Stocks Moving To The Upside In Early Trading
8/31/2012 9:48 AM ET
With traders expressing optimism about an upcoming speech from Federal Reserve Chairman Ben Bernanke, stocks have moved notably higher in early trading on Friday. The major averages have shown a strong move to the upside after ending the previous session firmly in the red.
The major averages have recently pulled back off their highs for the young session but remain firmly positive. The Dow is up 113.91 points or 0.9 percent at 13,114.62, the Nasdaq is up 19.09 points or 0.6 percent at 3,067.80 and the S&P 500 is up 9.85 points or 0.7 percent at 1,409.33.
The early strength on Wall Street comes as traders look ahead to Bernanke's speech at the Kansas City Fed's Jackson Hole symposium, with many expecting the Fed chief to make comments indicating whether the central bank will engage in another round of quantitative easing.
A research note from Capital Economics said, "Given the unexpectedly strong signal in the minutes of the latest FOMC meeting that QE3 is coming fairly soon, we expect that Fed Chairman Ben Bernanke will reinforce the case for more action in his speech at Jackson Hole."
"Although a few of the non-voting regional Fed Presidents still appear to have reservations, we doubt that the slight uptick in the incoming economic data in the past couple of weeks will have softened Bernanke's resolve," the note added.
Steel stocks have shown a strong upward move in early trading, driving the NYSE Arca Steel Index up by 1.3 percent. With the gain, the index is regaining some ground after ending the previous session at its lowest closing level in a month.
Software, semiconductor, and brokerage stocks are also seeing early strength, moving higher along with most of the major sectors.
Among individual stocks, shares of OmniVision Technologies are moving sharply higher after the image sensor maker reported better than expected first quarter revenues and raised its second quarter revenue guidance.
Government IT contractor SAIC, Inc. (SAI) has also moved to the upside after reporting second quarter revenues that exceeded analyst estimates. The company also announced plans to separate into two independent, publicly traded companies.
Meanwhile, shares of Zumiez have come under pressure after the sports equipment retailer forecast third quarter earnings below analyst estimates.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan's Nikkei 225 Index tumbled by 1.6 percent, while Hong Kong's Hang Seng Index ended the day down by 0.4 percent.
8/31/2012 9:48 AM ET
Meanwhile, the major European markets have shown notable moves to the upside on the day. While the U.K.'s FTSE 100 Index is up by 0.4 percent, the French CAC 40 Index and the German DAX Index have surged up by 1.1 percent and 1.2 percent, respectively.
In the bond market, treasuries have moved modestly lower ahead of Bernanke's speech. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 1.7 basis points at 1.637 percent.
| Canadian Market Report |  | | CADUSD | Oil | Gold | Allbanc |  |  |  |  | | Please click on the images to view our interactive charts | | TSX Up On Strong Q2 Economic Growth - Canadian Commentary
8/31/2012 11:15 AM ET
Snapping their four-session losing streak, Canadian stocks were hovering in positive territory Friday morning even as hopes of imminent monetary easing measures from the U.S. diminished after the Federal Reserve Chairman Ben Bernanke did not explicitly signal any such move.
However, positive economic data from both sides of the border and bottom fishing at lower levels helped stocks stay afloat.
The S&P/TSX Composite Index gained 47.71 points or 0.40 percent to 11,934.36, after losing nearly 200 points or nearly 2 percent in the past four sessions.
Financial stocks were in focus, with the Financial Index adding about 0.50 percent. Laurentian Bank rose nearly 2 percent after reporting a marginally higher third quarter net income of C$26.83 million or C$1.06 per share compared to C$25.97 million or C$1.08 per share for the third quarter of 2011. Excluding Transaction and Integration costs, net income was C$35.3 million or C$1.27 per share for the third quarter. Further, the bank declared a quarterly dividend of C$0.47 per share.
