Wall Street dips after payrolls, but uptrend seen intact

NEW YORK: US stocks receded from record levels on Friday as investors locked in profits after the October payroll report came in weaker than expected, even as the report pointed to economic resilience in the face of slowing global demand.

Employers added 214,000 new jobs last month, below the 231,000 that was expected, while the September report was revised higher. The unemployment rate fell to 5.8 percent from 5.9 percent.

"It's hard to not bet on the economy, with the fundamentals looking like a full house: earnings are rock solid, we're growing at a nice pace and confidence is up," said David Kelly, chief global strategist for JPMorgan Funds in New York.

"The number was slightly weaker than expected, but until we see real weakness or higher interest rates, we'll continue to be overweight on equities."

The Dow was pressured by Walt Disney Co, which fell 3.4 percent to $88.82 a day after posting earnings that met expectations, though its cable networks were weaker. The stock closed at a record on Thursday.

Salix Pharmaceuticals Ltd plummeted 35 percent to $89.21 in its biggest one-day drop a day after it slashed its full-year forecast as its inventory for key drugs piled up. The issue dissuaded Allergan Inc from acquiring the drugmaker, people familiar with the matter said. More than 5.5 million shares exchanged hands in early trading, more than twice Salix's 50-day average of almost 2 million.

Energy shares were sharply higher on the day, rising 0.8 percent alongside a 1.3 percent jump in crude oil prices.

The industry was the top-performing S&P 500 sector by far. Among the most active names, Chesapeake Energy rose 2.6 percent to $23.34 while Newfield Exploration was up 2.4 percent at $33.28.

At 9:49 a.m. (1449 GMT) the Dow Jones industrial average fell 34.92 points, or 0.2 percent, to 17,519.55, the S&P 500 lost 2.4 points, or 0.12 percent, to 2,028.81 and the Nasdaq Composite dropped 10.38 points, or 0.22 percent, to 4,628.09.

For the week, the Dow is up 0.7 percent and the S&P is up 0.5 percent in their third straight week of gains. The Nasdaq is down 0.1 percent for the week.

While political tensions abroad have largely faded from markets, a cautious note was added to the market after the Kiev military said a column of tanks had crossed into eastern Ukraine from Russia.

Declining issues outnumbered advancing ones on the NYSE by 1,537 to 1,189, for a 1.29-to-1 ratio on the downside; on the Nasdaq, 1,465 issues fell and 821 advanced for a 1.78-to-1 ratio favoring decliners.

The S&P 500 index posted 28 new 52-week highs and 1 new lows; the Nasdaq Composite recorded 43 new highs and 24 new lows.
Source : Moneycontrol

Wall Street: US stocks drop amid global equity selloff

NEW YORK: US stocks dropped sharply in early trade Thursday, following international markets downward as anxiety over global growth continued to prompt selling.

About 30 minutes into trade, the Dow Jones Industrial Average stood at 16,062.34, down 79.40 points (0.49 per cent).

The broad-based S&P 500 fell 13.75 (0.74 per cent) to 1,848.74, while the tech-rich Nasdaq Composite Index tumbled 43.05 (1.02 per cent) to 4,172.27.

Equity markets in Britain and France were down more than 1.0 per cent. Asian markets also fell sharply, with Japan's Nikkei tumbling 2.22 per cent.

"Global risk aversion is persisting amid exacerbated global growth concerns, fueled by yesterday's surprising decline in US retail sales," said a market note from Charles Schwab.

"Moreover, a flare-up in Greek debt concerns, festering Ebola fears, and heightened geopolitical concerns are adding to the dampened global mood."

Thursday's declines move the market closer to a full-blown correction, normally considered a drop of 10-20 per cent. The S&P 500 has fallen about eight per cent since its mid-September all-time high.

Investors brushed off positive news, such as a drop in initial jobless claims to 264,000, the lowest level since April 2000, according to the Department of Labor.

Dow member Goldman Sachs fell 2.1 per cent despite reporting a 50 per cent increase in third-quarter earnings to $2.14 billion in results that bested Wall Street expectations by a wide margin.

Video-streaming company Netflix plummeted 22.7 per cent on disappointing subscriber growth figures. The video-streaming company said it gained just three million members in the past quarter, to boost its subscribers to 53.1 million worldwide.

