US stock futures extend gains on unemployment data
May 10, 2012
Associated Press – NEW YORK (AP) — U.S. stock futures are higher with the government reporting that weekly jobless claims edged downward last week, suggesting that employers may accelerate hiring this month
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Associated Press –
NEW YORK (AP) — U.S. stock futures are higher with the government reporting that weekly jobless claims edged downward last week, suggesting that employers may accelerate hiring this month.
Weekly applications dropped 1,000 to a seasonally adjusted 367,000 in the week ending May 5, the Labor Department said Thursday. The previous week’s figure was revised up slightly.
The Dow Jones industrial average rose 48 points to 12,843. The Standard & Poor’s 500 gained 9.8 points to 1,360.8. The Nasdaq composite index rose 11.5 points to 2,630.75.
The four-week average for jobless claims, which economists use for a less volatile peek at the employment picture, fell 5,250 to 379,000. When that figure remains consistently below 375,000, it suggests that job growth is strong enough to lower the unemployment rate.
The numbers released by the Labor Department could dispel nascent fears that that strongest yearly start for hiring since the recession ended 2009 was sputtering.
Applications for unemployment benefits rose for most of last month in tandem with weaker hiring in March and April.
There are still signs, however, that companies are still digging out from the recession and a solid hiring environment has yet to take root.
Late Wednesday, a giant in the technology sector spooked the market with a sobering outlook on spending, particularly with Europe weighing on any global recovery.
Cisco Systems Inc. posted strong third-quarter profits, but shares tumbled 8 percent in premarket trading Thursday on dour comments about the willingness of corporations to make substantial investments.
CEO John Chambers said customers are waiting longer to close deals and they are spending less out of uncertainty about the economy, particularly in Europe and India.
“We are still in an uncertain environment economically,” Chambers told analysts in a conference call.
As talks to form a Greek government dragged into a fourth day, European markets fell.
The FTSE 100 index of leading British shares slipped 0.5 percent to 5,501 while Germany’s DAX fell 0.2 percent at 6,461. The CAC-40 in France was 1.2 percent lower at 3,081.
In the U.S., Kohl’s Corp. said Thursday that first-quarter profit tumbled 23 percent and the department store chain warned that it may fall short of Wall Street expectations in the second quarter.
The report comes a day after Macy’s reported first-quarter earnings. While first-quarter profit rose 38 percent, Macy’s shares tumbled after the department store left its guidance unchanged.
Though the company tends to give conservative guidance, investors took it as a sign of a potential slowdown in consumer spending, which accounts for about 70 percent of U.S. economic activity.
Syrian pound, stock market plummet: IMF
May 9, 2012
AFP – The value of the Syrian pound is down 45% on the parallel market and the stock market has slumped 40% since an uprising broke out in March 2011, the International Monetary Fund said on Wednesday. “The exchange rate on the black market has depreciated by 45% and 25% on the official market,” IMF deputy managing director Nemat Shafik told reporters in Beirut. The unrest has damaged the Syrian economy but little data is available, Shafik added.
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AFP –
The value of the Syrian pound is down 45% on the parallel market and the stock market has slumped 40% since an uprising broke out in March 2011, the International Monetary Fund said on Wednesday.
“The exchange rate on the black market has depreciated by 45% and 25% on the official market,” IMF deputy managing director Nemat Shafik told reporters in Beirut.
The unrest has damaged the Syrian economy but little data is available, Shafik added. “For security reasons,” the IMF has been unable to send a team to the country.
“We know that GDP has fallen but we don’t have any numbers because we haven’t had people on the ground,” she said, adding the last IMF visit took place in January-February 2011.
Meanwhile, the stock market has plunged by 40%. “The fact that the stock market has fallen by 40 percent is an important indicator of what has happened to businesses,” the IMF official said.
The strife-torn country’s economy, hit by sanctions, is expected to suffer “significant” contraction in 2012, the head of the IMF’s Middle East, North Africa, Gulf and Central Asia department, Masood Ahmed, told AFP in May.
“The impact that the sanctions will have on oil exports for Syria will be the most immediate,” Shafik said, noting that Libya’s GDP fell by 60% when exports were halted during its conflict last year.
