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 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

Indian Stock Market : Nifty seen opening lower; sugar stocks eyed

The 50-share Nifty is expected to open lower on Thursday, tracking weak global cues, while investors will keep a close eye on sugar stocks after the government removed the cap on sugar exports and placed the commodity under the open general licence (OGL) category.

According to sources, the export of 1 million tonnes of sugar announced in the last meeting of the empowered group of ministers (EGoM) will now take place under OGL. Stocks like Balrampur Chini Mills Ltd, Shree Renuka Sugars Ltd and Bajaj Hindustan Ltd will be in focus.

The Nifty snapped a three-day upmove and closed in the negative terrain on Wednesday as a weak rupee and lack of conviction among investors hurt sentiment.

The rupee closed near the 53-per-dollar mark on Wednesday as demand for the greenback from importers increased. A widening current account deficit, slowing domestic economic growth and exit of foreign institutional investors on concerns of tax policies have been putting pressure on the rupee.

"There is a lot of headwind against the market's momentum, particularly because of the regulatory issues and non-implementation of policy. At the same time, nasty provisions like GAAR have certainly affected confidence of the people, which has probably taken away many investors from directly participating in the market at the current levels," Deven Choksey, MD, KR Choksey Securities, said.

"Adding fuel to the fire are ETFs which have withdrawn money to pay oil bills and this acts as a negative for the rupee. This too is putting off global investors and traders," Deven added.

Overnight, US stocks edged lower as economic data showed that private sector hiring unexpectedly fell to a seven-month low in April, sparking concerns that Friday's key jobs report will also disappoint investors.

"US private employers added 119,000 jobs in April, well short of expectations for 177,000, according to the ADP report. That sparked market rumors that Friday's payrolls data will show the economy added just 125,000 to 150,000 jobs last month, well below a Reuters consensus forecast for 170,000," a Reuters report said.

The Dow Jones Industrial Average dropped 10.75 points, or 0.08 per cent, to 13,268.57. The Standard & Poor's 500 fell 3.52 points, or 0.25 per cent, to 1,402.30. The Nasdaq Composite Index gained 9.41 points, or 0.31 percent, to 3,059.85.

Asian shares slipped on Thursday after disappointing data from US and Europe reignited concerns about the strength of the global economic recovery.

"European shares dropped on Wednesday after a survey showed euro zone factories sank further into decline last month, with the downturn hitting Italy and Spain hard and appearing to take root among core members France and Germany," a Reuters report added.

Hong Kong 's Hang Seng was trading lower at 21,197.12, down 0.5%. South Korea 's Kospi was trading 02% lower at 1,993.45. China 's Shanghai index was trading flat at 2,439.

At 08:00 a.m., Nifty India stock futures in Singapore were down 15 points at 5,217.00, indicating a negative opening in the domestic market.

World Stock Market today :Today's Big Stock Market Movers

The Dow, Nasdaq, and S&P 500 are all up, with the Nasdaq leading the pack at +1.1%. Here are the six big movers in the S&P 500.

Winners:

Sears Holdings Corporation (SHLD): Up 13.4% — Sears Holdings said it expected its first-quarter earnings from continuing operations to be between $1.46 to $1.84 a share, which has caused its stock to jump over 13%.

Chesapeake Energy Corporation (CHK) : Up 7.4% — Aubrey McClendon has agreed to separate the role of CEO and chairman, as he is relinquishing his position as chairman but remaining CEO. Investors support this decision, as their stock has moved up rapidly.

Masco Corporation (MAS): Up 5.5% — Masco is confident that their business, which involves mostly cabinet and other home improvement products, will improve with an improving housing market.

Losers:

Avon Products (AVP): Down 7.6% — Avon's profits sunk as they sold 1% fewer items and the number of sales representatives sank, which has caused their stock to tumble.

Emerson Electric Co. (EMR): Down 5.6% —Due to economic conditions in Europe and China, Emerson Electric's Q2 profits fell 2%.

