Stocks Seeing Modest Weakness Despite Upbeat Data
With traders shrugging off a batch of largely upbeat U.S. economic data, stocks have moved moderately lower during trading on Tuesday. The major averages have slipped into negative territory, although selling pressure has remained relatively subdued.
The modest weakness on Wall Street comes as traders express continued uncertainty about whether lawmakers in Washington will be able to put aside their differences and reach an agreement to avoid the fiscal cliff looming at the end of the year.
The worries about the fiscal cliff have offset upbeat reports on U.S. durable goods orders, home prices, and consumer confidence as well as news of another round of bailout financing for Greece.
Electronic storage stocks have shown a notable move to the downside, dragging the NYSE Arca Disk Drive Index down by 1.2 percent. Seagate Technology and Western Digital are turning in two of the sector's worst performances.
Gold, commercial real estate and telecom stocks are also seeing some weakness on the day, although most of the major sectors are showing only modest moves.
The major averages have recently climbed off their lows for the session but remain in the red. The Dow is down 36.16 points or 0.3 percent at 12,931.21, the Nasdaq is down 5.08 points or 0.2 percent at 2,971.70 and the S&P 500 is down 2.95 points or 0.2 percent at 1,403.34.
| Canadian Market |  | | CADUSD | Oil | Gold | Allbanc |  |  |  |  | | Please click on the images to view our interactive charts | | TSX Extends Losses As Commodities Struggle - Canadian Commentary
Canadian stocks were lingering in the red Tuesday morning as commodities were struggling to move higher even after euro zone officials and the International Monetary Fund agreed to provide more funding for debt-stricken Greece.
The complex deal reached late Monday will enable Athens to receive $40.8 billion immediately and three additional payments in early 2013.
Meanwhile, Mark Carney, currently head of Canada's central bank, was appointed Monday as the new Governor of the Bank of England. He will succeed Mervyn King, who steps down next June.
The S&P/TSX Composite Index shed 27.54 points or 0.23 percent to 12,157.51, a day after snapping its six-session winning streak.
The Diversified Materials Index was down nearly 1 percent, with First Quantum Minerals losing about 3 percent. Inmet Mining slipped nearly 050 percent, while Teck Resources was adding about 0.50 percent.
The price of gold was ticking lower Tuesday morning as traders now shifted their focus to US fiscal cliff, with the US dollar trading steady versus a basket of currencies. gold for December eased $4.40 to $1,745.20 an ounce.
Among gold plays, Allied Nevada gold and Goldcorp. were down over 1 percent each.
Gold miner Osisko Mining Corp. lost close to 3 percent after it said it would acquire 7.80 million common shares of Queenston Mining Inc. (QMI.TO) from Agnico-Eagle Mines ( AEM.TO). Agnico-Eagle and Queenston were down over 1 percent each.
The price of Crude oil was moving lower Tuesday morning even after euro zone ministers and the International Monetary Fund reached an agreement to help reduce Greece's debt. Crude for January edged down $0.60 to $87.14 a barrel.
In the oil patch, Nexen Inc. and Tourmaline Oil surrendered nearly 2 percent each.
BlackBerry maker Research In Motion was down about 6 percent on profit taking as the stock rose over 20 percent in the past few sessions.
Meanwhile, Bombardier Aerospace (BBD_A.TO, BBD_B.TO) soared 8 percent after it said it got firm orders for 56 Global jets and options for a further 86 Global jets at a 2012 U.S. list price value of over $7.8 billion from VistaJet, a world-leading luxury aviation company and exclusive operator of Bombardier business aircraft.
Frozen seafood supplier High Liner Foods Incorporated (HLF.TO) surged over 8 percent after announcing that it has completed the final stages of the Icelandic USA integration, well ahead of schedule and less than a year after the acquisition of Icelandic Group's U.S. assets.
In economic news from the U.S., the Commerce Department said that durable goods orders edged up by less than a tenth of a percent in October after surging up by a revised 9.2 percent in September. Economists had been expecting orders to decrease by about 0.8 percent. Excluding a 3.1 percent drop in orders in the volatile transportation sector, durable goods orders rose by 1.5 percent in October following a 1.7 percent increase in the previous month.
Separately, Standard & Poor's said S&P/Case-Shiller 20-City Composite Home Price Index saw a 3.0 percent annual increase in September compared to the 2.0 percent year-over-year growth seen in August. Economists had expected prices to increase by about 2.9 percent. S&P also said the 20-City Composite Home Price Index increased by a seasonally adjusted 0.4 percent on a monthly basis in September following a matching increase in August.
