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Metals Decline, Nasdaq Down 1.7% |
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Author: 123jump.com Staff
123jump.com
Last Update: 5:16 PM EST November 12 2007
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U.S. stocks fell for the fourth day in a row on weak tech, energy, and resource stocks. Exxon Mobil, ConocoPhillips, Sunoco, Tesoro, and Chevron led the decliners in the energy sector. Google, Research in Motion, Apple, and SanDisk led the decliners in the tech stocks. E*Trade plunged 59% on the worries that the bank may not have enough resources to cover losses in sub-prime loans. Copper, gold, silver, and oil fell. Yen closed at 11-year high against the dollar. |
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11:00AM New York – The U.S. market averages edge higher after a week of losses in world markets.
The U.S. market averages traded sideways after ninety minutes of opening in New York. Dow Jones Industrial Average gained 58 to 13,100, Nasdaq added 1 to 2,629, and S&P 500 increased 4 to 1,458.
IBM agreed to acquire Cognos Inc. for $58 per share or $4.9 billion. Cognos (COGN: chart) with world-wide staff of 4,000 serves 25,000 customers and it will contribute to the rising profitability at software division at IBM. Cognos jumped $4.17 to $57.15 and IBM added $1.87 to $102.12.
Business intelligence software developers have been in demand as more customers dig for trends in their customer behavior. SAP AG purchased Business Objects for $7 billion a month ago and Oracle acquired Hyperion Solutions for $3.3 billion seven months ago.
Blackstone Group (BX: chart) reported third quarter net loss of $113.2 million compared to profit of $372 million a year ago on revenue rise of 14% to $526 million. The recently listed unit in the company jumped as high as $38 in an offering that raised $4.13 billion.
In the earnings news this morning, EchoStar Communications reported earnings per share of 44 cents, Hewitt Associates lost $2.55 per share, Osiris Therapeutics lost 36 cents, and Tyson Foods earned 9 cents.
European markets traded lower after the U.S. markets opened. Norway led the decliners in the region with a loss of 2.4% followed by losses in the Netherlands of 1.4%, in Germany of 0.5%, in France of 0.3%, and in Switzerland of 0.14%.
European banks regained the momentum after a week of losses swirling around the Barclays. Deutsche Bank, UBS, and RBS gained more than 4%. HSBC fell 0.6% ahead of earnings report.
Asian markets closed sharply lower on the first day of trading this week. Hong Kong led the decliners in the region with a loss of 3.9% followed by losses in Taiwan and South Korea of 3.35%, in Japan and Singapore of 2.5%, in Thailand of 1.5%, in Australia and Indonesia of 1.3%, and in India of 0.9%.
Nikkei 225 fell for the sevenths session in a row as worries of slower exports growth and rising yen hobbled investors. Financials, automotive, and electronics companies fell sharply.
The Bank of China raised reserve requirements for commercial banks for the ninth time this year. The latest hike of 0.5% in capital requirement is now raised to 13.5% to reduce liquidity flowing in the market. The recent trade surplus has increased liquidity in renminbi which has struggled to find higher yielding assets. The real estate prices are at a record high, bank deposits still yield below inflation rate, and individual investors have poured excess cash into stock market driving the major indexes above 140% for the year so far. The indexes have corrected in the last five weeks and lost 15%, but stocks are still trading at earnings multiple above 45.
6:00AM New York, 7:00PM Tokyo - Tokyo stocks plummeted 2.50% on stronger yen and sub-prime losses. Wholesale inflation increased 2.4% in Japan. Current account surplus rises 40.4% to 2.883 trillion yen.
Japan stocks averages opened the week sharply lower on rising yen and as losses associated to sub-prime mortgage crisis haunted financial stocks and sparked a sell off.
In Tokyo trading Nikkei 225 plunged 2.48% or 386.33 to 15,197.09, the lowest in fifteen months, while the broader average Topix Index declined 2.54% to 1,456.
In the first section of the Tokyo Stock Exchange 9.8 billion shares worth 1.2 trillion were traded and in the second section 403 million shares valued at 6.1 billion yen changed hands.
Of the Nikkei 225 stocks 15 gained, 208 slumped, and 2 were unchanged. Of the index stocks, 40 lost more than 3%. Dowa Holdings led decliners after the non-ferrous metal processor lowered its profit forecast last week and brokerage Nomura cut the rating on the stock from “buy” to “neutral”.
Bank of Japan announced today in its monthly report on the Corporate Goods Price Index that the Domestic Corporate Goods Price Index rose for the 44th month in a row to 2.4% in October from a year ago. However, the producer price index rose 0.3% from a month ago. In September the rate had increased by 1.7%. The Import Price Index also rose 7.5%, but on a month on month basis it rose 3.4%, while the Export Price Index dropped 0.1%.
Of the Domestic Corporate Goods Price Index, textile products rose 1.4% from the previous and 3.1% from a year earlier, lumber and woods products fell 0.1% from a year earlier. Petroleum and coal products firmed 3.8% from a month earlier and 11.1% a year ago, while metal products climbed 0.3% for the month and 3.4% on a yearly basis.
The Cabinet Office reported today in the monthly Consumer Confidence Survey consumer confidence fell to a 3- year low in October to 42.8 points from 44.1 in September owing to dropping wages, a weakening job market and rising oil prices. |
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