Stocks Continue To Show A Lack Of Direction
8/28/2012 11:06 AM ET
After showing a lack of direction throughout the previous session, stocks continue to turn in a lackluster performance during trading on Tuesday. The major averages have spent the morning bouncing back and forth across the unchanged line.
The choppy trading on Wall Street comes as traders remain reluctant to make any significant moves ahead of remarks by Federal Reserve Chairman Ben Bernanke.
Bernanke is scheduled to speak at the Kansas City Federal Reserve's Jackson Hole symposium on Friday, with many traders expecting the Fed chief to address the possibility of further quantitative easing.
Meanwhile, European Central Bank Mario Draghi has revealed that he will not attend the symposium due to what a spokesman called a "heavy workload" for the next few days.
While most of the major sectors are showing only modest moves, airline stocks have come under pressure on the day. The NYSE Arca Airline Index is down by 1 percent amid notable losses by Hawaiian Airlines parent Hawaiian Holdings and Delta .
Steel and oil service stocks have also moved to the downside, while moderate strength is visible among tobacco and gold stocks.
The major averages are currently just below the unchanged line, showing losses of less than a tenth of a percent. The Dow is down 1.24 points at 13,123.43, the Nasdaq is down 1.51 points at 3,071.68 and the S&P 500 is down 0.55 points at 1,409.89.
| Canadian Market Report |  | | CADUSD | Oil | Gold | Allbanc |  |  |  |  | | Please click on the images to view our interactive charts | | Financials Support TSX Tuesday Morning - Canadian Commentary
8/28/2012 11:25 AM ET
Supported by strength in financial plays, Canadian stocks were hovering just above the unchanged line Tuesday morning. However, traders were cautious ahead of a key meeting of central bankers at the weekend that could give indications on the course of U.S. monetary policy.
However, European Central Bank President Mario Draghi will not attend the annual Jackson Hole meeting of central bankers at the end of this week due to a heavy workload, as the ECB gears up for its key meeting early next month.
The S&P/TSX Composite Index moved up 19.80 points or 0.16 percent to 12,068.62.
The Financial Index rose over 0.50 percent, with BMO Financial Group adding about 1 percent after reporting improved third-quarter net income of C$951 million or C$1.42 per share compared to C$690 million or C$1.09 per share in the same quarter last year. Adjusted net income was C$1.013 billion or C$1.49 per share, up from C$157 million or C$1.34 a year ago. Analysts were expecting the bank to report earnings of C$1.39 per share for the quarter. BMO hiked its dividend by C$0.02 to C$0.72 per shareholders.
National Bank Laurentian Bank , TD Bank and Royal Bank moved up nearly 1 percent each.
On the other hand, Scotiabank slipped 0.30 percent despite reporting higher third quarter net income of C$1.95 billion or C$1.69 per share compared to C$1.21 billion or C$1.10 in the same period a year ago. Adjusted earnings per share increased to C$1.72 from C$1.12 last year and beating consensus estimates of C$1.19 per share for the quarter. Scotiabank announced a dividend of C$0.57 per share, an increase of 2 cents per share
Gold stocks were trading mixed as bullion was recovering from early trading weaknesses. gold for December eased $1.70 to $1,673.90 an ounce, recovering from an intra-day low $1,659.00.
Detour gold gained close to 2 percent, while Barrick gold was adding nearly 1 percent.
Silver and gold miner Coeur d'Alene Mines Corp. (CDM.TO) rose about 2 percent after announcing that its Palmarejo silver and gold mine in northern Mexico is operating at full capacity. Operations were suspended following a fatal accident at the mine late Sunday morning, August 26, 2012.
The price of Crude oil was moving higher Tuesday morning as traders await more information on the impact of Tropical Storm Isaac, which is on the verge of becoming a hurricane as it rumbled toward the Gulf Coast. Crude for October gained $0.75 to $96.22 a barrel.
In the oil patch, MEG Energy was down 2 percent.
8/28/2012 11:25 AM ET
Fertilizer markers Agrium Inc. (AGU.TO) and Potash Corp. (POT.TO) were down about 1 percent each
Base-metals miner Lundin Mining Corp. shed over 1 percent after announcing that production at the wholly owned Aguablanca nickel/copper mine in Spain has restarted ahead of the previously announced schedule.
