of an antidepressant and a cancer drug helped boost revenue.
Heavy-machinery maker Caterpillar edged up 0.1% after the company's fourth-quarter earnings soared, beating analysts' estimates as demand recovered from slumping levels a year earlier.
Home builder D.R. Horton slid 3.3% after swinging to a bigger-than-expected fiscal first-quarter loss, hurt by sharply lower home-sale revenue in the absence of a federal home-buyer credit.
The U.S. dollar strengthened against the yen after ratings agency Standard & Poor's cut Japan's long-term credit rating to double-A-minus from double-A, citing concerns over the country's high debt levels.
However, the dollar hit a two-month low against the euro, which was boosted by the weak U.S. economic data and hawkish rhetoric from a European Central Bank executive board member. French President Nicolas Sarkozy and German Chancellor Angela Merkel, speaking from Davos, pledged never to let the euro fail. The common currency was trading recently at $1.3728, up from $1.3691 late Wednesday in New York.
Demand for U.S. Treasurys weakened, lifting yield on the 10-year note up to 3.42%. Crude-oil prices edged down, while gold futures climbed.
U.S. stocks edged higher on Thursday as a mixed crop of corporate earnings reports and subdued economic readings left the market struggling for direction.
The Dow Jones Industrial Average rose 10 points to 11996. On Wednesday the measure crossed the 12000 threshold, but slipped in late trading to close just below the key level.
The Nasdaq Composite rose 0.2% to 2746. The Standard & Poor's 500-stock index edged up less than one point to 1297.
Thursday's economic data doused earlier optimism over a slew of companies reporting quarterly earnings on Thursday.
Dampening optimism about the jobs market, the Labor Department said the number of U.S. workers filing new claims for unemployment benefits unexpectedly surged last week by 51,000 to 454,000 in the week ended Jan. 22. Economists surveyed by Dow Jones Newswires had expected claims would rise by just 1,000 to 405,000. However, the government cautioned that the week's data was likely distorted by bad weather.
Separately, orders for long-lasting goods unexpectedly declined by 2.5% in December, when forecasters had expected to see a rise of 1.4%.
Quarterly reports from a batch of bellwether consumer companies and a pair of drugmakers found a mixed reaction in the market.
Consumer giant Procter & Gamble sank 3.2% after its fiscal second-quarter profit slid 28% compared to a prior-year period that included a large gain from discontinued operations and margins fell as commodity costs grew.
Colgate-Palmolive, the world's largest toothpaste maker by sales, dropped 2.5% after its fourth-quarter earnings fell 1.1% on lower-than-expected revenue as higher materials costs hit margins. The company also forecast fiscal third-quarter earnings of 95 cents to $1 a share, potentially disappointing analysts looking for 99 cents.
Drug maker Bristol-Myers Squibb rose 0.9%, even after issuing a profit forecast for 2011 that fell short of Wall Street expectations, citing the effects of a product recall and higher costs associated with the health-care overhaul enacted last year. Fourth-quarter earnings plunged 94% from a year-earlier period that was inflated by a large gain on a divestiture.
Fellow drug maker Eli Lilly gained 0.4% after its fourth-quarter earnings rose 28%, as higher sales of an antidepressant and a cancer drug helped boost revenue.
Heavy-machinery maker Caterpillar edged up 0.1% after the company's fourth-quarter earnings soared, beating analysts' estimates as demand recovered from slumping levels a year earlier.
Home builder D.R. Horton slid 3.3% after swinging to a bigger-than-expected fiscal first-quarter loss, hurt by sharply lower home-sale revenue in the absence of a federal home-buyer credit.
The U.S. dollar strengthened against the yen after ratings agency Standard & Poor's cut Japan's long-term credit rating to double-A-minus from double-A, citing concerns over the country's high debt levels.
However, the dollar hit a two-month low against the euro, which was boosted by the weak U.S. economic data and hawkish rhetoric from a European Central Bank executive board member. French President Nicolas Sarkozy and German Chancellor Angela Merkel, speaking from Davos, pledged never to let the euro fail. The common currency was trading recently at $1.3728, up from $1.3691 late Wednesday in New York.
Demand for U.S. Treasurys weakened, lifting yield on the 10-year note up to 3.42%. Crude-oil prices edged down, while gold futures climbed.
Wednesday, January 26, 2011
US Stocks Close Up Slightly
The Dow Jones Industrial Average vaulted over 12000 for the first time in almost three years but couldn't hold its ground, closing just short of the milestone as investors digested President Obama's State of the Union address and the unanimous decision by the Federal Reserve to stay the course on supporting the economy.
The Dow finished up 8.25 points, or 0.07%, at 11985.44, restrained by disappointing earnings from Boeing. Leading on the upside was DuPont, up 2.6%.
The Nasdaq Composite Index rose 20.25 points, or 0.74%, to 2739.50, while the Standard & Poor's 500-stock index rose 5.45 points, or 0.42%, to 1296.63. The S&P 500 fell just short of the 1300 barrier, which it last held in August 2008, trading as high as 1299.74 in afternoon trading.