National Bank edged up 0.25 percent after reporting improved third quarter net income of C$360 million or C$2.14 per share compared to C$318 million or C$1.87 per share in the year ago quarter. Excluding specified items, net income was C$334 million or C$1.98 per share up from C$316 million or C$1.86 per share in the in the third quarter of 2011. Analysts were expecting the bank to report earnings of C$1.90 per share. The bank declared a dividend of $0.79 per common share.
Canadian Western Bank said that its long-serving President and CEO Larry Pollock has given up his role as President, but will maintain the title of CEO until he steps down on March 7, 2013. The stock was up nearly 2 percent.
The price of Crude oil was moving higher Friday morning, with Crude for October gaining $1.20 to $95.82 a barrel.
In the oil patch, MEG Energy and Crescent Point Energy gathered over 1 percent each.
The price of gold was steady near its four-month high, with gold for December adding $15.20 to $1,672.30 an ounce.
Among gold plays, Seabridge gold rose over 3 percent. Agnico-Eagle Mines , Barrick gold and Goldcorp. were up nearly 2 percent each.
Meanwhile, Detour Gold lost over 5 percent.
Communications services provider Mitel Networks Corp. (MNW.TO) reported a narrower first quarter net loss of $2.1 million or $0.04 per share, compared to a loss of $2.8 million or $0.05 per share in the prior year. Excluding items, the company's adjusted income for the quarter was $4.5 million or $0.08 per share, compared to $8.5 million or $0.15 per share in the year ago period. Analysts expected the company to report earnings of $0.14 per share for the first quarter. The stock dived about 8 percent.
8/31/2012 11:15 AM ET
In economic news, Statistics Canada said real gross domestic product (GDP) rose 0.5 percent in the second quarter, inline with the pace of the two previous quarters. Business investment contributed the most to second-quarter GDP growth. Final domestic demand grew 0.4 percent. On a monthly basis, real GDP by industry advanced 0.2 percent in June. However, on an annualized rate real GDP expanded 1.8 percent in the second quarter, beating consensus estimates for a 1.6 percent growth.
From south of the border, a report released by Thomson Reuters and the University of Michigan revealed that consumer sentiment in the U.S. improved by more than previously estimated in the month of August. The report showed that the consumer sentiment index for August was upwardly revised to 74.3 from the mid-month reading of 73.6. Economists had expected the index to be unrevised from the preliminary reading, which already reflected an increase from the 72.3 recorded in July.
Separately, the U.S. Department of Commerce said factory orders rose by 2.8 percent in July. This followed a decline of 0.5 percent in the previous month. Economists had expected factory orders to rise by 2.0 percent
Elsewhere, euro zone inflation accelerated to 2.6 percent in August from 2.4 percent in July, flash estimate issued by Eurostat showed. The rate was forecast to rise to 2.5 percent. The central bank aims to retain inflation rates below, but close to, 2 percent over the medium term. The final report for August is due on September 14.
Meanwhile, Germany's retail sales decreased from the previous month in July, defying economists' forecast for an increase, data released by the Federal Statistical Office revealed. Retail sales turnover decreased 0.9 percent month-on-month in July, reversing the previous month's 0.5 percent increase. Economists were looking for a 0.2 percent growth.
| European Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | European Markets Higher Ahead Of Bernanke Comments
8/31/2012 7:25 AM ET
The European markets are moderate to notably higher in afternoon trading Friday, ahead of a policy address by Federal Reserve Chairman Ben Bernanke at the Jackson Hole meet later in the day. The Asian markets fell while the U.S. index futures are higher.
Moody's Investor Service said late Thursday its review of Spain's government rating for a possible downgrade would continue through the end of September because of pending information.
The review is dependent on the scope of the bank recapitalization, support available under the European Stability Mechanism and potential changes to the existing crisis-management framework, the rating agency said.
German retail sales unexpectedly dropped for the first time in three months in July amid a continued rise in unemployment. Retail sales fell a calendar-and-seasonally adjusted 0.9 percent, while economists expected sales to grow 0.2 percent, the Federal Statistical Office said.
