Stocks Mostly Higher But Apples Weighs On Nasdaq
Stocks have
moved mostly higher in early trading on Thursday, although a sharp drop
by shares of Apple (AAPL) is weighing on the tech sector. The major
averages have turned mixed, with the tech-heavy Nasdaq stuck in the red.
The Nasdaq has
recently climbed well off its low for the young session but remains in
negative territory. While the Nasdaq is down 10.24 points or 0.3 percent
at 3,143.42, the Dow is up 55.31 points or 0.4 percent at 13,834.64 and the S&P 500 is up 3.41 points or 0.2 percent at 1,498.22.
The
mixed performance by the major averages comes as shares of Apple have
tumbled by 10 percent after the iPad and iPhone maker reported quarterly
results that disappointed investors.
After the close of trading
on Wednesday, Apple reported better than expected first quarter earnings
but on weaker than expected sales. The company also reported iPhone
sales that missed expectations and provided disappointing second quarter
revenue guidance.
While the drop by Apple is weighing on
the Nasdaq, other sectors have benefited from the release of a report
from the Labor Department showing an unexpected drop in jobless claims.
The
report showed that initial jobless claims dipped to 330,000 in the week
ended January 19th, a decrease of 5,000 from the previous week's
unrevised figure of 335,000. The drop surprised economists, who had
expected jobless claims to climb to 355,000.
With the unexpected decrease, jobless claims fell to their lowest level since hitting 318,000 in the week ended January 19, 2008.
While the Labor Department
said seasonal distortions are likely still in effect, Jennifer Lee,
senior economist at BMO Capital, said the news on the job front is
encouraging "even when you remove all of the noise."
Trucking stocks
have shown a substantial move to the upside, driving the Dow Jones
Trucking Index up by 2.9 percent. With the gain, the index has reached
its best intraday level in well over a year.
Early strength is also visible among internet stocks, with Netflix (NFLX)
leading the way higher after reporting an unexpected fourth quarter
profit. Shares of Netflix have surged up by 42.2 percent.
Retail, healthcare provider, and housing stocks are also seeing early strength, while notable weakness is visible among gold stocks.
In overseas trading, stock markets across the Asia-Pacific region turned in yet another mixed performance during trading on Thursday. While Japan's Nikkei 225 Index surged up by 1.3 percent, China's Shanghai Composite Index fell by 0.8 percent.
Meanwhile, the major European markets have all moved to the upside on the day. The U.K.'s FTSE 100 Index has advanced by 0.8 percent, while the French CAC 40 Index is up by 0.4 percent and the German DAX Index is up by 0.2 percent.
In the bond market, treasuries have
moved modestly lower on the heels of the upbeat jobs data. As a result,
the yield on the benchmark ten-year note, which moves opposite of its
price, is up by 1.6 basis points at 1.849 percent.
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TSX Up At Open Thursday
Bay Street stocks
moved up at open Thursday amid buying in financial and energy stocks,
with the S&P/TSX Composite Index adding 36.05 points or 0.28 percent
to 12,830.10.
Among financial stocks, CIBC, Bank of Montreal and Scotiabank were up nearly 1 percent each.
In the oil patch, Heritage Oil jumped about 10 percent, while Cenovus Energy and Imperial Oil were adding around 1 percent each.
Fertilizer maker Agrium Inc.
gained over 3 percent after hiking its fourth quarter earnings
estimates to slightly above $2.00 per share from its earlier earnings
guidance of $1.50 to $1.90 per share on a comparable basis. Analysts
expect the company to report earnings of $1.73 per share for the
fourth-quarter.
Meanwhile, metals stocks were trading
lower. Iamgold shed over 2 percent, while Goldcorp. Yamana Gold and
Alamos Gold Inc. slipping around 1 percent each.
BlackBerry maker Research In Motion was down about 3 percent.
The price of crude oil
was moving higher Thursday morning as worries over demand growth eased
after upbeat manufacturing data out of China, world's second largest
energy consuming nation. Today during trading hours, the EIA will
release its U.S. crude oil inventories report for the weekended January
18. Analysts expect crude oil inventories to move up 2 million barrels
and gasoline stocks to add 1.6 million barrels last week. Crude for
March gained $0.58 to $95.81 a barrel
The price of gold was
moving lower Thursday morning amid a lack of positive triggers, with
the US dollar continuing to level off from its recent lows versus a
basket of currencies. Gold for February shed $15.50 to $1,671.20 an
ounce.