The traversing of 12000, while fleeting, was the latest reminder of the durability of the stock market's bull run on a day dominated by headline news from the government and the Federal Reserve, whose massive interventions helped propel markets to the current levels.
The Dow made its first pass at 12000 in 2006, as credit expansion fueled a home-buying binge that eventually ended in the 2007-2008 housing bust. From a peak of 14198.10 in October 2007, the market tumbled to a March 2009 low of 6469.95, wiping out more than half of the blue-chip index's market capitalization.
However, a combination of fiscal and in particular monetary stimulus helped fuel optimism in the market. Since the Federal Reserve made clear its plans to embark on a second massive wave of asset buying last August, the market has climbed nearly 20%.
On Wednesday, the latest statement from the Federal Open Market Committee showed the central bank's commitment to stimulating the economy, with the committee arriving at a consensus decision after a shuffling of the voting membership.
Still, the bull market's reliance on the Fed has had some investors questioning the durability of the rally.
"Corporate earnings have been so dramatically better over the last two years that, even though it hasn't equated in a better economy, people see these earnings and want to get involved," said Peter Costa, a New York Stock Exchange floor trader with Empire Executions. "After the housing bubble that burst in 2007-08, I think we'll probably never see those levels again....9% to 10% of our people are just trying to make ends meet, and I'm not sure you can get that sort of a run-up when so many people are just trying to get basic needs met."
In the State of the Union speech Tuesday night, President Obama challenged lawmakers in both parties to rise above partisan divisions to tackle problems that will enable the U.S. to compete in the global economy. Among his proposals were calls for Congress to lower the corporate tax rate by closing industry-specific loopholes and find spending cuts across the government. The president also called for a five-year freeze on nondefense discretionary spending.
"A lot of what he said could have been said by a Republican," said Doug Roberts, chief investment strategist at Channel Capital Research. Mr. Roberts said much of the expectations of President Obama's move to the center had already been factored in by the market, but Tuesday's speech were still important for reaffirming market expectations of a more centrist government.
Wednesday morning, data on new-home sales came in much stronger than expected, pushing the market higher. Sales increased 17.5% from the prior month, rising to a seasonally adjusted annual pace of 329,000 homes. The increase was driven by a nearly 72% jump in the western U.S. Economists expected an increase to an annual rate of 299,000. The median sales price for a new home sold in December was up 8.5% from a year earlier.
"The positive home numbers correlate well with the consumer confidence numbers that came out earlier," said Chip Cobb, senior vice president at Bryn Mawr Trust Asset Management. Still, Mr. Cobb remained concerned about unemployment, saying he expects the jobless rate to stay above 9% this year.
Leading the way were materials and energy stocks. AK Steel Holding rose 5.2%, Cliffs Natural Resources climbed 7.3% and U.S. Steel added 3.8%. Halliburton surged 8% and Baker Hughes advanced 5.9%.
Among the day's slew of earnings announcements, aerospace giant Boeing posted an 8.2% decline in fourth-quarter profit as revenue and margins slid. Boeing offered a 2011 profit forecast well below consensus expectations, pushing shares down 3.1% to make it the steepest decliner among the Dow's 30 components.
United Technologies slipped 0.4% after the maker of Otis elevators and Pratt & Whitney plane engines reported a 12% rise in profit as sales climbed 6.3%, topping analysts' estimates. Revenue increased at five of the company's six segments.
Airline stocks were bolstered by hopes that carriers will be able to continue increasing airfares amid rising passenger demand. US Airways Group soared 6.6% after swinging to a fourth-quarter profit, despite significantly higher fuel prices amid a rebound in demand and cost controls.
United Continental Holdings jumped 7.1% as revenue increased more than expected on rising traffic and capacity. Even so, the company reported a wider loss. (It was listing combined results for the first time since October's merger between UAL Corp.'s United Airlines and Continental Airlines.)
American Airlines parent AMR rose 2.5%. Delta Air Lines added 3%.
Xerox tumbled 7.7% after fourth-quarter earnings declined 5%, hurt by restructuring costs and a modest first-quarter earnings outlook.
SAP advanced 2.4% in New York after Europe's largest software maker showed operational strength, despite taking a fourth-quarter hit to cover the costs of its lawsuit with rival Oracle. The German company said it would raise its dividend for 2010 by 20%, and it expects sales and profit growth in 2011.
Yahoo fell 2.8% after the Internet search company late Tuesday gave a current-quarter revenue forecast that fell short of Wall Street's expectations.
Toyota Motor shed 1.9% in New York after the auto maker said it was recalling more than 1.7 million vehicles world-wide to fix problems, including fuel-system defects.
The euro held steady at $1.3689, from $1.3685 late Tuesday. Oil rose 1.3% to break a six-day losing streak, while gold edged down. Treasurys slumped broadly, pushing the yield on the benchmark 10-year note to 3.43%.
The Dow Jones Industrial Average vaulted over 12000 for the first time in almost three years but couldn't hold its ground, closing just short of the milestone as investors digested President Obama's State of the Union address and the unanimous decision by the Federal Reserve to stay the course on supporting the economy.
The Dow finished up 8.25 points, or 0.07%, at 11985.44, restrained by disappointing earnings from Boeing. Leading on the upside was DuPont, up 2.6%.
