Stocks Seeing Modest Strength On Upbeat GDP Data
10/26/2012 10:03 AM ET
With traders reacting positively to upbeat U.S. economic data, stocks
have moved modestly higher in early trading on Friday. The major
averages have climbed into positive territory, adding to the slim gains
posted in the previous session.
The major averages have pulled back off their highs for the young session but currently remain positive. The Dow is up 11.25 points or 0.1 percent at 13,114.93, the Nasdaq is up 10.72 points or 0.4 percent at 2,996.84 and the S&P 500 is up 1.48 points or 0.1 percent at 1,414.45.
The early strength on Wall Street comes
on the heels of the release of a report from the Commerce Department
showing stronger than expected U.S. GDP growth in the third quarter.
The report showed that U.S. gross domestic product rose
by 2.0 percent in the third quarter following a 1.3 percent increase in
the second quarter. Economists had been expecting third quarter GDP to
increase by about 1.8 percent.
The stronger than expected GDP growth reflected positive contributions from consumer spending, federal government spending, and residential fixed investment.
However, disappointing earnings news from Apple
is limiting the upside for the markets, as the iPad and iPhone maker
reported weaker than expected fiscal fourth quarter earnings despite
reporting stronger than expected revenue growth. Apple also issued downbeat guidance for its fiscal first quarter.
Online retailer Amazon reported a third quarter loss that was wider than analysts had expected. The company's net sales also trailed expectations.
Merck
reported better than expected third quarter earnings, although the drug
giant's revenues fell by more than analysts had anticipated. Looking
Ahead, Merck said 2012 revenues are still projected to be at or near
2011 levels on a constant currency basis.
Most of the major
sectors are showing only modest moves in early trading, although
strength is visible among telecom, networking, and semiconductor stocks.
In overseas trading, stock markets across the Asia-Pacific region came under pressure during trading on Friday. Japan's Nikkei 225 Index fell by 1.4 percent, while Hong Kong's Hang Seng Index ended the day down by 1.2 percent.
Meanwhile, the major European markets have moved to the upside over the course of the trading day. While the U.K.'s FTSE 100 Index is up by 0.1 percent, the German DAX Index is up by 0.7 percent and the French CAC 40 Index is up by 0.8 percent.
In the bond market,
treasuries are regaining some ground after coming under pressure in the
previous session. Subsequently, the yield on the benchmark ten-year
note, which moves opposite of its price, is down by 3.7 basis points at
1.791 percent.
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After
hovering around the unchanged line in early trading, Canadian stocks
moved up Tuesday morning even as traders were keen to know when
normality will return to the Wall Street. Traders speculate that the
widespread damage might prompt the U.S. Federal Reserve to ease monetary
policy further to rev up the economy.
Reports suggest economic
toll would be in excess of $20 billion after the biggest Atlantic storm
slammed the U.S., with insured losses of about $7 billion to $8 billion.
The S&P/TSX Composite Index rose 64.15 points or 0.52 percent to 12, 376.90, after adding just over 100 points or 1 percent in the past three sessions.
The price of crude oil
edged up Tuesday morning as traders await information on damages after
Hurricane Sandy hit the U.S. and shut East Coast refineries. Crude for
December added $0.49 to $86.03 a barrel.
In the oil patch, Petrobakken Energy (PBN.TO) soared 9 percent after announcing corporate reorganization plans.
MEG Energy (MEG.TO), Baytex Energy Corp. (BTE.TO) and Suncor Energy (SU.TO) were up around 1 percent each.
Crude oil and natural gas company Canadian Oil Sands
(COS.TO) rose nearly 3 percent after reporting that its third-quarter
net income increased to C$338 million or C$0.70 per share from C$242
million or C$0.50 per share in the third quarter of 2011.
Natural gas transportation company TransCanada Corp.
(TRP.TO) was trading flat after reporting that its third-quarter net
income was C$369 million or C$0.52 per share down from C$386 million or
C$0.55 per share in third quarter 2011.
