11/13/2012 11:20 AM ET
After
moving notably lower at the open, stocks have shown a substantial
turnaround over the course of morning trading on Tuesday. The major
averages have bounced well off their lows for the session and into
positive territory.
While lingering concerns about the looming
fiscal cliff and the ongoing difficulties in Europe helped to drag
stocks lower at the start of trading, selling pressure waned not long
after the open.
Traders subsequently looked to pick up stocks at reduced levels, with the Nasdaq and the S&P 500 rebounding after hitting their lowest intraday levels in over three months.
Telecom stocks have shown a strong move to the upside on the day, driving the NYSE Arca Telecom Index up by 1.2 percent. AT&T (T) and Verizon (VZ) are posting notable gains.
Considerable
strength has also emerged among natural gas, retail, and airline
stocks, while most of the major sectors are showing only modest moves.
The major averages have recently pulled back off their highs for the session but are currently holding on to gains. While the Nasdaq is up just 0.73 points or less than a tenth of a percent at 2,904.99, the Dow is up 67.70 points or 0.5 percent at 12,882.78 and the S&P 500 is up 7.01 points or 0.5 percent at 1,387.04.
11/13/2012 9:50 AM ET
With
traders expressing continued concerns about the looming fiscal cliff,
stocks moved to the downside at the start of trading on Tuesday. The
major averages all slid into negative territory after ending the
previous session nearly flat.
The major averages have recently climbed off their lows for the young session but remain in the red. The Dow is down 22.12 points or 0.2 percent at 12,792.96, the Nasdaq is down 16.06 points or 0.6 percent at 2,888.20 and the S&P 500 is down 4.32 points or 0.3 percent at 1,375.71.
The
initial weakness on Wall Street was partly due to concerns about
whether lawmakers will be able to reach an agreement that will avoid the
significant tax increases and government spending cuts currently set to
take effect at the end of the year.
While members of both
parties have called for compromise on the issue, recent statements
suggest that a continued disagreement over taxes on the wealthy could
lead to continued gridlock on Capitol Hill.
Traders are also
keeping an eye on developments in Europe, where finance ministers agreed
to give Greece two extra years to meet its budget targets.
After
a meeting in Brussels on Monday, Eurogroup chair Jean-Claude Juncker
also revealed that the ministers will hold another meeting next week to
decide on providing the next tranche of Greek aid.
Peter Boockvar, managing director at
Miller Tabak, said, "Markets this morning are worried about how
European officials plan on further funding Greece with extra money to
bide them over for a few more years."
Early weakness has emerged among software stocks, with Microsoft
(MSFT) posting a notable loss after announcing that Windows and Windows
Live President Steven Sinofsky will be leaving the company Shares of
Microsoft are down by 3.5 percent after hitting their worst intraday
level in over ten months.
Electronic storage, gold, and brokerage stocks are also seeing notable weakness, although selling pressure has waned since the start of trading.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Tuesday. Japan's Nikkei 225 Index edged down by 0.2 percent, while Hong Kong's Hang Seng Index fell by 1.1 percent.
The major European markets have also moved to the downside on the day. While the U.K.'s FTSE 100 Index is down by 0.7 percent, the French CAC 40 Index is down by 0.9 percent, and the German DAX Index is down by 1.1 percent.
In
the bond market, treasuries are moving moderately higher, extending a
recent upward trend. As a result, the yield on the benchmark ten-year
note, which moves opposite of its price, is down by 2.8 basis points at
1.583 percent.
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11/12/2012 4:41 PM ET
Canadian
stocks ended marginally lower Monday, on continued investor concerns
over the impact of the U.S. fiscal cliff with impending tax hikes and
spending cuts for the U.S. economy beginning next January, unless a deal
is reached between the two parties.
Investors also weighed the
financial turmoil in Greece with concern as the beleaguered nation's
debt repayment deadline draw closer, and uncertainty over aid from
international lenders continue to persist.
Nevertheless, the main index made some gains on some upbeat macroeconomic data out of China, posting a huge merchandise trade surplus in October.
The S&P/TSX Composite Index closed
Monday at 12,191.46, down 5.34 points or 0.04 percent. The index
touched an intraday high of 12,239.56 and a low of 12,186.99.