From Europe, the U.K. economy expanded 1 percent sequentially in the third quarter as previously estimated, ending three straight quarters of contraction, second estimate published by the Office for National Statistics showed. The third quarter growth follows a 0.4 percent decline in the second quarter and a 0.3 percent drop in the first quarter of 2012.
Meanwhile, a report from the Federal Statistical Office revealed that Germany's import price inflation slowed to 1.5 percent annually in October.. Economists had forecast the annual rate to remain unchanged at 1.8 percent. Month-on-month, import prices were down 0.6 percent, compared to a 0.7 percent drop a month ago. It was forecast to ease just 0.3 percent in October.
| European Market | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | European Markets Higher After Greek Deal, Banks Gain
The European markets are higher on Tuesday after the Eurozone and the International Monetary Fund reached agreement on a new bailout program for debt-stricken Greece. Banks were notably higher on the day.
The EU and IMF said Greece's sovereign long-term debt would be reduced by 40 billion euros or 124 percent of gross domestic product by the year 2020. The agreement came late Monday at the end of almost 10 hours of negotiations.
International Monetary Fund Chief Christine Lagarde said the Fund would release its share of Greek loan payments after Eurozone delivers on its commitments made at the latest Eurogroup meeting on Monday. Carney's five-year term at the helm of the central bank will start on July 1, 2013.
Meanwhile, Mark Carney, currently head of Canada's central bank, was appointed Monday as the new Governor of the Bank of England. He will succeed Mervyn King, who steps down next June.
Carney currently serves as Chairman of the Financial Stability Board and as a member of the Board of Directors of the Bank for International Settlements (BIS). He is also a member of the Group of Thirty, and of the Foundation Board of the World Economic Forum.
Data published by the Office for National Statistics showed that the U.K. economy expanded 1 percent sequentially in the third quarter as previously estimated, ending three straight quarters of contraction.
Sentiment among French consumers remained unchanged in November, the latest report from statistical office Insee showed Tuesday.
The euro Stoxx 50 index of eurozone bluechip stocks is adding 0.33 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is gaining 0.34 percent.
The German DAX is gaining 0.5 percent and the French CAC 40 is advancing 0.2 percent. The FTSE 100 in the U.K. is gaining 0.4 percent and Switzerland's SMI is adding 0.5 percent.
In Frankfurt, Commerzbank is adding 3.9 percent and Deutsche Bank is rising 2.8 percent.
ThyssenKrupp is up 0.6 percent even after UBS added the stock to ''Least Preferred List in European Mining.''
UBS also added Kloeckner to ''Least Preferred List in European Mining.'' But the stock is climbing 1.6 percent.
Deutsche Wohnen is climbing 2.4 percent, following a broker upgrade.
Real estate developer GSW Immobilien is advancing 3.2 percent. Morgan Stanley raised the stock to ''Overweight.''
Sky Deutschland is declining 2.3 percent. Deutsche Bank re-initiated the stock with a ''Hold'' rating.
In Paris, Societe Generale, Credit Agricole and BNP Paribas are gaining between 2.9 percent and 1.5 percent.
Carrefour is gaining over 1 percent after a report said the retailer plans to open new hypermarkets in China in 2013.
Drinks company Rémy Cointreau reported a surge in profit for the first half of the year, driven by growth in Asia and the U.S. The company also backed its full year outlook of substantially higher earnings. The stock is climbing 6.4 percent.
In London, Royal Bank of Scotland is adding 3.6 percent and Lloyds Banking is advancing 2.3 percent.
Standard Life is gaining 1.9 percent. The insurer announced a subordinated debt issuance raising 500 million pounds.
Pub and restaurant operator Mitchells & Butlers reported a Sharp drop in profit for the year, weighed down by items. The stock is losing 5 percent.
De La Rue is dropping 2 percent. The banknote printer said it has experienced delays in a number of significant orders, but the board remains confident that the orders will be received for shipment in fiscal 2013/14.
Galp Energia is losing close to 5 percent in Lisbon. Italian oil and gas company Eni said it would further sell its stake in the Portuguese energy firm.
Across Asia/Pacific, markets had a mixed outing. Australia's All Ordinaries gained 0.7 percent and Japan's Nikkei 225 rose 0.4 percent. However, China's Shanghai Composite Index retreated 1.3 percent and Hong Kong's Hang Seng fell marginally.