“Oil is a much bigger part of the Libyan economy than it is for Syria,” she said. “But still, for Syria it is its major foreign exchange earner and a big revenue earner for the government.”
The Iraqi economy is also affected by the crisis, Shafik said, noting the landlocked state’s dependency on its Mediterranean neighbour.
“Syria is Iraq’s main link to the Mediterranean, so transit trade from Iraq via Syria is potentially disrupted.”
Iraq is “quite dependent” on Syria, as “a significant proportion of Iraqi imports come from Syria, particularly commodities,” she noted.
Neighbouring Lebanon has also been affected by the crisis. “We have seen a decline in trade,” Shafik said.
There has also been a decline in tourism from Syria, while Lebanese banks have withdrawn from Syria to reduce their exposure to the crisis, the IMF official added.
The EU has adopted several rounds of sanctions against Syria, expected to tighten further, to pressure President Bashar al-Assad’s regime to halt its deadly crackdown on a 14-month uprising.
In September, the EU banned Syrian crude oil imports. The EU was the main importer of Syrian oil, at 95% of the total, while the industry provided the embattled state with a third of its foreign exchange earnings.
According to IMF data, Syria’s economy grew 5.9% in 2009 and 3.4% in 2010.
Hiring slowdown sends the stock market reeling
May 4, 2012
By PALLAVI GOGOI | Associated Press – NEW YORK (AP) — Stocks plunged Friday after the government reported that hiring slowed sharply last month. The report confirmed investors’ fears that the U.S. economic recovery may be faltering.
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By PALLAVI GOGOI | Associated Press –
NEW YORK (AP) — Stocks plunged Friday after the government reported that hiring slowed sharply last month. The report confirmed investors’ fears that the U.S. economic recovery may be faltering.
The losses in the market were widespread. The Dow Jones industrial average lost 168 points and the Nasdaq composite had its worst day since Nov. 9. Both the Nasdaq and the Standard & Poor’s 500 index closed out their worst weeks of the year. The Dow had its second-worst.
The dollar and U.S. Treasury prices rose as investors dumped risky assets and moved money into lower-risk investments. Energy stocks were among the hardest hit after the price of oil fell below $100 a barrel for the first time since February. Only one of the 10 industry groups in the S&P 500 rose, utilities, which investors tend to buy when they’re nervous about the economy.
“The jobs numbers were a disappointment,” said Phil Orlando, chief equity strategist at Federated Investors.
It was the third straight daily loss for the Dow, but it’s too early to know if it’s the start of a correction in the market. Even after its 1.4 percent decline this week, the Dow is still up 6.7 percent this year.
Investors are on edge about Europe once again as France and Greece both hold elections over the weekend. In France the socialist candidate Francois Hollande has a chance to unseat the incumbent Nicolas Sarkozy, who has been at the forefront of fashioning Europe’s efforts to prevent its share currency from collapsing.
Crude oil plunged $4 to $98.49 a barrel on worries that demand would drop because of a weakening world economy. It was the first time oil has dropped below $100 since February 13.
The late slump in the week was a stark contrast to Monday, when the Dow closed at its highest level in more than four years, propelled by a report that showed a pickup in manufacturing. All that became a distant memory after a slew of poor economic reports were released the rest of the week.
On Thursday major retailers including Costco and Macy’s reported that April sales inched up less that 1 percent, the worst performance since 2009. Thursday also brought news that U.S. service companies expanded their business more slowly in April.
The Dow closed down 168.32 points, or 1.3 percent, at 13,038. All 30 companies that make up the index fell, led by Bank of America and Cisco.
The S&P 500 fell 22.47 points, or 1.6 percent, to 1,369, while the Nasdaq index fell 67.96 points, or 2.2 percent, to 2,956.
For the week, the S&P lost 2.4 percent, the Nasdaq 3.7 percent.
The yield on the benchmark 10-year Treasury note dropped to 1.88 percent from 1.92 percent late Thursday as demand increased for safe investments. The yield hasn’t settled that low since early February.
The culprit for the distress in financial markets was a report from the Labor Department Friday showing that U.S. job growth slumped in April for a second straight month. The 115,000 jobs added in April and the 154,000 in March were down form an average of 252,000 a month from December through February.
