US Market Reports |
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With traders reluctant to make any significant moves, stocks are turning in a lackluster performance in morning trading on Tuesday. Uncertainty about the near-term outlook for the markets may be contributing to the lack of direction.
The major averages are currently turning in a mixed performance, lingering near the unchanged line. While the S&P 500 is down 0.29 points at 1,298.09, the Dow is up 7.22 points at 12,043.75 and the Nasdaq is up 0.57 points at 2,692.66.
The choppy trading comes amid a lack of major economic data, although the Federal Housing Finance Agency did release a report showing that U.S. house prices fell by 0.3 percent in January.
Traders are likely keeping a close on eye on any additional developments regarding the situations in Japan and Libya.
The operator of the Fukushima nuclear plant in Japan indicated that it has continued to make progress on efforts to contain the crisis, noting that all six reactors have been connected to power lines.
However, Tokyo Electric Power Co. noted that additional repair work needs to be performed before power can be restored to all six reactors.
In Libya, coalition forces launched another wave of air strikes against military targets, while forces loyal to Moammar Qadhafi are bombarding the rebel-held western city of Misrata.
A U.S. Air Force F-15E crashed in Libya overnight, but both crewmembers are said to be back in American hands. A mechanical failure is believed to be the cause of the crash.
In corporate news, Hot Topic (HOTT) is trading higher after it announced the resignation of its CEO Betsy McLaughlin, effective March 21st, 2011. The company also said it has appointed Lisa Harper, one of its board members, as its new CEO.
Bristol-Myers (BMY) is also moving to the upside after it said a late stage study of ipilimumab, its investigational compound for metastatic melanoma, met its primary endpoint of improving overall survival in previously untreated patients.
Meanwhile, Merck (MRK) and Sanofi-Aventis (SNY) are mixed after their announcement that they are mutually terminating their agreement to form a new animal health joint venture. Subsequent to the decision to part ways, each party will keep its current, separate animal health assets and businesses.
Sector News
While most of the major sectors are showing only modest moves, notable weakness has emerged among trucking stocks. The Dow Jones Trucking Index is currently down by 1.2 percent after ending the previous session at its best closing level in over a month.
C.H. Robinson Worldwide (CHRW) is helping to lead the sector lower, falling by 2.2 percent, while Con-Way (CNW) is also posting a notable loss.
Networking stocks have also moved to the downside over the course of the morning.Steel, biotechnology, and housing are also seeing modest weakness on the day.
On the other hand, health insurance stocks are seeing some strength in morning trading, with WellCare Health Plans (WCG) leading the way higher with a 4.1 percent gain. Tobacco stocks are also moving to the upside, extending a recent upward move.
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European Market Reports |
| FTSE 100 | Euronext | Dax perf | CAC 40 |
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European Markets Mixed
The European markets are turning in a mixed performance on Tuesday, with banks andinsurers seeing upside, while automakers are falling. Cues from Asia/Pacific and the previous session in the U.S. along with easing of Japan-related nuclear worries influenced sentiment in early trade.
The Euro Stoxx 50 index of euro zone blue chippers is advancing 0.29 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is gaining 0.19 percent. However, Switzerland's SMI Index is losing 0.13 percent.
The DAX index opened for trade slightly higher at 6,823, compared to the previous close of 6,816. The index moved across the unchanged line and is currently losing 0.31 percent.
"We are currently in a waiting position in the market as a declining volatility settles down," market strategist Thilo Müller of MB Fund Advisory told dpa-AFX.
According to a study, the DAX listed companies increased earnings by 66 percent in 2010, compared to last year, dpa-AFX said.
Deutsche Bank and Commerzbank are advancing 2.25 percent and 1.2 percent, respectively, in Frankfurt.
Metro is leading the decliners by falling 1.9 percent after the department stores chain issued a cautious outlook, despite reporting higher full-year earnings.
The CAC 40 index opened at 3,904, flat with the previous close, and has been in the green for most of the session. The index is at present rising 0.25 percent.
Banks are leading the gainers in Paris. Societe Generale, Credit Agricole, BNP Paribas and Natixis are adding between 2.5 percent and 1.2 percent. Insurer Axa is rising 1.1 percent.
Carmakers are falling with Peugeot and Renault declining 1.5 percent and 1.4 percent, respectively. Alcatel Lucent is down 1.1 percent.
In the U.K., the FTSE 100 index opened at 5,786 and has been seeing volatile trading. The index is currently losing 0.14 percent.
Among miners, Rio Tinto, Antofagasta and Eurasian Natural Resources are moderately lower, while Kazakhmys is moderately higher.
TUI Travel is declining 1.5 percent and Carnival is falling 1 percent.
Royal Bank of Scotland is rising 2.75 percent in London, and Lloyds Banking Group is adding 1.1 percent. Barclays is up 1.1 percent.
Insurers Standard Life and resolution are notably higher. Prudential, Legal & Generaland Aviva are seeing moderate gains.
