While selling pressure has remained relatively subdued, stocks have moved mostly lower over the course of the trading day on Monday. Lingering concerns about the looming fiscal cliff continue to weigh on the markets following last week's sell-off.
The major averages have moved roughly sideways in recent trading, stuck in negative territory.
The Dow is down 21.00 points or 0.2 percent at 12,794.39, the
Nasdaq is down 5.69 points or 0.2 percent at 2,899.18 and the
S&P 500 is down 1.61 points or 0.1 percent at 1,378.24.
Stocks moved mostly higher in early trading on the heels of the release of a report showing that the Chinese trade surplus widened to $31.99 billion in October compared to expectations for a surplus of $27.15 billion.
Chinese exports surged up by 11.6 percent year-over-year, surpassing expectations for a 10 percent increase. Imports rose by 2.4 percent, below estimates for a 3.4 percent increase.
However, a separate report showing that
Japanese GDP shrank by 0.9 percent in the third quarter helped to limit the upside for the markets.
On a year-over-year basis, Japanese GDP fell 3.5 percent in the third quarter compared to expectations for a 3.4 percent drop.
The subsequent pullback by the markets came as traders expressed continued concerns about whether President Barack Obama and members of congress will be able to come to an agreement to avert the fiscal cliff looming at the end of the year.
While members of both parties have called for compromise on the issue, recent statements suggest that a continued disagreement over taxes on the wealthy could lead to continued gridlock on Capitol Hill.
Without action by Congress, the end of the year will see the expiration of the Bush-era tax cuts as well as the automatic spending cuts that were part of last summer's debt ceiling deal.
Despite the weakness that has emerged on Wall Street, shares of
Jefferies (JEF) are seeing considerable strength after the investment
banking firm agreed to be acquired by
Leucadia National (LUK). Jefferies is currently posting an 11.9 percent gain.
Sector News
While many of the major sectors are showing only modest moves, housing stocks have shown a notable move to the downside over the course of the trading day. After rising as much as 1.3 percent in early trading, the
Philadelphia Housing Sector Index is down by 1.5 percent.
Among housing stocks, shares of
Beazer Homes (BZH) have moved sharply lower on the day after the homebuilder reported a wider fourth quarter net loss.
D.R. Horton (DHI) has also turned lower despite reporting stronger than expected fourth quarter earnings
growth.
Computer hardware stocks have also come under pressure on the day, dragging the
NYSE ArcaComputer Hardware Index down by 1.6 percent.
Dell (DELL) is turning in one of the sector's worst performances ahead of the release of its quarterly results later this week.
Software,
gold, and
utilities stocks have also moved mostly lower, while strength remains visible among biotechnology and railroad stocks.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Monday. Japan's
Nikkei 225 Index fell by 0.9 percent, while Australia's
All Ordinaries Index ended the day down by 0.3 percent.
Meanwhile, the major European markets turned in a mixed performance on the day. While the German
DAX Index edged up by 0.1 percent, the U.K.'s
FTSE 100 Index closed just below the unchanged and the French
CAC 40 Index dipped by 0.4 percent.
The U.S. bond market is closed on the day due to the Veteran's Day holiday.
| Canadian Market |
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11/12/2012 11:19 AM ET Canadian stocks were hovering in the green Monday morning as commodities were steady amid upbeat macroeconomic data out of China, with the nation posting a huge merchandise trade surplus in October. However, uncertainty over the U.S. fiscal cliff and the disbursement of the next tranche of aid for debt-laden Greece were capping gains.
The S&P/TSX Composite Index edged up 11.35 points or 0.09 percent to 12,208.15, a day after snapping its two-session losing streak.
Smartphone maker Research In Motion (RIM.TO) gained about 3 percent after announcing plans to introduce its BlackBerry 10 smartphones on January 30.
Home furnishings retailer Leon's Furniture Ltd. (LNF.TO) said it would acquire The Brick Ltd. (BRK.TO) for $5.40 per share. Shares of Brick skyrocketed 52 percent. Shares of Brick skyrocketed 52 percent.
The price of crude oil was moving lower Monday morning as traders await further cues from this week's macro economic data out of the US. The IEA in its closely watched annual World Energy Outlook released Monday said the U.S. will overtake Saudi Arabia as the world's largest oil producer in about eight years from now. Oil demand will increase by 14 percent between now and 2035 to reach 99.7 million barrels a day, the IEA said.
Crude for December edged down $0.18 to $85.89 a barrel.
In the oil patch, Nexen Inc. (NXY.TO) and Vermilion Energy (VET.TO) were up around 2 percent each.
Oil and gas industry services provider Ensign Energy Services (ESI.TO) rose over 2 percent even after it said its third-quarter net income decreased to C$44.8 million or C$0.29 per share from C$64.0 million or C$0.42 per share for the 2011 third quarter. Removing the large quarterly year-over-year swing in share-based compensation, quarterly adjusted net income was C$47.2 million, down nine percent from C$52.1 million recorded a year earlier.
Metals miner Paladin Energy Ltd. (PDN.TO) gained 1 percent after reporting a narrow first quarter loss of $45.9 million from last year's 123.4 million.
