Stocks Turning In Another Lackluster Performance
9/10/2012 11:07 AM ET
Stocks are turning in a lackluster performance during trading on Monday, as traders seem reluctant to make any significant moves.
The choppy trading on Wall Street comes as many traders are staying on the sidelines ahead of the Federal Reserve's upcoming monetary policy meeting.
The Fed is due to announce its latest decision on monetary policy Thursday afternoon followed by a news conference by Chairman Ben Bernanke.
Uncertainty about whether the Fed will announce another round of quantitative easing is contributing to the lack of direction being shown by stocks.
While most of the major sectors are showing only modest moves, semiconductor and networking stocks have shown notable moves to the downside, helping to pull the tech-heavy Nasdaq firmly into the red.
On the other hand, airline stocks are seeing considerable strength, with the NYSE Arca Airline Index extending a recent upward move with a 1.1 percent gain.
The major averages are currently turning in a mixed performance, with the Dow up 2.97 points or less than a tenth of a percent at 13,309.61, while the Nasdaq is down 14.00 points or 0.5 percent at 3,122.42 and the S&P 500 is down 0.99 points or 0.7 percent at 1,436.93.
| Canadian Market Report |  | | CADUSD | Oil | Gold | Allbanc |  |  |  |  | | Please click on the images to view our interactive charts | | TSX Ends Higher On ECB, Fed Reserve Stimulus Hopes - Canadian Commentary
9/7/2012 4:38 PM ET
Canadian stocks extended gains for a third straight day to end sharply higher Friday, led mostly by resource stocks as investors weighed some disappointing jobs data from the U.S. which raised hopes of additional stimulus measures from the Federal Reserve in its upcoming policy meet next week.
Investors also soaked in the European Central Bank's stimulus measures in the form of bond buying program, China's infrastructure stimulus measures, and some positive jobs data from Canada, all of which lifted the gloomy markets.
The U.S. Labor Department jobs data showed non-farm payrolls increased in August, but much lower than what analysts expected. Nevertheless, unemployment rate for August dropped from the previous month.
The S&P/TSX Composite Index closed Friday at 12,268.01, up 128.28 points or 1.06 percent. The index touched an intraday high of 12,270.97 and a low of 12,144.36.
The Metals & Mining Index soared 8.0 percent, led by Teck Resources Limited (TCK.B.TO) which surged 9.17 percent and First Quantum Minerals Ltd. jumping 9.76 percent. Lundin Mining Corp. climbed 6.49 percent, while Osisko Mining Corp. (OSK.TO) gathered 8.37 percent.
The Energy Index gained 2.07 percent, after U.S. Crude oil futures for October delivery moved up $0.89 or 0.9 percent to close at $96.42 a barrel Friday on the NYMEX.
Among energy stocks, Canadian Natural Resources Limited gathered 4.82 percent, Encana Corp. advanced 1.65 percent, and Suncor Energy Inc. rose 2.32 percent.
The Financial Index gained 0.37 percent with Royal Bank of Canada up 0.41 percent, while Bank of Nova Scotia shed 0.30 percent. Toronto-Dominion Bank gathering 0.15 percent, while Manulife Financial Corp. (MFC.TO) gained 2.17 percent.
The Global gold Index gained 2.14 percent, with gold futures for December delivery climbing $34.90 or 2.1 percent to close at $1,740.50 an ounce Friday on the NYMEX.
The Capped Materials Index gained 3.05 percent.
Among gold stocks, Barrick gold rose 2.59 percent, Goldcorp Inc. gained 1.69 percent, Yamana gold Inc. was up 1.45 percent, Eldorado gold Corp. gained 6.29 percent, and Kinross gold advanced 5.58 percent.
Among heavyweights, fertilizer maker Potash Corporation of Saskatchewan Inc. rose 2.33 percent, while transportation systems maker Bombardier Inc. (BBD.A.TO, BBD.B.TO) gained 1.99 percent.
The Information Technology Index gained 0.81 percent, with smartphone maker Research In Motion Limited surging 6.20 percent.
