Stocks Seeing Modest Strength On Upbeat GDP Data
10/26/2012 10:03 AM ET
With traders reacting positively to upbeat U.S. economic data, stocks have moved modestly higher in early trading on Friday. The major averages have climbed into positive territory, adding to the slim gains posted in the previous session.
The major averages have pulled back off their highs for the young session but currently remain positive. The Dow is up 11.25 points or 0.1 percent at 13,114.93, the Nasdaq is up 10.72 points or 0.4 percent at 2,996.84 and the S&P 500 is up 1.48 points or 0.1 percent at 1,414.45.
The early strength on Wall Street comes on the heels of the release of a report from the Commerce Department showing stronger than expected U.S. GDP growth in the third quarter.
The report showed that U.S. gross domestic product rose by 2.0 percent in the third quarter following a 1.3 percent increase in the second quarter. Economists had been expecting third quarter GDP to increase by about 1.8 percent.
The stronger than expected GDP growth reflected positive contributions from consumer spending, federal government spending, and residential fixed investment.
However, disappointing earnings news from Apple is limiting the upside for the markets, as the iPad and iPhone maker reported weaker than expected fiscal fourth quarter earnings despite reporting stronger than expected revenue growth. Apple also issued downbeat guidance for its fiscal first quarter.
Online retailer Amazon reported a third quarter loss that was wider than analysts had expected. The company's net sales also trailed expectations.
Merck reported better than expected third quarter earnings, although the drug giant's revenues fell by more than analysts had anticipated. Looking Ahead, Merck said 2012 revenues are still projected to be at or near 2011 levels on a constant currency basis.
Most of the major sectors are showing only modest moves in early trading, although strength is visible among telecom, networking, and semiconductor stocks.
In overseas trading, stock markets across the Asia-Pacific region came under pressure during trading on Friday. Japan's Nikkei 225 Index fell by 1.4 percent, while Hong Kong's Hang Seng Index ended the day down by 1.2 percent.
Meanwhile, the major European markets have moved to the upside 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 is up by 0.7 percent and the French CAC 40 Index is up by 0.8 percent.
In the bond market, treasuries are regaining some ground after coming under pressure in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.7 basis points at 1.791 percent.
| Canadian Market |  | | CADUSD | Oil | Gold | Allbanc |  |  |  |  | | Please click on the images to view our interactive charts | | After hovering around the unchanged line in early trading, Canadian stocks moved up Tuesday morning even as traders were keen to know when normality will return to the Wall Street. Traders speculate that the widespread damage might prompt the U.S. Federal Reserve to ease monetary policy further to rev up the economy.
Reports suggest economic toll would be in excess of $20 billion after the biggest Atlantic storm slammed the U.S., with insured losses of about $7 billion to $8 billion.
The S&P/TSX Composite Index rose 64.15 points or 0.52 percent to 12, 376.90, after adding just over 100 points or 1 percent in the past three sessions.
The price of crude oil edged up Tuesday morning as traders await information on damages after Hurricane Sandy hit the U.S. and shut East Coast refineries. Crude for December added $0.49 to $86.03 a barrel.
In the oil patch, Petrobakken Energy (PBN.TO) soared 9 percent after announcing corporate reorganization plans.
MEG Energy (MEG.TO), Baytex Energy Corp. (BTE.TO) and Suncor Energy (SU.TO) were up around 1 percent each.
Crude oil and natural gas company Canadian Oil Sands (COS.TO) rose nearly 3 percent after reporting that its third-quarter net income increased to C$338 million or C$0.70 per share from C$242 million or C$0.50 per share in the third quarter of 2011.
Natural gas transportation company TransCanada Corp. (TRP.TO) was trading flat after reporting that its third-quarter net income was C$369 million or C$0.52 per share down from C$386 million or C$0.55 per share in third quarter 2011.
Upstream oil and gas company Talisman Energy (TLM.TO) slipped into the red in third quarter, reporting net loss of $731 million or $0.71 per share versus net income of $521 million or $0.24 per share last year. Analysts were expecting the company to earn $0.06 per share on revenues of $1.73 billion for the quarter. The stock was down 1.50 percent
The price of gold was paring recent losses Tuesday morning as the U.S. dollar turned weak versus a basket of currencies. Gold for December edged up $2.60 to $1,711.30 an ounce.
