Posts Tagged stock
Stocks rise sharply after unemployment claims fall
Posted by Oksana Grebenjuk in Fund Markets on Март 3rd, 2011
Stocks jumped higher Thursday after an unexpected drop in new applications for unemployment benefits and higher February sales reports from retailers.
The Labor Department said first-time claims for unemployment benefits fell to 368,000. That’s the lowest level for claims since May 2008. Economists had expected them to rise. Separately, the Institute for Supply Management reported that its measure of hiring by service companies rose to the highest level since April 2006. The index covers a broad range of industries including retail, health care and financial services.
The signs of job growth followed a report Wednesday from payroll processor ADP that said that private employers are added more jobs than expected last month. Those gains are helping to bolster expectations that Friday’s jobs report will show that the unemployment rate fell from its current level of 9 percent.
The Dow Jones industrial average gained 183 points, or 1.5 percent, to 12,250 in afternoon trading. The Standard & Poor’s 500 index rose 19, or 1.5 percent, to 1,328.
All 10 company groups that make up the S&P index rose. Industrial companies had the largest gain, with 2.3 percent. Caterpillar Inc. gained 3 percent, the largest increase among the 30 stocks that make up the Dow average. Read the rest of this entry »
Chinese Express Wary Faith in Fannie, Freddie Debt
Posted by Oksana Grebenjuk in Trading Markets on Февраль 15th, 2011
China’s government, one of the biggest holders of debt from Fannie Mae and Freddie Mac, voiced confidence that Washington would continue to stand behind the obligations of the U.S. mortgage giants after the Obama administration outlined options for phasing them out.
The statement by the State Administration of Foreign Exchange, or SAFE, the arm of China’s central bank that manages foreign-exchange reserves, reflects Beijing’s continued concern about perceptions within China of the safety of its U.S. investments. Most of China’s $2.85 trillion in reserves is invested in dollar assets, and while China doesn’t disclose the size of its holdings of Fannie and Freddie securities, past records show it owning hundreds of billions of dollars of debt from them and other U.S. government-linked agencies.
Chinese officials have raised concerns about the possible impact of U.S. policy on the future value of China’s dollar holdings, saying loose monetary policy could hurt the value of U.S. assets. But the government has also rejected rumors that it has lost money on its existing holdings of Fannie and Freddie debt.
The Obama administration on Friday issued a white paper on plans to reduce U.S. government involvement in the mortgage market, including an eventual phaseout of Fannie and Freddie, which the government took over in 2008. But the White House’s report emphasized that it «will not waver from its commitment» to ensuring that the two «have sufficient capital to honor any guarantees issued now or in the future and meet any of their debt obligations.»
SAFE’s statement, posted on its website Saturday, said the White House plan «has aroused widespread public interest and concern that our foreign-exchange reserve investments could be damaged.» The statement said China has not had losses on its Fannie and Freddie holdings, and added that SAFE «took particular notice that the U.S. government’s commitment to support [Fannie and Freddie] hasn’t changed.» Read the rest of this entry »
NYSE team will run merged exchange with Deutsche Boerse
Posted by Oksana Grebenjuk in Favourites, Fund Markets on Февраль 14th, 2011
A top lawmaker on Sunday said he was told that officials at NYSE Euronext, in talks to be acquired by larger rival Deutsche Boerse, will have management control of the exchanges company if they merge.
Senator Charles Schumer, the senior senator from New York and a leader among Senate Democrats, told reporters he met with Chief Executive Duncan Niederauer on Friday and Saturday. Though he reserves judgment until a final deal is announced, Schumer said there are «a number of things to like» about the proposed deal.
Among them, «It will give managerial control of the new operation to the team from NYSE, with Mr. Niederauer installed as the new CEO,» Schumer said in a prepared statement. He also noted that NYSE and Deutsche Boerse would be equally represented on the board of directors.
Bob Rendine, senior vice president for NYSE Euronext’s global communications, did not dispute Schumer’s comments.
«We certainly have a lot of respect for Sen. Schumer. We’re delighted that he is engaged with us on this issue. We look forward to continuing keeping him up to speed on our progress, and on the potential benefits for New York and New York City.» Read the rest of this entry »
U.S. Economy Quickens on Gains in Spending, Exports
Posted by Oksana Grebenjuk in Trading Markets on Февраль 9th, 2011
The U.S. economy accelerated in the fourth quarter of 2010 as consumer spending climbed by the most in more than four years.
Gross domestic product grew at a 3.2 percent annual rate, Commerce Department figures showed today in Washington, falling short of the 3.5 percent median forecast of 85 economists surveyed by Bloomberg News because of a slowdown in inventories. Excluding stockpiles, the economy rose at a 7.1 percent pace, the most since 1984.