Jacobs Engineering Group Inc. (JEC): Down 4.9% — Jacobs announced earnings of 65 cents per share, which CEO John Prosser stated were below their expectations.

World Stock Market : Dow Jones average hits highest mark since '07

NEW YORK: The fastest growth in US manufacturing in 10 months gave stocks a lift Tuesday and pushed the Dow Jones industrial average to its highest close in more than four years.

Manufacturing expanded last month at the strongest pace since June, according to the Institute for Supply Management. Orders, hiring and production all rose.

A measure of manufacturing employment also reached a nine-month high, a hopeful sign ahead of Friday's monthly jobs report.

The manufacturing news jolted stock indexes out of a morning stupor, although the gains waned throughout the afternoon. The Dow added 65.69 points to 13,279.32, its highest closing mark since Dec. 28, 2007, during the first month of the Great Recession.

Treasury prices fell, and benchmark crude oil rose $1.29 to settle at $106.16 per barrel. Both of those things tend to happen when investors expect stronger economic growth.

In a separate report Tuesday, the Commerce Department said construction spending ticked up in March, following two months of declines.

Other indexes pushed higher. The Standard & Poor's 500 index rose eight points to 1,406. The Nasdaq composite climbed four points to 3,050.

All 10 industry groups within the S&P 500 climbed, led by energy companies. Chesapeake Energy Corp. jumped 6 per cent on reports that the company will strip CEO Aubrey McClendon of his chairman's title.

McClendon, Chesapeake's founder, was under fire for taking out more than $1 billion in loans using the company's wells as collateral. Chesapeake recently agreed to end the program that allowed McClendon to take personal stakes in the wells.

The S&P finished April in the red, its first losing month since November. The Dow managed a tiny gain.

Judging by its track record, May isn't a promising month for stocks. Since World War II, the S&P 500 has gained an average of 0.31 per cent in May. For all months, the average gain is 0.67 per cent.

Among stocks making big moves:

Sears Holdings Corp. soared 15 per cent, the biggest gain in the S&P 500. The operator of Kmart and Sears stores expects to post a first-quarter profit thanks to a gain from the sale of some US and Canadian stores. The company's stock has jumped 99 per cent so far this year.

Archer Daniels Midland Co. gained 7 per cent after the food conglomerate reported profits that beat analysts' expectations. Profits dropped by nearly a third over the past year, pulled down by one-time charges and lower weaker results from its ethanol and oilseeds businesses.
 
Avon Products Inc. fell 8 per cent, the largest drop in the S&P. The company said earnings plunged 82 per cent, hurt by a bigger restructuring charge, commodity costs and rising labor costs. The results were worse than analysts had expected.

World Stock Market : World stocks up on hopes of new Fed stimulus move

World stock markets were modestly higher Monday as sluggish U.S. growth boosted hopes for more measures from the Federal Reserve to help the world's No. 1 economy.

The Fed has already carried out two massive rounds of bond-buying known as quantitative easing to drive down long-term interest rates and stimulate spending and business investment. Low bond yields also encourage investors to shift money to stocks.

European stocks were mostly higher in early trading. Britain's FTSE rose 0.2 percent to 5,759.82 and Germany's DAX added 0.2 percent to 6,815.04. France's CAC-40 fell 0.6 percent to 3,246.79.

U.S. stocks were headed for a neutral opening, with Dow Jones industrial futures nearly unchanged at 13,168. S&P 500 futures were flat at 1,398.

Asian stocks were higher in trading thinned by holidays in Japan and mainland China. All major Asian markets except Tokyo will be closed for holidays on Tuesday.

Hong Kong's Hang Seng rose 1.7 percent to 21,094.21, with banking shares racking up solid gains.

South Korea's Kospi added 0.3 percent to 1,981.99 amid improving business sentiment among manufacturers. Australia's S&P/ASX 200 gained 0.8 percent to 4,396.60 as rising commodities prices helped push up its mining sector.