The Energy Index slipped 0.42 percent, with U.S. crude oil futures for December delivery down $0.50 or 0.6 percent to close at $85.57 a barrel Monday on the Nymex.
Among energy stocks, Suncor Energy Inc. (SU.TO) moved up 0.39 percent, Encana Corp. (ECA.TO) was down 0.38 percent, Talisman Energy (TLM.TO) edged down 0.18 percent, and CanadianNatural Resources Limited (CNQ.TO) slipped 2.10 percent.
Meanwhile, the IEA in its annual World Energy Outlook said the U.S. will overtake Saudi Arabia as the world's largest oil
producer in about eight years from now. Oil demand will increase by 14
percent between now and 2035 to reach 99.7 million barrels a day, the
IEA said.
The Diversified Metals & Mining Index gained 0.77 percent, with First Quantum Minerals Ltd. (FM.TO) up 2.48 percent, Teck Resources Limited (TCK.B.TO) up 0.52 percent, and Inmet Mining Corp. (IMN.TO) adding 3.96 percent.
Osisko Mining Corporation (OSK.TO) plunged 8.15 percent, after indicating it would acquire Queenston Mining Inc. (QMI.TO) for C$6.00 per share, or at about C$550 million. On the other hand, shares of Queenston soared 12 percent.
The Global Gold Index shed 1.30 percent, with gold futures for December delivery flat at $1,730.90 an ounce Thursday on the Nymex.
The Capped Materials Index dropped 0.87 percent, with Potash Corporation of Saskatchewan Inc. (POT.TO) inching up 0.05 percent.
Among gold stocks, Eldorado Gold Corp. (ELD.TO) dropped 2.35 percent, Goldcorp Inc. (G.TO) dropped 1.90 percent, and Yamana Gold Inc. (YRI.TO) shed 2.14 percent. Barrick Gold Corp. (ABX.TO) dipped 0.80 percent, while Kinross Gold Corp. (K.TO) declined 1.16 percent.
The Financial Index moved up 0.44 percent, with Bank of Montreal (BMO.TO) up 0.46 percent, Royal Bank of Canada (RY.TO) inched up 0.11 percent, The Bank of Nova Scotia (BNS.TO) up 0.33 percent, and The Toronto-Dominion Bank (TD.TO) gained 0.77 percent. Manulife Financial Corp. (MFC.TO) gained 0.99 percent.
The Capped Industrials Index gained 0.49 percent, with transportation systems maker Bombardier Inc. (BBD.A.TO, BBD.B.TO) down 1.75 percent. The Capped Health Care Index moved up 0.17 percent, although CML HealthCare Inc. (CLC.TO) declined 5.87 percent.
The Information Technology Index gained 0.50 percent, with smartphone maker Research In Motion Ltd. (RIM.TO) moving up 2.92 percent after announcing plans to introduce its BlackBerry 10 smartphones on January 30.
Home furnishings retailer Leon's Furniture Ltd. (LNF.TO) gained 1.99 percent after offering to buy The Brick Ltd. (BRK.TO) for $5.40 per share or about $700 million. Shares of Brick skyrocketed almost 52 percent.
Oil and gas industry services provider Ensign Energy Services (ESI.TO)
edged up 0.97 percent even as its third-quarter net income decreased to
C$44.8 million or C$0.29 per share from C$64.0 million or C$0.42 per
share for the 2011 third quarter. Removing the large quarterly
year-over-year swing in share-based compensation, quarterly adjusted net
income was C$47.2 million, down nine percent from C$52.1 million
recorded a year earlier.
Metals miner Paladin Energy Ltd. (PDN.TO) gained 1 percent after reporting a narrow first quarter loss of $45.9 million from last year's 123.4 million.
In
economic news, Germany's wholesale price inflation accelerated to the
highest level in eleven months in October, data released by the Federal
Statistical Office showed. The wholesale price index increased
4.6 percent on an annual basis in October, faster than the 4.2 percent
gain seen in September. Economists were looking for a 4.9 percent rise.
The latest growth, the fourth in a row, was the fastest since November
2011, when prices advanced 4.9 percent.