Orlando noted that the first few months of the year were marked by a number of abnormal conditions including an uncharacteristically warm January and February. That led to a spurt in hiring which usually occurs in spring.
Retail sales and hiring were also affected by an earlier Easter, which fell on April 8 this year, 16 days earlier than last year. That pushed some retail sales ahead to March, leaving April’s numbers weaker than they might have been. Retailers also blamed a late Mother’s Day for pushing some sales out of April and into May. Unusually warm weather in February and March also pulled forward some sales that would have normally occurred in April.
“The surge in hiring and spending that usually occurs in March through April, occurred earlier in the year this year,” said Orlando. “We have to wait for economic numbers from May and June to get a better idea of the underlying strength of this economy.”
After the price of oil fell, energy company stocks turned lower in response. Southwestern Energy Co. fell 7 percent and Marathon Oil Corp. fell 3 percent.
In other trading:
— Warnaco Group Inc. dropped over 6 percent after the clothing maker lowered its 2012 forecast and said that its first-quarter net income fell, hurt by the weak European economy.
— Aon Corp. fell almost 6 percent after the insurance broker reported first-quarter net income fell 3 percent due to higher costs and unfavorable currency exchange rates.
— LinkedIn Corp. rose 7 percent after announcing late Thursday that its first-quarter profit more than doubled, topping expectations. The social networking company also announced an acquisition.
— Tilly’s Inc. climbed 8 percent in the clothing retailer’s debut on the New York Stock Exchange. Tilly’s sells surf-inspired and casual West Coast-styled clothing and accessories.
— Einstein Noah Restaurant Group Inc. soared 19 percent after the owner of bagel chain Noah’s Bagels said it is considering strategic alternatives, including a possible sale of the company
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Why stock market is spinning its wheels despite positive trends
April 30, 2012
Consumer income and spending are up, but the stock market has been largely stagnant since February. Two big trends could be behind the Dow’s tepid spring. First it was the jobless recovery
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Consumer income and spending are up, but the stock market has been largely stagnant since February. Two big trends could be behind the Dow’s tepid spring.
First it was the jobless recovery. Now it seems like the joyless recovery. Despite gains in personal incomes and spending for March, the US stock market sagged Monday.
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The Dow Jones Industrial Average spent the morning in negative terrain, compared with Friday’s close, and that’s part of a broader trend.
After rising in this year’s early weeks, the widely watched Dow index has been treading water since February, a little below or above the 13000 level.
What’s holding back investor spirits?
Corporate profits, after all, have reached historically high levels, yet the Dow’s level of about 13200 Monday remains well below the pre-recession peak (about 700 points above that).
Two factors appear to be important:
- America’s economic momentum, embodied in the news about consumer incomes and spending, is still tepid.
- The US is currently the patch of green in a global landscape characterized by the economic equivalent of a drought in Europe and storm threats in China and Iran.
Here’s what the Commerce Department reported: Personal income in the US rose 0.4 percent in March, and spending rose by a similar amount, 0.3 percent. Not racing forward, especially when inflation is taken into account, but those are steps of progress.
“The good news in this report is the strength in income,” said IHS Global Insight economist Leslie Levesque in a written analysis. “For the first time this year, growth in income … was in positive territory” even after adjusting for inflation and taxes.
Consumer spending, also rising faster than inflation in the government’s report for March, represents the vital bulwark of economic growth. When incomes are rising and consumers spend, business tend to increase hiring.
Monday’s news confirms the impression left on financial markets last week, when the government’s estimate of first-quarter economic growth came in weaker than expected. The report showed gross domestic product (GDP) rising at a 2.2 percent annual pace, with the gains largely fueled by domestic consumption. (Business investment is also rising, while changes in government consumption and foreign trade subtracted from the growth rate.)
Overall, economists see welcome signs of a recovery that has solid footing in the US. The woes in the housing market are starting to fade, and private sector employers have been adding jobs each month, contributing to the gains in consumer income. Many forecasters see the economy growing at a similar pace in the current quarter.
To some extent, consumers are showing a happier mood, although not exuberance.