In the U.S., futures point to a higher open on Wall Street. In the previous session, stocks closed mixed after initially showing a notable move to the downside. The tech-heavy Nasdaq was up 0.3 percent, closing higher for the sixth consecutive session. Meanwhile, the Dow fell 0.3 percent and the S&P 500 dipped 0.2 percent.
In the commodity space, Crude for January delivery is adding $0.04 to $87.82 per barrel while December gold is losing $3.0 to $1746.6 a troy ounce.
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| Asia Market | Asian Markets Mostly Higher On Renewed Optimism About Greece
Asian stock markets are mostly up in positive territory on Tuesday with investors picking up stocks following the eurozone finance ministers and the International Monetary Fund reaching a deal on a new debt target for Greece.
However, gains are just modest in most of the markets in the region with a section of traders treading cautiously at higher levels, choosing to wait for more clear signals to emerge.
According to reports, eurozone finance ministers have struck a new deal with the IMF to slice more than 40 billion euros or A$50 billion off Greece's massive debt burden by 2020. This will bring down Greece's debt-to-GDP ratio from an estimated 144 percent to 124 percent, by the year 2020.
Healthcare stocks are among the most impressive gainers in the Australian market. Financial, mining, consumer discretionary and telecommunications stocks are also trading firm, while energy and industrial stocks are mixed.
The benchmark S&P/ASX 200 index, which advanced to 4,461.7, is currently trading at 4,456, up 31.8 points or 0.7 percent from its previous close. The broader All Ordinaries index is up 29.2 points or 0.7 percent at 4,472.7.
Among bank stocks, ANZ Bank , Westpac and National Australia Bank are up 0.7 to 1 percent, while Commonwealth Bank of Australia is trading marginally higher. Bendigo & Adelaide Bank and Bank of Queensland are trading weak.
Among top miners, BHP Billiton (BHP, BBL), Rio Tinto (RIO, RIO.L) and Fortescue Metals are up 1 to 1.4 percent, while Newcrest Mining is up marginally.
In the energy sector, Woodside Petroleum, Origin Energy and Caltex Australia are up 0.3 to 0.7 percent, while Santos and Oil Search are trading weak.
Shares of blood products and vaccine supplier CSL Limited are up more than 7 percent following the company lifting its profit guidance for the financial year due to the performance of its U.S.-based subsidiary CSL Behring. The company expects its profit after tax in the 2012-2013 financial year to grow by about 20 percent. In August, CSL forecast profit growth of about 12 percent.
Iluka Resources is up nearly 7 percent. Lynas Corporation and Arrium are trading higher by 6 percent and 4.2 percent, respectively. Boart Longyear, Fairfax Media, Aristocrat Leisure, ALS and Bluescope Steel are up 3 to 4 percent.
Tatts Group is adding 2.3 percent following the company securing the right to operate South Australia's lottery and Keno services for the next 40 years.
Ramsay Healthcare, Challenger, Qantas Airways, Beach Energy, Crown, James Hardie Industries, QBE Insurance Group and Alumina are also trading sharply higher.
Treasury Wine Estates and Paladin Energy are down in negative territory, losing 2.2 percent and 2 percent, respectively.
After a weak start following the yen's rise against the euro and the U.S. dollar, the Japanese market rebounded smartly with investors picking up stocks, amid reports that the eurozone finance ministers and the International Monetary Fund have reached a deal on cutting down Greece's debt burden.
Bank, pharmaceuticals, railway and pulp & paper moved higher. Electric power stocks declined after the previous session's strong gains. Automobile and steel stocks opened on a weak note, but came off their lows subsequently.
The benchmark Nikkei 225 index, which drifted down to 9,370.6 in early trades, rose to 9,448.6 subsequently and was up 36 points or 0.4 percent at 9,424 at the end of the morning session.
Fukuoka Financial Group Inc. shares gained 5 percent. Toyobo Co., Shinsei Bank, Shionogi, Nisshinbo Holdings, Kansai Electric Power, Unitika, Chiba Bank, NTN Corp., Japan Tobacco and Central Japan Railway all moved up 2 to 4 percent.
Fast Retailing, Oji Holdings Corp., Yahoo Japan, Nippon Yusen KK, East Japan Railway, Sumitomo Mitsui Trust Holdings, Astellas Pharma, Tokyo Electric Power, West Japan Railway, Shizuoka Bank, Bank of Yokohama and Mizuho Financial Group also posted strong gains.
