| Stocks Showing A Lack Of Direction In Early Trading
After moving sharply lower over the course of the two previous sessions, stocks are turning in a lackluster performance in early trading on Friday. The major averages are showing only modest moves after ending Thursday's trading at three-month closing lows.
The major averages are currently posting modest losses, although the Nasdaq is down only 0.99 points or less than a tenth of a percent at 2,894.59. The Dow is down 24.09 points or 0.2 percent at 12,787.23 and the S&P 500 is down 1.74 points or 0.1 percent at 1,375.77.
The choppy trading on Wall Street comes as traders digest the sell-off that was seen over the past two days, which reflected concerns about the looming fiscal cliff as well as the ongoing difficulties in Europe.
Despite the lack of direction being shown by the broader markets, shares of Disney (DIS) have come under pressure after the entertainment giant reported fourth quarter earnings that met analyst estimates but on weaker than expected revenues.
Groupon (GRPN) and J.C. Penney (JCP) are also showing notable moves to the downside in early trading after reporting third quarter revenues that came in below analyst estimates.
Housing stocks are also seeing early weakness, resulting in a 1.9 percent drop by the Philadelphia Housing Sector Index. Hovnanian (HOV) and PulteGroup (PHM) are turning in two of the sector's worst performances.
Meanwhile, biotechnology stocks are regaining some ground, driving the NYSE Arca Biotechnology Index up by 1.3 percent.
On the economic front, the Labor Department recently released a report showing that U.S. import prices rose by more than expected in the month of October amid a continued increase in fuel prices.
The report said import prices rose by 0.5 percent in October following a 1.1 percent increase in September, while economists had expected import prices to edge up by 0.1 percent.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan's Nikkei 225 Index and Hong Kong's Hang Seng Index both ended the day down by 0.9 percent, while Australia's All Ordinaries Index dipped by 0.4 percent.
The major European markets have also moved to the downside on the day. While the German DAX Index has tumbled by 1.1 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index are both down by 0.4 percent.
In the bond market, treasuries have moved modestly higher, extending a recent upward move. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.5 basis points at 1.617 percent. | Canadian Market |  | | CADUSD | Oil | Gold | Allbanc |  |  |  |  | | Please click on the images to view our interactive charts | | | TSX Flat At Open Friday
Bay Street stocks were little changed at open Friday as gauges of most sectors were stuck in the mud, resulting in a modest loss for Toronto's main index. The S&P/TSX Composite Index edged down 1.94 points or 0.02 percent to 12.189.11.
Among gold plays, Centerra Gold rose nearly 3 percent. Barrick Gold, Yamana Gold. Agnico-Eagle Mines and Detour Gold were up around 1 percent each.
In the oil patch Niko Resources dived 17 percent after providing exploration update. Trilogy Energy lost about 10 percent after slipping into the red in third-quarter.
Lundin Petroleum and Crew Energy were down around 5 percent each. Telecommunications company Telus Corp. added over 1 percent after posting higher third-quarter net income.
Canadian stock market operator TMX Group Inc. slipped 1 percent even after it swung to profit in third quarter. The price of gold was advancing near one-month high Friday morning as traders shifted their focus to the fiscal cliff looming over the US. Gold for December added $5.80 to $1,731.80 an ounce.
In corporate news from Canada, telecommunications company Telus Corp. posted higher third-quarter net income of C$351 million or C$1.08 per share versus last year's C$326 million or C$1.00 per share. Analysts expected earnings per share of C$1.07 for the quarter.
Canadian stock market operator TMX Group Inc. swung to profit in third quarter, reporting net income of $15.3 million or $0.53 per diluted share compared with a net loss of $13.3 million or loss of $109.79 per diluted share, reported for the corresponding quarter last year. Adjusted earnings per share was C$0.67 compared with adjusted earnings of $0.07 per share reported for the year-ago quarter.
Mining company Imperial Metals Corp. reported a much lower third-quarter net income at C$4.3 million or C$0.06 per share compared with C$17.6 million or C$0.24 per share last year. However on an adjusted basis, earnings for the quarter were C$7.4 million or $0.10 per share, compared with C$4.8 million or $0.06 per share a year ago. Analysts on estimated earnings of C$0.05 per share for the quarter.
Oil and gas firm Trilogy Energy Corp. slipped into the red in third-quarter, reporting net loss of C$11 million or C$0.10 per share, compared to net earnings of C$282,000 or breakeven per share in the sequential second quarter. |
| European Market | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | European Markets Weak Amid Economic Worries
The European markets are trading weak on Friday, as worries about the fiscal cliff in the U.S. and the debt dilemma in the region, overshadowed encouraging consumer inflation data from China.
China's consumer inflation unexpectedly slowed to a 33-month low in October, increasing the likelihood of further policy easing to stimulate economic growth. The annual consumer price inflation eased to 1.7 percent in October from 1.9 percent in September, the National Bureau of Statistics said.
