Tag Archive

NEW YORK: Stocks retreated in the early going Wednesday as investors gave a sour response to Hewlett-Packard’s quarterly results and forecast, and mulled a steep drop in overseas markets.The Dow Jones industrial average (INDU) lost 72 points, or 0.9%, in the early going. The S&P 500 (SPX) index fell 9 points, or 0.9%. The Nasdaq composite (COMP) lost 21 points, or 1%.Stocks rallied Tuesday after Home Depot’s profit report and forecast reassured investors worried about the struggling consumer. But the trading volume was light, even for late summer, which traders say suggests little conviction on the part of buyers. Light volume also makes stocks more volatile and shares retreated Wednesday.Overseas markets: The Chinese market tumbled for the second time in three days. Stocks in Shanghai finished 4% lower. The rest of Asia sagged and European shares fell in morning trading.In the past two weeks, the Shanghai Composite Index has dropped nearly 20%, a decline some experts define as a bear market. Markets in Europe slipped in afternoon trading.Economy: The selloff in China is likely to hit confidence, especially amid worries about the fragile global economic recovery. No major economic readings are on tap Wednesday, which could result in a volatile session.Philip Isherwood, equities strategist at London-based Evolution Securities, said the Chinese sell-off was disturbing to U.S. and European investors “because China, obviously, is a symbol of growth.”"Equities require recovery, and China is an early-cycle talisman of recovery,” said Isherwood. “China is being viewed as an early call on the global market picking up.”Western investors want China’s economy to grow so that Chinese consumers will buy American and European imports, said Isherwood. But a heavy decline in the Shanghai markets undermines confidence that China would help with a Western recovery, he said.”China has been a bright light for so long and they’ve been a big consumer of American products,” said Anthony Conroy, head trader at BNY ConvergEx Group. “A slowdown there would certainly affect our market.”Conroy said investors are unloading futures to buy up the dollar, which is now seen as a safe haven, since “the U.S. market is coming out of a severe recession and it looks like [China is] going into one.” But while dollars are considered a safe haven, he said this positive sentiment does not extend to the U.S. stock market, because it is seen as being more dependent on Chinese growth.The plunge in the Shanghai Composite was triggered by a recent economic slowdown in a market that had rallied to the point of being overbought, said Conroy.0:00
/3:12U.S., China: Frenemies for nowMoney and oil: The dollar rose against the euro and the British pound, but slipped versus the yen. The price of oil fell 33 cents to 68.86 a barrel.Earnings: Hewlett-Packard (HPQ, Fortune 500) reported a 19% drop in quarterly profit after U.S. markets closed Tuesday, but the computer maker said business was “stabilizing.”

