Stocks Moving Modestly Lower In Early Trading
After ending the previous session mixed, stocks have moved mostly lower in early trading on Thursday. The major averages have all moved to the downside, with the Dow moving lower for the fourth consecutive session.
The major averages have bounced off their lows for the young session in the past few minutes but remain in the red. The Dow is down 50.75 points or 0.4 percent at 13,122.01, the Nasdaq is down 9.98 points or 0.3 percent at 3,063.69 and the S&P 500 is down 4.27 points or 0.3 percent at 1,409.22.
The early weakness on Wall Street is partly due to the release of a report from the Labor Department showing an unexpected increase in initial jobless claims in the week ended August 18th.
The report showed that initial jobless claims edged up to 372,000 from the previous week's revised figure of 368,000. The modest increase came as a surprise to economists, who had expected jobless claims to slip to 365,000 from the 366,000 originally reported for the previous week.
Disappointing earnings news from Hewlett-Packard (HPQ) is also weighing on the markets, with the PC giant down by 6.3 percent.
While HP reported fiscal third quarter adjusted earnings that exceeded estimates, the company reported a steep net loss for the quarter due to a hefty goodwill impairment charge as well as restructuring and other costs. The company also forecast full-year earnings at the low end of its previously provided outlook.
The release of results from HP came on the heels of a negative reaction to quarterly results from rival Dell (DELL), which fell by 5.4 percent on Wednesday and is currently down by another 2.1 percent.
With HP leading the way lower, computer hardware stocks have come under pressure, dragging the NYSE Arca Computer Hardware Index down by 1 percent. The index is pulling back further off Monday's nearly three-month closing high.
Notable weakness has also emerged among steel stocks, with the NYSE Arca Steel Index falling by 1.1 percent. The weakness in the sector is partly due to disappointing Chinese manufacturing data.
While more modest weakness is visible in a variety of other sectors, gold stocks have shown a strong move to the upside amid a sharp increase by the price of the precious metal.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Thursday amid optimism about further stimulus. Japan's Nikkei 225 Index advanced by 0.5 percent, while Hong Kong's Hang Seng Index surged up by 1.2 percent.
Meanwhile, the major European markets have turned mixed 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 and the French CAC 40 Index are down by 0.8 percent and 0.9 percent, respectively.
In the bond market, treasuries have moved notably higher, extending the upward move seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 4.3 basis points at 1.676 percent.
| Canadian Market Report |  | | CADUSD | Oil | Gold | Allbanc |  |  |  |  | | Please click on the images to view our interactive charts | | TSX Edges Down At Open Thursday
Toronto stocks were little changed at open Thursday amid buying in metals stocks, with the S&P/TSX Composite Index slipping 11.97 points or 0.10 percent to 12,107.02.
The Diversified Materials Index added 0.50 percent, with First Quantum Minerals gaining about 2 percent. Inmet Mining was up 1 percent, while Teck Resources was slipping nearly 1 percent.
Among gold stocks, Eldorado Gold, Goldcorp. Yamana Gold and Detour Gold moved up round 2 percent each.
Australia focused metals miner Talison Lithium Ltd. surged over 50 percent to C$6.40 after it said it would be acquired by Rockwood Holdings Inc. (ROC) in an all-cash transaction for C$6.50 per share for an equity purchase price of around C$724 million, on a fully diluted basis.
Meanwhile, energy stocks were moving lower. Suncor Energy, Cenovus Energy and Imperial Oil ere down around 1 percent each.
In the financial space, TD Bank, Scotiabank and CIBC were down about 0.50 percent each. The price of crude oil was steady near $98 Thursday morning amid speculation that central banks will opt for further stimulus measures to support their sagging economies. Crude for October gained $0.17 to $97.43 a barrel.
The price of gold advanced to a four-month high Thursday morning as the U.S. dollar was moving lower after the minutes from the recent Federal Reserve meeting raised hopes for further stimulus measures. Gold for December surged $23.50 to $1,664.00 an ounce.
Uranium miner Energy Fuels Inc.(EFR.TO) announced that it would purchase the interests of Aldershot Resources Ltd. in the Sage Plain Project Area for $750,000 in cash, forgiven debt, and 3.52 million shares of Energy Fuels common stock. |
| European Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | European Markets Rise On Stimulus Hopes
The European markets are in positive territory in afternoon trading Thursday, as investors continued to be optimistic about stimulus actions from the U.S. and China. Banking stocks are witnessing buying interest.
The minutes of the Federal Reserve's latest monetary policy meeting released Wednesday suggested that the central bank is losing patience with the pace of the fragile U.S. economic recovery.
Many members of the Fed said additional monetary policy accommodation is likely warranted unless the economy improves substantially, potentially opening the door for another round of quantitative easing measures at the next meeting in September.
In China, manufacturing sector contracted in August at the fastest pace in nine months, a closely watched survey revealed. The flash HSBC manufacturing Purchasing Managers' Index dropped to 47.8 from 49.3 in July, mainly due to a fall in factory orders, Markit Economics said.
In economic news, the German economy expanded for the second straight time during the quarter ended June as robust growth in exports and domestic spending offset contraction in investment, data from Destatis showed.