9/7/2012 4:38 PM ET
Athletic apparel company Lululemon Athletica Inc. surged over 12 percent after reporting improved second quarter net income of $57.22 million or $0.39 per share from prior-year. Third quarter earnings are expected in the range of $0.34 to $0.36 per share, above analysts' estimates of $0.33 per share.
Software company Cardiocomm Solutions Inc. (EKG.V) skyrocketed 19.35 percent after revealing clearance from Health Canada to sell their HeartCheck ECG PEN to both consumers and patients.
Media company Transcontinental Inc. (TCL_A.TO) dived 3.95 percent after reporting a lower third quarter net income of C$8.1 million or C$0.10 per share compared to C$31.5 million or C$0.39 per share in the same quarter last year.
In economic news Statistics Canada said the nation's unemployment rate held steady at 7.3 percent as employment rose by 34,000 in August, helped by an increase in part-time work. On a year-over-year basis, employment increased by 1.0 percent or 177,000. Economists expected 10,000 job additions in the month of August.
In economic news from the U.S., the Labor Department revealed employment increased by 96,000 jobs in August following a downwardly revised increase of 141,000 jobs in July. Economists had expected an increase of about 125,000 jobs compared to the addition of 163,000 jobs originally reported for the previous month. Despite the weaker than expected job growth, the unemployment rate dropped to 8.1 percent in August from 8.3 in July amid a notable decrease in the size of the workforce.
Elsewhere, China has added stimulus worth more than $158 billion as the National Development and Reform Commission approved a slew of infrastructure projects this week to help the economy counter the global gloom, which has increasingly diluted export gains.
Germany's exports and imports increased unexpectedly in July, data from Destatis revealed. Exports grew 0.5 percent month-on-month, partially offsetting June's 1.4 percent fall. Likewise, imports gained 0.9 percent after falling 2.9 percent in June. Economists had forecast a 0.5 percent drop in exports and 0.3 percent decrease in imports.
Meanwhile, U.K. industrial production recovered in July at a faster than expected pace, data from the Office for National Statistics showed. Industrial output grew 2.9 percent month-on-month, reversing June's 2.4 percent fall. The increase exceeded the 1.5 percent rise forecast by economists. |
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| | US Market Reports | Stocks Turning In Another Lackluster Performance
9/10/2012 11:07 AM ET
Stocks are turning in a lackluster performance during trading on Monday, as traders seem reluctant to make any significant moves.
The choppy trading on Wall Street comes as many traders are staying on the sidelines ahead of the Federal Reserve's upcoming monetary policy meeting.
The Fed is due to announce its latest decision on monetary policy Thursday afternoon followed by a news conference by Chairman Ben Bernanke.
Uncertainty about whether the Fed will announce another round of quantitative easing is contributing to the lack of direction being shown by stocks.
While most of the major sectors are showing only modest moves, semiconductor and networking stocks have shown notable moves to the downside, helping to pull the tech-heavy Nasdaq firmly into the red.
On the other hand, airline stocks are seeing considerable strength, with the NYSE Arca Airline Index extending a recent upward move with a 1.1 percent gain.
The major averages are currently turning in a mixed performance, with the Dow up 2.97 points or less than a tenth of a percent at 13,309.61, while the Nasdaq is down 14.00 points or 0.5 percent at 3,122.42 and the S&P 500 is down 0.99 points or 0.7 percent at 1,436.93. |
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| | Canadian Market Report | | | | CADUSD | Oil | Gold | Allbanc | | | | | | | Please click on the images to view our interactive charts | | TSX Ends Higher On ECB, Fed Reserve Stimulus Hopes - Canadian Commentary
9/7/2012 4:38 PM ET
Canadian stocks extended gains for a third straight day to end sharply higher Friday, led mostly by resource stocks as investors weighed some disappointing jobs data from the U.S. which raised hopes of additional stimulus measures from the Federal Reserve in its upcoming policy meet next week.
Investors also soaked in the European Central Bank's stimulus measures in the form of bond buying program, China's infrastructure stimulus measures, and some positive jobs data from Canada, all of which lifted the gloomy markets.
The U.S. Labor Department jobs data showed non-farm payrolls increased in August, but much lower than what analysts expected. Nevertheless, unemployment rate for August dropped from the previous month.