Among gold plays, Royal Gold (RGL.TO) and Barrick Gold (ABX.TO) were up around 1 percent each.
International gold miner Yamana Gold (YRI.TO) edged up 1 percent even after reporting a much lower third-quarter net earnings at $59.97 million or $0.08 per share, compared with net earnings of $115.77 million or $0.16 per share in the year ago quarter. However, adjusted earnings were $178 million or $0.24 per share compared to $190 million or $0.26 per share. Analysts were expecting the company to report $0.23 per share for the quarter.
Insurer Sunlife Financial (SLF.TO) gathered over 1 percent, while Bank of Montreal (BMO.TO) was losing about 1 percent.
In economic news, Statistics Canada said the Industrial Product Price Index was up 0.5 percent in September compared with August, mainly due to higher prices for primary metal products and petroleum and coal products. Meanwhile, the Raw Materials Price Index rose 1.3 percent in September, mainly because of higher prices for non-ferrous metals.
Elsewhere, euro zone economic confidence dropped less than expected in October, monthly survey from the European Commission showed. The corresponding index came in at 84.5, down from 85.2 in the prior month. Economists had forecast the index to drop to 84.4. The marked decreases in industry and construction outweighed the improvement in the retail trade sector.
Germany's unemployment increased by 20,000 in October from a month ago, data from the Federal Labor Agency showed. It follows an increase of 12,000 each in September and August. Economists were expecting a monthly increase of 10,000 for October. |
| European Market | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | European Markets Extended Losses Amidst Earnings Disappointment
10/23/2012 11:55 AM ET
The European markets finished to the downside again Tuesday, extending the weakness from the previous session. The markets continued to be impacted by disappointing corporate earnings, both in Europe and the United States. Concerns over Spain's debt problems also persisted Tuesday, following Moody's credit rating downgrade of five Regions in Spain overnight.
The Spanish economy has likely contracted at a steady pace in the third quarter, a report from the Bank of Spain showed Tuesday. The central bank's quarterly bulletin said that gross domestic product declined 0.4 percent sequentially in the third quarter, similar to the contraction seen in the second quarter.
Meanwhile, Spain's short-term debt auction received mixed response, with yields on six-month debt easing slightly, while borrowing costs edged up for three-month bonds, amid lingering uncertainty over the timing of Spain's bailout request.
The euro Stoxx 50 index of Eurozone bluechip stocks declined by 2.08 percent and the Stoxx Europe 50 index, which includes some major U.K. companies, lost 1.71 percent.
The DAX of Germany dropped by 2.11 percent and the CAC of France finished lower by 2.20 percent. The FTSE 100 of the U.K. decreased by 1.41 percent and the SMI of Switzerland fell by 1.78 percent.
In Frankfurt, Commerzbank lost 2.50 percent. The lender is reportedly considering selling its custodian business.
BMW fell by 1.69 percent, after announcing that it plans to build a new plant in Brazil, with the goal to commence production in 2014.
In Paris, Michelin gained 3.22 percent. The company announced that third quarter revenues increased by 5.7 percent.
In London, ARM Holdings increased by 7.50 percent, after the company's better than expected third quarter earnings report.
Experian rose by 3.92 percent, after it increased its stake in Brazilian credit bureau Serasa SA.
Mulberry Group sank by 22.12 percent, after the company warned of lower full year earnings and revenues. Burberry Group also lost 3.33 percent.
Syngenta climbed by 0.64 percent in Zurich. The agribusiness company posted a 6 percent rise in third-quarter group sales on a constant currency basis, led by an excellent performance in Latin America.
French industrial confidence deteriorated to the lowest level in more than three years in October as weakening external demand, especially in the crisis-stricken Eurozone, continued to weigh on the country's exports, latest data showed Tuesday.
The industrial confidence index dropped to 85 in October, after stabilizing at 90 in September, statistical office Insee said. The latest reading was the lowest since August 2009, and far below the long-term average of 100. Economists had forecast the index to remain unchanged In October.
