Stocks Turning In A Lackluster Performance In Early Trading
After moving modestly higher at the open, stocks have shown a lack of direction over the course of early trading on Friday. The major averages continue to linger near the unchanged line after ending the previous session nearly flat.
The major averages are currently posting slim gains, with the Dow up 32.94 points or 0.3 percent at 13,359.33, while the Nasdaq is up 0.22 points or less than a tenth of a percent at 3,049.63 and the S&P 500 is up 0.61 points or less than a tenth of a percent at 1,433.45.
The choppy trading on Wall Street comes despite the release of better than expected quarterly results from financial giant JP Morgan (JPM).
Before the start of trading, JP Morgan reported third quarter net income of $5.7 billion or $1.40 per share compared to $4.3 billion or $1.02 per share in the same quarter last year. Analysts had expected the company to earn $1.21 per share.
The company also said revenues for the quarter rose to $25.2 billion from $23.8 billion a year ago, exceeding analyst estimates for $24.5 billion.
Mortgage giant Wells Fargo (WFC) also released its third quarter results before the start of trading, reporting earnings that came in slightly above analyst estimates but on weaker than expected revenues.
Lingering concerns about the outlook for the global economy may be keeping traders on the sidelines following the weakness seen earlier in the week.
On the economic front, the Labor Department recently released a report showing that U.S. producer prices rose by more than expected in the month of September amid another jump in energy prices.
The report said producer price index rose by 1.1 percent in September after jumping 1.7 percent in August. Economists had expected the index to increase by about 0.8 percent.
Excluding the jump in energy prices and a modest increase in food prices, the core producer price index was unchanged in September. The core index had been expected to edge up by 0.2 percent.
While many of the major sectors are showing only modest moves, considerable weakness has emerged among banking stocks. The KBW Bank Index is down by 2.1 percent, with Wells Fargo helping to lead the way lower.
Electronic storage and brokerage stocks have also come under pressure, while trucking stocks have shown a strong move to the upside. J.B. Hunt (JBHT) is posting a standout gain in the trucking sector after reporting its third quarter results.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Friday. While Japan's Nikkei 225 Index edged down by 0.2 percent, Hong Kong's Hang Seng Index advanced by 0.7 percent.
Meanwhile, the major European markets have moved modestly lower on the day. The U.K.'s FTSE 100 Index, the French CAC 40 Index and the German DAX Index are all down by 0.3 percent.
In the bond market, treasuries have moved moderately higher, extending the upward move seen earlier in the week. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.2 basis points at 1.653 percent.
| Canadian Market |  | | CADUSD | Oil | Gold | Allbanc |  |  |  |  | | Please click on the images to view our interactive charts | | Royal Bank Of Canada Intends To Repurchase 30 Mln Of Common Shares - Quick Facts
Royal Bank of Canada Friday announced that it is mulling to commence a normal course issuer bid through the facilities of the Toronto Stock Exchange and to repurchase for cancellation up to 30 million of its common shares, representing approximately 2.1 per cent of the bank's outstanding common shares as at September 28, 2012.
The Bank however stated that the proposal is subject to the approval of the Office of the Superintendent of Financial Institutions, or the OFSI, and the Toronto Stock Exchange.
The Bank stated that the proposed share repurchases will enable the bank to balance the imperatives of maintaining strong capital ratios with the ongoing need to generate shareholder value.
The Bank further stated that Purchases may commence on November 1, 2012, provided the Toronto Stock Exchange has accepted the notice of intention, and may continue until October 31, 2013. The S&P/TSX Composite Index closed Thursday at 12,233.95, up 21.53 points or 0.18 percent. The index touched an intraday high of 12,295.43 and a low of 12,215.01. The Index shed nearly 250 points or about 2 percent in the past three straight sessions.
The Energy Index gained 0.57 percent, although U.S. crude oil futures for November delivery gained $0.82 or 0.9 percent to close at $92.07 a barrel Thursday on the NYMEX.
Among energy stocks, Suncor Energy Inc. gained 0.15 percent, Talisman Energy Inc. was up 2.23 percent, and Encana Corp. gathered 2.69 percent. Canadian Natural Resources Limited moved up 0.70 percent, while Niko Resources limited gained 3.15 percent.
| European Market | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | European Markets In Negative Territory, Banks Rise
The European markets are lower in afternoon trading Friday, as debt and growth worries continued to weigh on investor sentiment, amid news that the European Union won the Nobel Peace Prize for 2012. Banks are higher, following a positive sector recommendation from Deutsche Bank.