Source:CNN

NEW YORK: Stocks rallied Tuesday after Home Depot’s results and forecast and a few bright spots in the day’s housing market report gave investors a reason to dip back into the market after a two-session retreat.After the close, Hewlett-Packard (HPQ, Fortune 500) reported lower quarterly sales and earnings that topped analysts estimates.The Dow Jones industrial average (INDU) added 82 points, or 0.9%. The S&P 500 (SPX) index rose 10 points, or 1%. The Nasdaq composite (COMP) gained 25 points, or 1.3%.Stocks slipped for two straight sessions, with the major gauges each losing over 3% on worries that a struggling consumer could pressure an already fragile recovery. But Tuesday brought some better news from the retail sector and investors used it as an opportunity to move back into the market, albeit on light trading volume.”There’s going to be a lot of volatility day-to-day as we try to figure out how much economic growth we’re going to have,” said Robert McGee, portfolio manager at CS McKee.A weaker-than-expected consumer sentiment report Friday and Lowe’s disappointing profit report Monday sparked the selling, which followed a roughly five-month advance. But Tuesday brought better profit news from Dow component Home Depot and discount retailer Target, helping to mitigate some consumer worries. On the downside, the morning’s housing market report missed growth forecasts but investors sought out some good news when it came to single-home construction.The S&P 500 is 46% higher since bottoming March 9. Year-to-date, it’s just up 9.6% as of Tuesday’s close.”I think the rally is a little ahead of what the economy and fundamentals are indicating,” McGee said. “We’re probably near the highs of the year and could see some give back through the fall.”Wednesday brings no market-moving quarterly results or economic news. The weekly oil inventories report from the Energy Information Administration is due in the mid-morning. Retail: Home Depot (HD, Fortune 500) reported earnings of 66 cents per share, versus 77 cents a year ago, as the recession cut into its business. But results were better than expected and the home improvement retailer boosted its full-year earnings outlook. Shares of the Dow component gained 3% Tuesday.Target (TGT, Fortune 500) reported earnings of 79 cents per share versus 82 cents a year earlier, topping expectations, due to cost cutting and reduced inventories. But revenue and same-store sales slipped, as consumers remained cautious. Shares gained 7.6%.Economy: Housing starts and building permits both slipped in July, according to a Commerce Department report released Tuesday. The report surprised Wall Street economists who were looking for an improvement.Housing starts fell to a 581,000 annualized rate in July from a revised 587,000 in June. Economists thought starts would rise to 599,000, according to a Briefing.com survey. Building permits, which indicate builder confidence, fell to a 560,000 annualized rate in July from a revised 570,000 annualized rate in June. Economists thought it would rise to a 576,000 annualized rate.On the upside, the report showed that single-family housing construction rose 1.7% in July, advancing for the fifth straight month and at the fastest pace since October.A separate report showed that inflation at the wholesale level remains in check. The Producer Price Index (PPI) fell 0.9% in July after rising 1.8% in June. Economists thought it would fall to 0.3%. The core PPI, which strips out volatile food and energy prices, fell 0.1% in July versus forecasts for a rise of 0.1%.General Motors: The automaker is boosting production in the second half of the year and bringing 1,350 of its North American employees back to work as a result of increased demand from the government’s Cash for Clunkers program. Separately, GM (GM, Fortune 500) said it made a deal to sell its money-losing Saab to Swedish luxury sports car maker Koenigsegg.Other stock movers: Huron Consulting Group (HURN) rallied 37.6% in unusually active Nasdaq trading after the business consultant reported higher quarterly revenue and earnings that topped estimates. American Axle & Manufacturing Holdings (AXL) rallied 117% in unusually active New York Stock Exchange trading after saying it will get up to 210 million in help from former parent GM. The auto parts manufacturer is trying to restructure its debt outside of bankruptcy court. Market breadth was positive and trading volume was light. On the New York Stock Exchange, winners topped losers by almost four to one on volume of 991 million shares. On the Nasdaq, advancers topped decliners three to one on volume of 1.77 billion shares.Bonds: Treasury prices slipped, raising the yield on the benchmark 10-year note to 3.51% from 3.47% Monday. Treasury prices and yields move in opposite directions.0:00
/2:44Mixed signals on the recoveryOther markets: In global trading, European and Asian markets climbed.U.S. light crude oil for September delivery rose 2.44 to settle at 69.19 a barrel on the New York Mercantile Exchange. COMEX gold for December delivery rose 3.40 to settle at 939.20 an ounce.In currency trading, the dollar fell versus the euro and gained against the Japanese yen.