The S&P/TSX Composite Index closed Friday at 12,268.01, up 128.28 points or 1.06 percent. The index touched an intraday high of 12,270.97 and a low of 12,144.36.
The Metals & Mining Index soared 8.0 percent, led by Teck Resources Limited (TCK.B.TO) which surged 9.17 percent and First Quantum Minerals Ltd. jumping 9.76 percent. Lundin Mining Corp. climbed 6.49 percent, while Osisko Mining Corp. (OSK.TO) gathered 8.37 percent.
The Energy Index gained 2.07 percent, after U.S. Crude oil futures for October delivery moved up $0.89 or 0.9 percent to close at $96.42 a barrel Friday on the NYMEX.
Among energy stocks, Canadian Natural Resources Limited gathered 4.82 percent, Encana Corp. advanced 1.65 percent, and Suncor Energy Inc. rose 2.32 percent.
The Financial Index gained 0.37 percent with Royal Bank of Canada up 0.41 percent, while Bank of Nova Scotia shed 0.30 percent. Toronto-Dominion Bank gathering 0.15 percent, while Manulife Financial Corp. (MFC.TO) gained 2.17 percent.
The Global gold Index gained 2.14 percent, with gold futures for December delivery climbing $34.90 or 2.1 percent to close at $1,740.50 an ounce Friday on the NYMEX.
The Capped Materials Index gained 3.05 percent.
Among gold stocks, Barrick gold rose 2.59 percent, Goldcorp Inc. gained 1.69 percent, Yamana gold Inc. was up 1.45 percent, Eldorado gold Corp. gained 6.29 percent, and Kinross gold advanced 5.58 percent.
Among heavyweights, fertilizer maker Potash Corporation of Saskatchewan Inc. rose 2.33 percent, while transportation systems maker Bombardier Inc. (BBD.A.TO, BBD.B.TO) gained 1.99 percent.
The Information Technology Index gained 0.81 percent, with smartphone maker Research In Motion Limited surging 6.20 percent.
9/7/2012 4:38 PM ET
Athletic apparel company Lululemon Athletica Inc. surged over 12 percent after reporting improved second quarter net income of $57.22 million or $0.39 per share from prior-year. Third quarter earnings are expected in the range of $0.34 to $0.36 per share, above analysts' estimates of $0.33 per share.
Software company Cardiocomm Solutions Inc. (EKG.V) skyrocketed 19.35 percent after revealing clearance from Health Canada to sell their HeartCheck ECG PEN to both consumers and patients.
Media company Transcontinental Inc. (TCL_A.TO) dived 3.95 percent after reporting a lower third quarter net income of C$8.1 million or C$0.10 per share compared to C$31.5 million or C$0.39 per share in the same quarter last year.
In economic news Statistics Canada said the nation's unemployment rate held steady at 7.3 percent as employment rose by 34,000 in August, helped by an increase in part-time work. On a year-over-year basis, employment increased by 1.0 percent or 177,000. Economists expected 10,000 job additions in the month of August.
In economic news from the U.S., the Labor Department revealed employment increased by 96,000 jobs in August following a downwardly revised increase of 141,000 jobs in July. Economists had expected an increase of about 125,000 jobs compared to the addition of 163,000 jobs originally reported for the previous month. Despite the weaker than expected job growth, the unemployment rate dropped to 8.1 percent in August from 8.3 in July amid a notable decrease in the size of the workforce.
Elsewhere, China has added stimulus worth more than $158 billion as the National Development and Reform Commission approved a slew of infrastructure projects this week to help the economy counter the global gloom, which has increasingly diluted export gains.
Germany's exports and imports increased unexpectedly in July, data from Destatis revealed. Exports grew 0.5 percent month-on-month, partially offsetting June's 1.4 percent fall. Likewise, imports gained 0.9 percent after falling 2.9 percent in June. Economists had forecast a 0.5 percent drop in exports and 0.3 percent decrease in imports.
Meanwhile, U.K. industrial production recovered in July at a faster than expected pace, data from the Office for National Statistics showed. Industrial output grew 2.9 percent month-on-month, reversing June's 2.4 percent fall. The increase exceeded the 1.5 percent rise forecast by economists. |
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| | European Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | European Markets In Positive Territory
9/3/2012 7:15 AM ET
The European markets are in positive territory in afternoon trading Monday, after manufacturing activity in China fell to its lowest level in more than three years in August giving hopes of further stimulus.
