11/19/2012 11:07 AM ET After moving mostly higher over the course of the previous session, stocks have seen some further upside in morning trading on Monday. The major averages have moved sharply higher, climbing further off last Thursday's multi-month lows.
The rally on Wall Street reflects optimism that leaders in Washington will be able to reach an agreement and avoid the fiscal cliff looming at the end of the year.
A pair of upbeat U.S. housing reports have also generated some positive sentiment, with separate report showing an unexpected increase in existing home sales and a substantial improvement in homebuilder confidence.
Gold stocks are seeing considerable strength in late morning trading, with the NYSE Arca Gold Bugs Index up by 2.2 percent. The strength in the sector comes amid a notable increase by the price of gold.
Significant strength has also emerged among computer hardware stocks, as reflected by the 2.5 percent gain being posted by the NYSE Arca Computer Hardware Index. Apple (AAPL) has helped to lead the sector higher, recovering from recent weakness.
Brokerage, oil service, tobacco, and banking stocks are also posting notable gains, moving higher along with most of the major sectors.
The major averages have moved roughly sideways in recent trading, hovering firmly in positive territory. The Dow is up 155.18 points or 1.2 percent at 12,743.49, the Nasdaq is up 44.06 points or 1.5 percent at 2,897.19 and the S&P 500 is up 20.27 points or 1.5 percent at 1,380.15. 11/19/2012 9:54 AM ET Stocks have moved sharply higher in early trading on Monday, extending the upward move seen over the course of the previous session. The major averages have shown strong moves to the upside, climbing further off last Thursday's lows. The major averages are currently posting strong gains, just off their highs for the young session. The Dow is up 130.05 points or 1 percent at 12,718.36, the Nasdaq is up 41.17 points or 1.4 percent at 2,894.30 and the S&P 500 is up 18.42 points or 1.4 percent at 1,378.30. The early strength on Wall Street comes as optimism that the U.S. will avoid the looming fiscal cliff has inspired traders to pick up stocks at reduced levels after recent weakness pulled the major averages down to their worst levels in several months. The markets are benefiting from positive signs that leaders in Washington are making strides toward reaching a budget agreement. Without action by Congress, approximately $600 billion in automatic tax increases and government spending cuts are due to go into effect at the end of the year. Speaking in Bangkok as he began a three-nation Southeast Asia trip, President Barack Obama said, "I am confident we can get our fiscal situation dealt with." Traders have also reacted positively to quarterly results from Lowe's (LOW), with the home improvement retailer jumping 6.6 percent after reporting better than expected third quarter earnings and sales. The company also raised its full-year revenue forecast. Oil service stocks have shown a notable upward move, driving the Philadelphia Oil Service Index up by 2.2 percent. The strength in the sector comes as the price of crude oil is moving sharply higher amid the turmoil in the Middle East. Significant strength has also emerged among housing stocks, which are moving higher ahead of a pair of reports on the U.S. housing market. Gold, steel, and financial stocks are also seeing considerable strength. In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan's Nikkei 225 Index surged up by 1.4 percent, while Hong Kong's Hang Seng Index advanced by 0.5 percent. The major European markets have also shown strong moves to the upside on the day. While the U.K.'s FTSE 100 Index has jumped 1.6 percent, the French CAC 40 Index and the German DAX Index have soared 1.9 percent and 2 percent, respectively. In the bond market, treasuries are giving back some ground after seeing the recent strength. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 4.6 basis points at 1.62 percent. | Canadian Market |  | | CADUSD | Oil | Gold | Allbanc |  |  |  |  | | Please click on the images to view our interactive charts | |
11/19/2012 11:13 AM ET Canadian stocks were extending gains for a second session Monday as risk appetite improved after U.S. President Barack Obama expressed confidence that he and Congress would reach an agreement on budget talks to avoid the looming fiscal cliff. Also, traders were optimistic that a deal will be finalized this week in Europe to release the much-needed aid for Greece.
The S&P/TSX Composite Index surged 129.62 points or 1.09 percent to 12,007.34, a day after snapping its four-session losing streak.
The Diversified Materials Index gained nearly 2 percent, with First Quantum Minerals (FM.TO), Inmet Mining (IMN.TO) and Teck Resources (TCK_B.TO) rising about 2 percent each.
Turkey focused minerals company Aldridge Minerals (AGM.V) gained close to 6 percent after announcing that it would divest its non-core uranium assets.
The price of crude oil was firm Monday morning amid rising tensions in the Middle-East, which might hamper crude oil supplies. Also, strong global equities markets helped lift trader sentiment. Crude for January delivery gained $2.05 to $88.97 a barrel.
In the oil patch, Cenovus Energy (CVE.TO), Suncor Energy (SU.TO), Bonavista Energy (BNP.TO) and Baytex Energy Corp. (BTE.TO) were up around 2 percent each.
The price of gold was moving higher Monday morning as traders shifted their focus US fiscal talks. Gold for December rose $19.60 to $1,734.30 an ounce.
Among gold plays, Allied Nevada Gold (ANV.TO) and Agnico-Eagle Mines (AEM.TO) gathered over 3 percent each. Goldcorp. (G.TO) and Royal Gold (RGL.TO) rose about 2 percent each.
