11/13/2012 11:20 AM ET After moving notably lower at the open, stocks have shown a substantial turnaround over the course of morning trading on Tuesday. The major averages have bounced well off their lows for the session and into positive territory.
While lingering concerns about the looming fiscal cliff and the ongoing difficulties in Europe helped to drag stocks lower at the start of trading, selling pressure waned not long after the open.
Traders subsequently looked to pick up stocks at reduced levels, with the Nasdaq and the S&P 500 rebounding after hitting their lowest intraday levels in over three months.
Telecom stocks have shown a strong move to the upside on the day, driving the NYSE Arca Telecom Index up by 1.2 percent. AT&T (T) and Verizon (VZ) are posting notable gains.
Considerable strength has also emerged among natural gas, retail, and airline stocks, while most of the major sectors are showing only modest moves.
The major averages have recently pulled back off their highs for the session but are currently holding on to gains. While the Nasdaq is up just 0.73 points or less than a tenth of a percent at 2,904.99, the Dow is up 67.70 points or 0.5 percent at 12,882.78 and the S&P 500 is up 7.01 points or 0.5 percent at 1,387.04. 11/13/2012 9:50 AM ET With traders expressing continued concerns about the looming fiscal cliff, stocks moved to the downside at the start of trading on Tuesday. The major averages all slid into negative territory after ending the previous session nearly flat. The major averages have recently climbed off their lows for the young session but remain in the red. The Dow is down 22.12 points or 0.2 percent at 12,792.96, the Nasdaq is down 16.06 points or 0.6 percent at 2,888.20 and the S&P 500 is down 4.32 points or 0.3 percent at 1,375.71. The initial weakness on Wall Street was partly due to concerns about whether lawmakers will be able to reach an agreement that will avoid the significant tax increases and government spending cuts currently set to take effect 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. Traders are also keeping an eye on developments in Europe, where finance ministers agreed to give Greece two extra years to meet its budget targets. After a meeting in Brussels on Monday, Eurogroup chair Jean-Claude Juncker also revealed that the ministers will hold another meeting next week to decide on providing the next tranche of Greek aid. Peter Boockvar, managing director at Miller Tabak, said, "Markets this morning are worried about how European officials plan on further funding Greece with extra money to bide them over for a few more years." Early weakness has emerged among software stocks, with Microsoft (MSFT) posting a notable loss after announcing that Windows and Windows Live President Steven Sinofsky will be leaving the company Shares of Microsoft are down by 3.5 percent after hitting their worst intraday level in over ten months. Electronic storage, gold, and brokerage stocks are also seeing notable weakness, although selling pressure has waned since the start of trading. In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Tuesday. Japan's Nikkei 225 Index edged down by 0.2 percent, while Hong Kong's Hang Seng Index fell by 1.1 percent. The major European markets have also moved to the downside on the day. While the U.K.'s FTSE 100 Index is down by 0.7 percent, the French CAC 40 Index is down by 0.9 percent, and the German DAX Index is down by 1.1 percent. In the bond market, treasuries are moving moderately higher, extending a recent upward trend. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.8 basis points at 1.583 percent. | Canadian Market |  | | CADUSD | Oil | Gold | Allbanc |  |  |  |  | | Please click on the images to view our interactive charts | | 11/12/2012 4:41 PM ET Canadian stocks ended marginally lower Monday, on continued investor concerns over the impact of the U.S. fiscal cliff with impending tax hikes and spending cuts for the U.S. economy beginning next January, unless a deal is reached between the two parties.
Investors also weighed the financial turmoil in Greece with concern as the beleaguered nation's debt repayment deadline draw closer, and uncertainty over aid from international lenders continue to persist.
Nevertheless, the main index made some gains on some upbeat macroeconomic data out of China, posting a huge merchandise trade surplus in October.
The S&P/TSX Composite Index closed Monday at 12,191.46, down 5.34 points or 0.04 percent. The index touched an intraday high of 12,239.56 and a low of 12,186.99.
The Energy Index slipped 0.42 percent, with U.S. crude oil futures for December delivery down $0.50 or 0.6 percent to close at $85.57 a barrel Monday on the Nymex.