French industrial production contracted more than forecast in September, latest figures from the statistical office Insee showed. Total industrial production fell 2.1 percent year-on-year in September, faster than the 0.1 percent decline forecast by economists.
British construction output declined 2.6 percent quarter-on-quarter in the third quarter, the latest figures from the Office for National Statistics showed.
The Euro Stoxx 50 index of eurozone bluechip stocks is losing 0.68 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is falling 0.53 percent.
The German DAX is declining 1 percent and the French CAC 40 is losing 0.3 percent. The UK's FTSE 100 is falling 0.5 percent and Switzerland's SMI is sliding 0.3 percent.
In Frankfurt, Commerzbank is losing 5.2 percent and Deutsche Bank is falling around 2 percent. EON is falling 1.8 percent. Exane BNP cut the stock to "Neutral" from "Outperform."
JPMorgan reduced its rating on HeidelbergCement. The stock is down 0.2 percent. Allianz is down 0.7 percent after reporting a surge in third-quarter profit. Bucking the trend, Infineon Technologies is gaining 1.5 percent.
In Paris, Credit Agricole is declining 6.1 percent after reporting a hefty loss for the third quarter. Nomura raised Societe Generale to "Buy" from "Reduce." The stock is down 0.3 percent.
Lafarge, which announced third-quarter financial results, is up 0.5 percent. Vallourec is gaining 3.7 percent. Hotel group Accor is advancing 1.5 percent.
In London, Eurasian Natural Resources is losing 2.7 percent and Anglo American is falling 1.2 percent. Barclays is retreating 1.6 percent and Lloyds Banking is tumbling 1.4 percent. Insurer Aviva is declining 2.7 percent. Securities firm G4S is dropping 1.6 percent.
International Consolidated Airlines is gaining 1.7 percent. The airline is cutting 4,500 jobs in the Iberia unit that ''continues to cause concern'' and ''is in a fight for survival.''
Diageo is up 0.5 percent. The drinks firm has agreed to acquire a 27.4 percent stake in Indian spirits company USL.
Luxury goods company Richemont reported higher profits for its first half and also announced that its CEO Johann Rupert would leave the company next year. The stock is falling 1.6 percent in Zurich.
Aegon is declining 3.8 percent in Amsterdam. Sales in the third quarter declined from the prior year, even as the company reported higher profit. |
| Asia Market | | Asian Stocks Mostly Lower On US Fiscal Worries
Asian stocks fluctuated before ending mostly lower on Friday, as investors awaited U.S. President Barack Obama's first official statement on the economy following re-election. Obama will deliver a public statement about actions needed to avoid the "fiscal cliff" that refers to various tax hikes and budget cuts set to take into effect at the beginning of January, if lawmakers and the White House fail to act once again.
Stocks saw some gains early in the session on hopes of policy action after data showed consumer inflation slowed further in China last month. The hopes for easing measures soon fizzled out following the release of better-than-expected data on industrial production, retail sales and fixed asset investment. Investors also remained focused on Greece after European Union officials signaled a delay in releasing the next tranche of bailout money to Greece.
Japanese shares fell for a fifth consecutive session, as the yen's new-found strength on renewed jitters over the U.S. fiscal crisis dragged down export-oriented stocks. The Nikkei average lost 0.9 percent, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange shed 0.6 percent. Heavyweights Fanuc and Fast Retailing as well as exporters Kyocera and Tokyo Electron all fell over a percent each. Trend Micro slumped 4.5 percent on concerns its earnings may fall in the fourth quarter.
Nexon plunged 16.4 percent to a record closing low after the company cut its profit forecast. Sumitomo Rubber plummeted 6.7 percent after the tiremaker cut is full fiscal year sales guidance. Shares of Nippon Telegraph & Telephone jumped 4.2 percent after the fixed-line operator unveiled its midterm management plan. Shinsei Bank also rose over 4 percent after posting a July-September group net profit of 9.3 billion yen versus a profit of 2.1 billion yen a year ago.
China's Shanghai Composite index edged down 0.1 percent, extending losses for the fifth consecutive session despite a slew of data on industrial production, investment and retail sales signaling improving growth in the world's second-largest economy. October industrial output growth grew 9.6 percent year-over-year, up from the 9.2 percent growth achieved in September, while retail sales rose 14.5 percent from a year ago. Year-to-date fixed asset investment rose an annual 20.7 percent versus the 20.5 percent reported for the six month period ended September.
Hong Kong's Hang Seng index fell 0.9 percent, dragged down by mainland banks and energy shares.
Australian shares slipped marginally to end the week on a flat note after the Reserve Bank of Australia issued a downbeat assessment of the economy. The central bank trimmed its growth forecasts for the third time this year, citing weak export prices and a stubbornly high dollar. The benchmark S&P/ASX 200 fell half a percent, while the broader All Ordinaries index shed 0.4 percent.