The Nasdaq Composite Index rose 20.25 points, or 0.74%, to 2739.50, while the Standard & Poor's 500-stock index rose 5.45 points, or 0.42%, to 1296.63. The S&P 500 fell just short of the 1300 barrier, which it last held in August 2008, trading as high as 1299.74 in afternoon trading.
The traversing of 12000, while fleeting, was the latest reminder of the durability of the stock market's bull run on a day dominated by headline news from the government and the Federal Reserve, whose massive interventions helped propel markets to the current levels.
The Dow made its first pass at 12000 in 2006, as credit expansion fueled a home-buying binge that eventually ended in the 2007-2008 housing bust. From a peak of 14198.10 in October 2007, the market tumbled to a March 2009 low of 6469.95, wiping out more than half of the blue-chip index's market capitalization.
However, a combination of fiscal and in particular monetary stimulus helped fuel optimism in the market. Since the Federal Reserve made clear its plans to embark on a second massive wave of asset buying last August, the market has climbed nearly 20%.
On Wednesday, the latest statement from the Federal Open Market Committee showed the central bank's commitment to stimulating the economy, with the committee arriving at a consensus decision after a shuffling of the voting membership.
Still, the bull market's reliance on the Fed has had some investors questioning the durability of the rally.
"Corporate earnings have been so dramatically better over the last two years that, even though it hasn't equated in a better economy, people see these earnings and want to get involved," said Peter Costa, a New York Stock Exchange floor trader with Empire Executions. "After the housing bubble that burst in 2007-08, I think we'll probably never see those levels again....9% to 10% of our people are just trying to make ends meet, and I'm not sure you can get that sort of a run-up when so many people are just trying to get basic needs met."
In the State of the Union speech Tuesday night, President Obama challenged lawmakers in both parties to rise above partisan divisions to tackle problems that will enable the U.S. to compete in the global economy. Among his proposals were calls for Congress to lower the corporate tax rate by closing industry-specific loopholes and find spending cuts across the government. The president also called for a five-year freeze on nondefense discretionary spending.
"A lot of what he said could have been said by a Republican," said Doug Roberts, chief investment strategist at Channel Capital Research. Mr. Roberts said much of the expectations of President Obama's move to the center had already been factored in by the market, but Tuesday's speech were still important for reaffirming market expectations of a more centrist government.
Wednesday morning, data on new-home sales came in much stronger than expected, pushing the market higher. Sales increased 17.5% from the prior month, rising to a seasonally adjusted annual pace of 329,000 homes. The increase was driven by a nearly 72% jump in the western U.S. Economists expected an increase to an annual rate of 299,000. The median sales price for a new home sold in December was up 8.5% from a year earlier.
"The positive home numbers correlate well with the consumer confidence numbers that came out earlier," said Chip Cobb, senior vice president at Bryn Mawr Trust Asset Management. Still, Mr. Cobb remained concerned about unemployment, saying he expects the jobless rate to stay above 9% this year.
Leading the way were materials and energy stocks. AK Steel Holding rose 5.2%, Cliffs Natural Resources climbed 7.3% and U.S. Steel added 3.8%. Halliburton surged 8% and Baker Hughes advanced 5.9%.
Among the day's slew of earnings announcements, aerospace giant Boeing posted an 8.2% decline in fourth-quarter profit as revenue and margins slid. Boeing offered a 2011 profit forecast well below consensus expectations, pushing shares down 3.1% to make it the steepest decliner among the Dow's 30 components.
United Technologies slipped 0.4% after the maker of Otis elevators and Pratt & Whitney plane engines reported a 12% rise in profit as sales climbed 6.3%, topping analysts' estimates. Revenue increased at five of the company's six segments.
Airline stocks were bolstered by hopes that carriers will be able to continue increasing airfares amid rising passenger demand. US Airways Group soared 6.6% after swinging to a fourth-quarter profit, despite significantly higher fuel prices amid a rebound in demand and cost controls.
United Continental Holdings jumped 7.1% as revenue increased more than expected on rising traffic and capacity. Even so, the company reported a wider loss. (It was listing combined results for the first time since October's merger between UAL Corp.'s United Airlines and Continental Airlines.)
American Airlines parent AMR rose 2.5%. Delta Air Lines added 3%.
Xerox tumbled 7.7% after fourth-quarter earnings declined 5%, hurt by restructuring costs and a modest first-quarter earnings outlook.
SAP advanced 2.4% in New York after Europe's largest software maker showed operational strength, despite taking a fourth-quarter hit to cover the costs of its lawsuit with rival Oracle. The German company said it would raise its dividend for 2010 by 20%, and it expects sales and profit growth in 2011.
Yahoo fell 2.8% after the Internet search company late Tuesday gave a current-quarter revenue forecast that fell short of Wall Street's expectations.
Toyota Motor shed 1.9% in New York after the auto maker said it was recalling more than 1.7 million vehicles world-wide to fix problems, including fuel-system defects.