The number of mortgage approvals for house purchases in the United Kingdom increased more than economists expected in September, data released by the British Bankers' Association (BBA) showed Tuesday.
The number of mortgage approvals for the purchase of residential properties increased to 31,175 in September from 30,683 in August. Economists had forecast approvals to rise to 30,870. |
| Asia Market | Asian Markets In Positive Territory Amid Cautious Trades
10/29/2012 11:17 PM ET
Asian stock markets are trading in positive territory amid selective buying on Tuesday. However, gains are just modest in most of the markets in the region as the mood remains cautious due to a lack of triggers following the U.S. markets remaining shut on Monday due to the threat posed by Hurricane Sandy. Investors are mostly seen tracking regional economic and earnings data for direction.
In the Australian market, healthcare stocks, which had a few weak sessions recently, are currently trading higher. Energy, financial and telecommunications stocks are also finding support. Mining, energy and consumer discretionary stocks are trading mixed.
The benchmark S&P/ASX 200 index, which surged to 4,498.9, is currently trading at 4,490.2, up 13.3 points or 0.3 percent from its previous close. The broader All Ordinaries index is up 10.9 points or 0.2 percent at 4,510.3, off the day's high of 4,518.9.
Among bank stocks, ANZ Bank , Commonwealth Bank of Australia and Westpac are up 0.4 to 0.8 percent, while National Australia Bank is up marginally. Bendigo & Adelaide Bank is adding 1.4 percent, while Bank of Queensland is up nearly a percent.
Among top miners, BHP Billiton (BHP, BBL) is up 0.6 percent, while Rio Tinto (RIO, RIO.L) is trading 0.3 percent down.
In the energy sector, Woodside Petroleum is up 0.6 percent, Origin Energy is gaining about 0.6 percent and Caltex Australia is up nearly 2 percent, while Santos and Oil Search are trading weak.
Downer EDI, Fortescue Metals and Caltex Australia are up 2 to 2.4 percent. Lynas Corporation, Primary Healthcare, Aurora Oil & Gas, WorleyParsons, Panaust and Fairfax Media are trading higher by 1.2 to 1.8 percent.
Meanwhile, Boart Longyear, Aristocrat Leisure, Perseus Mining, Paladin Energy, Duet Group and Iluka Resources are down 1.6 to 2 percent. Suncorp Group, Seek, Computershare and Myer Holdings are also trading notably lower.
Virgin Australia has made an A$98.7 million takeover offer for regional carrier Skywest. Virgin said its cash and scrip offer for Skywest, which operates in regional Australia and south east Asia, was worth 46.88 cents per Skywest share.
Virgin has also announced that it has bought a 60 percent stake in low cost carrier Tiger Airways Australia for A$35 million. Singapore Airlines also announced it had bought a 10 percent stake in Virgin Australia for A$105 million. Tiger and Virgin said they would spend up to $62.5 million on Tiger Australia to increase its fleet from 11 aircraft to 35 by 2018.
Shares of Skywest shot up by over 50 percent in early trades, while Virgin Australia gained more than 6 percent.
After opening marginally higher, the Japanese market surged ahead in early trades before paring some gains due to lack of support.
Still, with several front line stocks holding firm amid a slew of economic data, the market remains in positive territory with modest gains. The mood is somewhat cautious with investors eying the central bank's decision on interest rates.
The benchmark Nikkei 225 index, which rose to around 8,996, is currently trading at 8,966, up 32.7 points or 0.4 percent from its previous close.
Shares from automobile, pharmaceuticals, rubber, steel and non-ferrous metals sections opened higher but gave up some gains subsequently. Railway, shipbuilding, pulp & paper and manufacturing stocks are trading mixed.
Shares of IHI Corp. plunged on weaker than expected first half pretax profit, extending its decline for the third successive session. Mitsumi Electric is trading sharply lower on reports of a likely net loss for financial year 2012.
Nomura Holdings is trading higher on impressive results for the July-September quarter. Sharp Corp. is up on reports the company is in tie-up talks with three U.S. firms.