“Consumer sentiment has clearly improved somewhat in recent months, aided by steadily the improving job market and better economic news flow,” economist Chris Williamson of the financial-data firm Markit said in an analysis of the GDP numbers Friday.
But judging by the stock market, investors have an eye on the risks as well as the progress.
In the US, they don’t see a lot of room for positive surprises. The personal income and spending report, for example, showed that US consumers have been saving less of their income in recent months. With the savings rate at 3.8 percent of disposable income in March, household savings don’t look as healthy as last year’s level of 4.7 percent.
After a post-recession rebound, gains in corporate profits may be modest in coming quarters, which could explain the lackluster performance of the Dow and other stock indexes.
Global forces also weigh on the economic outlook. Investors responded Monday to news that Spain’s economy is in recession, reporting two straight quarters of decline in GDP. That news points to broader worries about how weakness in Europe will affect the global economy.
Other danger spots include the risk of a further spike in oil prices if tension surrounding Iran’s nuclear program intensifies, and the risk that China’s cooling economy could have a “hard landing.”
For now, IHS Global Insight expects China and the US to muddle through and lead the world economy higher. The firm’s forecast for global GDP growth is 2.8 percent for 2012, and 3.6 percent in 2013.
US stock futures dip on weak consumer spending
April 30, 2012
Associated Press – NEW YORK (AP) — U.S. stock market futures slipped Monday as consumer spending growth slowed last month and Spain officially slipped back into recession. Dow Jones industrial average futures fell 0.17 percent to 13,142
Continued here:
Associated Press –
NEW YORK (AP) — U.S. stock market futures slipped Monday as consumer spending growth slowed last month and Spain officially slipped back into recession.
Dow Jones industrial average futures fell 0.17 percent to 13,142. Standard & Poor’s 500 futures gave up 0.25 percent to 1,395, and Nasdaq 100 futures slipped 0.36 percent to 2,727.
The Commerce Department reported that spending growth slowed in March, while incomes rose 0.4 percent, slightly ahead of expectations.
Recent economic reports are generating concern that the recovery is slowing down. Since consumer spending makes up about 70 percent of the economy, a cutback in the rate of spending growth could be reflecting weak income gains and a slowing job market.
Problems in Europe aren’t helping.
European markets were mainly lower, weighed down by growing concerns over Spain. Data released Monday confirmed that Spain slipped back into recession in the first quarter. A new recession could make it harder for the government to cut its budget deficit, and raises the worry that the country might be locked into a downward financial spiral.
Ratings agency Standard & Poor’s on Friday downgraded Spain to just three notches above junk, following up the move on Monday by lowering its rating for 11 Spanish banks, which are loaded with bad debt from a collapsed housing market. Spain is the fourth-largest economy in the eurozone. There is worry that the continent’s bailout funds won’t be big enough to rescue Spain if it needs assistance.
Germany’s DAX was off 0.22 percent at 6,786. France’s CAC 40 was down 1.06 percent at 3,231. Britain’s FTSE 100, which often trades contrary to the rest of European markets, edged up 0.49 percent at 5,777.
Trading in Asia was light because of holidays in Japan and mainland China. Hong Kong’s Hang Seng rose 1.7 percent to 21,094.21, South Korea’s Kospi added 0.3 percent to 1,981.99 and Australia’s S&P/ASX 200 gained 0.8 percent to 4,396.60.
Investors in those markets focused on the U.S. economy and hopes that the Fed might sanction another round of bond-buying, known as quantitative easing, after figures last Friday showed the world’s largest economy grew less than expected in the first quarter.
U.S. stocks to watch include Barnes & Noble Inc. and Microsoft Corp., which are teaming to create a unit to house the digital and college businesses of the bookseller and include a Nook application for Windows 8. The companies said Monday that they may separate those businesses entirely. That could mean a stock offering, sale, or other deal could happen.
Barnes & Noble shares shot up more than 9 percent to $25.95 in premarket trading. Microsoft added 6 cents to $32.04.
Shares of health insurer Humana Inc. fell more than 4 percent to $84 after reporting a 21 percent drop in first-quarter profit, falling short of Wall Street expectations.