The euro held steady at $1.3689, from $1.3685 late Tuesday. Oil rose 1.3% to break a six-day losing streak, while gold edged down. Treasurys slumped broadly, pushing the yield on the benchmark 10-year note to 3.43%.
Dow hits 12,000 as U.S. stocks post moderate gains
The Dow Jones Industrial Average briefly hit 12,000 points at about 11 am EST this morning, as U.S. stocks continue to post moderate gains.
The gains come in the wake of strong earnings reports, President Obama’s austere spending plans in his state of the Union address, shrugging off a December housing report showing less-then-expected sales of new homes in the U.S.
The Dow is up 0.14 percent to 11,993.42, while the Nasdaq is up 0.75 percent and the S&P 500 index is up 0.47 percent. The 10-year bond yield is up slightly by 0.07 percent, while oil is up 0.24 percent has after two consecutive down days. The cost of gold is flat, after dropping yesterday.
Boeing Co. (NYSE: BA) is down 3.55 percent after reporting an 8 percent drop in sales for the fourth quarter. E.I. du Pont de Nemours and Co. (NYSE: DD) is the top performer so far, up 2.59 percent on its far better-than-expected earnings report of 50 cents per share for 2010.
Microsoft Corp. (Nasdaq: MSFT) is up 1.59 percent, despite analysts’ expectations of a 7 percent drop in earnings in the second quarter.
Home Depot (NYSE: HD) is up 1.39 percent in mid-morning trading as it reported strong profit growth in the fourth quarter, and its rival, Lowe’s Cos. (NYSE: LOW) is up 1.56 percent as it announced plans to eliminate 1,700 managerial jobs.
Verizon Communications (NYSE: VZ) is up 1.09 percent after the announcement two weeks ago that Apple’s popular iPhone would be available to its subscribers.
Close
The Dow Jones Industrial Average briefly hit 12,000 points at about 11 am EST this morning, as U.S. stocks continue to post moderate gains.
The gains come in the wake of strong earnings reports, President Obama’s austere spending plans in his state of the Union address, shrugging off a December housing report showing less-then-expected sales of new homes in the U.S.
The Dow is up 0.14 percent to 11,993.42, while the Nasdaq is up 0.75 percent and the S&P 500 index is up 0.47 percent. The 10-year bond yield is up slightly by 0.07 percent, while oil is up 0.24 percent has after two consecutive down days. The cost of gold is flat, after dropping yesterday.
Boeing Co. (NYSE: BA) is down 3.55 percent after reporting an 8 percent drop in sales for the fourth quarter. E.I. du Pont de Nemours and Co. (NYSE: DD) is the top performer so far, up 2.59 percent on its far better-than-expected earnings report of 50 cents per share for 2010.
Microsoft Corp. (Nasdaq: MSFT) is up 1.59 percent, despite analysts’ expectations of a 7 percent drop in earnings in the second quarter.
Home Depot (NYSE: HD) is up 1.39 percent in mid-morning trading as it reported strong profit growth in the fourth quarter, and its rival, Lowe’s Cos. (NYSE: LOW) is up 1.56 percent as it announced plans to eliminate 1,700 managerial jobs.
Verizon Communications (NYSE: VZ) is up 1.09 percent after the announcement two weeks ago that Apple’s popular iPhone would be available to its subscribers.
Close
US Stocks Turn Mixed On Disappointing Boeing Earnings
-The Dow Jones Industrial Average pulled back modestly Wednesday after briefly rising above the 12000 mark for the first time in nearly three years as investors digested resurgent home sales and President Barack Obama's State of the Union address.
The Dow was up 5.5 points to 11983 in mid-day trading, dragged down by disappointing earnings from Boeing. Leading on the upside was Dupont, up 2.7%. A finish above 12000 would reclaim a level that the blue-chip index last surrendered in June 2008.
The Nasdaq Composite gained 16 points to 2735, while the Standard & Poor's 500-stock index was up five points at 1296, putting it on the cusp of 1300, a level it last held in August 2008.
The traversing of the 12000 barrier, while temporary, was the latest reminder of the durability of the stock market bull run on a trading day dominated by headline news from the government and the Federal Reserve, whose massive interventions helped propel markets to its current levels.
The Dow made its first pass at 12000 in 2006, as credit expansion fueled a home-buying binge that eventually ended in the 2007-2008 housing bust. From a peak of 14198.10 in October 2007, the market tumbled to a March 2009 low of 6469.95, wiping out more than half of the blue-chip index's market capitalization.
However, a combination of fiscal and in particular monetary stimulus helped fuel optimism in the market. Since the Federal Reserve made clear its plans to embark on a second massive wave of asset buying last August, the market has gained nearly 20%.
The bull market's reliance on the Fed, however, has had some investors questioning the durability of the rally.
"Corporate earnings have been so dramatically better over the last two years that, even though it hasn't equated in a better economy, people see these earnings and want to get involved," said Peter Costa, a New York Stock Exchange floor trader with Empire Executions. "After the housing bubble that burst in 2007-08, I think we'll probably never see those levels again.... Nine to ten percent of our people are just trying to make ends meet, and I'm not sure you can get that sort of a run-up when so many people are just trying to get basic needs met."