In Switzerland, foods giant Nestle is falling 1.6 percent, reportedly on a broker downgrade.
In economic news from the region, British annual inflation rose to 4.4 percent in February, the highest since October 2008, the Office for National Statistics said. Economists were expecting it to rise to 4.2 percent from 4 percent in January.
Meanwhile, Switzerland's trade surplus rose to 2.5 billion Swiss francs in February from 2.04 billion Swiss francs in January, the Federal Customs Administration said. The surplus doubled from the same month last year, the report said.
Across Asia/Pacific, most major markets ended in positive territory. China's Shanghai Composite Index gained 0.34 percent and Japan's Nikkei 225 surged 4.36 percent. Australia's All Ordinaries added 0.08 percent.
In the U.S., futures point to a mixed open on Wall Street. In the previous session, theDow closed up 1.5 percent, the Nasdaq jumped 1.8 percent and the S&P 500 rose 1.5 percent.
In commodities, crude for April delivery is slipping $0.32 to $102.01 per barrel whilegold is losing $0.8 to $1425.6 a troy ounce.
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Asia Market Reports |
| Nikkei 225 | Hang Seng | Bse Sensex | S&P/ASX 20 |
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Indian Market Ends Higher On Firm Global Cues
After three consecutive days of losses, the Indian market rose notably on Tuesday, with steady crude prices and strong global cues offering support. Crude futures were slightly lower in Asian trading today after Japan said it would release an additional 22 days worth of crude oil from privately-held reserves to aid quake-and tsunami-stricken areas.
Most Asian stocks posted modest gains on Tuesday, buoyed by strong gains on Wall Street overnight amid reports of steady progress in stabilizing the Japan's quake-crippled Fukushima nuclear plant. The Japanese market, which remained shut yesterday for a public today, climbed 4.36 percent today.
European markets also moved slightly higher in early trading, extending gains into a fourth straight session, and the Dow futures pointed to a positive start for Wall Street later in the global day. The dollar fell to a 4-1/2 month low against the euro after Jean-Claude Trichet, president of the European Central Bank (ECB), once again signaled that an interest rate increase is coming in April.
Closer home, the benchmark 30-share Sensex moved in a range of 18,041- 17,879 before ending off the day's high at 17,988, up about 150 points or 0.84 percent. With lingering worries over high inflation and rising interest rates prompting investors to take some profits at higher levels, the 50-share Nifty pared some of its early gain to end 49 points or 0.92 percent higher at 5,414. Second-line stocks posted modest gains and the market breadth was fairly positive, with 1555 gainers versus 1294 decliners on the BSE.
Battered realty stocks saw widespread buying. DLF climbed over 3 percent, Indiabulls Real Estate advanced 2.5 percent and Parsvnath Developers rose 2 percent.Banking stocks such as Punjab National Bank, Axis Bank, SBI, Bank of India andYes Bank rose by 1-2 percent after the government tabled the banking law amendments bill in Parliament today.
In the healthcare sector, Aurobindo Pharma, Divis Labs, Ipca Laboratories, Fortis Healthcare and Opto Circuits rose by 2-3 percent after the government rolled back a proposed five percent tax on healthcare, which many called the misery tax as it would have made treatment more expensive.
Among consumer durable stocks, Whirlpool climbed 6 percent, VIP Industriesadded 2 percent and Titan Industries rose 0.75 percent after the Union Cabinet approved a 6 percent hike in dearness allowance to central government employees and pensioners. Gitanjali Gems gained 1.81 percent on reports about business restructuring.
Sugar stocks such as Bajaj Hindusthan (up 2.55 percent), Balrampur Chini (up 1.78 percent), Dhampur (up 4.43 percent) and Shree Renuka (up 3.07 percent) closed sharply higher on the buzz that the government will allow sugar exports soon.
Sesa Goa added 1.51 percent after the Vedanta Group firm acquired the assets of Bellary Steel's upcoming steel plant for Rs.220 crore. Cairn India rose 1.26 percent after its parent firm Cairn Energy reported record revenue in 2010. HeavyweightReliance Industries rose 1.11 percent.
Emami, which is keen on acquiring Henkel AG's 51 percent stake in Henkel India, closed up 2.73 percent. Jyothy Laboratories, which is eying a controlling stake in Henkel India, advanced 2.26 percent. IndusInd Bank closed half a percent higher on reports that it is buying Deutsche Bank India's credit card business.
Lanco Infratech soared 6 percent after the company said it has emerged as the largest independent power producer in India. Patel Engineering rallied 4.64 percent after winning a road construction contract worth Rs.160.69 crore.
In the auto pack, Maruti Suzuki India advanced 3.58 percent after the company said it would consider different measures to counter currency fluctuations. Tata Motors added 1.22 percent, Mahindra & Mahindra rose 1.66 percent and Hero Honda Motorsended up half a percent, while Bajaj Auto eased marginally.
