| Stocks Seeing Modest Strength On Upbeat GDP Data
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 (AAPL) 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 (AMZN) reported a third quarter loss that was wider than analysts had expected. The company's net sales also trailed expectations.
Merck (MRK) 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 | | | TSX Edges Up At Open Friday
Bay Street stocks edged up at open Friday amid marginal buying in metal stocks, with the S&P/TSX Composite Index adding 26.36 points or 0.31 percent to 12,326.59.
Among base-metals stocks, First Quantum Minerals edged up 0.50 percent, while Inmet Mining and Teck Resources were losing around 1 percent each.
In the oil patch, Paramount Resources and Baytex Energy Corp. were down about 1 percent each.
Energy marketing company TransAlta Corp. gained over 1 percent after reporting improved third quarter funds from operations.
Insurance services provider Fairfax Financial Holdings Ltd. eased 0.25 percent after reporting a much lower net income for the third quarter.
Commercial and industrial equipment dealer Toromont Industries Ltd. shed 0.50 percent even after reporting improved third-quarter net earnings.
The price of crude oil was flat, with crude for December edging up $0.22 to $86.27 a barrel. The price of gold was moving back toward its seven-week low Friday morning as the U.S. dollar was trading firm amid GDP data. Gold for December lost $2.90 to $1,710.10 an ounce.
Crude oil and natural gas distribution company Enbridge Inc. said it would transfer certain of its assets to Enbridge Income Fund Holdings Inc. at a price of $1.164 billion.
Energy marketing company TransAlta Corp. reported improved third quarter funds from operations at C$232 million or C$0.99 per share compared to C$168 million or C$0.75 per share in 2011. However, comparable earnings declined to C$41 million or C$0.18 per share from C$61 million or C$0.27 per share last year.
In economic news from south of the border, the Commerce Department said 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.
From the euro zone, confidence among German consumers is set rise in November, according to the latest survey results from market research group GfK. The consumer confidence index for November rose to 6.3 from an upwardly revised 6.1 in October. Economists had forecast the index to remain unchanged from October's original score of 5.9.
Meanwhile, consumer confidence in France deteriorated for the fifth consecutive month in October, data released by statistical office Insee showed. The consumer confidence index dropped to 84 in October from 85 in September, in line with economists' expectations. The index has declined for the fifth month in a row. |
| European Market | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | European Markets In Negative Territory, Data Eyed
The European markets are in negative territory in afternoon trading Friday, as investor sentiment continued to be weak, ahead of the advance estimate of third quarter GDP data from the U.S., after Apple reported unimpressive earnings.
Confidence among German consumers is set rise in November, reports said, citing the latest survey results from market research group GfK. The consumer confidence index for November rose to 6.3 from an upwardly revised 6.1 in October.
Consumer confidence in France deteriorated for the fifth consecutive month in October, data released by statistical office Insee showed. The consumer confidence index dropped to 84 in October from 85 in September, in line with economists' expectations. The index has declined for the fifth month in a row.
The Euro Stoxx 50 index of eurozone bluechip stocks is losing 0.70 percent, while the Stoxx Europe 50 index, which includes some major U.K. Companies is falling 0.60 percent.
The German DAX is losing 0.5 percent, the French CAC 40 is falling 0.4 percent and the FTSE 100 of the U.K. is dropping 0.7 percent. Switzerland's SMI is receding 0.4 percent.
In Frankfurt, Fresenius Medical Care is declining 1.8 percent and parent Fresenius is falling 1.7 percent. Deutsche Bank reduced its rating on Fresenius.
RWE is losing 0.8 percent. UBS added the stock to ''Least Preferred List.'' SAP is gaining 1.1 percent after Merrill Lynch raised the stock to "Buy" from "Neutral." Kloeckner is falling 2.3 percent, following a broker downgrade.
In Paris, Credit Agricole, BNP Paribas and Societe Generale are falling between 3.6 percent and 2.5 percent.