NEW YORK: Stocks slumped Friday, but managed to cut steeper losses by the close, after a weaker-than-expected consumer sentiment report raised worries about the strength of any economic recovery.The Dow Jones industrial average (INDU) lost 77 points, or 0.8%. The S&P 500 (SPX) index fell 8 points, or 0.9%. The Nasdaq composite (COMP) lost 24 points, or 1.2%.Stock declines were broad, but a few sectors recovered losses by the close. Some 24 of the Dow’s 30 components fell, led by Boeing (BA, Fortune 500), IBM (IBM, Fortune 500), Chevron (CVX, Fortune 500), Exxon Mobil (XOM, Fortune 500), McDonald’s (MCD, Fortune 500) and 3M (MMM, Fortune 500).Stocks began the session slightly lower, as investors shrugged off reports that supported hopes for an economic recovery, including a mild reading on inflation and signs that factory production has started to pick up. But the selloff soon picked up speed following the release of the consumer sentiment index. By the close, stocks had trimmed some of those losses.The University of Michigan’s consumer sentiment index dipped to 63.2 in August from 66 in late July. Economists surveyed by Briefing.com thought it would rise to 69.”The report is concerning,” said Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez Inc. He said that despite the recent stock rally and signs that the recession is winding down, consumers are continuing to take a battering.”The report underscores the pain consumers are feeling on both their income and balance sheets,” he said. “And that’s overshadowing any rally in stocks.”Stocks ended the previous session at 2009 highs, but ended lower for the week after a four-week advance. A more optimistic view from the Federal Reserve trumped weaker retail sales Thursday, but investors continue to look for signs of a recovery.Between hitting a bottom on March 9 and Thursday’s close, the S&P 500 rose 50%, making stocks vulnerable to a retreat Friday.Economy: Other economic reports Friday pointed to the end of the recession, as the Federal Reserve hinted earlier in the week. Industrial production, a measure of factory output, rose 0.5% in July after falling 0.4% in the previous month. It was the first rise in 9 months and could indicate that manufacturing is bottoming. Economists thought it would rise 0.4%.Capacity utilization rose to 68.5% from 68.1% in June. Economists thought it would rise to 68.3%.The Consumer Price Index (CPI), a measure of consumer inflation, was unchanged in July, as expected. CPI rose 0.7% in June. The so-called core CPI, which strips out volatile food and energy prices, rose 0.1%, as expected. Core CPI rose 0.2% in June.Banks: Colonial BancGroup (CNB) may have found a buyer for part or all of its assets in BB&T Corp. (BBT, Fortune 500), according to reports. Late Thursday, a judge ruled in favor of Bank of America (BAC, Fortune 500) in a suit looking to bar Colonial, which is on the verge of collapse, from transferring or liquidating 1 billion in assets.Shares of Colonial BancGroup, a Southern regional bank, slumped 12% before being halted. BB&T shares gained 9.4%. BofA shares rose 2.3%.Retailers: Abercrombie & Fitch (ANF) reported a fiscal second-quarter loss versus a year-ago profit due to weak sales, higher costs and more markdowns. The loss was steeper than expected. The teen clothing retailer also reported weaker revenue that topped estimates. Shares gained 3.5% Friday.J.C. Penney (JCP, Fortune 500) reported a smaller-than-expected quarterly loss Friday, but also issued a current-year forecast that is lower than what many analysts were expecting. Shares fell 6.1%.Market breadth was negative. On the New York Stock Exchange, losers beat winners by seven to three on volume of 1.09 billion shares. On the Nasdaq, decliners topped advancers three to one on volume of 1.96 billion shares.0:00
/2:45More bucks in the bankBonds: Treasury prices rallied, lowering the yield on the benchmark 10-year note to 3.56% from 3.60% Thursday. Treasury prices and yields move in opposite directions.The government auctioned 75 billion in debt this week as part of its efforts to reduce the deficit and fuel its recovery efforts. Oil and gold: U.S. light crude oil for September delivery fell 3.01 to settle at 67.51 a barrel on the New York Mercantile Exchange. COMEX gold for December delivery fell 7.80 to settle at 948.70 an ounce.Other markets: In global trading, European markets ended lower and Asian markets mostly ended higher.In currency trading, the dollar gained versus the euro and rose against the Japanese yen.