Meanwhile gold stocks were trading marginally lower despite steady bullion prices. The price of gold was ticking higher Monday morning as traders speculate that higher physical demand for the yellow metal amid key festivals and wedding season in India will help sustain prices. Gold for December added $2.00 to $1,732.90 an ounce.
Among gold plays, Allied Nevada Gold (ANV.TO) and Goldcorp. (G.TO) were down over 1 percent each.
Osisko Mining Corp. (OSK.TO) lost over 6 percent after it said it would acquire Queenston Mining Inc. (QMI.TO) in exchange of 0.611 of an Osisko share for each Queenston share held, implying an offer of C$6.00 per share, valuing Queenston's equity at about C$550 million. On the other hand, shares of Queenston soared 12 percent.
Base-metal miner Royal Nickel Corp. (RNX.TO) shed nearly 2 percent after posting a wider third-quarter net loss of $2.9 million or $0.03 per share compared to a loss of $1.2 million or $0.01 per share in the same period last year.
In economic news, Germany's wholesale price inflation accelerated to the highest level in eleven months in October, data released by the Federal Statistical Office showed. The wholesale price index increased 4.6 percent on an annual basis in October, faster than the 4.2 percent gain seen in September. Economists were looking for a 4.9 percent rise. The latest growth, the fourth in a row, was the fastest since November 2011, when prices advanced 4.9 percent.
Elsewhere, Japan's economy shrank 0.9 percent in the third quarter of 2012 compared to the previous three quarters, marking its first contraction in three quarters, the Cabinet Office said in a report. On a yearly basis, GQP dropped 3.5 percent - slightly worse than expectations for a contraction of 3.4 percent.
Separately, data out of China showed that the nation posted a merchandise trade surplus of $31.99 billion in October - blowing past expectations for $27.15 billion after coming in at $27.67 in September. Exports surged 11.6 percent year-over-year to $175.57 billion, beating forecasts for a 10 percent gain. |
| European Market |
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11/12/2012 12:14 PM ET The majority of the European markets finished to the downside Monday, with a number of factors weighing on investor sentiment. The uncertainty surrounding the situation in Greece was in focus today, after the Greek Parliament approved the new budget. Euro area finance ministers will hold a meeting in Brussels this evening, but they are not expected to announce a decision on the next round of aid to Greece. The impending fiscal cliff in the U.S. added to investor jitters, as well as the continued lack of a bailout request from Spain.
The Greek parliament approved the 2013 budget, involving fresh spending cuts, by a 167 to 128 vote. The approval was achieved despite the mass public street protests against austerity measures that took place in the country. The budget approval was a crucial precondition set by the country's creditors to secure the next bailout tranche.
The euro area finance ministers are not likely to come to a decision on the 31.5 billion euros payment to Greece at their meeting this evening. However, they are expected not to let a 5 billion euro debt repayment due on Friday, to trigger an accidental default.
Japan's gross domestic product contracted 0.9 percent in the third quarter of 2012 compared to the previous three quarters, the Cabinet Office said in Monday's preliminary reading - dipping into the red for the first time in five quarters. The headline figure was in line with forecasts following the 0.2 percent increase in the second quarter.
The Euro Stoxx 50 index of eurozone bluechip stocks declined by 0.25 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.34 percent.
The DAX of Germany increased by 0.07 percent, but the FTSE 100 of the U.K. decreased by 0.04 percent. The CAC 40 of France dropped by 0.35 percent and the SMI of Switzerland fell by 0.28 percent.
In Frankfurt, Commerzbank advanced by 1.20 percent. Deutsche Bank finished lower by 0.31 percent.
Fraport fell by 1.01 percent, after reporting a modest growth in passenger traffic in October.
ElringKlinger climbed by 2.12 percent. The stock was upgraded to "Buy" from "Hold'' at DZ Bank.
Steel distributor Kloeckner rose by 2.30 percent. Exane BNP upgraded the stock to "Outperform" from "Neutral.''
Life insurer Talanx was initiated with a "Neutral" rating at JP Morgan. The stock closed up by 2.98 percent.
In Paris, Credit Agricole dropped by 1.69 percent. BNP Paribas and Societe Generale finished higher by 0.20 percent and 1.16 percent respectively.
Publicis Groupe gained 1.74 percent, after the company issued a trading update.
In London, Admiral Group advanced by 3.61 percent.
Lloyds Banking group gained 3.50 percent, while Barclays added 2.09 percent.
Among miners, Anglo American dropped by 2.06 percent, Randgold Resources fell by 1.35 percent and Eurasian Natural Resources lost 0.31 percent.
Software firm Aveva increased by 0.70 percent, after reporting first-half results.
Cobham, which issued an Interim Management statement, declined by 9.67 percent. The firm expects its US defence/security revenue will decline in 2013 by mid-to-high single digits as the US defence/security market remains challenging.
Germany's wholesale price inflation accelerated to the highest level in eleven months in October, data released by the Federal Statistical Office showed Monday.