Meanwhile, JFE Holdings, Nippon Sheet Glass, IHI Corp., Mitsubishi Electric Corp., Nissan Motor, Advantest Corp. , Mazda Motor, Nisshin Steel Holdings and Yaskawa Electric traded weak, losing 1 to 3 percent.
In economic news, an index measuring corporate service prices was down 0.7 percent on year in October at 95.5, according to a report from the Bank of Japan. That missed forecasts for a decline of 0.6 percent on year following the 0.5 percent fall in September.
On a monthly basis, corporate service prices were down 0.1 percent following the flat reading in the previous month. By category, prices were down for advertising services and communications. Transportation prices were up by air but down by sea.
In the currency market, the U.S. dollar traded in the upper 81 yen range in early deals in Tokyo. The yen is currently trading at 81.98 to the dollar.
Among other markets in the Asia-Pacific region, Hong Kong, Indonesia, Singapore and South Korea are trading higher. Indonesia, Taiwan and New Zealand are up marginally, while Shanghai and Malaysia are down with notable losses.
On Wall Street, stocks ended on a mixed note Monday, after exhibiting weakness early on in the session due to worries about the looming fiscal cliff. While the Nasdaq managed to climb into positive territory, the Dow and the S&P 500 remained stuck in the red.
The Nasdaq ended up 9.9 points or 0.3 percent at 2,976.8, while, the Dow declined 42.3 points or 0.3 percent to 12,967.4 and the S&P 500 dipped 2.9 points or 0.2 percent to 1,406.3.
Major European markets drifted lower on Monday. The German DAX index dipped by 0.2 percent, while the U.K.'s FTSE 100 index and the French CAC 40 Index lost 0.6 percent and 0.8 percent, respectively.
U.S. Crude oil snapped a two-day gain to settle lower on Monday, tracking declining global equity markets while awaiting cues from the eurozone finance ministers meeting in Brussels, even as the dollar strengthened against most major currencies.
Crude for January delivery ended down $0.54 or 0.6 percent at $87.74 a barrel on the New York Mercantile Exchange, after scaling an intra-day high of $88.29 a barrel.
| Commodities | | | | USDCAD | USDEUR | USDGBP | USDJPY |  |  |  |  | | Please click on the images to view our interactive charts | | Crude Edges Up On Euro Zone Hopes
The price of Crude oil was moving higher Tuesday morning after euro zone ministers and the International Monetary Fund reached an agreement to help reduce Greece's debt.
Light Sweet Crude oil futures for January delivery, edged up $0.14 to $87.88 a barrel. Yesterday, oil settled lower tracking declining global equity markets while awaiting cues from the euro zone finance ministers meeting in Brussels, even as the dollar strengthened against most major currencies.
This morning, the U.S. dollar was lingering around its 3-week low versus the euro and sterling. The buck continued to level off from its 7-month high versus the yen and ticking higher against the Swiss franc.
In economic news from Europe, the U.K. economy expanded 1 percent sequentially in the third quarter as previously estimated, ending three straight quarters of contraction, second estimate published by the Office for National Statistics showed. The third quarter growth follows a 0.4 percent decline in the second quarter and a 0.3 percent drop in the first quarter of 2012.
Meanwhile, a report from the Federal Statistical Office revealed that Germany's import price inflation slowed to 1.5 percent annually in October.. Economists had forecast the annual rate to remain unchanged at 1.8 percent. Month-on-month, import prices were down 0.6 percent, compared to a 0.7 percent drop a month ago. It was forecast to ease just 0.3 percent in October.
Traders will look to the durable goods orders report for October from the US Commerce Department, due out at 8:30 am ET. Economists expect durable goods orders to decline by 0.8 percent from the previous month, while excluding transportation orders are expected to dip by a more modest 0.4 percent.
The results of the S&P/Case-Shiller house price survey will be released at 9 am ET. The 20-city composite house price index is expected to have increased by 0.4 percent on a seasonally adjusted basis in September. The unadjusted index is also likely to have risen by 0.4 percent.
Federal Reserve Chairman Ben Bernanke is due to deliver brief welcoming remarks at the National College Fed Challenge Finals, in Washington at 8:30 am ET.
Today after the market hours, the API will release its US Crude oil inventories report for the weekended November 23. |
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