Elsewhere, Japan's
economy shrank 0.9 percent in the third quarter of 2012 compared to the
previous three quarters, marking its first contraction in three
quarters, the Cabinet Office said in a report. On a yearly basis, GQP
dropped 3.5 percent - slightly worse than expectations for a contraction
of 3.4 percent.
Separately, data out of China showed that the
nation posted a merchandise trade surplus of $31.99 billion in October -
blowing past expectations for $27.15 billion after coming in at $27.67
in September. Exports surged 11.6 percent year-over-year to $175.57
billion, beating forecasts for a 10 percent gain.
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11/13/2012 12:01 PM ET
The
European markets bounced back from early weakness on Tuesday and ended
the session with modest gains. The failure of the Eurogroup and the
International Monetary Fund to reach an agreement on the Greek bailout
at yesterday's meeting in Brussels weighed on investors. The unexpected
decline in German ZEW economic sentiment and weak financial results from
companies like Vodafone and E.ON also had a negative impact.
Euro
area finance ministers will hold an extraordinary meeting again on
November 20 to finalize the payment of the next tranche of Greek aid,
Jean-Claude Juncker, the head of Eurogroup said after chairing the
meeting in Brussels late Monday.
Finance ministers granted Greece
two extra years to meet its budget targets, although they indicated
that they will hold more negotiations before nailing down a new deal,
Juncker said. The additional time would leave a funding hole of around
EUR 32.6 billion through 2016.
It is now unclear whether the
International Monetary Fund will take part in the contribution to
Greece. IMF chief Christine Lagarde said she did not agree with Juncker.
She said the appropriate timetable to reduce Greece debt to 120 percent
is by 2020.
The Euro Stoxx 50 index of eurozone bluechip stocks increased by 0.84 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.46 percent.
The DAX of Germany rose by 0.01 percent and the FTSE 100 of the U.K. advanced by 0.33 percent. The CAC 40 of France gained 0.56 percent and the SMI of Switzerland climbed by 0.39 percent.
In Frankfurt, E.ON
sank by 12.39 percent. The utility reported a third quarter loss and
withdrew its 2013 forecast, citing economic uncertainties and the
structural changes in the energy industry. Peer RWE also declined by 1.83 percent.
K+S fell
by 4.69 percent. The specialty fertilizer firm currently expects
full-year 2012 adjusted earnings per share and revenues at the lower end
of its prior outlook range.
Kabel Deutschland, which
reported quarterly results, lost 1.08 percent. Nordex gained 5.30
percent, after the company reported a higher third-quarter profit.
In London, Vodafone declined by 2.46 percent. The telecom giant reported a loss for the first half of the year, amid hefty impairments.
ITV, which issued an interim management statement, surged by 8.99 percent. Sonova
surged by 8.49 percent in Zurich. The company reported impressive
financial results, with a 44% increase in net income for the first half
of the year.
German economic sentiment worsened in November,
reflecting investors' subdued expectations amid recessionary
developments in the euro area, data from a survey by the Centre for
European Economic Research showed Tuesday.
The ZEW Indicator of Economic Sentiment
declined unexpectedly by 4.2 points to -15.7 in November. The reading
was forecast to improve to -10 and marked the first drop since August.
France's current account deficit
decreased from the previous month in September, data released by the
Bank of France showed Tuesday. On a seasonally adjusted basis, the
current account deficit dropped to EUR3.3 billion in September from
EUR3.6 billion in August, data showed.
U.K. annual inflation
accelerated more than expected on a surge in university tuition fees and
food prices in October and drifted inflation away from the central bank's 2
percent target. Inflation rose to 2.7 percent in October, the highest
since May, from 2.2 percent in September, the Office for National
Statistics said Tuesday. Inflation was forecast to rise to 2.4 percent.
Residential
property prices in the United Kingdom increased at slower pace in
September, defying economists' forecast for a faster growth, data
released Tuesday by the Office for National Statistics showed.
The house price index
increased 1.7 percent on an annual basis in September, slower than the
1.9 percent gain recorded in August, which was revised up from 1.8
percent. Economists had forecast a faster growth of 2 percent.