Gross domestic product rose 0.3 percent sequentially in the second quarter, in line with initial estimates, but slower than the 0.5 percent growth seen in the previous quarter.
Meanwhile, the Eurozone private sector contracted for the seventh successive month in August, flash estimate from Markit Economics showed. The composite output index rose marginally to 46.6 from 46.5 in July. The reading was forecast to remain unchanged at 46.5.
In France, manufacturing sector contracted at a slower pace in August. The seasonally adjusted purchasing managers' index for the manufacturing sector increased to a four-month high of 46.2 in August from 43.4 in July. Economists were looking for a reading of 43.7.
The Euro Stoxx 50 index of eurozone bluechip stocks is rising 0.04 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is gaining 0.03 percent.
The German DAX is gaining 0.19 percent and the French CAC 40 is rising 0.15 percent. The UK's FTSE 100 is advancing 0.33 percent and Switzerland's SMI is up 0.12 percent.
In Frankfurt, Deutsche Bank is advancing 1.9 percent and Commerzbank is rising 1.4 percent. Adidas is gaining 1.7 percent. HeidelbergCement, Infineon Technologies and ThyssenKrupp are notably higher.
Fresenius is declining 1.5 percent and RWE is falling 1.1 percent. Metro and Beiersdorf are dropping notably. GSW is losing 1.2 percent. Morgan Stanley reduced its rating on the stock.
In Paris, ArcelorMittal is advancing 1.7 percent. STMicroelectronics is gaining 1.5 percent.
Peugeot and Renault are advancing 1.5 percent and 1 percent, respectively. Societe Generale is gaining 1.7 percent and Credit Agricole is rising 1.3 percent. BNP Paribas is adding 0.9 percent.
EADS is declining 1.8 percent. Australia's Qantas Airways said it would restructure its Boeing 787 delivery schedule, with potential commitments for the Boeing 787-9 being reduced to 50 from 85.
Carrefour is losing 1.7 percent and Safran is falling 1.1 percent.
In London, Kazakhmys reported a plunge in profit for the first half of the year. The stock is gaining 0.5 percent.
Anglo American and Antofagasta are declining 2 percent and 3 percent, respectively. Randgold Resources is climbing 4.1 percent and Fresnillo is gaining 3.2 percent.
Diageo is up around 1 percent. The beverages firm posted a higher profit for the fiscal year ended June 30, as net sales grew 8 percent driven mainly by emerging markets growth and higher spirits demand.
HSBC, Barclays, Lloyds Banking and Standard Chartered are in the green while Royal Bank of Scotland is losing moderately.
Petropavlovskis plunging 16.7 percent after first-half profit plummeted. Deutsche Bank raised Credit Suisse to "Buy" from "Hold." The stock is gaining 1.9 percent in Zurich. Travel firm Kuoni is losing 7.6 percent. The company reported a wider loss for the first half of the year.
Ahold is falling nearly 3 percent in Amsterdam after the retailer said it expects market conditions to remain difficult and is cautious about the potential impact of rising food commodity costs. |
| Asia Market Reports | Asian Stocks Broadly Higher After Fed Stimulus Hints
Asian stocks rose broadly on Thursday after the U.S. Federal Reserve hinted at taking more action to prop up the world's largest economy. Weak Chinese manufacturing data disappointed investors, but the gloomy data added pressure on Beijing to step up its policy stimulus.
Commodities rose and the euro hit a seven-week high after purchasing managers' surveys on French manufacturing and services sector activity came in above forecasts. Eurozone manufacturing activity improved in August, but remained in contraction mode for the 12th consecutive month, preliminary data released by Market showed.
Investors now eagerly await the outcome of a meeting between Greek President Antonis Samaras and German Chancellor Angela Merkel slated for Friday that could go a long way in shaping the future course of Europe's still-unresolved debt crisis. Debt-laden Greece is seeking more time to implement the reforms and spending cuts agreed to in exchange for its massive bailout package.
Speaking to reporters in Athens after talks with Greek Prime Minister Antonis Samaras, Eurozone finance chief Jean-Claude Juncker said the final decision on a Greek request would depend on the troika's report on Greece due next month.
Tokyo stocks recouped earlier losses to end higher, but gains were capped by the yen's strength. The Nikkei average rose half a percent in thin trading, while the broader Topix index edged up 0.2 percent.
Heavyweights Fast Retailing and Tokyo Electron gained 0.9 percent and 3 percent, respectively, computer-component suppliers TDK and Mitsumi Electric rose about half a percent each and MS&AD Insurance Group rallied 2.9 percent on a Goldman Sachs upgrade, while shipping company Mitsui OSK Lines fell 1.8 percent to a fresh 10-year low as Japanese trade data released yesterday spurred growth worries. Automaker Toyota Motor slid half a percent, Mazda Motor lost over a percent and electrical goods manufacturer Pioneer tumbled 4.5 percent, hurt by a firmer yen following the release of dovish Federal Reserve minutes. Sharp rose 1.1 percent amid reports its main creditor banks are considering extending about 200 billion yen in new loans to the struggling electronics maker.