“The consumer really drove the economy in the fourth quarter,” said Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia, who accurately forecast the rate of growth. “The economy has moved beyond recovery to a stable state of growth.”
The dollar advanced on expectations the revival in demand will extend into this year, boosting sales at companies including General Electric Co. and Apple Inc. At the same time, the report showed the Federal Reserve’s preferred measure of inflation climbed at the slowest pace on record, bolstering forecasts the central bank won’t raise borrowing costs until 2012.
Stocks dropped on growing concern over the unrest in Egypt and as shares of Ford Motor Co. and Amazon.com Inc. retreated. The Standard & Poor’s 500 Index fell 1.8 percent to 1,276.34 at the 4 p.m. close in New York. The dollar advanced against the euro for the first time in nine days, strengthening to $1.3611 per euro from 1.3734 late yesterday. Read the rest of this entry »
Facebook Is Overvalued at $50 Billion in Global Poll Signaling Tech Bubble
Posted by Oksana Grebenjuk in Business, Favourites on Февраль 8th, 2011
Facebook Inc. isn’t worth $50 billion, according to a poll of global investors that shows skepticism about Goldman Sachs Group Inc.’s recent estimate of the largest social-networking site’s value and concern that a bubble may be forming in the technology sector.
Sixty-nine percent of investors say Facebook is overvalued after Goldman Sachs invested $450 million in a deal that put the company’s worth at $50 billion, according to the quarterly poll of 1,000 Bloomberg customers who are investors, traders or analysts. Only 10 percent of respondents say Facebook’s valuation is appropriate; 4 percent say it’s worth more.
The Bloomberg Global Poll conducted Jan. 21-24 shows that investors disagree with Goldman Sachs’ assessment that Facebook is worth more than Web pioneers such as Yahoo! Inc., the biggest web portal, and EBay Inc., owner of the biggest online retail marketplace. Palo Alto, California-based Facebook surpassed Yahoo! in October as the third most visited website in the world.
“Those investing in Facebook, expecting it to be the next Google, might be in for some bad news along the way,” says poll respondent John J. Lee, a portfolio manager at PGB Trust & Investments in Morristown, New Jersey. Mountain View, California-based Google went public in August 2004 and the shares more than tripled in the first year to $279.99 from $85. The stock price averaged $617.2 this month. Read the rest of this entry »
Dow’s Surge to 12,000 Echoes April With 81% of Stocks Above Average Price
Posted by Oksana Grebenjuk in Fund Markets on Февраль 2nd, 2011
Investors who pushed the Dow Jones Industrial Average above 12,000 for the first time since 2008 this week may be getting ahead of themselves.
The gauge surpassed that level the past two days before plunging the most since 2010 today, preventing the longest stretch of weekly gains since 1995. As of yesterday, more U.S. stocks were trading above their 200-day average price than any time since April, when the Dow began a 14 percent slump, and the cost to insure against Standard & Poor’s 500 Index losses fell to an almost three-year low.
The Dow may have surged too fast following its more than 2,000-point jump since August even as analysts forecast a third straight year of profit growth for the S&P 500, said James Investment Research Inc.’s Tom Mangan and BB&T Wealth Management’s Walter “Bucky” Hellwig. Mangan and BGC Partners LP’s Michael Purves see signs investors are too optimistic about the next few months.
“We expect a setback of 10 percent or more in the S&P 500 and the Dow,” said Mangan, who helps oversee $2.4 billion in Xenia, Ohio. “The market is going to face much stronger headwinds over the next months as the rally gets old and it gets increasingly difficult to find a rationale for further gains, but there will be a lot of buyers on a pullback and it would probably be a short-lived decline.” Read the rest of this entry »
Microsoft Gets `Little Credit’ for Office Unit Gains Amid Windows Concerns
Posted by Oksana Grebenjuk in Favourites, Trading Markets on Февраль 1st, 2011
Microsoft Corp. fell after a report showing a shortfall in Windows revenue raised concerns about demand for the operating system and outshined better-than- predicted second-quarter sales and profit.
Windows sales of $5.05 billion missed the $5.2 billion average of analysts’ estimates compiled by Bloomberg. That differed from the 55 percent gain in the Xbox unit, and numbers showing Microsoft’s Office and Server businesses topped projections.
The contrast suggests that Microsoft may be losing sales as customers opt for competing devices, such as Apple Inc.’s iPad or Macintosh computers, rather than a new Windows-based machine, said Tony Ursillo, an analyst at Loomis Sayles & Co. in Boston. As rival operating systems gain ground, Microsoft’s other products, such as Office, may also suffer, he said.
“The execution at this company has actually been pretty good over the last year,” said Ursillo, whose firm manages $150 billion, including Microsoft shares. “The stock has gotten very little credit for it because the market is worried about the continued erosion of the Windows franchise and the potential erosion of the Office franchise.”