NEW YORK: Stocks turned lower Thursday as investors weighed the Federal Reserve’s improved outlook on the economy with a surprise drop in retail sales and rise in jobless claims.The Dow Jones industrial average (INDU) lost 45 points or 0.5% around 30 minutes into the session. The S&P 500 (SPX) index fell 4 points, or 0.5%. The Nasdaq composite (COMP) lost 10 points, or 0.5%.Stocks rallied Wednesday after the Federal Reserve held interest rates near historic lows and signaled the economy has finally started to stabilize. But the rally pushed the major indexes above key psychological levels and 10-month highs that seem to give investors pause. For the Nasdaq, it’s 2,000 and the S&P 500, it’s 1,000.”It looks like the recession is over,” said Len Blum, a managing director at Westwood Capital, referring to Wednesday’s statement from the Federal Reserve, before the retail numbers came out. “But the question is: What’s the recovery going to look like? I think it’s a flatline recovery. I think a long-term rally is going to be unsustainable.”World markets: Wall Street looked set to track global markets, which advanced after Germany and France both pulled out of their recessions. Both posted unexpected GDP growth for the second quarter.Fed: The better-than-expected readings out of Europe came a day after the Fed said the long decline for the U.S. economy appears to have ended. The central bank said the economy was “leveling out.” Retail: But the latest data on retail sales could cast gloom over Thursday trading.Retail sales slipped 0.1% in July, which was much worse than expected. While the decrease was mild, economists were expecting an increase. Economists pooled by Briefing.com expected July gains of 0.7%, compared to June gains of 0.8%.Wal-Mart Stores (WMT, Fortune 500) reported its same-store sales slipped 1.2% in the second quarter of fiscal year 2010. But the retailer said its profit, of 88 cents per share, was at the top end of its forecast. Economy: The U.S. government said initial jobless claims increased in the week ended Aug. 8, contrasting with expectations of a decrease. Jobless claims totaled 558,000 that week, an increase of 4,000 from the prior week. A consensus of economists compiled by Briefing.com had forecasted 545,000 claims for the week.Money and oil: The dollar slipped versus the yen, the euro and the British pound. The price of oil jumped 90 cents a barrel to 71.06.

Source:CNN

NEW YORK: Stocks struggled higher Wednesday, as investors weighed digging back in after a two-day selloff with caution ahead of the latest from the Federal Reserve.The Dow Jones industrial average (INDU) gained 34 points, or 0.4%, in the first 15 minutes of trading. The S&P 500 (SPX) index rose 3 points, or 0.3%. The Nasdaq composite (COMP) advanced 9 points, or 0.5%.Art Hogan, chief market strategist at Jefferies & Co., said the markets have been in a “wait-and-see mode” ahead of the Federal Reserve’s policy statement, due after the meeting ends later Wednesday. He said the statement would “maybe give us some guidance on monetary policy for the future,” and could influence trading. But ahead of that statement, Hogan expects trading to be “pretty quiet.”Stocks slumped Tuesday, as bank shares got pummeled and investors showed their nervousness ahead of the Federal Reserve announcement. Fed: U.S. central bankers end their two-day meeting Wednesday. The Fed’s policy statement is due out at 2:15 p.m. ET.The Fed is expected to keep rates at levels near zero, but investors will pore over the statement to see what policymakers say about the outlook for the economy.0:00
/4:08The Fed’s balancing actEconomy: The U.S. government reported that the trade deficit for June was 27 billion, which was less than the 28.7 billion expected by economists surveyed by Briefing.com. The Treasury budget is also on tap for Wednesday.Bonds: Treasury prices inched higher, lowering the yield on the benchmark 10-year note to 3.65% from 3.67% late Tuesday. Treasury prices and yields move in opposite directions.The government is auctioning 75 billion in debt this week as part of its efforts to reduce the deficit and fuel its recovery efforts. Treasury’s Tuesday auction of 37 billion in three-year notes saw stronger demand than other recent auctions. On Wednesday, the government auctions 23 billion in 10-year notes. On Friday, it sells 15 billion in 30-year bonds.Oil and gold: U.S. light crude oil for September delivery rose 55 cents to 70 a barrel on the New York Mercantile Exchange. COMEX gold for December delivery fell 2.10 to 945.50 an ounce.Other markets: In global trading, European markets rallied in the afternoon. Asian markets tumbled.In currency trading, the dollar fell versus the euro and the Japanese yen.