In economic news, industrial output in Japan declined a seasonally adjusted 4.1 percent on month in September, the Ministry of Economy, Trade and Industry said in Tuesday's preliminary reading. That missed expectations for a contraction of 3.1 percent following the 1.6 percent decline in August.
On a yearly basis, industrial production plummeted 8.1 percent - also missing forecasts for a fall of 7.1 percent after shedding 4.6 percent in the previous month.
According to a report from the Ministry of Internal Affairs and Communications, the unemployment rate in Japan was a seasonally adjusted 4.2 percent in September - in line with expectations and unchanged from the previous month. The participation rate was 59.3 percent, also matching expectations and easing from 59.4 percent in August.
The number of employed persons in September was 63.08 million, down 130,000 or 0.2 percent from the previous year. The number of unemployed persons in September was 2.75 million, down 20,000 or 0.7 percent from the previous year.
Meanwhile, average household spending in Japan was down 0.9 percent on year in September, at 266,705 yen, another report from the Ministry of Internal Affairs and Communications revealed. That was well shy of forecasts for an increase of 0.8 percent following the 1.8 percent gain in August.
The average of monthly income for workers' household was up 0.1 percent on year to 422,046 yen, while consumption expenditures added an annual 0.6 percent to 299,821 yen.
In the currency market, the U.S. dollar traded in the upper 79 yen range in early deals in Tokyo. The yen is currently trading at 79.90 to the dollar.
Among other markets in the Asia-Pacific region, South Korea and Taiwan are trading notably higher. Shanghai, Malaysia and Singapore are up marginally, while New Zealand and Hong Kong are trading flat.
The U.S. markets were closed on Monday and will remain closed for Tuesday as well, in view of the impending hurricane.
Major European markets ended weak on Monday. While the U.K.'s FTSE 100 index ended 0.2 percent down, the French CAC 40 Index and the German DAX index lost 0.8 percent and 0.4 percent, respectively.
U.S. Crude oil settled lower on Monday on demand concerns on the threat posed by Hurricane Sandy, with a number of refineries on reduced operation or having shut down production in anticipation of the event. A stronger dollar too contributed to oil's decline.
The New York Mercantile Exchange trading floor remained closed to facilitate mandatory evacuation due to the threat posed by Hurricane Sandy, but electronic trading continued its regular course. Crude for December delivery dropped $0.74 or 0.9 percent to close at $85.54 a barrel on the New York Mercantile Exchange. |
| Commodities | | | | USDCAD | USDEUR | USDGBP | USDJPY |  |  |  |  | | Please click on the images to view our interactive charts | | 10/30/2012 7:14 AM ET
The price of crude oil edged up Tuesday morning as traders await information on damages after Hurricane Sandy hit the U.S. and shut East Coast refineries.
Light Sweet Crude Oil (WTI) futures for December delivery, added $0.53 to $86.07 a barrel. Yesterday, oil settled lower on demand concerns on the threat posed by Hurricane Sandy with a number of refineries on reduced operation or have shut down production in anticipation of the event. The dollar also strengthened against a basket of major currencies, with investors finding it a safe haven even as the hurricane nears landfall.
This morning, the U.S. dollar was easing from its 2-week high versus the euro and ticking lower against sterling. The buck continued to slip from its 4-month high versus the yen and trading lower against the Swiss franc.
In economic news, euro zone economic confidence dropped less than expected in October, monthly survey from the European Commission showed. The corresponding index came in at 84.5, down from 85.2 in the prior month. Economists had forecast the index to drop to 84.4. The marked decreases in industry and construction outweighed the improvement in the retail trade sector.
Germany's unemployment increased by 20,000 in October from a month ago, data from the Federal Labor Agency showed. It follows an increase of 12,000 each in September and August. Economists were expecting a monthly increase of 10,000 for October.
Traders will look to the release of S&P/Case-Shiller Home Price Indices for the month of August from the Standard & Poor's at 9.00 a.m ET. Economists expect the reading to have risen to 1.9 percent from the last month's 1.2 percent.
Today after the market hours, the API will release its US crude oil inventories report for the weekended October 26. |
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