The Canadian dollar
edged lower against its major rivals in early deals Thursday despite a
rally in the price of crude oil, the nation's key export, as upbeat
manufacturing data out of China and Europe eased demand concerns.
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European Stocks Mixed At Mid-day
European stocks are trading on a mixed note on Thursday, as concerns about Apple's earnings offset optimism over upbeat euro zone data.
The euro turned
positive against the dollar after survey data from Markit Economics
showed the euro area private sector activity contracted in January, but
at a slower than expected pace. The composite output index rose to a
10-month high of 48.2 in January from 47.2 in December. The services purchasing managers' index climbed to 48.3 from 47.8 in December, while the manufacturing index rose to 47.5 from 46.1.
German
private sector activity jumped to its highest level in a year in
January on brisk services business, a flash estimate from Markit
Economics showed, while activity among French businesses fell at its
fastest rate in nearly four years.
The Euro Stoxx 50 index
of Eurozone bluechip stocks is edging down marginally, while the Stoxx
Europe 50 index, which includes some major U.K. companies, is down 0.15
percent. Around Europe, the German DAX is down 0.1 percent, but benchmark index in France, the U.K. and Switzerland are gaining about 0.2 percent each.
Commerzbank is
moving down 0.3 percent in Frankfurt after the lender said it plans to
slash 4000 to 6000 jobs at the Group level until 2016, with the exact
amount of the reduction to be known after talks with the employee
representatives.
BMW Group is declining 0.4 percent as it
announced a long-term collaboration agreement with Toyota Motor Corp.
for the joint development of a fuel-cell system, architecture and
components for a sport vehicle, and other technologies.
Novartis
shares are down 0.2 percent in Zurich after the U.S. Food and Drug
Administration approved its drug Exjade to treat patients aged 10 years
and older who have chronic iron overload resulting from a genetic blood
disorder called non-transfusion-dependent thalassemia.
Logitech International is
tumbling 7.5 percent after the computer interface devices manufacturer
reported a loss for the third quarter compared to a profit last year,
reflecting impairment charges, lower margins and a revenue decline.
HSBC Holdings
is moving up 0.3 percent in London after its wholly-owned subsidiary
HSBC Bank Plc entered into an agreement to sell its 73 percent
shareholding in its mutual fund business in Greece.
France's Technip
is adding 0.2 percent after winning a contract for a 1.25 million tons
per year latest-generation purified terephthalic acid or PTA unit, to be
located in the Special Economic Zone in Mangalore, India.
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Asian Stocks End Mixed After Apple Results
Asian stocks
swung between gains and losses on Thursday as investors digested mixed
economic data, Apple's disappointing earnings and the suspension of U.S.
debt ceiling until May that enabled avert a potential default crisis.
Underlying sentiment remained cautious after the International Monetary
Fund cut its global growth forecasts for this year and projected a
second year of contraction in the euro region. "Though a sharp crisis
has become less likely, the risk of prolonged stagnation in the euro
area would rise if the momentum for reform is not maintained," the
lender said.
Tokyo stocks snapped a three-day losing streak, helped by the yen's weakness after Japanese Vice Finance Minister Takehiko Nakao said that the government is closely monitoring developments in the currency market. The Nikkei average rallied 1.3 percent, while the broader Topix index rose 1.1 percent. China-sensitive Komatsu rose 2.2 percent and Hitachi Construction Machinery added 1.9 percent on fresh optimism over the Chinese economy.
Among export-oriented issues, Sharp reversed early losses to end 0.9 percent higher, while Sony rose 1.9 percent, Honda Motor added 2 percent and Kyocera gained 2.9 percent. Toshiba jumped
4.1 percent after the industrial giant said it has signed a pact with
General Electric to widen a thermal power generation alliance.
Investors
shrugged off weak trade data, which showed that the nation logged a
record trade deficit in 2012 as exports continued to slide in December.
Sinking into the red for the sixth straight month, the trade deficit
came in at 641.53 billion yen in the month, reflecting slowing exports
to China due to a protracted territorial dispute.