Source:CNN

NEW YORK: Stocks slipped Tuesday morning as investors looked to the Federal Reserve and a three-day Treasury auction for new indications on the health of the economy.The Dow Jones industrial average (INDU) lost 30 points, or 0.3% in the early going. The S&P 500 (SPX) index fell 4 points, or 0.4%. The Nasdaq composite (COMP) dipped 8 points, or 0.4%.Stocks rallied through the end of last week, with the S&P 500 jumping 50% since bottoming in March. But investors have dragged their feet this week as they look for new signs that the economy is stabilizing. This week, the two-day Federal Reserve policy meeting and the Treasury auctions will take center stage.Gary Jenkins, strategist at Evolution Securities in London, said the most important market driver will be the Treasury’s auction of 75 billion in debt. This auction will begin Tuesday, with a 37 billion offer in 3-year notes, and could overshadow the impact of the Federal Reserve’s meeting.”If [the auction] does well, it could add a little stability to the market,” said Jenkins. “If it doesn’t do well, that could cause some short-term volatility.”Fed: All eyes are on U.S. central bankers, who begin their two-day policy meeting. The Fed is widely expected to hold rates steady at near zero. 0:00
/4:08The Fed’s balancing actInvestors will be eager to see what policymakers say about the outlook for the U.S. economy when the Fed statement comes out Wednesday. Economy: Investors showed little reaction to a report that U.S. productivity – a measurement of how much an employee produces for each hour worked – made its greatest gains in nearly six years. The U.S. government reported that productivity costs rose 6.4% in the second quarter, which was higher than the 5.5% increase projected by a consensus of economists from Briefing.com. This will be followed by a reading on wholesale inventories at 10 a.m. ET.World markets: Asian stocks finished the session modestly higher. Japan’s Nikkei and the Hang Seng in Hong Kong both added slight gains. Major markets in Europe tumbled in afternoon trading.Money and oil: The dollar slipped against the euro, the yen and the British pound. The price of oil fell 1 to 69.60.

Source:CNN

NEW YORK: Stocks eased Monday as investors took a step back after a big rally that pushed the Dow and S&P 500 to the highest levels in 9 months.The Dow Jones industrial average (INDU) lost 19 points, or 0.2%, in the early going. The S&P 500 (SPX) index lost 2 points, or 0.3%. The Nasdaq composite (COMP) lost 4 points, or 0.4%.”The markets are ripe for a pullback; there’s no question about that,” said Peter Cardillo, chief market economist for Avalon Partners, noting that stock indexes are “at the highs for the year.”Stocks rallied as investors welcomed a spate of positive earnings surprises and economic news that showed stabilization. This week, the focus is on the Federal Reserve and the retail sector.Economy: No major economic reports are on tap Monday, giving investors time to digest the recent rally.Stocks have gotten a boost lately from upbeat economic news. On Friday, the July jobs report from the U.S. Labor Department showed the smallest number of job cuts in nearly a year.Cardillo said that trading Monday will probably be “sideways,” given the lack of market-movers. He said that trading will be more volatile later in the week, when investors will have fresh economic data to react to.Earnings: Warren Buffett’s Berkshire Hathaway (BRK) posted a 14% rise in quarterly net income after U.S. markets closed Friday.World markets: Asian stocks finished the session higher. Japan’s Nikkei added 1% and the Hang Seng in Hong Kong rallied nearly 3%. Major markets in Europe were lower in afternoon trading.Money and oil: The dollar edged up versus the British pound, but eased against the euro and the yen. Oil prices rose 25 cents a barrel to 71.16.

Source:CNN

NEW YORK: Stocks gained early Friday after the government reported a surprise drop in the unemployment rate and a smaller number of job cuts than expected, raising hopes that the economy is stabilizing.The Dow Jones industrial average (INDU) gained 70 points, or 1.8%, in the early going. The S&P 500 (SPX) index rose 9 points, or 0.9%. The Nasdaq composite (COMP) added 21 points, or 1.1%.Stocks slipped Thursday, the second-straight decline, as investors took a step back after the recent big rally and ahead of the jobs report. The Dow, Nasdaq and S&P 500 all hit fresh 2009 highs earlier in the week, following three weeks of gains. Since bottoming March 9 at a 12-year low, the S&P 500 has risen 49% as of early Friday.Economy: Employers shed 247,000 jobs in July, less than the 325,000 expected by analysts and far fewer than the 443,000 lost in June. The unemployment rate fell to 9.4% from 9.5%, the first decline in over a year. Analysts were expecting it to rise slightly. Employment is seen as a lagging indicator in any recovery, according to economists. Yet the steady march higher of the unemployment rate over recent months has added to investor anxiety about the health of the economy. Quarterly results: Troubled insurer AIG (AIG, Fortune 500) reported its first profit in two years. The stock, which soared in the run-up to the earnings report, gained another 17% in the first 10 minutes of the session.Autos: The Cash for Clunkers incentive program got a new life late Thursday after the Senate approved 2 billion in additional funding. The popular program is aimed at spurring auto sales. Oil and gold: U.S. light crude oil for September delivery rose 22 cents to 72.16 a barrel on the New York Mercantile Exchange. Oil prices have been gaining in recent weeks on bets the global economy is close to turning around.COMEX gold for December delivery rose 3.30 to 966.20 an ounce.Bonds: Treasury prices tumbled, raising the yield on the benchmark 10-year note to 3.84% from 3.75% late Thursday. Treasury prices and yields move in opposite directions.Other markets: In global trading, European markets rallied in the afternoon, turning higher after the release of the U.S. jobs report. Asian markets ended lower — with the exception of the Nikkei — losing steam ahead of the jobs report.In currency trading, the dollar gained versus the euro and the Japanese yen