Wednesday's moves came after Obama's State of the Union speech Tuesday night challenged lawmakers in both major parties to rise above partisan divisions to tackle problems that will allow the U.S. to compete in the global economy. Among his proposals, the president called on Congress to lower the corporate tax rate by closing industry-specific loopholes and find spending cuts across the government. The president also called for a five-year freeze on nondefense discretionary spending.
"A lot of what he said could have been said by a Republican," said Doug Roberts, chief investment strategist at Channel Capital Research. Mr. Roberts said much of the expectations of President Obama's move to the center had already been factored in by the market, but Tuesday's speech were still important for reaffirming market expectations of a more centrist government.
New-home sales data also came in much stronger than expected, pushing the market higher. Sales increased 17.5% compared with the prior month, rising to a seasonally adjusted annual sales pace of 329,000. The increase was driven by a nearly 72% jump in the West. Economists had expected an increase to an annual rate of 299,000. The median sales price for a new home sold in December was up 8.5% from the same month a year ago.
Investors are still awaiting the latest statement from the Federal Open Market Committee at 2:15 p.m. EST. The market will be watching for confirmation that the central bank still sees the economy as improving, but still in need of its stimulus. Investors are also curious to see how many dissenters there will be to the continuation of the quantitative-easing program, given that there will be a different mix of Fed presidents voting. Just one or two of the Fed presidents are expected to dissent, so no policy changes are likely.
Leading the way on Wednesday were materials and energy stocks. AK Steel Holding rose 4.1%, Cliffs Natural Resources gained 3.1% and U.S. Steel added 2.5%. Halliburton surged 5.5% and Baker Huges advanced 4%.
Among Wednesday's slew of earnings announcements, aerospace giant Boeing posted an 8.2% decline in fourth-quarter profit, despite a tax-related gain adding to the bottom line, as revenue and margins slid. Boeing offered a 2011 profit forecast of $3.80 to $4 a share, below FactSet Research consensus estimates of $4.59 a share. Shares fell 3.6%, the deepest decliner among the Dow's 30 components.
United Technologies fell 1.1% after strong gains on Tuesday. The maker of Otis elevators and Pratt & Whitney plane engines reported a 12% rise in profit to $1.2 billion as sales grew 6.3%, topping analysts' estimates. Revenue increased at five of the company's six segments.
Airline stocks were also bolstered by hopes that carriers will be able to continue increasing airfares amid rising passenger demand. US Airways Group soared 12% after swinging to a fourth-quarter profit, despite significantly higher fuel prices amid a rebound in demand and cost controls.
United Continental Holdings jumped 8.6% as revenues grew better than expected growth amid rising traffic and capacity. Even so, the company--reporting combined results for the first time since October's merger between UAL Corp.'s United Airlines and Continental Airlines--reported a widening loss.
American Airlines parent AMR Corp. gained 4.7% while Delta Air Lines added 2.1%.
Xerox tumbled 7.3% after fourth-quarter earnings declined 5%, hurt by restructuring costs and a modest first-quarter earnings outlook.
SAP AG gained 1.7% in New York after Europe's largest software maker showed operational strength, despite taking a fourth-quarter hit on charges of almost one billion euros to cover the costs of its lawsuit with rival Oracle. The German company said it would raise its dividend for 2010 by 20%, and it expects sales and profit growth in 2011.
Yahoo fell 2.8% after the Internet search company late Tuesday gave a current-quarter revenue forecast that fell short of Wall Street's expectations.
Toyota Motor shares lost 1.9% in New York after the auto maker said it was recalling more than 1.7 million vehicles worldwide to fix problems, including fuel-system defects.
The euro slipped to $1.3675, from $1.3685 late Tuesday, while oil edged up and gold fell. Treasurys slumped broadly, pushing the yield on the benchmark 10-year note to 3.395%.
-The Dow Jones Industrial Average pulled back modestly Wednesday after briefly rising above the 12000 mark for the first time in nearly three years as investors digested resurgent home sales and President Barack Obama's State of the Union address.
The Dow was up 5.5 points to 11983 in mid-day trading, dragged down by disappointing earnings from Boeing. Leading on the upside was Dupont, up 2.7%. A finish above 12000 would reclaim a level that the blue-chip index last surrendered in June 2008.
The Nasdaq Composite gained 16 points to 2735, while the Standard & Poor's 500-stock index was up five points at 1296, putting it on the cusp of 1300, a level it last held in August 2008.
The traversing of the 12000 barrier, while temporary, was the latest reminder of the durability of the stock market bull run on a trading day dominated by headline news from the government and the Federal Reserve, whose massive interventions helped propel markets to its current levels.
The Dow made its first pass at 12000 in 2006, as credit expansion fueled a home-buying binge that eventually ended in the 2007-2008 housing bust. From a peak of 14198.10 in October 2007, the market tumbled to a March 2009 low of 6469.95, wiping out more than half of the blue-chip index's market capitalization.
However, a combination of fiscal and in particular monetary stimulus helped fuel optimism in the market. Since the Federal Reserve made clear its plans to embark on a second massive wave of asset buying last August, the market has gained nearly 20%.