Upstream oil and gas company Talisman Energy (TLM.TO)
slipped into the red in third quarter, reporting net loss of $731
million or $0.71 per share versus net income of $521 million or $0.24
per share last year. Analysts were expecting the company to earn $0.06
per share on revenues of $1.73 billion for the quarter. The stock was
down 1.50 percent
The price of gold was paring recent
losses Tuesday morning as the U.S. dollar turned weak versus a basket of
currencies. Gold for December edged up $2.60 to $1,711.30 an ounce.
Among gold plays, Royal Gold (RGL.TO) and Barrick Gold (ABX.TO) were up around 1 percent each.
International gold miner Yamana Gold (YRI.TO) edged up 1 percent even after reporting a much lower third-quarter net earnings at
$59.97 million or $0.08 per share, compared with net earnings of
$115.77 million or $0.16 per share in the year ago quarter. However,
adjusted earnings were $178 million or $0.24 per share compared to $190
million or $0.26 per share. Analysts were expecting the company to
report $0.23 per share for the quarter.
Insurer Sunlife Financial (SLF.TO) gathered over 1 percent, while Bank of Montreal (BMO.TO) was losing about 1 percent.
In
economic news, Statistics Canada said the Industrial Product Price
Index was up 0.5 percent in September compared with August, mainly due
to higher prices for primary metal products and petroleum and coal
products. Meanwhile, the Raw Materials Price Index rose 1.3 percent in
September, mainly because of higher prices for non-ferrous metals.
Elsewhere,
euro zone economic confidence dropped less than expected in October,
monthly survey from the European Commission showed. The corresponding
index came in at 84.5, down from 85.2 in the prior month. Economists had
forecast the index to drop to 84.4. The marked decreases in industry
and construction outweighed the improvement in the retail trade sector.
Germany's
unemployment increased by 20,000 in October from a month ago, data from
the Federal Labor Agency showed. It follows an increase of 12,000 each
in September and August. Economists were expecting a monthly increase of
10,000 for October. |
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European Markets Extended Losses Amidst Earnings Disappointment
10/23/2012 11:55 AM ET
The European markets finished to the downside again Tuesday, extending
the weakness from the previous session. The markets continued to be
impacted by disappointing corporate earnings, both in Europe and the
United States. Concerns over Spain's debt problems also persisted
Tuesday, following Moody's credit rating downgrade of five Regions in Spain overnight.
The
Spanish economy has likely contracted at a steady pace in the third
quarter, a report from the Bank of Spain showed Tuesday. The central
bank's quarterly bulletin said that gross domestic product declined 0.4 percent sequentially in the third quarter, similar to the contraction seen in the second quarter.
Meanwhile, Spain's short-term debt
auction received mixed response, with yields on six-month debt easing
slightly, while borrowing costs edged up for three-month bonds, amid
lingering uncertainty over the timing of Spain's bailout request.
The euro Stoxx 50 index of Eurozone bluechip stocks declined by 2.08 percent and the Stoxx Europe 50 index, which includes some major U.K. companies, lost 1.71 percent.
The DAX of Germany dropped by 2.11 percent and the CAC of France finished lower by 2.20 percent. The FTSE 100 of the U.K. decreased by 1.41 percent and the SMI of Switzerland fell by 1.78 percent.
In Frankfurt, Commerzbank lost 2.50 percent. The lender is reportedly considering selling its custodian business.
BMW fell
by 1.69 percent, after announcing that it plans to build a new plant in
Brazil, with the goal to commence production in 2014.
In Paris, Michelin gained 3.22 percent. The company announced that third quarter revenues increased by 5.7 percent.
In London, ARM Holdings increased by 7.50 percent, after the company's better than expected third quarter earnings report.
Experian rose by 3.92 percent, after it increased its stake in Brazilian credit bureau Serasa SA.
Mulberry Group sank by 22.12 percent, after the company warned of lower full year earnings and revenues. Burberry Group also lost 3.33 percent.
Syngenta
climbed by 0.64 percent in Zurich. The agribusiness company posted a 6
percent rise in third-quarter group sales on a constant currency basis,
led by an excellent performance in Latin America.
French
industrial confidence deteriorated to the lowest level in more than
three years in October as weakening external demand, especially in the
crisis-stricken Eurozone, continued to weigh on the country's exports,
latest data showed Tuesday.