China's Shanghai Composite index rose 0.3 percent on hopes of imminent monetary easing after PMI data showed manufacturing activity fell to a nine-month low in August. The preliminary reading of HSBC China Manufacturing Purchasing Managers Index fell to 47.8 from 49.3 in July, weighed down by falling export orders and a rise in inventories.
Hong Kong's Hang Seng index rallied 1.2 percent, rebounding from a three-week closing low hit yesterday.
Australian shares finished a roller coaster session modestly higher, with the prospects of more U.S. and Chinese stimulus underpinning sentiment. Both the benchmark S&P/ASX 200 and the broader All Ordinaries index rose about 0.2 percent each.
Among miners, Fortescue Metals rose 2.2 percent after the iron ore producer reported a 53 percent jump in full-year net profit to a record $1.56 billion. BHP Billiton gained 0.8 percent and rival Rio Tinto edged up 0.2 percent. Gold miner Newcrest Mining jumped 4.3 percent as gold prices touched a three-month high.
In the financial sector, ANZ and NAB edged up about 0.2 percent each, but Westpac lost half a percent and Commonwealth ended 0.4 percent lower. Fairfax Media shares tumbled almost 10 percent as the company reported a wider annual loss after writing down the value of its media business. Origin Energy plunged 5.5 percent after the energy retailer forecast flat fiscal 2013 earnings.
South Korea's Kospi average rose 0.4 percent as bargain hunting on hopes of another round of stimulus from the Federal Reserve offset worries over further signs of contraction in China's manufacturing sector. Automobile stocks underperformed, with Hyundai Mobis tumbling 3.3 percent after recent sharp gains, while LG Chem retreated 2.8 percent following the news of an explosion at its organic light-emitting display material plant in the central city of Cheongju.
New Zealand stocks rose, led by Skellerup Holdings after the rubber goods and milking equipment manufacturer reported a record annual profit and increased its dividend payout. Shares of the company soared 6 percent, lifting the benchmark NZX-50 index up about 0.1 percent. NZ Refining climbed 3.9 percent on comments its refinery margins have strengthened since the end of June.
Fletcher Building rose 0.8 percent following the previous session's loss, Fisher & Paykel Appliances rallied 3.8 percent after forecasting a profit rise and jeweler Michael Hill International rose about 2 percent, while AMP, Telstra and Goodman Fielder fell 2-3 percent. Heavyweight Telecom lost 0.7 percent ahead of its earnings results tomorrow. Utility Vector ended unchanged after it reported a 1.3 percent fall in annual profit.
Elsewhere, Indonesia's Jakarta Composite index edged up marginally, Singapore's Straits Times rose 0.2 percent and the Taiwan Weighted average gained 0.1 percent, but Malaysia's KLSE Composite slipped marginally and India's benchmark Sensex was down 0.1 percent. |
| Commodities | | | | USDCAD | USDEUR | USDGBP | USDJPY |  |  |  |  | | Please click on the images to view our interactive charts | | Crude Advances Near $98
The price of crude oil was steady near $98 Thursday morning amid speculation that central banks will opt for further stimulus measures to support their sagging economies.
Minutes from the recent Federal Reserve meeting released overnight showed that the central bank is losing patience with the pace of the fragile U.S. economic recovery. Many members of the Federal Reserve said additional monetary policy accommodation is likely warranted unless the economy improves substantially, potentially opening the door for another round of quantitative easing measures at the next meeting in September.
Chinese PMI data released overnight showed manufacturing activity fell to a nine-month low in August, calling Beijing to speed up economic stimulus efforts. The preliminary reading of HSBC China Manufacturing Purchasing Managers Index fell to 47.8 from 49.3 in July, as new export orders slumped and inventories rose.
Light Sweet Crude Oil (WTI) futures for October delivery, gained $0.58 to $97.84 a barrel. Yesterday, oil extended its three-month high on optimism over the euro zone and a weekly oil report from the Energy Information Administration which showed crude stockpiles in the U.S. to have declined more-than-expected last week.
Wednesday during trading hours, the EIA said that U.S. crude oil inventories dipped 5.4 million barrels and gasoline stocks were down 1 million barrels in the weekended August 17. Analysts expected crude oil inventories to dip by 2 million barrels and gasoline stocks to shed 1.25 million barrels last week.
This morning, the U.S. dollar was lingering near a two-month low versus the euro and the Swiss franc, while slipping back to a three-month low against sterling. The buck was surrendering recent gains versus the yen.
In economic news, the euro zone private sector contracted for the seventh successive month in August, flash estimate from Markit Economics showed. The composite output index rose marginally to 46.6 from 46.5 in July. The reading was forecast to remain unchanged at 46.5. The Purchasing Managers' Index for manufacturing rose to 45.3, a four-month high, from 44 in July. The expected reading was 44.2.
Meanwhile, data from Destatis showed that the German economy expanded for the second straight time during the quarter ended June as initially estimated. Gross domestic product rose 0.3 percent sequentially in the second quarter, but down from the 0.5 percent growth seen in the previous quarter. |
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