Among energy stocks, Suncor Energy Inc. (SU.TO) moved up 0.39 percent, Encana Corp. (ECA.TO) was down 0.38 percent, Talisman Energy (TLM.TO) edged down 0.18 percent, and CanadianNatural Resources Limited (CNQ.TO) slipped 2.10 percent.
Meanwhile, the IEA in its annual World Energy Outlook 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.
The Diversified Metals & Mining Index gained 0.77 percent, with First Quantum Minerals Ltd. (FM.TO) up 2.48 percent, Teck Resources Limited (TCK.B.TO) up 0.52 percent, and Inmet Mining Corp. (IMN.TO) adding 3.96 percent.
Osisko Mining Corporation (OSK.TO) plunged 8.15 percent, after indicating it would acquire Queenston Mining Inc. (QMI.TO) for C$6.00 per share, or at about C$550 million. On the other hand, shares of Queenston soared 12 percent.
The Global Gold Index shed 1.30 percent, with gold futures for December delivery flat at $1,730.90 an ounce Thursday on the Nymex.
The Capped Materials Index dropped 0.87 percent, with Potash Corporation of Saskatchewan Inc. (POT.TO) inching up 0.05 percent.
Among gold stocks, Eldorado Gold Corp. (ELD.TO) dropped 2.35 percent, Goldcorp Inc. (G.TO) dropped 1.90 percent, and Yamana Gold Inc. (YRI.TO) shed 2.14 percent. Barrick Gold Corp. (ABX.TO) dipped 0.80 percent, while Kinross Gold Corp. (K.TO) declined 1.16 percent.
The Financial Index moved up 0.44 percent, with Bank of Montreal (BMO.TO) up 0.46 percent, Royal Bank of Canada (RY.TO) inched up 0.11 percent, The Bank of Nova Scotia (BNS.TO) up 0.33 percent, and The Toronto-Dominion Bank (TD.TO) gained 0.77 percent. Manulife Financial Corp. (MFC.TO) gained 0.99 percent.
The Capped Industrials Index gained 0.49 percent, with transportation systems maker Bombardier Inc. (BBD.A.TO, BBD.B.TO) down 1.75 percent. The Capped Health Care Index moved up 0.17 percent, although CML HealthCare Inc. (CLC.TO) declined 5.87 percent.
The Information Technology Index gained 0.50 percent, with smartphone maker Research In Motion Ltd. (RIM.TO) moving up 2.92 percent after announcing plans to introduce its BlackBerry 10 smartphones on January 30.
Home furnishings retailer Leon's Furniture Ltd. (LNF.TO) gained 1.99 percent after offering to buy The Brick Ltd. (BRK.TO) for $5.40 per share or about $700 million. Shares of Brick skyrocketed almost 52 percent.
Oil and gas industry services provider Ensign Energy Services (ESI.TO) edged up 0.97 percent even as 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.
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 | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | 11/13/2012 12:01 PM ET The European markets bounced back from early weakness on Tuesday and ended the session with modest gains. The failure of the Eurogroup and the International Monetary Fund to reach an agreement on the Greek bailout at yesterday's meeting in Brussels weighed on investors. The unexpected decline in German ZEW economic sentiment and weak financial results from companies like Vodafone and E.ON also had a negative impact.
Euro area finance ministers will hold an extraordinary meeting again on November 20 to finalize the payment of the next tranche of Greek aid, Jean-Claude Juncker, the head of Eurogroup said after chairing the meeting in Brussels late Monday.
Finance ministers granted Greece two extra years to meet its budget targets, although they indicated that they will hold more negotiations before nailing down a new deal, Juncker said. The additional time would leave a funding hole of around EUR 32.6 billion through 2016.
It is now unclear whether the International Monetary Fund will take part in the contribution to Greece. IMF chief Christine Lagarde said she did not agree with Juncker. She said the appropriate timetable to reduce Greece debt to 120 percent is by 2020.
The Euro Stoxx 50 index of eurozone bluechip stocks increased by 0.84 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.46 percent.
The DAX of Germany rose by 0.01 percent and the FTSE 100 of the U.K. advanced by 0.33 percent. The CAC 40 of France gained 0.56 percent and the SMI of Switzerland climbed by 0.39 percent.
In Frankfurt, E.ON sank by 12.39 percent. The utility reported a third quarter loss and withdrew its 2013 forecast, citing economic uncertainties and the structural changes in the energy industry. Peer RWE also declined by 1.83 percent.