US stock futures dip on weak consumer spending
April 30, 2012
Associated Press – NEW YORK (AP) — U.S. stock market futures slipped Monday as consumer spending growth slowed last month and Spain officially slipped back into recession. Dow Jones industrial average futures fell 0.17 percent to 13,142
Continued here:
Associated Press –
NEW YORK (AP) — U.S. stock market futures slipped Monday as consumer spending growth slowed last month and Spain officially slipped back into recession.
Dow Jones industrial average futures fell 0.17 percent to 13,142. Standard & Poor’s 500 futures gave up 0.25 percent to 1,395, and Nasdaq 100 futures slipped 0.36 percent to 2,727.
The Commerce Department reported that spending growth slowed in March, while incomes rose 0.4 percent, slightly ahead of expectations.
Recent economic reports are generating concern that the recovery is slowing down. Since consumer spending makes up about 70 percent of the economy, a cutback in the rate of spending growth could be reflecting weak income gains and a slowing job market.
Problems in Europe aren’t helping.
European markets were mainly lower, weighed down by growing concerns over Spain. Data released Monday confirmed that Spain slipped back into recession in the first quarter. A new recession could make it harder for the government to cut its budget deficit, and raises the worry that the country might be locked into a downward financial spiral.
Ratings agency Standard & Poor’s on Friday downgraded Spain to just three notches above junk, following up the move on Monday by lowering its rating for 11 Spanish banks, which are loaded with bad debt from a collapsed housing market. Spain is the fourth-largest economy in the eurozone. There is worry that the continent’s bailout funds won’t be big enough to rescue Spain if it needs assistance.
Germany’s DAX was off 0.22 percent at 6,786. France’s CAC 40 was down 1.06 percent at 3,231. Britain’s FTSE 100, which often trades contrary to the rest of European markets, edged up 0.49 percent at 5,777.
Trading in Asia was light because of holidays in Japan and mainland China. Hong Kong’s Hang Seng rose 1.7 percent to 21,094.21, South Korea’s Kospi added 0.3 percent to 1,981.99 and Australia’s S&P/ASX 200 gained 0.8 percent to 4,396.60.
Investors in those markets focused on the U.S. economy and hopes that the Fed might sanction another round of bond-buying, known as quantitative easing, after figures last Friday showed the world’s largest economy grew less than expected in the first quarter.
U.S. stocks to watch include Barnes & Noble Inc. and Microsoft Corp., which are teaming to create a unit to house the digital and college businesses of the bookseller and include a Nook application for Windows 8. The companies said Monday that they may separate those businesses entirely. That could mean a stock offering, sale, or other deal could happen.
Barnes & Noble shares shot up more than 9 percent to $25.95 in premarket trading. Microsoft added 6 cents to $32.04.
Shares of health insurer Humana Inc. fell more than 4 percent to $84 after reporting a 21 percent drop in first-quarter profit, falling short of Wall Street expectations.
Wall Street edges up early; 3M, AT&T boost Dow
April 24, 2012
By Edward Krudy | Reuters – NEW YORK (Reuters) – Wall Street edged higher at the open on Tuesday although continued concerns about Europe ‘s debt crisis capped gains as earnings from AT&T and 3M boosted the Dow. The Dutch state successfully completed a bond auction a day after the government collapsed in a crisis over budget cuts, but investors demanded a slightly higher risk premium as euro zone yields have edged higher.
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By Edward Krudy | Reuters –
NEW YORK (Reuters) – Wall Street edged higher at the open on Tuesday although continued concerns about Europe‘s debt crisis capped gains as earnings from AT&T and 3M boosted the Dow.
The Dutch state successfully completed a bond auction a day after the government collapsed in a crisis over budget cuts, but investors demanded a slightly higher risk premium as euro zone yields have edged higher.
“Today is all about earnings and Europe,” said Paul Nolte, managing director at Dearborn Partners in Chicago. Nolte said investors would look especially to Apple Inc‘s results after the market close.
Earnings from the world’s most valuable company could be a stabilizing factor for the Nasdaq and will be dissected after a share swoon raised concerns a gravity-defying rally was over. Apple, down over 10 percent from its closing peak this year, fell 1.2 percent to $564.38.