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11/12/2012 10:36 PM ET
Asian
stock markets are mostly trading notably lower on Tuesday with
investors indulging in selling, amid a lack of positive cues overnight
from Wall Street and European markets. Looming worries about the U.S.
fiscal cliff and concerns about the financial situation in Europe are
weighing on sentiment to a significant extent.
In the Australian
market, financial, energy, industrial and consumer staples stocks are
mostly trading lower. All the sectoral indices are currently down in
negative territory.
The benchmark S&P/ASX 200 index is down 46.8 points or 1.1 percent at 4,401.2. The broader All Ordinaries index is trading at 4,424.3, down 45.6 points or 1 percent from its previous close.
Among bank stocks, ANZ Bank is down 0.7 percent and Commonwealth Bank of Australia is trading lower by 0.8 percent, while National Australia Bank and Westpac (WBK) are down 1.4 percent and 1.8 percent, respectively. Bendigo & Adelaide Bank and Bank of Queensland are both trading lower by 1.4 percent.
Among top miners, BHP Billiton (BHP, BBL) and Rio Tinto (RIO, RIO.L) are down 0.8 percent and 0.7 percent, respectively.
Lynas Corporation shares are down as much as 7.3 percent. Paladin Energy is down by about 7 percent. Aurora Oil & Gas, Boart Longyear and Perseus Mining are trading lower by 3.2 to 4 percent.
James
Hardie Industries, PanAust, Regis Resources, Sims Metal Management, GPT
Group, Origin Energy, Newcrest Mining, Macquarie Group, Downer EDI,
ResMed Inc. (RMD) and Treasury Wine Estates are also trading sharply lower.
Among the notable gainers, Incitec Pivot is up 4.4 percent. Seek is up 2 percent and ALS is trading higher by about 1.9 percent.
In
economic news, Australia's business sector weakened further in the last
quarter of 2012, with conditions slumping to their lowest point in more
than three years, according to the National Australia Bank business
survey.
The survey showed that conditions in October fell to
minus five on the index, from minus three in September and zero in
August. Business confidence also receded, falling to minus one in
October, compared to zero in September. It was minus three in August.
According
to data released by the Australian Bureau of Statistics, personal
finance loans rose by a seasonally adjusted 2.6 percent to A$7.43
billion in September from an upwardly revised A$7.24 billion in August.
Total commercial loans in September rose 6.9 percent to A$29.61 billion,
seasonally-adjusted, from A$27.70 billion in August.
Lease finance was up 10.1 percent to A$586 million, compared with A$532 million the previous month.
The
Japanese stock market opened on a firm note, with investors indulging
in some bargain hunting after recent losses. Expectations of some
stimulus from the Japanese central bank and the yen's decline against the U.S. dollar too contributed to the positive start.
However,
with investors turning cautious at higher levels following the yen's
rebound, the market pared its gains and slipped into negative territory.
The benchmark Nikkei 225 index, which rose to 8,723.5 in early trades, was down 29.2 points or 0.3 percent at 8,647.3 when the morning session ended.
Electric power, automobile, real estate, pulp & paper and chemicals stocks started off on a high note, but gave up most of their gains towards the end of the morning session. Pharmaceuticals, banking and non-ferrous metals stocks traded mixed.
Olympus Corp. shares were up nearly 5 percent at the break thanks to a fairly encouraging fiscal 2012 earnings forecast by the company.
Hokuetsu Kish Paper Co. shares were up 4.8 percent. Kansai Electric Power moved up 3.5 percent. Kubota Corp., Toyobo Co., Chubu Electric Power, Nippon Paper Group, Hino Motors, Konami Corp. and MEIJI Holding Co. also posted strong gains.
Daishinku Corp. shares plunged more than 10 percent after the company cut its group earnings forecast for financial year 2012.
Shimzu Corp. lost more than 5 percent.
Shizuoka Bank, Taisei Corp., Mitsui Mining & Smelting, Tokuyama
Corp., Kajima Corp., NEC Corp., Oki Electric Industry, Minebea Co. and Okuma Corp. were down 2.4 to 3.3 at the break.