Source:CNN

NEW YORK: Stocks turned lower Thursday, overcoming early gains, as Cisco’s weak outlook vied with a government report showing a bigger-than-expected drop in weekly jobless claims.The Dow Jones industrial average (INDU) lost a few points less than 30 minutes into the session. The S&P 500 (SPX) index fell 3 points or 0.3%. The Nasdaq composite (COMP) lost 10 points or 0.5%.Economy: The number of people filing unemployment claims last week fell more than expected, although continuing claims, a measure of those receiving long-term benefits, continued to rise.The report came a day before the Labor Department releases its closely watched monthly jobs report.Results: Late Thursday, tech bellwether Cisco Systems (CSCO, Fortune 500) reported lower revenue that met estimates and lower earnings that topped estimates. Looking forward, the company cut its current-quarter revenue outlook and CEO John Chambers said it was too soon to call a recovery.On the move: Financial stocks continued to surge, both in the U.S. and on European bourses. AIG (AIG, Fortune 500), which jumped 60% Wednesday, added another 27%. Dow components Bank of America (BAC, Fortune 500) and American Express (BAC, Fortune 500) were among the other big gainers.World markets: Global stocks rallied. Markets in Asia finished the session in positive territory, with Japan’s Nikkei adding 1%. Major European markets were also higher in afternoon trading.Oil prices fell 77 cents to 71.21 a barrel. The dollar was up versus the euro and the yen.

Source:CNN

NEW YORK: Wall Street started the session down on Wednesday after two reports pointed to continued deep losses in jobs. At the start of trade, the Dow Jones industrial average, Standard & Poor’s 500 and Nasdaq 100 all lost ground. On Tuesday, stocks ended higher, supported by a better-than-expected read on the housing market. The National Association of Realtors said the pending home sales index rose 3.6% in June versus forecasts for a rise of 0.7%. The Dow and S&P 500 ended at new nine-month highs.Economy: Paycheck processor ADP said the economy shed 371,000 jobs in July. Although the pace of job cuts is slowing, the number was higher than expected and points to continuing challenges facing the economy. 0:00
/2:41The impact of govt. assistanceEarlier this morning, outplacement firm Challenger said companies’ planned job cuts rose 31% in July, indicating problems in the employment sector are far from over. The reports come ahead of the U.S. Labor Department’s closely watched monthly jobs report, which will be released on Friday.The Labor Department is expected to show that the economy shed 328,000 jobs in July, less than the 467,000 reported for June, according to a consensus estimate of economists compiled by Briefing.com. The unemployment rate is predicted to rise to 9.6% from 9.5%.Readings on factory orders and the service sector are due at 10 am ET.Earnings: Consumer goods firm Procter & Gamble (PG, Fortune 500) reported profits slightly higher than expected, although revenue declined.Other companies to watch include Kraft Foods (KFT, Fortune 500), which reported an 11% jump in profits after U.S. markets closed Tuesday.World markets: Asian stocks fell as investors paused for breath. Major European markets were mixed as investors digested another round of bank earnings.Oil prices slipped to trade around 71 a barrel and the dollar rose slightly against the euro.

Source:CNN