AT&T Inc’s profit rose, driven by a rise in wireless margins as it had shelled out less in subsidies to Apple because it sold fewer iPhones. The stock was up 3.5 percent to $31.70.
3M Co’s profit rose 4 percent, helped by a strong performance in its transportation business and growth in the Americas. The stock was up 2.7 percent to $89.46.
The Dow Jones industrial average was up 74.89 points, or 0.58 percent, at 13,002.06. The Standard & Poor’s 500 Index added 3.89 points, or 0.28 percent, at 1,370.83. The Nasdaq Composite Index was down 0.48 points, or 0.02 percent, at 2,969.97.
The S&P 500 should hold near-term support at 1,340 during the current pullback before extending its rally again, according to Brown Brothers Harriman analysts. The index held at 1,340 during a pullback in early March and coincides with a 23.6 percent retracement of the rally from October.
“People are defensive, obviously they are worried about what’s going on in Europe,” said Wayne Kaufman, chief market analyst at John Thomas Financial in New York. “We are seeing a lack of buyers coming in to scoop up these oversold levels, which means the caution flag is really up.”
The FTSEurofirst European stocks index edged up 0.4 percent Tuesday following the last session’s losses, but gains could be fragile as fears over the euro zone debt situation persisted, with Spanish and Dutch debt auctions under the spotlight.
European banks, a key barometer of risk appetite traded erratically throughout the morning. The STXE 600 Bank index last traded down 0.1 percent.
U.S. single-family home prices rose for the first time in 10 months in an encouraging sign the battered sector was starting to stabilize. The S&P/Case-Shiller composite index of 20 metropolitan areas gained 0.2 percent in February on a seasonally adjusted basis.
So far, earnings have been solid, with more than 80 percent of S&P 500 companies topping consensus profit estimates as of Monday.
One-time market darling Netflix Inc projected slower subscriber growth this quarter for its key U.S. video-streaming service. The stock slid 14.5 percent to $87.
Texas Instruments Inc forecast second-quarter revenue growth above estimates, signaling the end of a prolonged inventory-related decline in demand. Shares were up nearly 1 percent to $32.20 early Tuesday.
Wall Street edges up early; 3M, AT&T boost Dow
April 24, 2012
By Edward Krudy | Reuters – NEW YORK (Reuters) – Wall Street edged higher at the open on Tuesday although continued concerns about Europe ‘s debt crisis capped gains as earnings from AT&T and 3M boosted the Dow. The Dutch state successfully completed a bond auction a day after the government collapsed in a crisis over budget cuts, but investors demanded a slightly higher risk premium as euro zone yields have edged higher.
Continued here:
By Edward Krudy | Reuters –
NEW YORK (Reuters) – Wall Street edged higher at the open on Tuesday although continued concerns about Europe‘s debt crisis capped gains as earnings from AT&T and 3M boosted the Dow.
The Dutch state successfully completed a bond auction a day after the government collapsed in a crisis over budget cuts, but investors demanded a slightly higher risk premium as euro zone yields have edged higher.
“Today is all about earnings and Europe,” said Paul Nolte, managing director at Dearborn Partners in Chicago. Nolte said investors would look especially to Apple Inc‘s results after the market close.
Earnings from the world’s most valuable company could be a stabilizing factor for the Nasdaq and will be dissected after a share swoon raised concerns a gravity-defying rally was over. Apple, down over 10 percent from its closing peak this year, fell 1.2 percent to $564.38.
AT&T Inc’s profit rose, driven by a rise in wireless margins as it had shelled out less in subsidies to Apple because it sold fewer iPhones. The stock was up 3.5 percent to $31.70.
3M Co’s profit rose 4 percent, helped by a strong performance in its transportation business and growth in the Americas. The stock was up 2.7 percent to $89.46.
The Dow Jones industrial average was up 74.89 points, or 0.58 percent, at 13,002.06. The Standard & Poor’s 500 Index added 3.89 points, or 0.28 percent, at 1,370.83. The Nasdaq Composite Index was down 0.48 points, or 0.02 percent, at 2,969.97.
The S&P 500 should hold near-term support at 1,340 during the current pullback before extending its rally again, according to Brown Brothers Harriman analysts. The index held at 1,340 during a pullback in early March and coincides with a 23.6 percent retracement of the rally from October.