Additionally, on Friday, Federal Reserve chairman Bernanke reiterated that the central bank would act "as needed" to boost the sluggish economy, although he did not explicitly signal any further stimulus efforts.
The final reading of the HSBC China manufacturing purchasing managers' index showed the nation's manufacturing activity fell to its lowest level in more than three years in August. The PMI index fell to 47.6 in August, its lowest level since March 2009, from 49.3 in the previous month.
Germany's manufacturing activity declined more than initially estimated for August, final data from Markit Economics showed Monday. The final Markit/BME Purchasing Managers' Index came in at 44.7 in August, down from the flash reading of 45.1, but rose from 43 in July.
Eurozone's manufacturing sector continued to contract in August, but a slower pace than in July, survey results confirmed. However, the improvement was slightly weaker than estimated in the flash report.
In the U.K., the Markit/Chartered Institute of Purchasing & Supply Purchasing Manager's Index rose more than expected to 49.5 from 45.2 in July. Economists had forecast the index to rise to 46.3.
The euro Stoxx 50 index of eurozone bluechip stocks is adding 0.37 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is gaining 0.58 percent.
The German DAX is adding 0.46 percent and the French CAC 40 is rising 0.57 percent. The UK's FTSE 100 is advancing 0.46 percent and Switzerland's SMI is gaining 0.44 percent.
In Frankfurt, Fresenius is gaining 2.1 percent after dropping its bid for Rhoen-Klinikum. Rhoen-Klinikum shares are, however, plunging 21.5 percent.
HeidelbergCement is gaining 2.1 percent and Deutsche Post is advancing 1.5 percent.
MorphoSys is gaining 2.1 percent on a positive broker recommendation.
Automakers Daimler, Volkswagen, BMW and MAN are in negative territory.
Infineon Technology is declining 1.8 percent. Nomura lowered its rating on the stock to "Reduce" from "Neutral."
In Paris, Cap Gemini is gaining 2.6 percent. Hotel chain Accor and drinks company Pernod-Ricard are advancing 1.2 percent each.
Lender BNP Paribas is moderately higher while Societe Generale and Credit Agricole are falling 0.8 percent and 1.5 percent, respectively.
UBS removed Carrefour from "Least Preferred List." The stock is up 0.7 percent.
9/3/2012 7:15 AM ET
Renault is losing 1.5 percent and Peugeot is dropping 0.5 percent.
STMicroelectronics is moderately lower after Nomura cut its rating on the stock.
In London, miners are witnessing upside. BHP Billiton and Rio Tinto are advancing 2.1 percent each. Fresnillo is climbing 5.3 percent and steel firm Evraz is gaining 2.5 percent.
Barclays and Lloyds Banking are advancing over 1 percent while Royal Bank of Scotland is in negative territory.
Chipmaker Arm Holdings is falling 2.4 percent and insurer Admiral Group is declining 3.5 percent.
Phoenix IT Group is plunging more than 34 percent. The company reported misstatement of a number of accounting balances within its Servo division.
Davide Campari-Milano is climbing 6.3 percent in Milan. The firm has agreed to acquire an 81.4 percent ownership in Lascelles deMercado & Co. Limited.
Across Asia/Pacific, markets ended mostly in positive territory. Australia's All Ordinaries added 0.3 percent, China's Shanghai Composite index climbed 0.6 percent and Hong Kong's Hang Seng gained 0.4 percent. However, Japan's Nikkei 225 slid 0.6 percent.
In the U.S., markets are closed for the Labor Day holiday. In the previous session, the major averages ended the day firmly in positive territory, after some initial negative reaction to Bernanke's comments. The Dow rose 0.7 percent, the Nasdaq advanced 0.6 percent and the S&P 500 climbed 0.5 percent.