Apple fell 1.5 per cent ahead of an event in California later Thursday at which it is expected to unveil new versions of the iPad.

Chesapeake Energy bolted 13.5 per cent higher following news it will sell shale oil and gas assets to Southwestern Energy for $5.4 billion. Southwestern lost 6.9 per cent.

EBay dropped 4.9 per cent as it projected fourth-quarter revenues of $4.85-$4.95 billion, below analyst forecasts for $5.16 billion. The profit outlook was also on the low end of expectations.

Bond prices were mixed. The yield on the 10-year US Treasury held steady at 2.09 per cent, the same level as Wednesday, while the 30-year stood at 2.87 per cent, down from 2.88 per cent. Bond prices and yields move inversely.

Oil prices briefly dipped below $80 a barrel for the US benchmark contract, before coming back to 80.75, off $1.03 from Wednesday's close.
Source : economictimes

Wall Street bounces after 3-day slump on earnings hope

NEW YORK: US stocks were higher on Tuesday, rebounding after the S&P 500's worst three-day drop since November 2011, as bullish investors hoped a solid earnings season would ease global growth concerns.

Citigroup, up 3.2 per cent to $51.48, was among the top boosts to the benchmark S&P index after the bank posted better-than-expected quarterly results and said it would pull out of consumer banking in 11 markets.

But JPMorgan Chase shares lost 1.1 per cent to $57.54, after the biggest US bank posted third-quarter earnings. Wells Fargo, the fourth largest US bank, lost 1.6 per cent to $49.39 after its results.

The S&P financial index gained 0.7 per cent.

Johnson & Johnson shares lost 1.3 per cent to $97.82 even after the diversified healthcare company reported better-than-expected quarterly earnings on the back of strong sales for a new hepatitis C drug.

The index closed below its 200-day moving average for the first time since Nov. 16, 2012, on Monday and is now down 6.1 per cent from its record closing high on September 18.

S&P 500 companies are expected to show earnings growth of 6.4 per cent in the third quarter, according to Thomson Reuters data, with revenue growth expected at 4 per cent. After the close, Dow component and chipmaker Intel is set to post results.

At 10:58am, the Dow Jones industrial average rose 84.83 points, or 0.52 per cent, to 16,405.9, the S&P 500 gained 12.45 points, or 0.66 per cent, to 1,887.19 and the Nasdaq Composite added 39.84 points, or 0.95 per cent, to 4,253.50.

The largest per centage gainer on the S&P 500 was Delta Air Lines, up 5.6 per cent, while the largest per centage decliner was ONEOK Inc, down 3.3 per cent.

The largest per centage gainer on the Nasdaq 100 was NXP Semiconductors, up 5.1 per cent, while the largest per centage decliner was Autodesk, down 2.1 per cent.

Among the most active stocks on the NYSE were Bank Of America, up 0.67 per cent to $16.51; Petrobras, up 0.23 per cent to $17.31; and Advanced Micro Devices, down 1.09 per cent to $2.71.

On the Nasdaq, APPLE, up 0.3 per cent to $100.08, and Facebook, up 0.5 per cent to $73.34, were among the most actively traded.

Advancing issues were outnumbering declining ones on the NYSE by 2,020 to 953, for a 2.12-to-1 ratio on the upside; on the Nasdaq, 1,862 issues were rising and 690 falling for a 2.70-to-1 ratio favoring advancers.

The benchmark S&P 500 index was posting 6 new 52-week highs and 23 new lows; the Nasdaq Composite was recording 16 new highs and 121 new lows.

Wall Street dips on growth concerns after massive rally

US stocks edged lower on Thursday as concerns over global growth spurred investors to take profits following a massive advance in the previous session.

While domestic news - including job data and corporate earnings - was encouraging, investors continued taking their trading cues from abroad.

German exports dropped by 5.8 per cent in August, their biggest fall since January 2009. The data was the latest indication, following bearish reads on industrial output and industrial orders, that Europe's largest economy was faltering amid broader weakness in the euro zone. Separately, data this week showed growth in the Chinese services sector weakened slightly in September.

The third-quarter earnings season got off to a strong start, with both Alcoa Inc and PepsiCo Inc rallying after results topped expectations.

Alcoa rose 0.8 per cent to $16.19 while PepsiCo was up 0.9 per cent at $94.79.