International pharmaceutical company Valeant Pharmaceuticals International, Inc. (VRX.TO) gained 1 percent after it said it plans to buy back up to $1.5 billion of securities.
Astral Media Inc.(ACM_B.TO) and BCE Inc. (BCE.TO) announced that they have amended their Arrangement Agreement and submitted a new proposal to the Canadian Radio-television and Telecommunications Commission for approval of Bell's acquisition of Montréal-based Astral. Shares of Astral jumped 9 percent.
Fertilizer maker Agrium Inc. (AGU.TO) rose over 2 percent after its largest shareholder Jana Partners LLC said it intends to propose its managing partner, Barry Rosenstein, and four independent directors to the board.
In economic news from the U.S, existing home sales unexpectedly increased in the month of October, according to a report released by the National Association of Realtors on Monday, with the increase in sales coming in spite of some regional impact from Hurricane Sandy. NAR said existing home sales rose 2.1 percent to a seasonally adjusted annual rate of 4.79 million in October from a downwardly revised 4.69 million in September.
Meanwhile, a report from the National Association of Home Builders revealed that the NAHB/Wells Fargo Housing Market Index surged up to 46 in November from 41 in October. Economists had expected the index to a show a more modest increase to a reading of 42.
Elsewhere, euro zone's construction production decreased in September after recording growth in the previous two months, preliminary data released by statistical office Eurostat showed. Construction output decreased a seasonally adjusted 1.4 percent month-on-month in September, reversing the 0.6 percent rise seen in August. In July, production had increased by 0.3 percent. |
| European Market | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | 11/19/2012 11:58 AM ET The European markets finished in positive territory Monday, rebounding from the weakness of the previous three trading sessions. U.S. lawmakers have made optimistic statements that a deal on the budget deficit and avoid the looming fiscal cliff could be reached. Investors had been fearful that the U.S. would fall back into recession if a deal is not reached to avoid the fiscal cliff. There are also reports that a tentative approval of the next tranche of aid to Greece is likely to be approved tomorrow, when European finance ministers meet.
After the European markets had closed on Friday, bipartisan group of U.S. Congressional leaders made statements regarding the progress of the first day of negotiations to find a solution to the fiscal cliff. Republicans announced that revenues are now on the table, as long as they are accompanied by spending cuts. The leaders announced that they are not going to wait until the last minute to come to a solution.
Over the weekend, President Obama stated that he is confident "we can get our fiscal situation dealt with."
Eurozone finance ministers are heading for another round of talks on Greece in Brussels on Tuesday, seeking a plan to bridge a financing gap created by a two-year extension of Greece's bailout program, while settling a dispute with the International Monetary Fund on the same.
The finance ministers of the 17 euro area nations, known as the Eurogroup, will also discuss how to restore Greek debt sustainability by 2020, as this is crucial in restoring investor's faith in the single currency. The Eurozone should decide next week on financing Greece for 2013 and 2014, European Central Bank policymaker Joerg Asmussen told German broadcaster ZDF.
"But you have to be honest and say we do not really expect the country to have access to markets in 2015 and 2016," he said Sunday. "That means a follow-up programme would be necessary."
The Euro Stoxx 50 index of eurozone bluechip stocks increased by 2.84 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 2.28 percent.
The DAX of Germany climbed by 1.14 percent and the CAC 40 of France gained 1.69 percent. The FTSE 100 of the U.K. advanced by 1.06 percent and the SMI of Switzerland rose by 0.98 percent.
In Frankfurt, Daimler increased by 1.98 percent. The luxury carmaker said it plans to expand its management board to include a member solely responsible for the company's troublesome Chinese car business.
In Paris, Societe Generale advanced by 5.52 percent. Credit Agricole rose by 5.20 percent and BNP Paribas increased by 4.65 percent.
In London, BP climbed by 1.46 percent. The oil giant said it intends to spend up to 3.7 billion pounds buying back its shares in an attempt to revive its flagging share price and prevent in time potential takeover attempts.
Barclays rose by 4.39 percent, after Goldman Sachs upgraded the stock to "Buy" from "Neutral."
HSBC increased by 2.83 percent. The company is reportedly involved in talks to sell its $9.3 billion stake in China's Ping An Insurance.
Lloyds Banking Group fell by 1.21 percent. The company agreed to sell a portfolio of Irish commercial real estate loans for £149 million in cash.
Royal Bank of Scotland climbed by 1.84 percent and Standard Chartered gained 0.94 percent.
Eurozone's construction production decreased in September after recording growth in the previous two months, preliminary data released by statistical office Eurostat showed Monday. Construction output decreased a seasonally adjusted 1.4 percent month-on-month in September, reversing the 0.6 percent rise seen in August. In July, production had increased by 0.3 percent.
A leading indicator of the French economy increased for the third consecutive month in September, data from a survey by the Conference Board showed Monday. The leading economic index increased to 114.9 in September from 114.2 in August. In July, the reading was 113.5.
Signs of recovery are emerging in the British property market with house prices posting the least severe November fall in three years along with some positive developments in other indicators, a survey by Rightmove revealed Monday.