In
economic news, Japan's data on industrial production in September is
due for release. Little change is expected from last month's preliminary
readings that suggested a contraction of 4.1 percent on month and 8.1
percent on year, while capacity utilization was tapped at -2.6 percent
on month.
In the currency market, the U.S. dollar traded in the mid-79 yen range in early deals in Tokyo. The yen is currently trading at 79.43 to the dollar.
Among
other markes in the Asia-Pacific region, Shanghai, Hong Kong, New
Zealand, South Korea and Taiwan are trading notably lower, while
Indonesia is bucking the trend and trading modestly higher. Markets in
Malaysia and Singapore are closed for the Deepavali holiday. Markets
across the region had turned in a mixed performance on Monday.
On
Wall Street, stocks ended flat on Monday, with many traders away from
their desks amid the Veteran's Day holiday. Continued uncertainty about
the looming fiscal cliff also kept traders on the sidelines.
While the S&P 500 inched up 0.2 points to 1,380, the Dow dipped 0.2 points to 12,815.2 and the Nasdaq edged down 0.6 points to 2,904.3.
Major
European markets turned in a mixed performance on Monday. While the
German DAX index edged up by 0.1 percent, the U.K.'s FTSE 100 index
closed just below the unchanged and the French CAC 40 index dipped by
0.4 percent.
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11/12/2012 3:01 PM ET
U.S. crude oil
snapped a two-day gain to settle lower Monday, mostly on investor
concerns over the looming U.S. fiscal cliff with spending cuts and tax
hikes indicated in January if a deal is not reached. There were
continued concerns over the financial turmoil in Greece as its debt
repayment dates draw closer and uncertainty over aid from international
lenders remain. Economic growth worries continued to persist after some
poor numbers out of Japan show its gross domestic product in the third
quarter declined.
Light Sweet Crude Oil futures for December delivery shed $0.50 or 0.6 percent to close at $85.57 a barrel on the New York Mercantile Exchange Monday.
Crude prices scaled a high of $86.54 a barrel intraday and a low of $85.27.
Last week, oil rebounded from its four-month low amid some upbeat macroeconomic data from China, the second largest oil consuming nation.
Meanwhile, the IEA in its closely watched annual World Energy Outlook
released Monday said the U.S. will overtake Saudi Arabia as the world's
largest oil producer in about eight years from now. Oil demand will
increase by 14 percent between now and 2035 to reach 99.7 million
barrels a day, the IEA said.
The euro traded flat against
the dollar at $1.2713 on Monday, as compared to $1.2713 late Friday in
North America. The euro scaled a high of $1.2739 intraday and a low of
$1.2698.
The dollar index, which tracks the U.S. unit
against six major currencies, traded at 81.04 on Monday, down from 81.06
in North American trade late Friday. The dollar scaled a high of 81.10
intraday and a low of 80.91.
In economic news, Germany's
wholesale price inflation accelerated to the highest level in eleven
months in October, data released by the Federal Statistical Office
showed. The wholesale price index increased 4.6 percent on an annual
basis in October, faster than the 4.2 percent gain seen in September.
Economists were looking for a 4.9 percent rise. The latest growth, the
fourth in a row, was the fastest since November 2011, when prices advanced 4.9 percent.
Elsewhere,
Japan's economy shrank 0.9 percent in the third quarter of 2012
compared to the previous three quarters, marking its first contraction
in three quarters, the Cabinet Office said in a report. On a yearly
basis, GQP dropped 3.5 percent - slightly worse than expectations for a
contraction of 3.4 percent.
Separately, data out of China showed
the nation posted a merchandise trade surplus of $31.99 billion in
October - blowing past expectations for $27.15 billion after coming in
at $27.67 in September. Exports surged 11.6 percent year-over-year to
$175.57 billion, beating forecasts for a 10 percent gain.
During
the week, investor focus will be on the Commerce Department's retail
sales report for October, the results of the manufacturing surveys by
the New York Federal Reserve and the Philadelphia Federal Reserve, the
Federal Reserve's industrial production report for October, the FOMC
minutes and the weekly jobless claims data.
In focus will also be the crude oil
inventories data from the American Petroleum Institute due Tuesday and
the Energy Information Administration's weekly oil report Wednesday.
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