The 2012 Nobel Peace Prize was awarded to the European Union "for over six decades contributed to the advancement of peace and reconciliation, democracy and human rights in Europe." Announcing the coveted award at the Norwegian Nobel Institute in Oslo, Thorbjørn Jagland, chairman of the Norwegian Nobel Committee, said the decision was unanimous.
The finance ministers from across the globe meeting in Tokyo have recognized that the Eurozone has made "significant progress" in addressing the debt crisis, German Finance Minister Wolfgang Schauble reportedly said.
"This time there is a much more positive" sentiment regarding the economic developments in Eurozone, Schaeuble said at a press briefing in Tokyo.
Eurozone industrial production grew unexpectedly by 0.6 percent month-on-month in August, the same rate of expansion as seen in July, estimates released by Eurostat showed. Production was forecast to fall by 0.4 percent.
The Euro Stoxx 50 index of eurozone bluechip stocks is adding 0.04 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is falling 0.04 percent.
The German DAX is losing 0.16 percent and the French CAC 40 is falling 0.26 percent. The UK's FTSE 100 is sliding 0.18 percent. Switzerland's SMI is flat.
In Frankfurt, Lanxess is declining 3.4 percent after Barclays and Credit Suisse downgraded the stock. Deutsche Telekom is losing 2 percent and Infineon Technologies is falling 1.4 percent. Commerzbank and Deutsche Bank are climbing 2.8 percent and 1.5 percent, respectively.
In Paris, Safran is losing 2.2 percent, Legrand is down 2 percent and Publicis Groupe is falling 1.9 percent. Carrefour and EADS are losing around 1.5 percent each.
STMicroelectronics is climbing 12.8 percent on reports that the company is planning to separate businesses. Telecom equipment maker Alcatel Lucent is climbing 3.9 percent after Deutsche Bank raised European telecoms to "Overweight."
Beiersdorf is up 1 percent after UBS upgraded the stock. Credit Agricole and Societe Generale are advancing 1.9 percent and 1.3 percent, respectively. BNP Paribas is advancing 0.6 percent.
In London, miners Kazakhmys and Antofagasta are declining 2.4 percent and 2.1 percent, respectively. HSBC cut Anglo American to "Neutral" from "Overweight." The stock is down 0.2 percent.
Morgan Crucible is plunging nearly 11 percent after the advanced materials company said its revenue in the third quarter weakened and that full-year performance would be materially below the Board's previous expectations.
Hargreaves Lansdown is gaining 3.6 percent after an interim management statement.
Lloyds Banking Group is rising 2.8 percent, Standard Chartered is advancing 2.7 percent and Barclays is adding 2.6 percent.
| Asia Market | Asian Stocks Broadly Higher On US Data
Asian stocks ended mostly higher on Friday, with upbeat data on the U.S. labor market underpinning sentiment. Amid a lack of positive catalysts, investors welcomed the news that China and Japan have agreed to hold talks soon in a bid to reduce tensions over a territorial dispute. All eyes are on J.P. Morgan and Wells Fargo's earnings results due later in the global day following downbeat reports from Alcoa and Chevron at the start of the U.S. quarterly earnings season.
Tokyo stocks ended slightly lower, dragged down by heavyweights Softbank and Fast Retailing in an otherwise mildly bullish broader market. The Nikkei average slipped around 0.2 percent, extending losses for a fourth consecutive session, while the broader Topix index shed 0.6 percent.
A weaker yen lifted export-related stocks like Honda Motor, Canon and Tokyo Electron up 1-3 percent, while Softbank shares plunged 17 percent on heavy volume amid news that the firm is in talks to buy about 70 percent stake in U.S. operator Sprint Nextel Corp. Fast Retailing tumbled 10 percent after it announced a consolidated operating profit that missed guidance for the fiscal year ending August.
China's Shanghai Composite index edged up 0.1 percent, even as caution prevailed ahead of trade and inflation numbers due to be released on Saturday and Monday, respectively. Hong Kong's Hang Seng index rose 0.7 percent.
Australian shares rose marginally, led by miners. Both the benchmark S&P/ASX 200 and the broader All Ordinaries index ended up about 0.1 percent each. Global miners BHP Billiton and Rio Tinto rose 1-2 percent, tracking stronger iron ore prices, while gold miner Newcrest edged down 0.9 percent. Fortescue Metals Group rallied 2.7 percent after the iron-ore extractor said it would increase its debt loan facility to help refinance existing loans.