In economic news from the U.S., a report released by Standard & Poor's on Tuesday showed that the S&P/Case-Shiller 20-City Composite Home Price Index rose by 0.5 percent in June compared to the same month a year ago. Economists had been expecting the index to edge down by about 0.3 percent year-over-year. S&P also said the 20-City Composite Home Price Index increased by a seasonally adjusted 0.9 percent on a monthly basis in June compared to a 1.0 percent increase in May.
From the euro zone, German consumer confidence is set to remain unchanged in September, contrary to expectations for a decline, a key survey revealed today. Market research group GfK said its consumer confidence index for September scored 5.9, unchanged from August and belying economists' expectations for a drop to 5.8.
| European Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | European Markets Finished Higher As Investors Turn Optimistic
8/21/2012 12:02 PM ET
The European markets finished in positive territory on Tuesday, after investor sentiment shifted to hopeful on optimism about action from policy makers to contain the debt crisis. A successful debt auction by Spain and reports that China is planning new economic stimulus for the second half of the year also contributed to the positive mood. Mining stocks received a boost from the China news and shares of banks turned in a strong performance.
The People's Bank of China injected CNY 220 billion into the money market through reverse repurchase operations on Tuesday, reports said. The central bank said it added CNY 150 billion using seven-day reverse repos at a yield of 3.4 percent and CNY 70 billion via 14-day reverse repos at 3.6 percent.
Spain saw a steep decline in borrowing costs at an auction on Tuesday amid speculation that the European Central Bank would resume its purchase of peripheral bonds. Further, markets are also hopeful that a series of bilateral meetings between key Eurozone leaders may produce a lasting solution to the region's prolonged sovereign debt crisis.
The Spanish Treasury managed to sell slightly more debt than it had planned in Tuesday's auction. The agency raised a total EUR 4.51 billion from the sale of 12 and 18 - month bills against a target of EUR 3.5 billion - EUR 4.5 billion.
The yield on the one-year debt declined to 3.070 percent from 3.918 percent in the previous sale on July 17. The 18-month paper was placed to yield 3.335 percent, which was less than the 4.242 percent fetched in July.
The euro Stoxx 50 index of eurozone bluechip stocks increased by 1.00 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.32 percent.
The DAX of Germany climbed by 0.79 percent and the CAC 40 of France finished up by 0.94 percent. The FTSE 100 of the U.K. gained 0.57 percent and the SMI of Switzerland rose by 0.19 percent.
In Frankfurt, Merck fell by 0.55 percent. DZ Bank downgraded the stock to "Hold" from "Buy."
Commerzbank increased by 4.04 percent and Deutsche Bank gained 5.39 percent.
Singulus Technologies finished up by 0.90 percent, after DZ Bank reduced its rating on the stock.
In Paris, Societe Generale finished higher by 3.85 percent. BNP Paribas climbed by 2.44 percent and Credit Agricole added 4.97 percent.
In London, mining stocks climbed on hopes of stimulus measures in China. Anglo American rose by 3.58 percent and Antofagasta climbed by 3.26 percent. Kazakhmys gained 2.58 percent and Vedanta Resources added 4.49 percent. BHP Billiton increased by 1.51 percent and Rio Tinto advanced by 2.08 percent.
8/21/2012 12:02 PM ET
Glencore International reported a decline in its first-half profit, reflecting a fall in commodity prices. The stock finished higher by 1.77 percent.
Barclays gained 3.22 percent. The lender is in talks with its subsidiary Absa Group Ltd., to combine majority of their African operations.
Royal Bank of Scotland rose by 2.50 percent and Lloyds Banking Group gained 1.09 percent.
Homebuilder Persimmon decreased by 1.13 percent. The company reported a higher profit for the first half, as revenues benefited from increase in legal completions and higher selling prices.
Julius Baer rose by 3.12 percent in Zurich. The lender said Monday that it would limit its proposed rights offering to 500 million Swiss francs, from the previous plan of 750 million francs, as part of its capital raise to fund its acquisition of Bank of America Corp.'s non-US wealth management unit.