The bull market's reliance on the Fed, however, has had some investors questioning the durability of the rally.
"Corporate earnings have been so dramatically better over the last two years that, even though it hasn't equated in a better economy, people see these earnings and want to get involved," said Peter Costa, a New York Stock Exchange floor trader with Empire Executions. "After the housing bubble that burst in 2007-08, I think we'll probably never see those levels again.... Nine to ten percent of our people are just trying to make ends meet, and I'm not sure you can get that sort of a run-up when so many people are just trying to get basic needs met."
Wednesday's moves came after Obama's State of the Union speech Tuesday night challenged lawmakers in both major parties to rise above partisan divisions to tackle problems that will allow the U.S. to compete in the global economy. Among his proposals, the president called on Congress to lower the corporate tax rate by closing industry-specific loopholes and find spending cuts across the government. The president also called for a five-year freeze on nondefense discretionary spending.
"A lot of what he said could have been said by a Republican," said Doug Roberts, chief investment strategist at Channel Capital Research. Mr. Roberts said much of the expectations of President Obama's move to the center had already been factored in by the market, but Tuesday's speech were still important for reaffirming market expectations of a more centrist government.
New-home sales data also came in much stronger than expected, pushing the market higher. Sales increased 17.5% compared with the prior month, rising to a seasonally adjusted annual sales pace of 329,000. The increase was driven by a nearly 72% jump in the West. Economists had expected an increase to an annual rate of 299,000. The median sales price for a new home sold in December was up 8.5% from the same month a year ago.
Investors are still awaiting the latest statement from the Federal Open Market Committee at 2:15 p.m. EST. The market will be watching for confirmation that the central bank still sees the economy as improving, but still in need of its stimulus. Investors are also curious to see how many dissenters there will be to the continuation of the quantitative-easing program, given that there will be a different mix of Fed presidents voting. Just one or two of the Fed presidents are expected to dissent, so no policy changes are likely.
Leading the way on Wednesday were materials and energy stocks. AK Steel Holding rose 4.1%, Cliffs Natural Resources gained 3.1% and U.S. Steel added 2.5%. Halliburton surged 5.5% and Baker Huges advanced 4%.
Among Wednesday's slew of earnings announcements, aerospace giant Boeing posted an 8.2% decline in fourth-quarter profit, despite a tax-related gain adding to the bottom line, as revenue and margins slid. Boeing offered a 2011 profit forecast of $3.80 to $4 a share, below FactSet Research consensus estimates of $4.59 a share. Shares fell 3.6%, the deepest decliner among the Dow's 30 components.
United Technologies fell 1.1% after strong gains on Tuesday. The maker of Otis elevators and Pratt & Whitney plane engines reported a 12% rise in profit to $1.2 billion as sales grew 6.3%, topping analysts' estimates. Revenue increased at five of the company's six segments.
Airline stocks were also bolstered by hopes that carriers will be able to continue increasing airfares amid rising passenger demand. US Airways Group soared 12% after swinging to a fourth-quarter profit, despite significantly higher fuel prices amid a rebound in demand and cost controls.
United Continental Holdings jumped 8.6% as revenues grew better than expected growth amid rising traffic and capacity. Even so, the company--reporting combined results for the first time since October's merger between UAL Corp.'s United Airlines and Continental Airlines--reported a widening loss.
American Airlines parent AMR Corp. gained 4.7% while Delta Air Lines added 2.1%.
Xerox tumbled 7.3% after fourth-quarter earnings declined 5%, hurt by restructuring costs and a modest first-quarter earnings outlook.
SAP AG gained 1.7% in New York after Europe's largest software maker showed operational strength, despite taking a fourth-quarter hit on charges of almost one billion euros to cover the costs of its lawsuit with rival Oracle. The German company said it would raise its dividend for 2010 by 20%, and it expects sales and profit growth in 2011.
Yahoo fell 2.8% after the Internet search company late Tuesday gave a current-quarter revenue forecast that fell short of Wall Street's expectations.
Toyota Motor shares lost 1.9% in New York after the auto maker said it was recalling more than 1.7 million vehicles worldwide to fix problems, including fuel-system defects.
The euro slipped to $1.3675, from $1.3685 late Tuesday, while oil edged up and gold fell. Treasurys slumped broadly, pushing the yield on the benchmark 10-year note to 3.395%.
Tuesday, January 25, 2011
WORLD FOREX: Euro Rises Vs Dollar
The euro gained against the dollar in Asia Tuesday as firm share prices in most Asian markets buoyed risk sentiment, while expectations grew that the European Central Bank may raise interest rates ahead of the U.S. and Japan, benefiting the common currency.
Asian shares gained broadly after a strong performance on Wall Street, with the Australian market bolstered by news of lower-than-expected inflation. Japan's Nikkei Stock Average was up 1.1% while Australia's S&P/ASX 200 was 0.5% higher. Markets in South Korea and Hong Kong also gained.
Also helping the euro are growing expectations the euro-zone may raise key interest rates to combat rising inflation in the coming months, while the U.S. and Japan likely continue on the easing path, dealers said.