The wholesale price index increased 4.6 percent on an annual basis in October, faster than the 4.2 percent gain seen in September. Economists were looking for a 4.9 percent rise. The latest growth, the fourth in a row, was the fastest since November 2011, when prices advanced 4.9 percent. |
| Asia Market |
11/12/2012 6:18 AM ET Indian shares eased marginally on Monday, tracking lackluster global cues as investors awaited the outcome of a European finance minister's meeting later in the day to see if they approve the next 31.5 billion euro rescue fund payout to Greece to help the debt-laden nation meet a 5 billion euro debt repayment due this week. Closer home, weaker-than-expected industrial output data for September and concerns about the widening trade deficit hurt sentiment, dragging the rupee down to its lowest level in two months, breaching the 55 level.
The benchmark Sensex moved in the range of 18,751-18,608 before ending down 13 points or 0.07 percent at 18,670, with 21 of its components retreating. The broader Nifty index fell by 3 points or 0.04 percent to 5,684, while the BSE mid-cap and small-cap indexes ended up 0.3 percent and 0.2 percent, respectively. Metal, capital goods, oil/gas and auto stocks led the decliners, while consumer durable, banking and realty stocks rose broadly, helping limit the downside.
India's industrial output unexpectedly shrank in September, with production contracting by 0.4 percent from a year ago, due to dismal show by manufacturing sector and decline in consumer as well as capital goods output, data showed today, underscoring the government's challenge as it seeks to boost growth and simultaneously reduce the fiscal deficit.
India's exports fell 1.6 percent to $23.2 billion in October, while imports jumped 7.37 percent to $44.2 billion, leaving a trade deficit of $20.9 billion, a separate statement from the Commerce and Industry Ministry revealed.
Among the prominent decliners in the Nifty pack, realty major DLF lost 2.7 percent ahead of its quarterly results later in the day, while ITC, Tata Power, Ambuja Cements, ACC, Tata Steel, Siemens, BPCL, Hero MotoCorp, Ranbaxy fell 1-2 percent.
Dabur India fell 1.8 percent after India Against Corruption activist-turned-politician Arvind Kejriwal accused the Burman brothers, promoters of the company, of having black money deposits at the HSBC bank in Geneva. Corporation Bank and Jaypee Infratech lost about a percent each on disappointing Q2 results.
Telecom stocks ended mixed after the much-awaited auction for 2G spectrum evoked a lukewarm response in initial rounds. Bharti Airtel rose 1.7 percent and Reliance Communication rallied 3.4 percent, while Idea Cellular slipped 0.8 percent.
Jaiprakash Associates rose over 2 percent before its earnings results. United Spirits jumped 35 percent to a 52-week closing high on a brokerage upgrade after U.K.'s Diageo Plc agreed to buy a majority stake in the company for $2.1 billion in a multi-structured deal. Group firm Kingfisher Airlines jumped 4.8 percent, while United Breweries and United Breweries Holdings fell about 5 percent each.
IT stocks gained ground after industry body Nasscom said the Indian IT industry will do "exceedingly well" in 2013-14. The biggest association of software and services companies said that it now expects industry growth this year to be at the lower end of its 11-14 percent forecast made at the beginning of this year. Infosys rose half a percent and TCS added 0.4 percent.
State Bank of India advanced 1.6 percent amid reports the state-run lender might have over-estimated its gross slippage for the July-September quarter. Development Credit Bank rose a percent after its board approved a preferential allotment of shares to two investors.
Elsewhere, other Asian markets ended broadly lower Monday, as weak GDP data from Japan tempered optimism over continued economic recovery in China. European stocks were mixed after last week's steep falls, while trading in the U.S. index futures signaled a positive start. |
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11/12/2012 7:33 AM ET The price of crude oil was little changed Monday morning as traders await further cues from this week's macro economic data out of the US.
Light Sweet Crude Oil (WTI) futures for December delivery, edged up $0.02 to $86.09 a barrel. Last week, oil rebounded from its four-month low amid upbeat macroeconomic data from China, the second largest oil consuming nation.
This morning, the U.S. dollar was steady around its 2-month high versus the euro and the Swiss franc, while advancing towards a three-week high against sterling. The buck continued to level off from its 4-month high versus the yen.
In economic news, Germany's wholesale price inflation accelerated to the highest level in eleven months in October, data released by the Federal Statistical Office showed. The wholesale price index increased 4.6 percent on an annual basis in October, faster than the 4.2 percent gain seen in September. Economists were looking for a 4.9 percent rise. The latest growth, the fourth in a row, was the fastest since November 2011, when prices advanced 4.9 percent.
Meanwhile, the IEA in its closely watched annual World Energy Outlook released Monday said the U.S. will overtake Saudi Arabia as the world's largest oil producer in about eight years from now. Oil demand will increase by 14 percent between now and 2035 to reach 99.7 million barrels a day, the IEA said.
During this week, traders focus will be on the Commerce Department's retail sales report for October, the results of the manufacturing surveys by the New York Federal Reserve and the Philadelphia Federal Reserve, the Federal Reserve's industrial production report for October, the FOMC minutes and the weekly jobless claims data.
Also, focus will be on the crude oil inventories data from the API, due out Tuesday after the market hours, and the EIA due out the subsequent day. |
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