Average asking price for a property in the UK fell 2.6 percent month-on-month in November to GBP 236,761. This was the weakest November fall since 2009. In October, house prices were up 3.5 percent.
Prices were up 2 percent year-on-year, the highest annual rate of increase seen in November since 2007. Excluding London, where prices continued to show an upward trend, the overall house price index still rose 0.2 percent on an annual basis.
Existing home sales in the U.S. unexpectedly increased in the month of October, according to a report released by the National Association of Realtors on Monday, with sales rebounding after falling in the previous month.
NAR said existing home sales rose 2.1 percent to a seasonally adjusted annual rate of 4.79 million in October from a downwardly revised 4.69 million in September. Economists had expected existing home sales to fall to 4.70 million from the 4.75 million originally reported for the previous month.
Homebuilder confidence in the U.S. has seen a substantial improvement in the month of November, the National Association of Home Builders revealed in a report on Monday, with the homebuilder confidence index jumping to a new six-year high.
The report showed that the NAHB/Wells Fargo Housing Market Index surged up to 46 in November from 41 in October. Economists had expected the index to a show a more modest increase to a reading of 42. |
| Asia Market | 11/19/2012 6:19 AM ET Indian shares moved sideways before ending little changed on Monday, as investors adopted a cautious approach ahead of the winter session of parliament that would begin on Thursday. Key economic agenda for the session includes amendments to Insurance Bill, Banking Regulation Bill and Direct Tax Code.
The Trinamool Congress, which quit the government over two months back, announced over the weekend that her party would move a "no confidence" motion in the house against Congress-led UPA II government, rendering investor mood cautious despite firm global cues.
Most Asian markets rose and European markets ended a three-session losing streak, after U.S. President Barack Obama expressed confidence that he and Congress would reach a deal on how to cut the budget deficit of nearly $1.1 trillion, which amounts to more than 7 percent of the nation's gross domestic product.
Japan's Nikkei index rose 1.4 percent to a two-month high on expectations of aggressive monetary easing from the Bank of Japan after the latest opinion polls showed opposition Liberal Democratic Party is likely to outperform Noda's Democratic party in the December 16 general election.
The benchmark BSE Sensex ended the session up 30 points or 0.16 percent at 18,339, with only 13 of its components advancing. Auto and FMCG stocks led the gainers, while consumer durable, capital goods, healthcare and metal stocks bore the brunt of the selling. The broader Nifty index slipped by 3 points or 0.05 percent to 5,571.
Maruti Suzuki led the gainers in the Nifty pack, climbing 4 percent after reports said the company is ramping up component exports to Suzuki plants. Telecom major Bharti Airtel jumped 3.2 percent, extending its recent gains after the 2G spectrum auction flopped badly. Among those that fell, TCS, Tata Power, JP Associates, Lupin and IDFC lost 2-3 percent. |
| Commodities | | | | USDCAD | USDEUR | USDGBP | USDJPY |  |  |  |  | | Please click on the images to view our interactive charts | | 11/19/2012 7:10 AM ET The price of crude oil was firm Monday morning amid rising tensions in the Middle-East, which might hamper crude oil supplies. Also, strong global equities markets helped lift trader sentiment.
Light Sweet Crude Oil (WTI) futures for January delivery, added $1.11 to $88.03 a barrel. Last week, oil gained over 1 percent amid supply concerns with trouble brewing in the Middle East after an Israeli airstrike killed the military chief of Hamas in Gaza. Hamas has since vowed to avenge the death, while Israel indicated continued focus on similar targets.
This morning, the U.S. dollar was steady around its 2-month high versus the euro and sterling. The buck was hovering around its 7-month high versus the yen, while ticking lower against the Swiss franc.
In economic news, euro zone's construction production decreased in September after recording growth in the previous two months, preliminary data released by statistical office Eurostat showed. Construction output decreased a seasonally adjusted 1.4 percent month-on-month in September, reversing the 0.6 percent rise seen in August. In July, production had increased by 0.3 percent.
Traders will look to the report on existing home sales for October from the National Association of Realtors, due out at 10 a.m. ET. Economists estimate existing home sales of 4.70 million for the month compared to 4.75 million units in September.
Simultaneously, the National Association of Home Builders is scheduled to release the results of its November survey on homebuilders' confidence also at 10 am ET. The consensus estimates call for the index to rise to 42 from 41 in October.
During this week, focus will be on the National Association of Realtors' existing home sales report for October, the National Association of Home Builders' housing market index for November and the Commerce Department's housing starts report for October.
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. 11/19/2012 7:03 AM ET The price of gold was moving higher Monday morning as global equities turned firm after U.S. President Barack Obama expressed confidence that he and Congress would reach an agreement on budget talks to avoid the looming fiscal cliff.
Gold for December delivery, the most actively traded contract, gained $9.00 to $1,723.70 an ounce. Last week, gold shed nearly 1 percent on a World Gold Council report that projected weak demand for the precious metal in the third quarter.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved up to record high of 1,342.63 tons from 1,339.62 tons.
The prices of silver and platinum were ticking higher in morning deals. |
|
No comments:
Post a Comment