The industrial confidence index
dropped to 85 in October, after stabilizing at 90 in September,
statistical office Insee said. The latest reading was the lowest since
August 2009, and far below the long-term average of 100. Economists had
forecast the index to remain unchanged In October.
The number of
mortgage approvals for house purchases in the United Kingdom increased
more than economists expected in September, data released by the British
Bankers' Association (BBA) showed Tuesday.
The number of mortgage approvals
for the purchase of residential properties increased to 31,175 in
September from 30,683 in August. Economists had forecast approvals to
rise to 30,870. |
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Asian Markets In Positive Territory Amid Cautious Trades
10/29/2012 11:17 PM ET
Asian stock markets are trading in positive territory amid selective
buying on Tuesday. However, gains are just modest in most of the markets
in the region as the mood remains cautious due to a lack of triggers
following the U.S. markets remaining shut on Monday due to the threat
posed by Hurricane Sandy. Investors are mostly seen tracking regional
economic and earnings data for direction.
In the Australian
market, healthcare stocks, which had a few weak sessions recently, are
currently trading higher. Energy, financial and telecommunications
stocks are also finding support. Mining, energy and consumer
discretionary stocks are trading mixed.
The benchmark S&P/ASX 200 index,
which surged to 4,498.9, is currently trading at 4,490.2, up 13.3
points or 0.3 percent from its previous close. The broader All Ordinaries index is up 10.9 points or 0.2 percent at 4,510.3, off the day's high of 4,518.9.
Among bank stocks, ANZ Bank , Commonwealth Bank of Australia and Westpac are up 0.4 to 0.8 percent, while National Australia Bank is up marginally. Bendigo & Adelaide Bank is adding 1.4 percent, while Bank of Queensland is up nearly a percent.
Among top miners, BHP Billiton (BHP, BBL) is up 0.6 percent, while Rio Tinto (RIO, RIO.L) is trading 0.3 percent down.
In the energy sector, Woodside Petroleum is up 0.6 percent, Origin Energy is gaining about 0.6 percent and Caltex Australia is up nearly 2 percent, while Santos and Oil Search are trading weak.
Downer EDI, Fortescue Metals and Caltex Australia are up 2 to 2.4 percent. Lynas Corporation, Primary Healthcare, Aurora Oil & Gas, WorleyParsons, Panaust and Fairfax Media are trading higher by 1.2 to 1.8 percent.
Meanwhile, Boart Longyear, Aristocrat Leisure, Perseus Mining, Paladin Energy, Duet Group and Iluka Resources are down 1.6 to 2 percent. Suncorp Group, Seek, Computershare and Myer Holdings are also trading notably lower.
Virgin Australia has made an A$98.7 million takeover offer for regional carrier Skywest.
Virgin said its cash and scrip offer for Skywest, which operates in
regional Australia and south east Asia, was worth 46.88 cents per
Skywest share.
Virgin has also announced that it has bought a 60 percent stake in low cost carrier Tiger Airways Australia for A$35 million. Singapore Airlines
also announced it had bought a 10 percent stake in Virgin Australia for
A$105 million. Tiger and Virgin said they would spend up to $62.5
million on Tiger Australia to increase its fleet from 11 aircraft to 35
by 2018.
Shares of Skywest shot up by over 50 percent in early trades, while Virgin Australia gained more than 6 percent.
After opening marginally higher, the Japanese market surged ahead in early trades before paring some gains due to lack of support.
Still,
with several front line stocks holding firm amid a slew of economic
data, the market remains in positive territory with modest gains. The
mood is somewhat cautious with investors eying the central bank's
decision on interest rates.
The benchmark Nikkei 225 index, which rose to around 8,996, is currently trading at 8,966, up 32.7 points or 0.4 percent from its previous close.
Shares from automobile, pharmaceuticals, rubber, steel and non-ferrous metals
sections opened higher but gave up some gains subsequently. Railway,
shipbuilding, pulp & paper and manufacturing stocks are trading
mixed.
Shares of IHI Corp. plunged on weaker than expected first half pretax profit, extending its decline for the third successive session. Mitsumi Electric is trading sharply lower on reports of a likely net loss for financial year 2012.