Publicis Groupe is dropping 1.6 percent. The advertising and communications firm said its third-quarter revenues increased 14.7 percent, with an organic growth of 2 percent. Carrefour is gaining 2.5 percent after Morgan Stanley raised the stock to "Overweight'' from "Equalweight.''
In London, Kazakhmys is losing 2.5 percent and Fresnillo is falling 2.1 percent.
Chipmaker ARM Holdings is dropping 2.4 percent on disappointing earnings report from Apple. Anglo American is gaining 2.6 percent after announcing that its chief executive is leaving.
Weir Group is rising 3 percent and Pearson is up 1.4 percent. Ericsson is losing 4.6 percent in Stockholm after reporting a 43 percent decline in third-quarter profit.
Statoil is down around 1 percent in Oslo. The energy firm reported a rise in third-quarter profit, reflecting mainly higher gas prices and volumes of gas sold. KPN is gaining 1.8 percent in Amsterdam despite a broker downgrade. | Asia Market | | Asian Stocks Fall On Earnings Concerns
Asian stocks fell broadly on Friday as weaker than expected regional corporate earnings coupled with downbeat earnings from Apple last night dented investor sentiment. Hopes that the U.S. economy is recovering gave way to caution ahead of GDP data due tonight after the latest data on U.S. housing showed the number of Americans signing contracts to buy previously-owned homes rose only slightly in September from August, indicating that sales may level off in the coming months after steady gains in the past year.
Japanese stocks fell sharply as the yen's brief rally against the dollar and the euro caused jittery investors to take some profits off the table following recent gains. The Nikkei average and the broader Topix index fell about 1.4 percent each. Bellwether exporters such as Toyota Motor and Nikon fell 2-3 percent amid a steady yen ahead of BOJ policy meeting next week.
Japan's consumer prices slid for a fifth month in September, data released today showed, adding pressure on the Bank of Japan to expand monetary easing to help fight deflation and achieve its inflation target. The government of Prime Minister Yoshihiko Noda approved additional spending to the tune 422 billion yen today to bolster a flagging economy, which is feared to fall into a recession amid weakening domestic demand.
Heavyweight Fanuc lost 3.1 percent on a brokerage downgrade after the industrial robot maker posted a second-quarter operating profit of 47.7 billion yen, down 23 percent from a year earlier. Canon also tumbled 3.2 percent after the world's largest camera maker reported weak results and cut its full-year profit and sales outlook.
Shares of Fuji Electric plummeted 7.5 percent on concerns it may miss its full-year operating profit forecast. On the positive side, Advantest rallied 3.6 percent after turning in group net profit of 1.52 billion yen in the first half versus a 4.54 billion yen loss in the year-ago period. Sharp jumped 3.8 percent on reports that it has its eye on fresh talks with firms such as Hewlett-Packard, Intel and Apple over a possible capital alliance.
China's Shanghai Composite index retreated 1.7 percent, dragged down by cement and steel companies on worries over weak earnings. Hong Kong's Hang Seng index lost 1.2 percent, snapping a 10-day winning streak after mobile operator China Unicom posted third-quarter net profit that missed analysts' estimates.
Australian shares fell notably ahead of U.S. growth data due later in the global day. Both the benchmark S&P/ASX 200 and the broader All Ordinaries index fell about 0.8 percent each. Resource stocks turned lower on revelations the minerals resource rent tax failed to earn any revenue from the three big miners in the first quarter.
BHP Billiton fell 1.5 percent while smaller rival Fortescue Metals Group lost 2.4 percent. Rio Tinto declined 1.8 percent after an Australian lawyer working for Rio Tinto subsidiary SouthGobi Resources in Mongolia was stopped from leaving the country to quiz her about allegation of bribery. Gold miner Newcrest added 0.6 percent.
