Stocks Turning In Yet Another Lackluster Performance
Stocks are turning in another lackluster performance in early trading on Wednesday after moving roughly sideways over the past week. The major averages are lingering near the unchanged line after closing mixed in four out of the five previous sessions.
The major averages have moved to the upside in the past few minutes and are currently posting modest gains. The Dow is up 9.52 points or 0.1 percent at 13,181.66, the Nasdaq is up 8.83 points or 0.3 percent at 3,025.81 and the S&P 500 is up 2.12 points or 0.2 percent at 1,406.05.
The choppy trading on Wall Street comes as traders digest a mixed batch of U.S. economic data. While the New York Federal Reserve released a disappointing regional manufacturing report, the Federal Reserve released a separate report showing a bigger than expected increase in industrial production.
The New York Fed said its general business conditions index dropped to a negative 5.9 in August from a positive 7.4 in July, with a negative reading indicating a contraction in regional manufacturing activity. Economists had expected the index to show a much more modest decrease to 7.0.
Meanwhile, the Federal Reserve said industrial production increased by 0.6 percent in July compared to economist estimates for an increase of about 0.5 percent. The growth reflected increased output in each of the manufacturing, mining, and utilities sectors. The Labor Department also released a report showing that consumer prices unexpectedly came in unchanged for the second consecutive month in July.
Uncertainty about the near-term outlook for the markets has also contributed to the lackluster trading seen over the past several sessions.
While most of the major sectors are showing only modest moves, considerable strength has emerged among networking stocks. The NYSE Arca Networking Index has advanced by 1.1 percent, rebounding from the 2.3 percent loss it posted on Tuesday.
Health insurance, biotechnology, and banking stocks are also seeing early strength, while steel stocks have come under significant selling pressure.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Wednesday. Japan's Nikkei 225 Index edged down by 0.1 percent, while Hong Kong's Hang Seng tumbled by 1.2 percent.
Meanwhile, the major European markets have turned mixed on the day. While the French CAC 40 Index has crept up by 0.1 percent, the U.K.'s FTSE 100 Index and the German DAX Index both remain down by 0.4 percent.
In the bond market, treasuries have moved to the downside, extending a recent downward trend. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, has risen by 3.8 basis points to 1.764 percent. |
| Canadian Market Report |  | | CADUSD | Oil | Gold | Allbanc |  |  |  |  | | Please click on the images to view our interactive charts | | TSX Edges Up At Open Wednesday
Toronto stocks edged up at open Wednesday amid marginal buying across a variety of sectors, with the S&P/TSX Composite Index adding 26.71 points or 0.23 percent to 11,880.32.
Among gold plays, Allied Nevada Gold added over 1 percent, while Goldcorp. and Agnico-Eagle Mines (AE were slipping nearly 0.50 percent each.
Fertilizer maker Potash Corp. and Agrium Inc. were up around 1 percent each.
Base-metals miner Capstone Mining Corp. moved up 1 percent even after reporting a lower second-quarter net earnings.
Meanwhile, energy stocks were trading lower, with Niko Resources diving 3 percent. Metal products company Martinrea International Inc. lost over 6 percent after announcing a marginally lower second-quarter net earnings.
Retailer Sears Canada Inc. slipped over 1 percent after reporting a wider second-quarter net loss of C$9.8 million or C$0.10 per share compared to a net loss of C$0.2 million or break even per share in the year ago quarter.
The price of crude oil was little changed Wednesday morning as traders await cues from the official inventories data from the EIA. Crude for September eased 0.27 to $93.16 a barrel.
The price of gold was flat Wednesday morning as the U.S. dollar was steady amid inflation data. Gold for December edged up 0.80 to $1,603.20 an ounce.
In corporate news from Canada, Metal products company Martinrea International Inc. reported second-quarter net earnings of C$14.4 million or C$0.17 per share, compared to C$15.5 million or C$0.19 per share last year. However, adjusted earnings rose to C$24.1 million or C$0.29 per share from C$16.6 million or C$0.20 per share last year. Analysts were expecting the company the report earnings of C$0.31 per share for the quarter.
Metal mining company HudBay Minerals, Inc. said its second-quarter loss narrowed to C$30.4 million or C$0.17 per share from C$171.9 million or C$0.97 per share in the same period last year. Loss from continuing operations was C$30.4 million, compared to a profit of C$41.1 million last year. Analysts were expecting the company the report earnings of C$0.08 per share for the quarter.
Precious metals miner High River Gold Mines Ltd. reported a lower second-quarter profit of C$31.6 million or C$0.04 per share compared to C$41.4 million or C$0.05 per share in the same period last year.
Petroleum and natural gas firm Canadian Energy Services & Technology Corp. said its second quarter profit declined to C$3.4 million or C$0.06 per share from C$5.5 million or C$0.10 per share in the same period last year. Analysts expected the company to earn C$0.12 per share for the quarter.