Resource stocks led the declines on renewed concerns about U.S. fiscal woes and the global economic outlook. Fortescue, BHP Billiton and Rio Tinto fell between 0.2 percent and 1.1 percent, but gold miner Newcrest edged up 0.3 percent.
Among the major banks, NAB tumbled 4.3 percent as it agreed to settle a shareholder class action relating to its losses over the American mortgage crisis. Westpac, which set a high target for growth, lost 2.9 percent on going ex-dividend, while ANZ and Commonwealth rose 0.8 percent and 1.1 percent, respectively. Australia's major banks are strong enough to withstand a major global economic downturn, the industry's regulator said after conducting a new round of tough ''stress tests'' on them.
Origin Energy plummeted 5.7 percent after a profit downgrade, while retailer Myer Holdings jumped 4.5 percent, Boral advanced 1.6 percent and CSL added 1.4 percent. Emeco Holdings slumped 17 percent after the mining equipment maker cut its profit target.
South Korea's Kospi average eased half a percent on concerns about the global economy, including the uncertainty on whether Greece will get more international aid. Stocks ended off their day's lows as investors awaited newly re-elected President Obama's first official statement Friday afternoon from the White House.
Heavyweights turned in a mixed performance, with Samsung Electronics retreating 0.7 percent, while Hyundai Motor ended up half a percent. Woongjin Holdings soared nearly 15 percent on saying it has reached an agreement with its creditors to revive an earlier plan to sell its 31 percent stake in water purifier maker Woongjin Coway to Seoul-based private equity fund MBK Partners for 1.2 trillion won.
In economic news, the Bank of Korea kept its benchmark interest rate steady at 2.75 percent as expected, after cutting the benchmark rate by 25 basis points last month.
New Zealand shares rose marginally, led by heavyweight Telecom, boosted by its attractive dividend yield. Shares of the nation's biggest phone company rose 1.3 percent, helping lift the benchmark NZX-50 index up 0.1 percent. Exporter Fisher & Paykel Healthcare gained 1.3 percent after the kiwi dollar fell to its lowest level in two weeks versus the dollar and yen.
Infratil shares eased half a percent after the infrastructure investment firm took a $43.9 million charge against its U.K. airport investments. Fletcher Building, the nation's largest construction company, fell 1.4 percent despite data showing strong house sales across the country last month.
Elsewhere, India's benchmark Sensex was down 0.8 percent and Singapore's Straits Times index edged down 0.1 percent, while key benchmark indexes in Indonesia and Malaysia were up marginally. | Commodities | | | | USDCAD | USDEUR | USDGBP | USDJPY |  |  |  |  | | Please click on the images to view our interactive charts | | | The price of crude oil was moving lower Friday morning as traders fret over demand growth despite upbeat macroeconomic data from China, the second largest oil consuming nation.
Growth in China's industrial production accelerated more than expected in October, data released by the National Bureau of Statistics showed. Production expanded 9.6 percent year-on-year, faster than 9.2 percent gain in September. Economists had forecast a growth rate of 9.4 percent.
Separately, the agency said China's retail sales grew more than expected in October. Sales rose 14.5 percent year-on-year in October, faster than 14.2 percent increase in the previous month. Economists expected the rate of growth to quicken to 14.4 percent.
The OPEC in its monthly oil report released today, maintained its 2013 global oil demand growth forecast at 0.80 mbd.
Light Sweet Crude Oil (WTI) futures for December delivery, slipped $0.29 to $84.80 a barrel. Yesterday, oil settled higher mostly on some upbeat macroeconomic data with euro zone concerns easing as the Greek parliament approved some stringent austerity measures demanded by international lenders for the next tranche of the bailout aid.
The price of gold moved up near one-month high Friday morning as traders shifted their focus to the fiscal cliff looming over the U.S.
Gold for December delivery, the most actively traded contract, added $4.30 to $1,730.30 an ounce. Yesterday, gold settled higher after the European Central Bank kept its monetary policy intact, reaffirming an aggressive bond-buying program. Gold also gained on investor concerns over the U.S. fiscal cliff looming ahead with tax hikes and spending cuts indicated to begin next January, unless a deal is in place.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved up to 1,339.62 tons from 1,337.21 tons.
This morning, the U.S. dollar was extending 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 harmonized inflation came in at 2.1 percent in October, in line with flash estimate, final data from the Federal Statistical Office showed. The annual rate also remained unchanged from September. At the same time, consumer prices climbed 2 percent year-on-year in October, similar to the increase logged in September and matched preliminary estimate.
Meanwhile, the U.K. trade in goods resulted in a deficit of GBP 8.4 billion in September compared to a GBP 10 billion shortfall in August, the Office for National Statistics said. It fell below a GBP 8.9 billion deficit forecast by economists |
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