"Speculation is growing that the euro-zone will be the first to raise interest rates among major economies, Japan, the U.S. and the euro-zone," said Tomohiro Nishida, senior dealer at Chuo Mitsui Trust and Banking.
"Although Europe has a long way to go to get its fiscal mess in order, recent economic data show the economy is expanding. And with bond yields much higher than their U.S. counterparts, the euro is getting plenty of support," said Croy David, senior interest rate strategist at ANZ Bank in Wellington.
The Bank of Japan's policy board decided Tuesday to keep its easy monetary policy unchanged, as stable financial markets and growing optimism toward the economic outlook give it room to gauge the effects of "comprehensive monetary easing" announced in October.
Dealers said no immediate reaction was seen in the foreign exchange market to the Japanese central bank decision.
In Europe, attention will likely focus on the first sale of up to EUR5 billion of bonds by the European Financial Stability Facility, dealers said.
"The sentiment (for the euro) will get another boost if the bond sales attract a great deal of demand," Kenichiro Ikezawa, fund manager at Daiwa SB Investments.
Ikezawa said the euro may rise to 1.3740 later in the global day.
The euro was at $1.3656 as of 0450 GMT from $1.3638 late Monday in New York, according to EBS. The dollar was at Y82.44 from Y82.53, while the euro was at Y112.59 from Y112.55.
The ICE Dollar Index, which tracks the greenback against a trade-weighted basket of currencies, was at 77.933 from 78.038.
Elsewhere, the Australian dollar fell against the dollar on weaker-than-expected Australian consumer price index data for the fourth quarter. The Australian dollar was at $0.9956 from $0.9987.
The Australian consumer price index rose 0.4% in the fourth quarter of 2010 from the third quarter, and 2.7% from a year earlier, the Australian Bureau of Statistics said Tuesday. Economists on average had expected the CPI to post a gain of 0.7% in the quarter.
Economists said the Reserve Bank of Australia, which targets inflation at 2%-3%, now looks likely to be sidelined until the second half of 2011
The euro gained against the dollar in Asia Tuesday as firm share prices in most Asian markets buoyed risk sentiment, while expectations grew that the European Central Bank may raise interest rates ahead of the U.S. and Japan, benefiting the common currency.
Asian shares gained broadly after a strong performance on Wall Street, with the Australian market bolstered by news of lower-than-expected inflation. Japan's Nikkei Stock Average was up 1.1% while Australia's S&P/ASX 200 was 0.5% higher. Markets in South Korea and Hong Kong also gained.
Also helping the euro are growing expectations the euro-zone may raise key interest rates to combat rising inflation in the coming months, while the U.S. and Japan likely continue on the easing path, dealers said.
"Speculation is growing that the euro-zone will be the first to raise interest rates among major economies, Japan, the U.S. and the euro-zone," said Tomohiro Nishida, senior dealer at Chuo Mitsui Trust and Banking.
"Although Europe has a long way to go to get its fiscal mess in order, recent economic data show the economy is expanding. And with bond yields much higher than their U.S. counterparts, the euro is getting plenty of support," said Croy David, senior interest rate strategist at ANZ Bank in Wellington.
The Bank of Japan's policy board decided Tuesday to keep its easy monetary policy unchanged, as stable financial markets and growing optimism toward the economic outlook give it room to gauge the effects of "comprehensive monetary easing" announced in October.
Dealers said no immediate reaction was seen in the foreign exchange market to the Japanese central bank decision.
In Europe, attention will likely focus on the first sale of up to EUR5 billion of bonds by the European Financial Stability Facility, dealers said.
"The sentiment (for the euro) will get another boost if the bond sales attract a great deal of demand," Kenichiro Ikezawa, fund manager at Daiwa SB Investments.
Ikezawa said the euro may rise to 1.3740 later in the global day.
The euro was at $1.3656 as of 0450 GMT from $1.3638 late Monday in New York, according to EBS. The dollar was at Y82.44 from Y82.53, while the euro was at Y112.59 from Y112.55.
The ICE Dollar Index, which tracks the greenback against a trade-weighted basket of currencies, was at 77.933 from 78.038.
Elsewhere, the Australian dollar fell against the dollar on weaker-than-expected Australian consumer price index data for the fourth quarter. The Australian dollar was at $0.9956 from $0.9987.
The Australian consumer price index rose 0.4% in the fourth quarter of 2010 from the third quarter, and 2.7% from a year earlier, the Australian Bureau of Statistics said Tuesday. Economists on average had expected the CPI to post a gain of 0.7% in the quarter.
Economists said the Reserve Bank of Australia, which targets inflation at 2%-3%, now looks likely to be sidelined until the second half of 2011
U.S. stock index futures down
* U.S. stock index futures pointed to a weaker open on Wall Street on Tuesday, with futures for the S&P 500 SPc1, for the Dow Jones DJc1 and for the Nasdaq 100 NDc1 down 0.1-0.2 percent.
* The U.S. Federal Open Market Committee begins its two-day meeting on interest-rate policy. The Fed, in a statement due around 1915 GMT on Wednesday, was widely expected to acknowledge improving economic conditions marked by signs of life among consumers and factories. [ID:nFEDAHEAD]
* At 1245 GMT ICSC/Goldman Sachs will release chain store sales for the week ended Jan. 22, versus the prior week. In the previous week, sales fell 0.1 percent.