Base-metals miner Capstone Mining Corp. reported that its second-quarter net earnings was $12.5 million or $0.03 per share, compared to $15.5 million or $0.07 per share in the same quarter last year. Adjusted net earnings were $15.1 million or $0.04 per share, down from $17.7 million or $0.08 per share in the previous year quarter. Analysts expected the company to report earnings of $0.03 per share in the quarter.
Retailer Sears Canada Inc. reported a wider second-quarter net loss of C$9.8 million or C$0.10 per share compared to a net loss of C$0.2 million or break even per share in the year ago quarter. |
| European Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | European Markets Fall; Resource Stocks Under Pressure
The European markets are mostly lower in afternoon trading Wednesday, as investors continued to exercise caution with diminishing hopes of stimulus measures. Mining stocks were particularly hit amid concerns of growth in China.
Minutes of the Bank of England's meeting held on August 1 and 2 showed that policymakers unanimously decided to retain quantitative easing at 375 billion pounds and the interest rate unchanged at 0.50 percent.
The number of Britons claiming jobless benefits unexpectedly declined in July, latest data from the Office for National Statistics revealed. The claimant count declined by 5,900 persons monthly to 1.59 million in July. Economists had expected the figure to climb by 6,000.
The Euro Stoxx 50 index of eurozone bluechip stocks is losing 0.28 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is falling 0.21 percent.
The German DAX is losing 0.36 percent and the French CAC 40 is falling 0.24 percent. The UK's FTSE 100 is sliding 0.35 percent while Switzerland's SMI is gaining 0.26 percent.
In Frankfurt, ThyssenKrupp is falling 2.3 percent, leading the decliners. HeidelbergCement is falling 1.1 percent. Insurers Allianz and MunichRe are dropping around 1.1 percent each.
Air Berlin, which reported a wider loss for the second quarter, is losing 1.1 percent. Carl Zeiss Meditec was cut to "Add" from "Buy." The stock is moderately lower.
Deutsche Telekom is falling 0.5 percent. UBS removed the stock from 'Most Preferred List.' K+S is gaining 1.2 percent and EON is rising 1.1 percent.
In Paris, Lafarge is losing 1.5 percent and Vallourec is falling 1.4 percent. ArcelorMittal is declining 2.2 percent. Renault is losing 0.9 percent while Peugeot is flat.
Veolia Environnement is gaining 1.4 percent. GDF Suez is moderately higher. Credit Agricole is advancing 0.8 percent. Societe Generale is flat while BNP Paribas is falling 0.2 percent.
Anglo American and Antofagasta are falling around 1 percent each. BHP Billiton is losing 2 percent and Rio Tinto is retreating 3 percent.
Eurasian Natural Resources is declining 7.2 percent after first-half profit plunged on weak prices. Steel maker Evraz is dropping 4.7 percent. CRH is losing 3.1 percent. UBS added the stock to 'Least Preferred List' in European building materials.
Imperial Tobacco is falling 1.9 percent following a new branding rule in Australia. Standard Chartered is gaining 4.9 percent after the lender agreed to settle the money-laundering probe with the New York regulator by paying $340 million
Balfour Beatty is up 1.8 percent after announcing first-half results. Insurer Resolution is gaining 4.7 percent.
Holcim is flat in Zurich after reporting higher quarterly profit. Carlsberg is gaining 2.6 percent in Copenhagen. The firm reported a significant increase in second-quarter profit, benefited by a special gain and higher beer volumes with the successful EURO 2012.
Nokia is surging over 7 percent in Helsinki on news about the new Windows phone. |
| Asia Market Reports | Asian Markets Mostly Trade Lower
Asian stock markets are mostly trading lower on Wednesday with investors treading cautiously in the absence of strong global cues. Though some of the markets posted gains early on in the session on the back of better-than-expected U.S. retail sales data and German GDP growth, they retreated subsequently due to profit taking at higher levels.
The Australian market opened higher on Wednesday, as stocks received a boost from strong earnings reported in the banking sector. Investors were also encouraged by better-than-expected U.S. retail sales data and German GDP growth.
In early-morning trades, the benchmark S&P/ASX 200 Index is adding 16.50 points or 0.38 percent to 4,308.70, while the broader All Ordinaries Index is gaining 15.80 points or 0.37 percent to 4,333.20.
Among banks, National Australia Bank is gaining 0.04 percent, Commonwealth Bank is advancing 1.10 percent and Westpac Banking is up 0.6 percent.
Commonwealth Bank recorded an 11 percent increase in profit for the year to June 30, to a record A$7.09 billion. The results reflect lower costs and a decline in provision for bad debts. Revenue for the year rose 2 percent to A$47.2 billion. The bank said that in the near term, it expects current revenue trends to continue.
In the mining space, BHP Billiton is trading lower by 0.46 percent, Rio Tinto is down 1.43 percent and Newcrest Mining is declining 1.55 percent.
Among energy stocks, Oil Search is adding 0.07 percent, Santos is trading higher by 0.97 percent and Origin Energy is advancing 0.40 percent.