Meanwhile, Eurozone inflation accelerated to 2.6 percent in August from 2.4 percent in July, flash estimate issued by Eurostat showed. The rate was forecast to rise to 2.5 percent. The seasonally adjusted jobless rate remained unchanged at a record 11.3 percent in July.
Residential property prices in the U.K. rebounded strongly in August after falling for two months in a row, results of a survey revealed.
The euro Stoxx 50 index of eurozone bluechip stocks is advancing 1.40 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is adding 0.65 percent.
The German DAX is gaining 1.31 percent and the French CAC 40 is advancing 1.36 percent. The FTSE 100 of the UK is adding 0.54 percent and Switzerland's SMI is rising 0.68 percent.
In Frankfurt, Deutsche Bank is gaining 2.1 percent and Commerzbank is rising 0.7 percent.
Lufthansa is advancing 1.7 percent and insurer Allianz is adding 1.4 percent.
HSBC started Fresenius with an "Overweight" rating. The stock is moderately higher.
Deutsche EuroShop is climbing 1.1 percent after a broker upgrade.
Societe Generale started Fresenius Medical Care with a "Buy" rating. The stock is falling 0.7 percent.
K+S is losing around 1 percent.
In Paris, Credit Agricole is surging 5.1 percent. Societe Generale is up 2.3 percent and BNP Paribas is gaining 1.5 percent.
Peugeot is advancing 2 percent. Renault is up 1 percent.
GDF Suez is gaining 0.6 percent. UBS removed the stock from its "Most Preferred List."
Luxury retailer Hermes reported higher profits for the first half but sounded cautious about the full year. The stock is up 1.3 percent.
8/31/2012 7:25 AM ET
Iliad is climbing 4.7 percent after announcing results for the first six months of the year.
Aeroports de Paris is losing 2.9 percent. The firm reported first-half results.
Essilor is falling 1.6 percent. The lens maker reported first-half results.
Carrefour is down 0.4 percent even after Barclays upgraded the stock.
HSBC cut Eurofins Scientific to "Neutral" from "Overweight." The stock is losing 3 percent.
In London, miners Anglo American, Rio Tinto, Antofagasta and Kazakhmys are gaining between 1.7 percent and 2.8 percent. Commodities trader Glencore is climbing 2.7 percent.
Barclays is up 0.9 percent and Royal Bank of Scotland is gaining 1.4 percent.
Outside the main index, Redrow is gaining 2.8 percent. The company has received an initial approach from Bridgemere Securities Limited, Toscafund Asset Management LLP and Penta Capital LLP in connection with a possible cash offer of approximately 152 pence per share.
Restaurant Group is gaining 2.8 percent after reporting higher profit in the first half of the year.
WPP is falling 1 percent after a broker downgrade.
Bankia is adding 3.3 percent in Madrid on reports of recapitalization.
Across Asia/Pacific, Japan's Nikkei 225 retreated 1.6 percent and Hong Kong's Hang Seng fell 0.4 percent. China's Shanghai Composite index lost 0.25 percent and Australia's All Ordinaries slid 0.03 percent.
In the U.S., futures point to a higher open on Wall Street. In the previous session, uncertainty ahead of the speech by Bernanke hurt stocks. The S&P 500 and the Dow fell 0.8 percent each while the Nasdaq dropped 1.1 percent.
In the commodity space, Crude for October delivery is adding $0.42 to $95.04 per barrel and December gold is climbing $3.5 to $1660.6 a troy ounce. |
| Asia Market Reports | Asian Markets Mostly Subdued Amid Cautious Trades
8/30/2012 11:00 PM ET
Asian markets are mostly subdued on Friday with investors tracking a weak lead from the U.S. and European markets. Movements are quite choppy in most of the markets in the region with investors treading cautiously ahead of the U.S. Federal Reserve chief Ben Bernanke's speech and amid the release of a slew of economic data.