K+S fell by 4.69 percent. The specialty fertilizer firm currently expects full-year 2012 adjusted earnings per share and revenues at the lower end of its prior outlook range.
Kabel Deutschland, which reported quarterly results, lost 1.08 percent. Nordex gained 5.30 percent, after the company reported a higher third-quarter profit.
In London, Vodafone declined by 2.46 percent. The telecom giant reported a loss for the first half of the year, amid hefty impairments.
ITV, which issued an interim management statement, surged by 8.99 percent. Sonova surged by 8.49 percent in Zurich. The company reported impressive financial results, with a 44% increase in net income for the first half of the year.
German economic sentiment worsened in November, reflecting investors' subdued expectations amid recessionary developments in the euro area, data from a survey by the Centre for European Economic Research showed Tuesday.
The ZEW Indicator of Economic Sentiment declined unexpectedly by 4.2 points to -15.7 in November. The reading was forecast to improve to -10 and marked the first drop since August.
France's current account deficit decreased from the previous month in September, data released by the Bank of France showed Tuesday. On a seasonally adjusted basis, the current account deficit dropped to EUR3.3 billion in September from EUR3.6 billion in August, data showed.
U.K. annual inflation accelerated more than expected on a surge in university tuition fees and food prices in October and drifted inflation away from the central bank's 2 percent target. Inflation rose to 2.7 percent in October, the highest since May, from 2.2 percent in September, the Office for National Statistics said Tuesday. Inflation was forecast to rise to 2.4 percent.
Residential property prices in the United Kingdom increased at slower pace in September, defying economists' forecast for a faster growth, data released Tuesday by the Office for National Statistics showed.
The house price index increased 1.7 percent on an annual basis in September, slower than the 1.9 percent gain recorded in August, which was revised up from 1.8 percent. Economists had forecast a faster growth of 2 percent. |
| Asia Market | 11/12/2012 10:36 PM ET Asian stock markets are mostly trading notably lower on Tuesday with investors indulging in selling, amid a lack of positive cues overnight from Wall Street and European markets. Looming worries about the U.S. fiscal cliff and concerns about the financial situation in Europe are weighing on sentiment to a significant extent.
In the Australian market, financial, energy, industrial and consumer staples stocks are mostly trading lower. All the sectoral indices are currently down in negative territory.
The benchmark S&P/ASX 200 index is down 46.8 points or 1.1 percent at 4,401.2. The broader All Ordinaries index is trading at 4,424.3, down 45.6 points or 1 percent from its previous close.
Among bank stocks, ANZ Bank is down 0.7 percent and Commonwealth Bank of Australia is trading lower by 0.8 percent, while National Australia Bank and Westpac (WBK) are down 1.4 percent and 1.8 percent, respectively. Bendigo & Adelaide Bank and Bank of Queensland are both trading lower by 1.4 percent.
Among top miners, BHP Billiton (BHP, BBL) and Rio Tinto (RIO, RIO.L) are down 0.8 percent and 0.7 percent, respectively.
Lynas Corporation shares are down as much as 7.3 percent. Paladin Energy is down by about 7 percent. Aurora Oil & Gas, Boart Longyear and Perseus Mining are trading lower by 3.2 to 4 percent.
James Hardie Industries, PanAust, Regis Resources, Sims Metal Management, GPT Group, Origin Energy, Newcrest Mining, Macquarie Group, Downer EDI, ResMed Inc. (RMD) and Treasury Wine Estates are also trading sharply lower.
Among the notable gainers, Incitec Pivot is up 4.4 percent. Seek is up 2 percent and ALS is trading higher by about 1.9 percent.
In economic news, Australia's business sector weakened further in the last quarter of 2012, with conditions slumping to their lowest point in more than three years, according to the National Australia Bank business survey.
The survey showed that conditions in October fell to minus five on the index, from minus three in September and zero in August. Business confidence also receded, falling to minus one in October, compared to zero in September. It was minus three in August.
According to data released by the Australian Bureau of Statistics, personal finance loans rose by a seasonally adjusted 2.6 percent to A$7.43 billion in September from an upwardly revised A$7.24 billion in August. Total commercial loans in September rose 6.9 percent to A$29.61 billion, seasonally-adjusted, from A$27.70 billion in August.