Among the major banks, ANZ and Commonwealth rose about 0.2 percent each, but NAB slipped 0.2 percent and Westpac eased 0.4 percent. Billabong International shares plunged 17 percent after U.S. private equity fund TPG withdrew its A$694 million bid for the surfwear retailer after conducting due diligence scrutiny of its accounts.
South Korean stocks closed almost unchanged on Friday despite relentless foreign fund selling amid the looming U.S. fiscal cliff of tax hikes and spending cuts that take effect early next year. The benchmark Kospi average inched up 0.17 points or 0.01 percent to 1,933, snapping a four-session losing streak.
Market heavyweight Samsung Electronics edged down 0.6 percent, reversing early gains after a U.S. appeals court overturned a preliminary injunction on the sale of its newest Galaxy Nexus smartphone in the U.S. Automakers Hyundai Motors and Kia Motors ended down about 2 percent each.
New Zealand shares rose, snapping three days of declines, buoyed by firm regional cues. The benchmark NZX-50 index rose 0.3 percent, with gold miner OceanaGold rising 2.4 percent even as gold prices traded little changed on Friday after gaining in the previous session on the back of a weaker U.S. dollar.
Freightways, NZ Refining and NZX rose about 2 percent each, while rural services firm PGG Wrightson lost 2.8 percent after two top executives of its majority shareholder, Agrium, resigned unexpectedly this week to pursue other opportunities. Heavyweights Telecom and Fletcher Building were little changed. India's benchmark Sensex was moving down 0.6 percent, dragged down by IT stocks after Infosys lowered its rupee revenue guidance and issued a weak outlook for its outsourcing business, citing global economic uncertainties. In economic news, official data released today showed that India's industrial output grew by a higher-than-expected 2.7 percent in August from a year earlier on the back of a positive base effect.
Singapore's Straits Times index was up 0.4 percent after the nation's central bank unexpectedly kept its monetary policy unchanged, citing inflation concerns and a slowing economy. Elsewhere, Indonesia's Jakarta Composite was moving up 0.6 percent, while Malaysia's KLSE Composite slipped 0.3 percent and the Taiwan Weighted average edged down 0.2 percent. |
| Forex Market | | | | USDCAD | USDEUR | USDGBP | USDJPY |  |  |  |  | | Please click on the images to view our interactive charts | | US Dollar Extends Weakness Against European Majors After PPI Data
During early New York trading on Friday, the US dollar extended its European session's weakness against major oponents after the release of producer price index data.
According to a report released by the Labor Department today, producer price index rose by 1.1 percent in September after jumping 1.7 percent in August. Economists had expected the index to increase by about 0.8 percent.
Excluding the jump in energy prices and a modest increase in food prices, the core producer price index was unchanged in September.
The core producer price index had been expected to edge up by 0.2 percent, which would have matched the increase seen in the previous month.
The greenback was trading near fresh multi-day lows of 0.9308 against the Swiss franc, 1.2990 versus the euro and 1.6099 against the British pound in New York morning, compared to yesterday's closing values of 0.9352, 1.2928 and 1.6047, respectively.
In early European session today, the IMF Managing Director Christine Lagarde called for less austerity and greater global economic cooperation as key drive for a strong path to recovery.
While speaking at the plenary session of the IMF-World Bank 2012 Annual Meetings in Tokyo, Lagarde said top priority was for the world to get beyond the current crisis and to restore sufficient growth to generate jobs for the millions of unemployed.
In economic front, the latest report released by the Eurostat, Eurozone industrial production grew unexpectedly by 0.6 percent month-on-month in August, the same rate of expansion as seen in July. Production was forecast to fall by 0.4 percent.
Meanwhile, industrial production dropped 2.9 percent on a yearly basis, following a 2.8 percent fall in July. Economists had forecast a 4.1 percent decrease for August.
The final data released by statistical office Istat today showed that Italy's EU harmonized index of consumer prices (HICP) increased 3.4 percent on an annual basis in September, in line with the preliminary estimates. In August, the rate of growth was 3.3 percent.
Against its Japanese counterpart, the greenback also showed weakness in North American morning session and presently trading near 78.35 from early Asian session's high of 78.54.
The preliminary report of Reuters/University of Michigan's consumer sentiment index for October is set to release by about 9:55 am ET. |
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