In the commodity space, Crude for October delivery is falling $0.24 to $96.23 per barrel and December gold is rising $2 to $1689.6 a troy ounce. |
| Asia Market Reports | Asian Markets Trade Mixed Ahead Of Fed Meeting 9/10/2012 12:30 AM ET
Asian stock markets are trading mixed on Monday as investors treaded cautiously ahead of a U.S. Federal Reserve meeting later in the week. Weak U.S. jobs data released on Friday has raised hopes that the Federal Reserve will announce fresh stimulus at its two-day policy meeting set to commence on Wednesday. Meanwhile, China released a mixed batch of data over the weekend, with inflation accelerating from a 30-month low in August, reducing possibilities of another monetary easing - while weaker-than-expected industrial output growth put pressure for more stimulus. The Japanese market is trading lower on the back of a stronger yen and lower than expected GDP data for the second quarter. In late morning trades, the benchmark Nikkei 225 Index was down 30.31 points or 0.34 percent to 8,841.34. Stocks from the foods, rubber products and pharmaceutical sectors are trading lower, while gainers include shares from the pulp and paper, oil and coal products, and air transport sectors. Among exporters and precision instrument makers, TDK is down 2.86 percent and Tokyo Electron is trading lower by 3.07 percent. Canon Inc. () is trading lower by 1.51 percent. However, Komatsu is adding 2.32 percent and Hitachi Construction Machinery is gaining 2.58 percent. Among automakers, Toyota Motor () is down 0.16 percent and Nissan Motor is trading lower by 0.27 percent. Honda Motor () is adding 0.08 percent and Suzuki Motor is advancing 0.28 percent. Shares of Seven & I Holdings Co. is gaining more than 1 percent after the Nikkei business daily reported that in 2015, the company plans to halve the number of staff at its supermarkets run by Ito-Yokado Co. from the current 8,600 workers. The company reportedly plans to cut labor costs by 10 billion yen in that year. On the economic front, Japan's gross domestic product added 0.2 percent in the second quarter of 2012 compared to the previous three months, the Cabinet Office said on Monday in a final reading. That was down from last month's preliminary reading of 0.3 percent, and it was significantly lower than the 1.2 percent gain in the first quarter. On a yearly basis, GDP was up 0.7 percent - cut in half from the preliminary reading that showed a 1.4 percent increase, and missing forecasts for a slide to 1.0 percent. GDP had surged 4.7 percent in the previous three months. According to the Ministry of Finance, Japan posted a current account surplus of 625.4 billion yen in July, down 40.6 percent on year. The headline figure blew away forecasts for a surplus of 485.6 billion yen and an annual decline of 52.0 percent. That follows the 433.3 billion yen surplus and the 19.6 percent annual contraction in June. |
| Commodities | | | | USDCAD | USDEUR | USDGBP | USDJPY |  |  |  |  | | Please click on the images to view our interactive charts | | S. Korea Unveils $5.23 Bln Stimulus To Underpin Growth
9/10/2012 2:59 AM ET
South Korea has unveiled $5.23 billion stimulus measures to boost the domestic economy that is severely hit by the global slowdown.
The government has allocated about KRW 4.6 trillion for this year and KRW 1.3 trillion for next year. The overall KRW 5.9 trillion is available without an expansion of the government's budget, the Ministry of Strategy and Finance said Monday.
The stimulus includes exemptions from capital gains taxes on home sales, reduction in the sales tax on purchase of new cars and home appliances and also a cut in housing transaction costs.
In June, the government had initiated a stimulus worth KRW 8.5 trillion. Together with the latest action, the total package is equivalent to 1 percent of gross domestic product.
The government is refraining from providing more support, instead reserving the fiscal firepower if things deteriorate further in the event of a deep global slowdown. Some of the measures announced today will require the approval of lawmakers.
Citing the country's persistent economic and financial stability in the volatile global environment, Fitch Ratings last week upgraded South Korea's sovereign rating to 'AA-' from 'A+'. The agency forecast 2.5 percent growth this year, before accelerating to 3.6 percent in 2013.
Economists expect support from the central bank through a reduction in interest rate. The Bank of Korea is seen slashing rates by a quarter point to 2.75 percent this week.
Asia's fourth-largest economy expanded only 0.3 percent in the second quarter, following a 0.9 percent growth in the first three months. The government lowered its 2012 growth forecast to 3.3 percent from 3.7 percent.
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