Benchmarks in New Zealand, Taiwan and the Philippines also gained, while Singapore and Indonesia fell. Markets in mainland China and Japan were closed for public holidays.

Traders are also awaiting U.S. monthly jobs figures for April, to be released Friday, and the second round of France's presidential election on Sunday.

U.S. stock markets rose Friday despite a report that the U.S. economy grew at annual rate of 2.2 percent, below the 2.5 percent that economist had expected. It grew at a faster rate, 3 percent, in the final three months of 2011.

Benchmark oil for June delivery was down 20 cents to $104.73 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 38 cents to settle at $104.93 in New York on Friday.

In currency trading, the euro fell to $1.3239 from $1.3259 late Friday in New York. The dollar fell to 80.14 yen from 80.39 yen.

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.

World Stock Market : Apple, Amazon drive US stocks past dull GDP data

NEW YORK: Tech giants Apple and Amazon proved their mettle to doubting investors once again, leading US stocks higher in the week to Friday as the markets showed they had not yet run out of steam.

The world's biggest company, market value-wise, and the Internet's biggest retailer, both showed up analysts with forecast-busting results that gave the Nasdaq and the S&P 500 firm boosts.

They also helped distract from other possible sources of investor worry -- a somewhat glum US growth report for the first quarter, Federal Reserve inaction on hopes for more stimulus, new worries in Europe and some concern about Chinese growth.

Friday brought a lower-than-forecast estimate for first-quarter US growth, of only 2.2 per cent, down from 3.0 per cent in the final quarter of 2011.

But even that failed to dull the markets, which turned in gains for the day.

US markets scored a firm performance for the week, with earnings from a number of firms beating forecasts and cheering the investors.

For the week the Dow Jones Industrial Average added 1.53 per cent to end at 13,228.31, and the S&P gained 1.8 per cent to 1,403.36.

The Nasdaq though picked up 2.29 per cent, helped mainly by Apple's 5.2 per cent gain for the week, and Amazon's 19.4 per cent run.

Also helping the markets were blue-chip Boeing's earnings, which delivered a 5.1 per cent boost to the aircraft maker's shares for the period.

"The reporting period has been much better than expected, although admittedly from a lower bar -- 83 per cent of companies have beaten expectations so far, which is an all-time record high," said analysts at Charles Schwab & Co.

"But market reactions to good reports have been more muted relative to the punishments doled out to those that disappointed."

Among the disappointments were Caterpillar, which lost 2.9 per cent for the week; Procter & Gamble, down 4.6 per cent; and United Continental, down 3.2 per cent.

Even so, said Bryan Sapp of Schaeffer's Investment Research, the markets did not appear to want to fall.

"The one certainty remains that this market is made of Teflon. Seemingly no matter what happens, the bears just can't manage to take the reins and drive us lower, despite abysmal economic data and numerous macroeconomic fears," he said.

The Charles Schwab analysts said they remained optimistic, but wary nonethless.

"Despite an earnings season that has been much better than expected so far, investors appear to be again focusing on more macro concerns," they said.

"Europe and China are dominant concerns but US growth sustainability is also being questioned."

Company results in the coming week include Pfizer and Motorola (Tuesday), Comcast and Time-Warner (Wednesday), and Viacom, Kraft, AIG and General Motors (Thursday).