Nomura Holdings is trading higher on impressive results for the July-September quarter. Sharp Corp. is up on reports the company is in tie-up talks with three U.S. firms.
In
economic news, industrial output in Japan declined a seasonally
adjusted 4.1 percent on month in September, the Ministry of Economy,
Trade and Industry said in Tuesday's preliminary reading. That missed
expectations for a contraction of 3.1 percent following the 1.6 percent
decline in August.
On a yearly basis, industrial production
plummeted 8.1 percent - also missing forecasts for a fall of 7.1 percent
after shedding 4.6 percent in the previous month.
According to a
report from the Ministry of Internal Affairs and Communications, the
unemployment rate in Japan was a seasonally adjusted 4.2 percent in
September - in line with expectations and unchanged from the previous
month. The participation rate was 59.3 percent, also matching
expectations and easing from 59.4 percent in August.
The number
of employed persons in September was 63.08 million, down 130,000 or 0.2
percent from the previous year. The number of unemployed persons in
September was 2.75 million, down 20,000 or 0.7 percent from the previous
year.
Meanwhile, average household spending in Japan was down
0.9 percent on year in September, at 266,705 yen, another report from
the Ministry of Internal Affairs and Communications revealed. That was
well shy of forecasts for an increase of 0.8 percent following the 1.8
percent gain in August.
The average of monthly income for
workers' household was up 0.1 percent on year to 422,046 yen, while
consumption expenditures added an annual 0.6 percent to 299,821 yen.
In the currency market, the U.S. dollar traded in the upper 79 yen range in early deals in Tokyo. The yen is currently trading at 79.90 to the dollar.
Among
other markets in the Asia-Pacific region, South Korea and Taiwan are
trading notably higher. Shanghai, Malaysia and Singapore are up
marginally, while New Zealand and Hong Kong are trading flat.
The U.S. markets were closed on Monday and will remain closed for Tuesday as well, in view of the impending hurricane.
Major European markets ended weak on Monday. While the U.K.'s FTSE 100 index ended 0.2 percent down, the French CAC 40 Index and the German DAX index lost 0.8 percent and 0.4 percent, respectively.
U.S. Crude oil settled lower on Monday on demand concerns on the threat posed by Hurricane Sandy, with a number of refineries on reduced operation or having shut down production in anticipation of the event. A stronger dollar too contributed to oil's decline.
The New York Mercantile Exchange trading
floor remained closed to facilitate mandatory evacuation due to the
threat posed by Hurricane Sandy, but electronic trading continued its
regular course. Crude for December delivery dropped $0.74 or 0.9 percent to close at $85.54 a barrel on the New York Mercantile Exchange. |
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10/30/2012 7:14 AM ET
The price of crude oil
edged up Tuesday morning as traders await information on damages after
Hurricane Sandy hit the U.S. and shut East Coast refineries.
Light Sweet Crude Oil
(WTI) futures for December delivery, added $0.53 to $86.07 a barrel.
Yesterday, oil settled lower on demand concerns on the threat posed by
Hurricane Sandy with a number of refineries on reduced operation or have
shut down production in anticipation of the event. The dollar also
strengthened against a basket of major currencies, with investors
finding it a safe haven even as the hurricane nears landfall.
This morning, the U.S. dollar was easing from its 2-week high versus the euro and ticking lower against sterling. The buck continued to slip from its 4-month high versus the yen and trading lower against the Swiss franc.
In
economic news, euro zone economic confidence dropped less than expected
in October, monthly survey from the European Commission showed. The
corresponding index came in at 84.5, down from 85.2 in the prior month.
Economists had forecast the index to drop to 84.4. The marked decreases
in industry and construction outweighed the improvement in the retail
trade sector.
Germany's unemployment increased by 20,000
in October from a month ago, data from the Federal Labor Agency showed.
It follows an increase of 12,000 each in September and August.
Economists were expecting a monthly increase of 10,000 for October.
Traders will look to the release of S&P/Case-Shiller Home Price Indices
for the month of August from the Standard & Poor's at 9.00 a.m ET.
Economists expect the reading to have risen to 1.9 percent from the last
month's 1.2 percent.
Today after the market hours, the API will release its US crude oil inventories report for the weekended October 26. |
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