Germany's leading index declined for the third consecutive month in June, data from a survey by the Conference Board showed Tuesday. The leading economic index decreased by 0.8 percent on a monthly basis to 103.2 in June, marking the third consecutive decline.
The U.K. public sector net borrowing, excluding the temporary effects of financial interventions, (PSNB ex) increased in July, data from the Office for National Statistics showed Tuesday. Net borrowing was GBP 0.6 billion in July, which was GBP 3.4 billion higher than in July last year when PSNB was -GBP 2.8 billion. |
| Asia Market Reports | Asian Markets Mostly Trade Marginally Lower
8/27/2012 11:41 PM ET
Asian stock markets are mostly trading marginally lower on Tuesday after positive starts and are range bound as investors remain cautious amid hopes of fresh stimulus measures by the U.S. Federal Reserve and the European Central Bank. The overnight mixed close on Wall Street did not provide any cue for the markets.
Stocks may meander around until Friday's Jackson Hole address by the chiefs of major global central banks.
Traders already are looking ahead to remarks by Federal Reserve Chairman Ben Bernanke at the Kansas City Federal Reserve's annual Jackson Hole symposium, along with European Central Bank President Mario Draghi and International Monetary Fund President Christine Lagarde.
Bernanke had indicated in a letter on Friday to Rep. Darrell Issa, R-Calif. that there is "scope for further action by the Federal Reserve to ease financial conditions and strengthen the recovery."
The Australian market is trading flat amid cautious trading by investors ahead of hopes of fresh economic measures in the world market.
In early morning trades, the benchmark S&P/ASX 200 index, which declined to around 4,340, is currently trading at 4,342.6, down 1.1 points or 0.0 percent from its previous close. The broader All Ordinaries index is down 1.5 points or 0.0 percent at 4,371.4.
Mining and energy stocks are the prominent losers in the Australian market, while consumer discretionary, financial and industrial stocks are trading marginally higher.
In the mining space, BHP Billiton (BHP, BBL) is losing 0.7 percent, Rio Tinto (RIO, RIO.L) is falling 1.4 percent and Fortescue is lower by 1.1 percent.
Shares in Origin Energy are down following the death of two workers yesterday on an offshore drilling rig, the Stena Clyde, which is operated by Stena Offshore of Scotland.
Media and earthmoving machinery company Seven Group Holdings has more than doubled its full-year profit to $165.9 million from $70.4 million last year. Revenues rose 41 percent to $4.46 billion from the previous year. Seven is up more than 5 percent.
Shares in Virgin Australia have fallen more than 4 percent in early deals after the country's second largest airline returned to profit as revenue jumped nearly five-fold, boosted by its market share growth in the lucrative business travel market.
In economic news, the total number of new home sales in Australia was down 5.6 percent on month in July, the Housing Industry Association said on Tuesday, falling for the first time in four months. Sales were up 2.8 percent on month in June.
In the currency market, the Australian dollar fell to a one-month low against the US Dollar. In early trades, the local unit was trading at US$1.0358, down from US$1.0385 on Friday.
8/27/2012 11:41 PM ET
After a moderately positive start, the Japanese market is trading marginally lower as the dollar weakened against the yen and concerns over China's economic growth. The market is meandering due to the lack of major trading cues from the domestic or international markets. The benchmark Nikkei 225 Index, which opened higher by 0.58 percent, is currently trading at 9,060.07, down 25.32 points or 0.28 percent.
Electricity and gas, mining and nonferrous metals sectors were the major decliners, while consumer finance, foods, and fishery and forestry sectors led the gainers.
Sharp Corp. continued to gain for the sixth straight day as talks on a tie-up with Taiwan's Hon Hai Precision Industry Co. is expected to make progress. Sharp is up 6.5 percent.
In the currency market, the U.S. dollar is trading in the upper 78 yen range on Tuesday. In late morning trades, the dollar was quoted in a range of 78.53-78.56 yen, up 0.13 yen from Monday's close of 78.66-78.67 yen in Tokyo.