* BlackRock Inc (BLK.N), the world's largest asset manager, is expected to report healthy gains in fourth quarter profit and revenue on Tuesday, aided in no small measure by the global stock market rally. [ID:nN24204446]
* Other major companies to report results on Tuesday include Yahoo (YHOO.O), Johnson & Johnson (JNJ.N), DuPont (DD.N), 3M Company (MMM.N) and Harley-Davidson (HOG.N).
* At 1355 GMT, Redbook releases its Retail Sales Index of department and chain store sales for January versus December. In the prior period, sales were down 0.6 percent.
* Britain is to give News Corp (NWSA.O) a final chance to avoid a prolonged and costly investigation into its proposed $12 billion buyout of BSkyB (BSY.L), in a move that is likely to draw criticism from rivals. [ID:nLDE7040N6]
* At 1400 GMT Standard & Poor's is set to release its S&P Case/Shiller Home Price Index for November. Economists expect a drop of 0.8 percent versus a 1.0 percent fall in the previous month.
* A package of U.S. tax cuts should give a lift to a global economic recovery that had already begun to gain speed late last year, the IMF said as it revised its world growth forecast higher. [ID:nJAT007100]
* At 1500 GMT, the Federal Housing Finance Agency issues Home Price Index for November. In October, the index rose 0.7 percent.
* Also at 1500 GMT the Conference Board releases January consumer confidence. Economists in a Reuters survey expect a reading of 54.3 compared with 52.5 in December.
* Resource-related stock will be in focus, with U.S. oil CLc1 falling for a second straight session as an expected rise in U.S. stocks and a weak technical outlook weighed on prices.
* The FTSEurofirst 300 .FTEU3 index of top European shares was flat in morning trade after gaining earlier in the session, while Japan's Nikkei average .N225 ended 1.2 percent firmer.
* On Monday the Dow Jones industrial average .DJI ended up 108.68 points, or 0.92 percent, at 11,980.52. The Standard & Poor's 500 Index .SPX was up 7.49 points, or 0.58 percent, at 1,290.84. The Nasdaq Composite Index .IXIC was up 28.01 points, or 1.04 percent, at 2,717.55.
* U.S. stock index futures pointed to a weaker open on Wall Street on Tuesday, with futures for the S&P 500 SPc1, for the Dow Jones DJc1 and for the Nasdaq 100 NDc1 down 0.1-0.2 percent.
* The U.S. Federal Open Market Committee begins its two-day meeting on interest-rate policy. The Fed, in a statement due around 1915 GMT on Wednesday, was widely expected to acknowledge improving economic conditions marked by signs of life among consumers and factories. [ID:nFEDAHEAD]
* At 1245 GMT ICSC/Goldman Sachs will release chain store sales for the week ended Jan. 22, versus the prior week. In the previous week, sales fell 0.1 percent.
* BlackRock Inc (BLK.N), the world's largest asset manager, is expected to report healthy gains in fourth quarter profit and revenue on Tuesday, aided in no small measure by the global stock market rally. [ID:nN24204446]
* Other major companies to report results on Tuesday include Yahoo (YHOO.O), Johnson & Johnson (JNJ.N), DuPont (DD.N), 3M Company (MMM.N) and Harley-Davidson (HOG.N).
* At 1355 GMT, Redbook releases its Retail Sales Index of department and chain store sales for January versus December. In the prior period, sales were down 0.6 percent.
* Britain is to give News Corp (NWSA.O) a final chance to avoid a prolonged and costly investigation into its proposed $12 billion buyout of BSkyB (BSY.L), in a move that is likely to draw criticism from rivals. [ID:nLDE7040N6]
* At 1400 GMT Standard & Poor's is set to release its S&P Case/Shiller Home Price Index for November. Economists expect a drop of 0.8 percent versus a 1.0 percent fall in the previous month.
* A package of U.S. tax cuts should give a lift to a global economic recovery that had already begun to gain speed late last year, the IMF said as it revised its world growth forecast higher. [ID:nJAT007100]
* At 1500 GMT, the Federal Housing Finance Agency issues Home Price Index for November. In October, the index rose 0.7 percent.
* Also at 1500 GMT the Conference Board releases January consumer confidence. Economists in a Reuters survey expect a reading of 54.3 compared with 52.5 in December.
* Resource-related stock will be in focus, with U.S. oil CLc1 falling for a second straight session as an expected rise in U.S. stocks and a weak technical outlook weighed on prices.
* The FTSEurofirst 300 .FTEU3 index of top European shares was flat in morning trade after gaining earlier in the session, while Japan's Nikkei average .N225 ended 1.2 percent firmer.
* On Monday the Dow Jones industrial average .DJI ended up 108.68 points, or 0.92 percent, at 11,980.52. The Standard & Poor's 500 Index .SPX was up 7.49 points, or 0.58 percent, at 1,290.84. The Nasdaq Composite Index .IXIC was up 28.01 points, or 1.04 percent, at 2,717.55.
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