Even if company earnings are driving sentiment, eyes will still be on data releases covering April in the coming week: consumer spending (Monday), the ISM manufacturing index (Tuesday), industrial orders (Wednesday); and the ISM services survey (Thursday).
Source : Economics Times

U.S. Stocks Rise After Two-day Rout, Fed

By Kate Gibson, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks retained about half of Wednesday's strong gains after the Federal Reserve held interest rates as is and data had companies adding more jobs than expected in October.
While not making any further moves to ease monetary policy, Fed policy makers said in a statement that the economy has improved, although significant downside risks remain.
"While much of November's statement is identical to September's, the FOMC [ Federal Open Market Committee] is clearly inching towards easing further," noted Dan Greenhaus, chief global strategist at BTIG LLC.
"Today's press conference is going to shed some light on this subject in terms of how universal is the belief that what ails the economy can be aided by further steps from the FOMC," Greenhaus added of Bernanke's news conference slated for 2:15 p.m. Eastern.
After rising nearly 220 points, the Dow Jones Industrial Average (DJI) was lately up 124.12 points to 11,782.08, with all but four of its 30 components in the green.
The blue-chip benchmark lost 573 points -- nearly 4.7% -- in the prior two sessions.
The S&P 500 Index (SPX) rose 13.07 points to 1,231.35, with financials leading gains that included all 10 of its major industry groups.
MasterCard Inc. (MA) shares gained 6.9% after the payments processor reported quarterly results that exceeded Wall Street's expectations.
The Nasdaq Composite (RIXF) added 16.70 points to 2,623.66.
For every stock that fell, four rose on the New York Stock Exchange, where 397 million shares traded as of 1:15 p.m. Eastern.
U.S. stocks started the session sharply higher after Automatic Data Processing (ADP) reported U.S. companies added 110,000 workers in October, with the bulk of the increase in private payrolls coming in the service sector. ADP also revised higher its count for September.
"The labor market is in better shape than we thought two months ago, which is good news for the economy, corporate earnings and the stock market," said Phil Orlando, chief equity market strategist at Federated Investors.
European leaders planned emergency talks with Greek Prime Minister George Papandreou in France, a day before the Group of 20 summit.
Papandreou rattled global markets earlier this week by calling for a national vote on Europe's bailout package for the country.

  (END) Dow Jones Newswires
  11-02-111321ET
  Copyright (c) 2011 Dow Jones & Company, Inc.

Asian shares head higher despite weak Wall Street

Source : Economicstimes
TOKYO: Asian stock markets rose Wednesday, reversing course after an indecisive opening following a sluggish day on Wall Street .

Oil prices rose to near $85 a barrel Wednesday in Asia after a report showed U.S. crude supplies unexpectedly fell last week, suggesting demand may be improving.

The Nikkei 225 stock average in Tokyo added 0.4 percent to 10,788.13. Exporters, including electronics makers, generally rose as the dollar hovered in the upper 83-yen range. Toshiba Corp. was up 2.8 percent, Pioneer Corp. rose 2.6 percent, and Sharp Corp. rose 0.9 percent. Financial issues also advanced, with Sumitomo Mitsui Financial Group Inc. up 2.3 percent.

Hong Kong's Hang Seng index rose 0.4 percent to 22,996.87, and the Shanghai Composite index was up 0.1 percent to 2,902.59. South Korea's Kospi index was nearly flat at 2,011.36, while benchmarks in Singapore and Indonesia retreated.

Australia's S&P/ASX 200 was up narrowly to 4,932.60. Among the day's worst performers, BHP Billiton Ltd. shed 1.8 percent despite reporting robust earnings. The world's biggest mining company said its first half net profit soared more than 71 percent in the six months through December.

In New York Tuesday, a surprisingly weak retail sales report drove stocks lower on Tuesday, giving the Dow Jones industrial average its second straight day of losses.

The Dow fell 41.55, or 0.3 percent, to close at 12,226.64. The broader Standard & Poor's 500 index fell 4.31, or 0.3 percent, to 1,328.01. The Nasdaq composite index fell 12.83, or 0.5 percent, to 2,804.35.

In currencies, the dollar eased to 83.75 yen from 83.82 yen late Tuesday. The dollar rose from the lower-83 yen level overnight, at one point hitting a two-month high of 83.91 yen. The euro stood at $1.3532 from $1.3492.

Benchmark crude oil for March delivery was up 35 cents at $84.67 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 49 cents to settle at $84.32 a barrel Tuesday.