“People are defensive, obviously they are worried about what’s going on in Europe,” said Wayne Kaufman, chief market analyst at John Thomas Financial in New York. “We are seeing a lack of buyers coming in to scoop up these oversold levels, which means the caution flag is really up.”
The FTSEurofirst European stocks index edged up 0.4 percent Tuesday following the last session’s losses, but gains could be fragile as fears over the euro zone debt situation persisted, with Spanish and Dutch debt auctions under the spotlight.
European banks, a key barometer of risk appetite traded erratically throughout the morning. The STXE 600 Bank index last traded down 0.1 percent.
U.S. single-family home prices rose for the first time in 10 months in an encouraging sign the battered sector was starting to stabilize. The S&P/Case-Shiller composite index of 20 metropolitan areas gained 0.2 percent in February on a seasonally adjusted basis.
So far, earnings have been solid, with more than 80 percent of S&P 500 companies topping consensus profit estimates as of Monday.
One-time market darling Netflix Inc projected slower subscriber growth this quarter for its key U.S. video-streaming service. The stock slid 14.5 percent to $87.
Texas Instruments Inc forecast second-quarter revenue growth above estimates, signaling the end of a prolonged inventory-related decline in demand. Shares were up nearly 1 percent to $32.20 early Tuesday.
Stock futures creep up, but weakness could remain
April 24, 2012
Stock index futures crept higher on Tuesday after sharp losses in the previous session but continued concerns about Europe’s debt crisis could mean gains are short lived.
Continued here:
Stock index futures crept higher on Tuesday after sharp losses in the previous session but continued concerns about Europe’s debt crisis could mean gains are short lived.
The Dutch state successfully completed a bond auction a day after the government collapsed in a crisis over budget cuts, but investors demanded a slightly higher risk premium as euro zone yields have edged higher.
“People are defensive, obviously they are worried about what’s going on in Europe,” said Wayne Kaufman, chief market analyst at John Thomas Financial in New York. “We are seeing a lack of buyers coming in to scoop up these oversold levels, which means the caution flag is really up.”
Results from Apple Inc after the close may be a stabilizing factor for the Nasdaq during the session. The results will be dissected after a share swoon raised concerns a gravity-defying rally was over. Apple is down 10 percent from its closing peak this year.
AT&T Inc’s profit rose, driven by a rise in wireless margins as it had shelled out less in subsidies to Apple because it sold fewer iPhones. The stock was up 1 percent to $30.90.
S&P 500 futures rose 1.5 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 29 points, and Nasdaq 100 futures dipped 2 points.
The S&P 500 should hold near-term support at 1,340 during the current pullback before extending its rally again, according to Brown Brothers Harriman analysts. The index, which held at 1,340 during a pullback in early March, closed Monday at 1,366.94. The level also coincides with 23.6 percent retracement of the rally from October.
“There is this persistent worry over the euro zone now,” said Peter Cardillo, chief market economist at Rockwell Global Capital in New York. “It appears that the markets are trying to force once again the EU to take a more aggressive approach in terms of growth.”
So far, earnings have been solid, with more than 80 percent of S&P 500 companies topping consensus profit estimates as of Monday.
3M Co’s profit rose 4 percent, helped by a strong performance in its transportation business and growth in the Americas. The stock was up 3 percent to $89.71.
Diversified manufacturer United Technologies Corp’s earnings topped expectations, helped by better-than-expected demand for residential heating and cooling systems in North America. The shares rose 1 percent to $80.51.
One-time market darling Netflix Inc projected slower subscriber growth this quarter for its key U.S. video-streaming service. The stock slid 15.4 percent to $86.16 in premarket trade.
A key European index edged up 0.2 percent early Tuesday following the last session’s losses, but gains could be fragile as fears over the euro zone debt situation persisted, with Spanish and Dutch debt auctions under the spotlight.
European banks, a key barometer of risk appetite, slipped to near session lows. The STXE 600 Bank index fell 0.3 percent.
Texas Instruments Inc forecast second-quarter revenue growth above estimates, signaling the end of a prolonged inventory-related decline in demand. Shares were up 3.5 percent to $33.26 early Tuesday.