On the downside, Gap Inc plunged 12 per cent to $36.94 as the S&P 500's biggest decliner a day after it reported weaker-than-expected same-store sales for September and said its chief executive would retire in February.

Jobless claims dropped 1,000 to a seasonally adjusted 287,000 in the latest week. The report supported September jobs data, which also pointed to improving conditions in the labor market.

Wall Street soared on Wednesday, with major indexes posting their biggest one-day jump of the year after the Federal Reserve reassured investors its first rate hike would come when economic data pointed to an economy that could grow without Fed stimulus, rather than on a specific schedule. With the day's advance, the S&P 500 jumped back above its 100-day moving average, a sign of improving near-term momentum.

The Dow Jones industrial average fell 45.98 points, or 0.27 per cent, to 16,948.24, the S&P 500 lost 5.75 points, or 0.29 per cent, to 1,963.14 and the Nasdaq Composite

dropped 13.41 points, or 0.3 per cent, to 4,455.19.

Declining issues outnumbered advancing ones on the NYSE by 1,801 to 888, for a 2.03-to-1 ratio; on the Nasdaq, 1,616 issues were fell and 573 advanced for a 2.82-to-1 ratio favoring decliners.

The benchmark S&P 500 index posted 18 new 52-week highs and no new lows; the Nasdaq Composite recorded 14 new highs and 33 new lows.
Source : economictimes

Wall Street gains, S&P edges above 50-day moving average

NEW YORK: US stocks rose on Monday, extending a rally from the previous session as investors grew more confident in the economy's strength and Federal Reserve policy.

Merger activity and corporate restructuring also boosted equities, with the S&P 500 advancing above its 50-day moving average for the first time since Sept. 29, a sign that near-term momentum is improving.

Tech shares were among the strongest of the day after Hewlett-Packard Co said it would split into two public companies, sending shares up 4.2 per cent to $36.68 on heavy volume.

Separately, Becton Dickinson & Co agreed to buy CareFusion Corp for $12.2 billion in cash and stock.

Becton jumped 6.8 per cent to $123.52 while CareFusion was up 23 per cent to $56.96 as the S&P 500's biggest gainer.

The S&P 500 index had posted its best day since August on Friday, lifted by a stronger-than-expected jobs report that boosted optimism about the economy, while the Federal Reserve was not seen as speeding up its timeline for raising interest rates. 

Market volatility has been higher of late, with equities notching big swings amid unrest in Hong Kong and concerns about Ebola in the United States. Those issues could continue to drive trading. The CBOE Volatility index fell 1.6 per cent to 14.32, well below its long-term average of 20.

The Dow Jones industrial average was rising 76.01 points, or 0.45 per cent, to 17,085.7, the S&P 500 was gaining 8.18 points, or 0.42 per cent, to 1,976.08 and the Nasdaq Composite was adding 13.42 points, or 0.3 per cent, to 4,489.05.

Advancing issues were outnumbering declining ones on the NYSE by 2,066 to 674, for a 3.07-to-1 ratio on the upside; on the Nasdaq, 1,356 issues were rising and 899 falling for a 1.51-to-1 ratio favoring advancers.

The benchmark S&P 500 index was posting 15 new 52-week highs and no new lows; the Nasdaq Composite was recording 16 new highs and 21 new lows.
Source : economictimes

Strong US jobs data boosts dollar and world stocks

The dollar climbed to a more than four-year peak and global equity markets surged on Friday after data showed U.S. employers stepped up hiring in September and the jobless rate fell to a six-year low, further signs of a relatively strong economy.

The strong dollar pushed gold below USD 1,200 an ounce for the first time this year after the Labor Department reported that US nonfarm payrolls rose by 248,000 last month and the jobless rate fell two-tenths of a point to 5.9 percent.

The better-than-expected report knocked the euro to a more than two-year low against the dollar, which hit a 15-month high against the Swiss franc. The dollar index, a measure of the greenback against six major currencies, headed toward its biggest yearly gain in nine years, up 8 percent so far in 2014.

Stocks on Wall Street rose more than 1 percent, and European shares finished with a gain just under that level.

The dollar index hit a high of 86.746, its strongest level since June 2010, and was last up 1.24 percent at 86.663.

Against the yen, the greenback jumped 1.31 percent to 109.83 yen, while the euro slid 1.23 percent to USD 1.2512.