After a slightly weak start and a subsequent rebound amid selective buying, the Australian market gave up some gains and is currently trading marginally down.
Consumer staples, energy and healthcare stocks are edging higher, while stocks from financial, mining and industrial sections are mostly subdued.
The benchmark S&P/ASX 200 index, which advanced to 4,328.8 earlier in the day, is currently trading at 4,312.5, down 3.2 points from its previous close. The broader All Ordinaries index is down 4.2 points at 4,336, off the day's high of 4,351.
Among top miners, Rio Tinto is gaining 2 percent and BHP Billiton is trading lower by 0.5 percent.
In the energy sector, Woodside Petroleum is up 0.6 percent, Caltex Australia is rising 1.1 percent and Origin Energy is gaining about 1.3 percent, while Oil Search and Santos are trading weak.
Among bank stocks, Commonwealth Bank of Australia, National Australia Bank and Westpac are up 0.3 to 0.8 percent, while ANZ Bank is trading flat.
Fairfax Media is trading lower by as much as 6.6 percent. Graincorp is losing nearly 6 percent. Boart Longyear, Arrium, ALS Ltd., Newcrest Mining, JB Hi-Fi and Seek are all down 2 to 4 percent.
Leighton Holdings, Paladin Energy, Primary Healthcare, Bendigo & Adelaide Bank, Alumina , Computershare, Commonwealth Property Office Fund and Incitec Pivot are also trading notably lower.
Meanwhile, Sims Metal Management, Boral and Atlas Iron are trading higher by 2 to 2.4 percent.
Harvey Norman's full year profit plunged 32 percent due to tough trading conditions, especially for televisions and electronics. The company has reported a net profit of A$172.5 million for the year to June 30, down from A$252.3 million in the previous year. The stock is currently trading flat.
The Japanese market is trading notably lower with weak industrial production data and concerns about eurozone debt triggering some heavy selling at several counters.
Automobile, financial, steel, non-ferrous metals and real estate stocks opened on a negative note and are still mostly trading notably lower. Electric power, pharmaceuticals, chemicals and insurance stocks are trading mixed.
The benchmark Nikkei 225 Index is currently down 99 points or 1.1 percent at 8,884.8.
8/30/2012 11:00 PM ET
Sharp Corp. is down more than 8 percent, and Showa Shell is trading lower by over 4 percent. Denso Corp., Furukawa Electric, Nippon Sheet Glass, Sumitomo Metal Industries, JFE Holdings, Nippon Electric Glass, Kobe Steel and Mitsui Mining are all trading lower by 3 to 4 percent.
Inpex Corp., Nippon Steel, Suzuki Motor, Hino Motors, Panasonic Corp, Casio Computer, Bank of Yokohama, Honda Motor and Sumitomo Metal Mining are also trading sharply lower.
Meanwhile, Chubu Electric Power, Nippon Light Metal, Nippon Yusen KK, Daiichi Sankyo, Sumitomo Osaka Cement, Mitsui Engineering & Shipbuilding, Mitsui OSK Lines and Oki Electric Industry are up in positive territory, gaining 1 to 2.3 percent.
According to the data released by the Ministry of Economy, Trade and Industry, industrial output in Japan was down a seasonally adjusted 1.2 percent on month in July - well shy of forecasts for an increase of 1.7 percent following the 0.4 percent gain in June.
On a yearly basis, production was down 1.0 percent - again missing expectations for a gain of 1.8 percent after dropping 1.5 percent in the previous month.
Upon the release of the data, the METI maintained its assessment of industrial production, saying: "Industrial production appears to be flat."
A report from the Ministry of Internal Affairs and Communications says core inflation rate in Japan was -0.3 percent on year in July - exactly as expected and slowing from -0.2 percent in June. Overall inflation was -0.4 percent on year, missing forecasts for -0.3 percent after showing -0.2 percent in the previous month.