IT stocks such as Wipro and TCS closed on a mixed note with little change. Among metal stocks, Sterlite Industries rose a percent, Hindalco edged up 0.39 percent andTata Steel added half a percent.
Telecom giant Bharti Airtel rose 2.68 percent and its rival Reliance Communicationended up 0.6 percent. Mundra Port and Special Economic Zone closed unchanged after it won a bid to develop a coal import terminal at Visakhapatnam.
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Forex Top Story |
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Euro Pauses Near Yearly High Versus Dollar; Portugal Vote Eyed
The euro leveled off near a yearly high versus the dollar on Tuesday, as traders looked ahead to tomorrow's pivotal Portuguese vote on austerity measures.
Portugal's opposition party has signaled they will resist the sweeping budget cuts. Market watchers say the measures are necessary to avoid a bailout from Portugal's Euro zone neighbors.
Eurozone finance ministers on Monday reached on a common ground to set up the capital base of their permanent bailout fund at 700 billion euros ($990 billion), as part of its response to the region's sovereign debt crisis.
The euro rose to a 4-month peak of $1.4247 versus the dollar, then pulled back to $1.42 before the opening bell on Wall Street. A move above $1.4285 would take the euro to its highest since January 2010.
On the flip side, the euro has been under pressure versus the sterling all morning, dropping to a weekly low of GBP 0.8665.
British consumer prices surged more than expected to a 28-month high last month, raising speculation that the Bank of England will soon join the European Central Bank in tightening monetary policy.
Annual inflation rose to 4.4 percent in February on higher fuel and clothing costs, data from the Office for National Statistics showed Tuesday.
The euro and yen pair remained virtually unchanged for a second day, as traders waited for more signs that Japan can avert a nuclear meltdown at its damaged reactors north of Tokyo.
The euro fetched Y115, having touched a 5-month low of Y106.44 last week. The Group of Seven nations intervened to weaken the yen last week, after the currency hit a new record high against the dollar.
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Canadian Market Reports |
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TSX Poised For Mixed Open
Toronto stocks are poised for a mixed open Tuesday as commodities leveled off from recent highs and traders might prefer to book profits after smart gains in the past three sessions.
While most Asian markets ended higher overnight, with the Japanese Nikkei recovering a smart over 4 percent, European shares were trading marginally lower.
U.S. stock futures were pointing to a marginally higher open, after three days of strong gains.
On Monday, the S&P/TSX Composite Index surged 224.07 points or 1.62 percent to 14,013.70. The main index gathered nearly 500 points or 4 percent in the past three sessions.
The price of crude oil edged down after Japan approved the release of additional oil reserves to aid its earthquake hit regions. However, worries over supply situation amid airstrikes in Libya supported oil prices. Crude for May slipped $0.29 to $102.80 a barrel
The price of gold was little changed even as the U.S. dollar was trading weak against a basket of currencies amid improved risk appetite. Gold for April edged down $3.10 to $1,423.30 an ounce.
In corporate news from Canada, Research In Motion said its new BlackBerry PlayBook tablet will be available April 19 in more than 20,000 retail outlets in the U.S. and Canada.
Transportation company Canadian Pacific announced that its first quarter earnings could be affected by severe winter events and reduced its earnings per guidance by $0.40 in the range of $0.12 to $0.22 per share.
Heavy-duty transit buses maker New Flyer Industries reported a wider fourth quarter loss of $15.9 million compared to $11.4 million last year.
Industrial equipment maker Toromont Industries said it will convene a special meeting on May 16 to seek its shareholders' approval for the proposed spinoff of its compression business.
West Africa focused gold miner Avion Gold reported improved fourth quarter net income of $18.6 million or $0.05 per share, compared to $3.98 million or $0.02 per share a year earlier.
Mexico focused precious metals miner Endeavour Silver reported over 80 percent jump in its fourth quarter net earnings at $5.6 million or $0.09 per share.
Oil and gas firm Bankers Petroleum swung to profit in full year 2010, reporting net income of $14.26 million or $0.058 per share compared with a loss of $150,000 or $0.001 per share last year.
Natural gas dealer AltaGas Ltd. said it would issue C$200 million of senior unsecured medium term notes, which will carry a coupon rate of 4.10 percent and mature on March 24, 2016.
Gaming software company CryptoLogic reported a narrower fourth quarter loss of $840,000 or $0.06 per share, compared to $24.82 million or $1.98 per share in the fourth quarter last year.
In economic news, Statistics Canada retail sales decreased 0.3 percent to C$37.1 billion in January, falling for a second month in a row. Economists expected retail sales to rise 1 percent, following the revised 0.3 percent decline recorded for December. On an annual basis, total retail sales were up 3.5 percent in January compared to the same month a year ago. This is down from December's 4.8 percent annual increase.
Elsewhere, the Office for National Statistics said British annual inflation rose to 4.4 percent in February, its highest since October 2008. Economists were expecting it to rise to 4.2 percent from 4 percent in January.
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