Facebook Inc reported its first quarter-to-quarter revenue slide in at least two years, a sign the social network’s sizzling growth may be cooling as it prepares to go public.
On the macro front, investors awaited the S&P/Case-Shiller Home Price Index for February, due at 9 a.m. EDT (1300 GMT), and April consumer confidence and new home sales for March, both due at 10 a.m. (1400 GMT). The Conference Board’s Consumer Confidence measure should soften to 69.7 from 70.2, according to forecast.
(Reporting by Ed Krudy; editing by Jeffrey Benkoe)
Stock futures creep up, but weakness could remain
April 24, 2012
Stock index futures crept higher on Tuesday after sharp losses in the previous session but continued concerns about Europe’s debt crisis could mean gains are short lived. The Dutch state successfully completed a bond auction a day after the government collapsed in a crisis over budget cuts, but investors demanded a slightly higher risk premium as euro zone yields have edged higher.
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Stock index futures crept higher on Tuesday after sharp losses in the previous session but continued concerns about Europe’s debt crisis could mean gains are short lived.
The Dutch state successfully completed a bond auction a day after the government collapsed in a crisis over budget cuts, but investors demanded a slightly higher risk premium as euro zone yields have edged higher.
“People are defensive, obviously they are worried about what’s going on in Europe,” said Wayne Kaufman, chief market analyst at John Thomas Financial in New York. “We are seeing a lack of buyers coming in to scoop up these oversold levels, which means the caution flag is really up.”
Results from Apple Inc after the close may be a stabilizing factor for the Nasdaq during the session. The results will be dissected after a share swoon raised concerns a gravity-defying rally was over. Apple is down 10 percent from its closing peak this year.
AT&T Inc’s profit rose, driven by a rise in wireless margins as it had shelled out less in subsidies to Apple because it sold fewer iPhones. The stock was up 1 percent to $30.90.
S&P 500 futures rose 1.5 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 29 points, and Nasdaq 100 futures dipped 2 points.
The S&P 500 should hold near-term support at 1,340 during the current pullback before extending its rally again, according to Brown Brothers Harriman analysts. The index, which held at 1,340 during a pullback in early March, closed Monday at 1,366.94. The level also coincides with 23.6 percent retracement of the rally from October.
“There is this persistent worry over the euro zone now,” said Peter Cardillo, chief market economist at Rockwell Global Capital in New York. “It appears that the markets are trying to force once again the EU to take a more aggressive approach in terms of growth.”
So far, earnings have been solid, with more than 80 percent of S&P 500 companies topping consensus profit estimates as of Monday.
3M Co’s profit rose 4 percent, helped by a strong performance in its transportation business and growth in the Americas. The stock was up 3 percent to $89.71.
Diversified manufacturer United Technologies Corp’s earnings topped expectations, helped by better-than-expected demand for residential heating and cooling systems in North America. The shares rose 1 percent to $80.51.
One-time market darling Netflix Inc projected slower subscriber growth this quarter for its key U.S. video-streaming service. The stock slid 15.4 percent to $86.16 in premarket trade.
A key European index edged up 0.2 percent early Tuesday following the last session’s losses, but gains could be fragile as fears over the euro zone debt situation persisted, with Spanish and Dutch debt auctions under the spotlight.
European banks, a key barometer of risk appetite, slipped to near session lows. The STXE 600 Bank index fell 0.3 percent.
Texas Instruments Inc forecast second-quarter revenue growth above estimates, signaling the end of a prolonged inventory-related decline in demand. Shares were up 3.5 percent to $33.26 early Tuesday.
Facebook Inc reported its first quarter-to-quarter revenue slide in at least two years, a sign the social network’s sizzling growth may be cooling as it prepares to go public.
On the macro front, investors awaited the S&P/Case-Shiller Home Price Index for February, due at 9 a.m. EDT (1300 GMT), and April consumer confidence and new home sales for March, both due at 10 a.m. (1400 GMT). The Conference Board’s Consumer Confidence measure should soften to 69.7 from 70.2, according to forecast.
(Reporting by Ed Krudy; editing by Jeffrey Benkoe)