Paintmaker DuluxGroup said its takeover talks with Alesco Corporation have stalled, but its A$210 million offer still remains on the table. However, Alesco reiterated its advice to shareholders to reject Dulux's bid, and urged investors who had accepted to withdraw.
The two companies had on Monday placed their shares in a trading halt so they could discuss the takeover bid. DuluxGroup shares are gaining 1.80 percent, while shares of Alesco are up 1.31 percent.
Westfield Group reported a 31 percent increase in profit for the first half to A$800.1 million. The mall operator said it will pay a dividend of 24.75 cents a share for the first half, and expects funds from operations in the year ending December 31 to be 65 cents a share.
On the economic front, Australia will announce second-quarter figures for its wage cost index, with forecasts suggesting an increase of 0.9 percent on quarter and 3.5 percent on year. The quarterly figure would be unchanged from the previous three months, while the yearly rate would ease from 3.6 percent.
Australia will also announce the August results of the consumer confidence index from Westpac. July saw an increase of 3.7 percent to a score of 99.1.
In the currency market, the Australian dollar was trading weaker against the US dollar. In early trades, the local unit was trading at US$1.0488, down from US$1.0519 late Tuesday.
The Japanese market slipped into negative territory on profit-taking, after initially opening higher. However, exporter-stocks rose on the back of a weaker yen.
In late-morning trades, the benchmark Nikkei 225 Index is down 25.70 points or 0.29 percent to 8,904.18. The Nikkei had earlier opened 0.34 percent higher at 8,960.28.
Among exporters, Komatsu Ltd. is gaining more than 2 percent, Canon Inc. is adding 0.8 percent, Toyota Motor Corp. is up 0.5 percent and Fanuc is advancing more than 1 percent.
Meanwhile, Sharp Corp shares are down almost 6 percent after brokerage Deutsche Securities Inc. lowered the stock's rating by one notch from "neutral" to "sell".
Shares of automaker Suzuki Motor Corp. are up 0.7 percent after its Indian unit Maruti Suzuki India Ltd. said on Tuesday that it has decided to reopen a factory in northern India in the first half of next week. The factory has been closed since mid-July due to riots.
In the banking sector, Mitsubishi UFJ Financial Group is declining more than 1 percent, Mizuho Financial Group is trading lower by more than 1.5 percent and Sumitomo Mitsui Financial Group is down almost 2 percent.
In the currency market, the U.S. dollar was trading in the upper 78 yen-range on Wednesday. In late-morning trades, the dollar was trading in a range of 78.83-78.86 yen, up 0.27 yen from Tuesday's close of 78.56-78.57 yen in Tokyo.
Among the other Asian markets that are open for trading, Singapore, Taiwan, Hong Kong, Shanghai Indonesia and Malaysia are trading lower. Bucking the trend, the New Zealand market is trading in positive territory.
The stock markets in India and South Korea are closed on Wednesday for public holidays. |
| Commodities | | | | USDCAD | USDEUR | USDGBP | USDJPY |  |  |  |  | | Please click on the images to view our interactive charts | | Crude Flat Ahead Of Inventories Data
The price of crude oil was little changed Wednesday morning as traders await cues from the official inventories data from the EIA.
Light Sweet Crude Oil (WTI) futures for September delivery, eased $0.21 to $93.22 a barrel. Yesterday, oil settled higher as investor sentiment improved on some encouraging economic data out of Europe and the U.S., notwithstanding a strong dollar. Economic data out of U.S. showed retail sales to have improved more than expected, while Germany reported better than expected GDP growth.
Tuesday after the market hours, the API said U.S. crude oil inventories gained 2.80 million barrels, while gasoline stocks eased 2.3 million barrels in the weekended August 10.
This morning, the U.S. dollar was bouncing back towards a two-week high versus the euro and trading flat against sterling. The buck was steady versus the Swiss franc and the yen.
In economic news, Bank of England policymakers unanimously decided to retain quantitative easing at GBP 375 billion and the interest rate unchanged at 0.50 percent, the minutes of the meeting held on August 1 and 2 showed today.
Meanwhile, latest data from the Office for National Statistics revealed that the number of Britons claiming jobless benefits unexpectedly declined in July. The claimant count declined by 5,900 persons monthly to 1.59 million in July. Economists had expected the figure to climb by 6,000. The measure was higher by 35,600 person from a year ago.
Traders will look to the inflation data from the U.S. Labor Department due out at 8.30 a.m ET. Economists expect the headline index as well as the core consumer price index to have risen by 0.2 percent each. In June, the headline index was unchanged, while the core reading rose 0.2 percent.
Simultaneously, the results of the New York Federal Reserve's empire state manufacturing survey is slated to be released at 8:30 am ET. The headline general business conditions index for August is expected to come in at 7 compared to 7.4 in July.
During the session, the National Association of Homebuilders is scheduled to release the results of its August survey on homebuilders' confidence. The consensus estimates call for the index to remain unchanged at 35.
Today during trading hours, the EIA will release its U.S crude oil inventories report for the weekended August 10. |
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