Whitehaven Coal tumbled 4.7 percent after warning of a steep drop in its full-year earnings. Oil & gas firm Woodside and Oil Search lost about 1.4 percent each, while Santos ended down 1.2 percent. Banks ended on a subdued note after the collapse of prominent financial group Banksia Securities. Westpac, NAB, ANZ and Commonwealth fell between 0.3 percent and 0.8 percent. Investment bank Macquarie Group rallied 3.5 percent as it announced an 18 percent rise in first-half profit on strong income from its trading and funds businesses.
Seoul shares tumbled on foreign fund selling after data showed the South Korean economy grew at the slowest pace in nearly three years in the third quarter, as the global slowdown hurt corporate investment. According to the latest figures from Bank of Korea, the gross domestic product expanded 0.2 percent quarter-over-quarter in the third quarter, slower than the 0.3 percent increase recorded in the second quarter. This marked the weakest growth since the fourth quarter of 2009.
The benchmark Kospi average lost 1.7 percent. Market bellwether Samsung Electronics fell 2.7 percent despite announcing record third-quarter profit. Kia Motors plunged 5.6 percent after its third quarter profit came in below expectations.
New Zealand shares fell in thin trading, dragged down by losses in heavyweights. The benchmark NZX-50 index slipped 0.2 percent. Shares of Fletcher Building, the nation's largest construction company, dropped 1.3 percent, F&P Healthcare, the maker of breathing masks and respirators which gets more than 50 percent of its sales in U.S. dollars, lost 1.7 percent, utility Contact Energy shed 0.7 percent and Telecom, the biggest phone company on the exchange, edged down 0.2 percent.
Restaurant Brands declined 1.6 percent after the fast-food franchise operator forecast a flat annual profit. Freightways shed 1.6 percent after climbing to a five-year earlier this week on improved Q1 performance. Stock market operator NZX led the gainers on the exchange, climbing 4.1 percent, while investment company Infratil, dual-listed lender Westpac Banking and jeweler Michael Hill rose about 3 percent each.
Elsewhere, India's benchmark Sensex was moving down 0.8 percent, and the Taiwan Weighted average fell 1.8 percent, while the markets in Indonesia, Malaysia and Singapore were closed for holidays. |
| Commodities | | | | USDCAD | USDEUR | USDGBP | USDJPY |  |  |  |  | | Please click on the images to view our interactive charts | | | Crude Eases Near $85
The price of crude oil slipped Friday morning as traders await U.S. economic growth data due today for clues about the health of the world's biggest economy.
Light Sweet Crude Oil (WTI) futures for December delivery, lost $0.41 to $85.64 a barrel. Yesterday, oil snapped its five-day losing streak to settle higher on some upbeat macroeconomic data from the U.S. with initial jobless claims indicating a sharp decline.
The price of gold was moving back toward its seven-week low Friday morning as the U.S. dollar was trading firm ahead of GDP data.
Gold for December delivery, the most actively traded contract, shed $8.60 to $1,704.40 an ounce. Yesterday, gold settled higher mostly on bargain hunting and the Federal Reserve reiterating its continued commitment to the highly accommodative monetary policy at the end of its FOMC policy meet.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 1,336.90 tons.
This morning, the U.S. dollar advanced back toward a 2-week high versus the euro and leveling off from a weekly low against sterling. The buck was hovering around its 4-month high versus the yen and ticking higher against the Swiss franc.
In economic news from the euro zone, Confidence among German consumers is set rise in November, according to the latest survey results from market research group GfK. The consumer confidence index for November rose to 6.3 from an upwardly revised 6.1 in October. Economists had forecast the index to remain unchanged from October's original score of 5.9.
Meanwhile, consumer confidence in France deteriorated for the fifth consecutive month in October, data released by statistical office Insee showed. The consumer confidence index dropped to 84 in October from 85 in September, in line with economists' expectations. The index has declined for the fifth month in a row.
Traders will look to the advance estimate of third quarter GDP report from the U.S. Commerce Department, due out at 8:30 am ET. Economists expect sequential GDP growth for 1.9 percent for the growth compared to 1.3 percent growth in the second quarter. |
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