Microsoft, based in Redmond, Washington, fell $1.12, or 3.9 percent, $27.75 at 4 p.m. New York time on the Nasdaq Stock Market. The shares lost 8.4 percent in 2010. Read the rest of this entry »
Strong Stocks and Euro, Weak Dollar on GE’s Earnings
Posted by Oksana Grebenjuk in Fund Markets on Январь 25th, 2011
After a weak 2 days, stocks bounced back. Strong euro is on its 8-week high versus the dollar and against 14 more out of 16 currencies. Companies’ earnings such as General Electric Co.’s are higher than estimates while commodities gain is led by sugar and cotton and German business confidence increased.
The S&P 500 Index was at 1,283.35 (0.2%) in New York at 4p.m. Stoxx Europe rose 0.7%. Credit-default swaps that support Europe’s indebted nations went to largest 2-week drop. 10-year treasuries yield dipped 4 basis points (3.41%).
GE’s 1st increase in 2 years encouraged earning season’s optimism. Since Jan. 10, out of 57 companies, 42 topped per share profit. Fiduciary Trust Co.’s Michael Mullaney said the strong earning season shows sustainable economic recovery and that good sales momentum is promising for the stock market.
S&P 500’s 43 companies in 57 reported 8.4% increase. GE, since March 2009 rallied at 7.1% whose CEO, Jeffrey Immelt, incidentally, will be named by President Obama as outside economic advisers panel head.
Bank of America Corp. was down 2% after $1.24 billion 4th quarter loss report.
Europe’s Stoxx 600 showed 2 gained for every stock decline while Banco Santander SA and Banco Bilbao Vizcaya Argentaria SA were 3.3% up. Following UK bank discussion report on Financial Times, Royal Bank of Scotland Group Plc surged 6.5%. Read the rest of this entry »
U.S. Stocks Decline, S&P 500 Ends Longest Weekly Winning Streak Since 2007
Posted by Oksana Grebenjuk in Favourites, Fund Markets on Январь 24th, 2011
U.S. stocks fell, ending the longest weekly winning streak for the Standard & Poor’s 500 Index since 2007, after Goldman Sachs Group Inc. and Citigroup Inc. failed to beat analysts’ earnings estimates and housing starts slid more than forecast.
The S&P 500 pared its weekly slump yesterday after General Electric Co. reported higher-than-projected profit, driving its shares up 7.1 percent. Goldman Sachs and Citigroup fell more than 4.6 percent this week after less trading hurt their earnings. Freeport-McMoRan Copper & Gold Inc. plunged 8.4 percent after cutting its sales forecasts, while Massey Energy Co. lost 4.8 percent, the most for a week since September.
The S&P 500 declined 0.8 percent to 1,283.35 this week, the first drop after seven straight weeks of gains. It retreated 1 percent on Jan. 19, the biggest one-day drop since November. The Dow Jones Industrial Average added 84.46 points, or 0.7 percent, to 11,871.84. The indexes hadn’t moved in opposite directions since October. Stock exchanges were closed on Jan. 17 for the Martin Luther King Jr. holiday.
“You came into earnings season with the bar set pretty high,” said Scott Migliori, the San Francisco-based U.S. chief investment officer at RCM, a unit of Allianz Global Investors that oversees more than $145 billion in assets. “Expectations have been ratcheted up over the last couple of months as the macroeconomic data points and macroeconomic outlook have improved. A pullback in late January, early February is reasonable and shouldn’t scare anybody.” Read the rest of this entry »
Egypt Stocks Drop Most in Six Weeks on Concern Tunisia Unrest May Spread
Posted by Oksana Grebenjuk in Fund Markets on Январь 19th, 2011
Egyptian stocks fell the most since November after a popular uprising in Tunisia forced the ouster of President Zine El Abidine Ben Ali, raising concern Egypt’s regime may face similar pressure.
Commercial International Bank Egypt SAE, the country’s biggest publicly traded lender, closed at the lowest level in more than a month. EFG-Hermes Holding SAE, Egypt’s biggest publicly traded investment bank, declined 2.4 percent. The EGX30 Index lost 1 percent, the biggest drop since Nov. 30, to 7,082.09 at the 2:30 p.m. close in Cairo. Tunisia’s benchmark Tunindex tumbled 13 percent last week as increasing violence lead to the toppling of the country’s leader on Jan. 14.
The Tunisian protests may embolden demonstrators who have recently taken to the streets in other North African and Middle Eastern countries, including Egypt, Morocco and Jordan, all of which have experienced demonstrations about economic conditions, said Marina Ottaway, director of the Middle East program at the Carnegie Endowment for International Peace in Washington.
“People are selling because they think the same might happen here” given unemployment and inflationary pressure, Alia Khalil, senior equity trader at Cairo-based Pharos Holding for Financial Investments, said by telephone. Read the rest of this entry »
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