MSCI's all-country world index of stock performance in 45 countries rose 0.51 percent.

The FTSEurofirst 300 index of top European shares closed up 0.9 percent at 1,347.14. Shares of European airlines rallied as the price of oil dropped, and exporters suchas Airbus got a lift from the euro's renewed slide.

On Wall Street, the Dow Jones industrial average rose 214.3 points, or 1.28 percent, to 17,015.35. The S&P 500 gained 23.56 points, or 1.21 percent, to 1,969.73 and the Nasdaq Composite added 54.83 points, or 1.24 percent, to 4,485.03.

German Bund yields rose a day after the European Central Bank showed little willingness to stimulate the economy through the purchase of sovereign debt. Markets could be in for a rough fourth quarter as investors anticipate tighter Fed monetary policy and if the ECB stands pat.

Bund yields rose 2 basis points to 0.93 percent. Treasuries prices fell. The 10-year Treasury note fell 3/32 in price to yield 2.4466 percent.

Brent crude oil futures fell below $92 a barrel at one point, down for a fourth consecutive day in a slide that has pushed prices to their lowest levels since 2012. Abundant supplies and a strong dollar continue to weigh on the market.

Brent for November delivery settled down USD 1.11 at USD 92.31 a barrel. US November crude slipped USD 1.27 to settle at USD 89.74.
Source : Moneycontrol

World Stock Market : Wall Street week ahead: In battle of the S&P, can bulls gain the edge

It will be another battleground for S&P 500 index next week. Will the bears finally give up and let the bulls have their way?

The S&P 500, the market's broadest measure, managed to close out the week above the psychologically important 1,400 mark for the first time since early April. But the index is still down 0.4 per cent for the month so far even after gaining 1.8 per cent for the week, with only one trading day left in April.

Brian Lazorishak, senior quantitative analyst and portfolio manager at Chase Investment Counsel in Charlottesville, Virginia, said a close above 1,400 is positive, but the recent high, near 1,422, is a more important technical level.

"That's what we're looking for on the upside as confirmation there's room to move higher," Lazorishak said.

"A close above that would open the window to testing highs back to early 2008. The next natural area you'd see is a run to at least 1,440, the May 2008 high."

Next week's release of a slew of economic data on the U.S. labor market and the beginning of the latter half of corporate earnings will be keenly watched to see if they are enough to allow stocks to break above the recent trading range.

The S&P 500, up 11.6 per cent for the year, jumped 4.4 per cent in January, 4.1 per cent in February and 3.1 per cent in March, but is down 0.4 per cent so far this month.

"The sideways action we have seen over the past few weeks was enough to alleviate any overbought conditions that existed in the market a month ago," said Larry McMillan, president of options research firm McMillan Analysis Corp in a report on Friday.

"Thus, the market has the potential for another leg higher in this longer term uptrend, one that began early October 2011," he said.

JOBS, JOBS, JOBS At the top of investors' radar screen next week will be the government's closely watched monthly jobs report for April, to be released on Friday. Jobs growth in March slowed to 120,000, the smallest increase since October, disappointing investors even though the unemployment rate fell to a three-year low of 8.2 per cent.

Ahead of the government's payrolls report, investors will be watching the ADP Employment Report due on Wednesday and weekly jobless claims data due on Thursday for indications of whether the labor market is gaining momentum.

Corporate earnings, which drove gains in stocks last week, will also be in focus.

As of Friday, 57 per cent of the S&P 500 companies had reported first-quarter results. Of those 287 in the S&P 500 that had reported earnings, 72.8 per cent posted results that topped analysts' expectations, according to Thomson Reuters data.

Companies due to report earnings next week include Chesapeake Energy and Pfizer Inc on Tuesday; Prudential Financial, Time Warner and Visa Inc

on Wednesday; and Kraft Foods and Viacom Inc on Thursday. Also on agenda next week, Jamie Dimon, chief executive of JPMorgan Chase & Co, has organized a meeting of major bank chief executives with Federal Reserve Governor Daniel Tarullo, the central bank's point man on regulation, according to The Wall Street Journal on Friday.

The meeting, slated for Wednesday in New York, is expected to focus on a Fed proposal to limit banks' exposure to other firms and governments, though other regulatory concerns likely will be discussed.