China's Shanghai Composite
index dropped 0.8 percent on profit taking after hitting an eight-month
high early in the session. China's manufacturing activity expanded at
its fastest pace in two years in January, the HSBC's preliminary survey
showed, reinforcing expectations the economic recovery will gain further
momentum in the first quarter. The headline HSBC/Markit purchasing managers' index rose to 51.9 in the month from 51.5 in December.
Hong Kong's Hang Seng index swung between gains and losses before ending 0.2 percent lower.
Australian shares reversed early losses to hit a fresh 21-month high. The benchmark S&P/ASX 200 index rose half a percent after data showed China's manufacturing sector continues to expand in 2013. Banks led the gainers, with NAB and Westpac adding about 1.3 percent each, while Commonwealth advanced 0.9 percent and ANZ added 0.3 percent. Global miner BHP Billiton edged up 0.3 percent, while rival Rio Tinto slipped 0.2 percent.
OZ Minerals
slumped 6.3 percent as it cut its full-year output target and said it
expects at least 25 percent rise in estimated costs this year due to
underground mining. Newcrest Mining rose 1.8 percent even as the gold miner warned it is in danger of missing its annual production guidance. Linc Energy
shares soared 24 percent following reports that it is sitting on
potentially large resources of shale oil in South Australia's Arckaringa
Basin.
Seoul shares fell notably dampened by the currency
volatility. The benchmark Kospi average shed 0.8 percent, dragged down
by tech stocks. Apple supplier LG Display fell 1.2 percent, while shares of handset rival Samsung Electronics lost 1.4 percent. Hyundai Motor slumped 4.6 percent as it posted a surprise 5.5 percent fall in fourth-quarter profit, missing estimates.
In
economic news, the nation's gross domestic product rose a seasonally
adjusted 0.4 percent in the fourth quarter of 2012 compared to the
previous three months, the Bank of Korea said. That missed forecasts for
an increase of 0.5 percent but marked an improvement over the 0.1
percent gain in the third quarter. On a yearly basis, GDP was up 1.5 percent - unchanged from the previous three months.
New Zealand shares eked out marginal gains on the back of positive Chinese data. The benchmark NZX-50 index rose 2 points or 0.05 percent to 4,190. Market operator NZX and rural services firm PGG Wrightson rose over 2 percent each and pay TV operator Sky Network Television
added 1.6 percent, while construction firm Fletcher Building and
construction materials supplier Steel and Tube Holdings fell about 1.5
percent each.
Elsewhere, India's benchmark Sensex was down 0.3 percent and the Taiwan Weighted average eased 0.6 percent, while the markets in Indonesia and Malaysia were closed in honor of the birth of the Prophet Muhammad.
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Crude Up On China Data
The price of crude oil
was moving higher Thursday morning as worries over demand growth eased
after upbeat manufacturing data out of China, world's second largest
energy consuming nation.
China's manufacturing sector activity
rose to its highest level in two years in January as factory production
picked up momentum, preliminary results of a survey by Markit Economics
showed. The headline HSBC/Markit purchasing managers' index rose to 51.9 in January from 51.5 in December. A PMI reading above 50 indicates expansion of the sector.
Light Sweet Crude Oil
(WTI) futures for March delivery, edged up $0.19 to $95.42 a barrel.
Yesterday, oil leveled off from its fresh 4-month high to settle lower
ahead of the inventory data from the American Petroleum Institute later
today and the Energy Information Administration tomorrow. Oil prices
were also impacted with the dollar climbing, making commodities like
oil, traded internationally in dollar, costlier to buyers holding other
currencies
Wednesday after the market hours, the API said US crude oil inventories jumped 3.2 million barrels, while gasoline stocks shed 1.60 million barrels in the weekended January 18.
The price of gold was
moving lower Thursday morning amid a lack of positive triggers, with
the US dollar continuing to level off from its recent lows versus a
basket of currencies.
Gold for February delivery, the most
actively traded contract, shed $8.90 to $1,677.80 an ounce. Yesterday,
gold settled marginally lower as the dollar traded higher and lack of
direction with little economic data for investors to digest. The news
that one of the world's largest consumer of gold, India, will hike
import duty on the precious metal also weighed on investor sentiment.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, eased to 1,334.11 tons from 1,335.92 tons.
This morning, the U.S. dollar
was lingering round its 11-month low versus the euro, while trading
flat against sterling. The buck was hovering around its 30-month high
versus the yen and ticking higher against the Swiss franc.
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