Core CPI for the Tokyo region - considered a leading indicator for the nationwide trend - was -0.5 percent in August. That beat forecasts for -0.6 percent, which would have been unchanged from the July reading. Overall Tokyo inflation was down 0.7 percent on year, matching forecasts and up from -0.8 percent in the previous month.
According to another data from the same ministry, the unemployment rate in Japan came in at a seasonally adjusted 4.3 percent in July - in line with expectations and unchanged from the previous month.
Meanwhile, average household spending in Japan was up 1.7 percent on year in July at 283,295 yen, another report from the Internal Affairs ministry said. That beat forecasts for an increase of 1.2 percent following the 1.6 percent gain in June.
In the currency market, the U.S. dollar traded in mid-78 range in early deals in Tokyo. The yen is currently trading at 78.56 to the dollar.
Among other markets in the Asia-Pacific region, Shanghai, Hong Kong and South Korea are down marginally and Indonesia is trading notably lower. New Zealand is trading notably higher, while Singapore and Taiwan are up with marginal gains. Markets across the region ended weak on Thursday.
8/30/2012 11:00 PM ET
On Wall Street, stocks ended lower on Thursday after turning in a lackluster performance over the three previous sessions. Some weak economic data and uncertainty ahead of a key speech by Federal Reserve Chairman Ben Bernanke contributed to the weakness on Wall Street.
The Dow slid 106.8 points or 0.8 percent to 13,000.7, the Nasdaq dropped 32.5 points or 1.1 percent to 3,048.7, and the S&P 500 ended down 11 points or 0.8 percent at 1,399.5.
Major European markets too ended weak on Thursday. While the German DAX index tumbled by 1.6 percent, the French CAC 40 Index and the U.K.'s FTSE 100 index lost 1 percent and 0.4 percent, respectively.
U.S. Crude oil prices settled lower on Thursday. Light, sweet Crude for October delivery ended down 87 cents at $94.62 a barrel on the New York Mercantile Exchange after touching a low of $93.95 intraday.
| Commodities | | | | USDCAD | USDEUR | USDGBP | USDJPY |  |  |  |  | | Please click on the images to view our interactive charts | | India June Quarter Growth Exceeds Forecast
8/31/2012 3:32 AM ET
The Indian economy grew at a faster than expected pace during the June quarter, help by construction and services activity, data from the Central Statistics Office showed Friday.
Gross domestic product advanced 5.5 percent year-over-year in the June quarter. The growth rate was slightly faster than the prior quarter's 5.3 percent expansion and the 5.2 percent growth estimated by economists. During the same period of last year, the growth rate was 8 percent.
The construction sector registered 10.9 percent growth from a year ago, and financing insurance, real estate and business services expanded 10.8 percent.
The farm sector grew 2.9 percent annually. The mining and manufacturing sector logged in weak growth, with mining output edging up 0.1 percent and manufacturing rising only 0.2 percent.
Despite the forecast beating growth for the June quarter, economic growth remains anemic. Industrial output dipped 1.8 percent in June and Purchasing Managers' survey revealed a slowdown in manufacturing activity in July.
At the same time, inflation is preventing the central bank from lowering its key rates. The Reserve Bank of India last reduced rates in April by a 50 basis points.
The RBI sees 6.5 percent growth for 2012-13. The central bank expects slower global growth as well as a potential slowdown in the service sector expansion to possibly act as a drag on the economy.
Lowering policy rates in the current situation will only aggravate inflationary impulses without necessarily stimulating growth, the bank said in July.
A slew of banks and brokerages have cut their forecast for India's economic growth recently. Citigroup and CLSA early this month downgraded their view of the country's growth for the current fiscal year to 5.4 percent and 5.5 percent, respectively. CRISIL trimmed its 2012-13 growth forecast for India on Tuesday to 5.5 percent from 6.5 percent. |
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