Lease finance was up 10.1 percent to A$586 million, compared with A$532 million the previous month.
The Japanese stock market opened on a firm note, with investors indulging in some bargain hunting after recent losses. Expectations of some stimulus from the Japanese central bank and the yen's decline against the U.S. dollar too contributed to the positive start.
However, with investors turning cautious at higher levels following the yen's rebound, the market pared its gains and slipped into negative territory.
The benchmark Nikkei 225 index, which rose to 8,723.5 in early trades, was down 29.2 points or 0.3 percent at 8,647.3 when the morning session ended.
Electric power, automobile, real estate, pulp & paper and chemicals stocks started off on a high note, but gave up most of their gains towards the end of the morning session. Pharmaceuticals, banking and non-ferrous metals stocks traded mixed.
Olympus Corp. shares were up nearly 5 percent at the break thanks to a fairly encouraging fiscal 2012 earnings forecast by the company.
Hokuetsu Kish Paper Co. shares were up 4.8 percent. Kansai Electric Power moved up 3.5 percent. Kubota Corp., Toyobo Co., Chubu Electric Power, Nippon Paper Group, Hino Motors, Konami Corp. and MEIJI Holding Co. also posted strong gains.
Daishinku Corp. shares plunged more than 10 percent after the company cut its group earnings forecast for financial year 2012.
Shimzu Corp. lost more than 5 percent. Shizuoka Bank, Taisei Corp., Mitsui Mining & Smelting, Tokuyama Corp., Kajima Corp., NEC Corp., Oki Electric Industry, Minebea Co. and Okuma Corp. were down 2.4 to 3.3 at the break.
In economic news, Japan's data on industrial production in September is due for release. Little change is expected from last month's preliminary readings that suggested a contraction of 4.1 percent on month and 8.1 percent on year, while capacity utilization was tapped at -2.6 percent on month.
In the currency market, the U.S. dollar traded in the mid-79 yen range in early deals in Tokyo. The yen is currently trading at 79.43 to the dollar.
Among other markes in the Asia-Pacific region, Shanghai, Hong Kong, New Zealand, South Korea and Taiwan are trading notably lower, while Indonesia is bucking the trend and trading modestly higher. Markets in Malaysia and Singapore are closed for the Deepavali holiday. Markets across the region had turned in a mixed performance on Monday.
On Wall Street, stocks ended flat on Monday, with many traders away from their desks amid the Veteran's Day holiday. Continued uncertainty about the looming fiscal cliff also kept traders on the sidelines.
While the S&P 500 inched up 0.2 points to 1,380, the Dow dipped 0.2 points to 12,815.2 and the Nasdaq edged down 0.6 points to 2,904.3.
Major European markets turned in a mixed performance on Monday. 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. |
| Commodities | | | | USDCAD | USDEUR | USDGBP | USDJPY |  |  |  |  | | Please click on the images to view our interactive charts | | 11/12/2012 3:01 PM ET U.S. crude oil snapped a two-day gain to settle lower Monday, mostly on investor concerns over the looming U.S. fiscal cliff with spending cuts and tax hikes indicated in January if a deal is not reached. There were continued concerns over the financial turmoil in Greece as its debt repayment dates draw closer and uncertainty over aid from international lenders remain. Economic growth worries continued to persist after some poor numbers out of Japan show its gross domestic product in the third quarter declined.
Light Sweet Crude Oil futures for December delivery shed $0.50 or 0.6 percent to close at $85.57 a barrel on the New York Mercantile Exchange Monday.
Crude prices scaled a high of $86.54 a barrel intraday and a low of $85.27.
Last week, oil rebounded from its four-month low amid some upbeat macroeconomic data from China, the second largest oil consuming nation.
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.
The euro traded flat against the dollar at $1.2713 on Monday, as compared to $1.2713 late Friday in North America. The euro scaled a high of $1.2739 intraday and a low of $1.2698.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 81.04 on Monday, down from 81.06 in North American trade late Friday. The dollar scaled a high of 81.10 intraday and a low of 80.91.
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 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.
During the week, investor 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.
In focus will also be the crude oil inventories data from the American Petroleum Institute due Tuesday and the Energy Information Administration's weekly oil report Wednesday. |
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