Subprime Fears Drag Europe Lower
Jul 18, 6:56 AM EDT |
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| European shares dipped for a second day as worries arose that U.S. subprime mortgages will hurt financial companies. |
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| Bid talk around supermarket chain J Sainsbury and stronger-than-expected net profit forecast from Heineken could not brighten sombre sentiment in Europe, arising from the re-emergence of worries about U.S. subpirme rates. Man Group and Tate & Lyle eased and tech stocks also disappointed after weak reports from Intel and Yahoo. All western markets were lower by mid-day. |
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Commodities Slide Across the Board
Jul 18, 5:40 AM EDT |
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| Commodity stocks dropped broadly on Tuesday with gold, copper and energy stocks all falling. |
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| Commodities saw a broad decline on Tuesday with oil futures retreating from gains made earlier. The weakness in the energy market extended into the precious metals market. Gold futures ended down, following first the dollar and then oil prices. Copper prices dipped as tensions arising from strike action seem to fade. Corn and soybeans gave up gains in Chicago. |
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Intel, Yahoo Trade Lower After the Close
Jul 17, 4:49 PM EDT |
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| Intel reported 44% jump in earnings but a sharply lower gross margins. Yahoo earnings fell on higher revenue. |
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| After the close in New York trading, flood of earnings continued. Yahoo reported earnings of 11 cents per share, flat from a year ago on revenue gain of 8%. The company free cash flow and net income declined. Intel reported 44% jump in earnings but gross margins declined to 46% from 52% a year ago. The company guided revenue between $9 and $9.6 billion in the third quarter. Intel declined $1 and Yahoo fell 75 cents in after hours trading. |
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Deals and Earnings Drive Stocks
Jul 17, 4:18 PM EDT |
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| Market averages divereged but volatility persisted in stocks. American Express, Microsoft and intel advanced ahead of earnings. |
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| Averages in the New York trading did not dispaly the underlying volatility in the market. Earnings from key companies like Merrill Lynch and Wells Fargo helped stocks but Coca Cola and Johnson & Johnson struggled. Most companies are reporting flat or better than expected earnings. A measure of wholesale inflation in the U.S. fell in June. European and Asian markets closed lower. oil traded above $74 per barrel. Copper and gold lost a fraction. |
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Lyondell in $12.7 B Deal
Jul 17, 3:28 PM EDT |
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| Lyondell is likely to receive higher bid despite a rich bid from Basell. The commodity chemical deal is the largest deal in the industry. |
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| Lyondell Chemical has agreed to $12.66 billion or $48 per share buyout from Netherlands based Basell. The total value of the deal including the debt will be $19 billion. The deal to acquire Lyondell with $22 billion sales, is the third deal, and largest in the commodity chemical segment this year. Earlier, GE managed to sell its plastics divison to Saudi Basic Industries for $11.6 billion cash and Huntsman was sold for $6.51 billion or $9.6 billion including debt to Apollo Management. |
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J&J Drops on Earnings
Jul 17, 2:10 PM EDT |
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| Johnson & Johnson reported better than expected earnings largely on the recent acqusition. Sales at Cordis stent division fell 20%. |
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| Johnson & Johnson reported earnings of $1.05 per share or $3.1 billion, 9.3% increase on 13% rise in sales. The recent acquistion of Pfizer consumer health division helped the company to keep the revenue growth but the pharmaceuticals and medical devices units struggled. The stock fell 2% after the earnings report. |
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Merrill Lynch, Wells Fargo Earnings Rise
Jul 17, 10:42 AM EDT |
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| Averages in New York traded higher on unexpected decline in wholesale inflation. Producer Price Index fell in June. European markets sell-off. |
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| After one hour of trading in New York, market averages are maintaing positive bias. Merrill Lynch earnings jumped 31% on 19% rise in sales on of higher fees from asset management and merchant banking and brokerage trading volume. Wells Fargo earnings jumped 9% on higher commercial loan volume. Coca Cola reported flat earnings. Charles Schwab earnings increased 16%. Asian markets closed lower but Shanghai jumped 2%. |
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Downgrades Pull FTSE Lower, Inflation Eases
Jul 17, 9:37 AM EDT |
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| London fell Tuesday on broker downgrades involving miners, Rolls-Royce and as dealer were cautious about inflation figures. |
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| The UK market declined in the Tuesday morning session as broker downgrades pulled stocks lower and investors were wary about UK inflation data. BHP Billiton led miners lower after Deutsche Bank downgraded the stock and Rolls-Royce and Kelda Group also dipped on broker comment. Consumer price inflation fell to 2.4% in June from 2.5% in May. The benchmark FTSE 100 Index lost 0.6% in London in morning session. |
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Japan Falls on Earthquake, Taiwan Rises
Jul 17, 9:05 AM EDT |
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| Asian markets finished mixed Tuesday with HK and Taiwan surging and Tokyo falling as an earthquake struck the country. |
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| Taiwan led gainers in Asia as UBS raised its recommendation on the nation’s benchmark. After it was closed for public holiday, the market in Japan declined today on insurers following the strong earthquake in the northwestern part of the country. HK advanced as China-related companies paced the advance. China also surged on property firms strength, while Australia edged higher on gains in Rio Tinto. |
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Reliance Surges on Gas Find
Jul 17, 8:07 AM EDT |
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| The Sensex in India ended a three-day winning streak and lost on weakness in metal and capital goods stocks. Reliance Industries soared. |
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| The benchmark index saw high volatility in the afternoon session after a firm morning trading. Metal, auto and banking and capital goods stocks declined, while cement, IT and real-estate stocks advanced. Reliance Industries and Ambuja Cements led the advancers, while Mahindra & Mahindra and Reliance Comms paced the declines. Ford Motor may sell a small car model in India. |
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