Among other markets in the Asia, Hong Kong, New Zealand, Singapore, South Korea, and Taiwan are trading marginally lower, while Shanghai, Malaysia, New Zealand and Indonesia are trading marginally higher.
Among other markets in the Asia, Shanghai, Malaysia, Hong Kong, South Korea, and Indonesia are trading marginally lower and Taiwan is down a percent, while New Zealand and Singapore are trading marginally higher.
On Wall Street, stocks showed a lack of direction throughout the trading day on Monday, with traders reluctant to make significant moves amid lack of major U.S. economic data. The choppy trading on Wall Street came as traders looked ahead to remarks by Federal Reserve Chairman Ben Bernanke.
The major averages eventually ended the session mixed, with the Nasdaq posting a modest gain. While the Nasdaq inched up 3.40 points or 0.1 percent to 3,073.19, the Dow fell 33.30 points or 0.3 percent to 13,124.67 and the S&P 500 edged down 0.69 points or 0.1 percent at 1,410.44.
In the European market, the major averages moved notably higher over the course of the trading day. The French CAC 40 Index advanced by 0.9 percent, while the German DAX Index surged up by 1.1 percent. The U.K. market was closed for a public holiday.
The Global gold Index dropped 1.47 percent, although gold futures for December delivery gained $2.70 to close at $1,675.60 an ounce Monday on the New York Mercantile Exchange.
U.S. Crude oil ended lower Monday, as worries over supply disruptions eased amid speculation that Tropical Storm Isaac will have little impact on production in the oil-rich U.S. Gulf of Mexico region.
8/27/2012 11:41 PM ET
Crude for October delivery edged down $0.68 or 0.07 percent to close at $95.47 a barrel on the New York Mercantile Exchange. |
| Commodities | | | | USDCAD | USDEUR | USDGBP | USDJPY |  |  |  |  | | Please click on the images to view our interactive charts | | Dollar Little Changed As Investors Await Bernanke Speech
8/27/2012 1:09 PM ET
The dollar is little changed in comparison to its major competitors at the start of the new trading week. Investors have been cautious as they await some upcoming speeches at the end of the week from some of the top central bankers.
Federal Reserve Chairman Ben Bernanke will give a speech at the Kansas City Federal Reserve Bank's annual symposium in Jackson Hole, Wyoming on August 31. Investors will be watching for clues about what the Fed plans to do to bolster growth in the world's largest economy. Hopes for a new round of stimulus from the Fed have increased, boosted by news of a letter Ben Bernanke sent to Rep. Darrell Issa of California, defending the Fed's actions to support the economy. European Central Bank President Mario Draghi is also expected to give a speech on Saturday.
Bundesbank President Jens Weidmann has strongly criticized the proposed new round of bond purchases by the European Central Bank, saying that central bank financing could be "addictive like a drug." In an interview to German magazine Der Spiegel, Weidmann said "for me, such a policy is too close to financing state debt by printing money."
A report on Greece's progress on economic reforms by the European Commission, European Central Bank and the International Monetary Fund or the troika will be delayed until early October, Germany's Rheinische Post reported Monday.
Elsewhere, European Commission spokesman Simon O'Connor reportedly said that the troika will return to Athens in early September to begin the concluding phase of the review programme. It will take a couple of weeks, he said.
Meanwhile, in an interview to ARD public television on Sunday, German Chancellor Angela Merkel said "we all should weigh our words," while commenting on the euro area debt crisis and the situation in Greece. Europe is in a "very critical stage" with regard to its fight against the crisis, she said, adding that Europe is not only a monetary union, but a political community.
When asked about the situation in Greece, she said Europe is awaiting a report from the troika. "Every day" counts for Greece to comply with its commitments and there is much more to be done.
The Greeks must demonstrate the credibility of their fiscal consolidation program and the commitment to implement the necessary reforms, French President Francois Hollande said after a meeting with Greek Prime Minister Antonis Samaras in Paris on Saturday.
While praising the people of Greece for going through the painful austerity measures for the past two and half years, Hollande reiterated that Greece will always remain in Eurozone. He said the European leadership is awaiting the troika report on Greece to make a decision on further aid to the country. There are commitments to be reaffirmed on both sides and the sooner these are done, the better, he added. |
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