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| Subject: Friday September 11th 2009 (Sept 12th Oz) | |
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Author: Wall Street closes down ends 5 day winning streak |
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Date Posted: 18:48:23 09/13/09 Sun World Market Report Help US Stocks Close Strong Week on Sour Note US stocks closed out their best week in a month slightly to the downside on Friday as traders took profits in Bank of America and Chevron, while Federal Express offset the market decline and paced a basket of other transportation stocks into the green. Snapping a five-day winning streak, the Dow Jones Industrial Average closed Friday down 22.07 points (0.23%) to 9,605.41. Notably, Friday's close was within 0.10 points from the close the day before the Sept. 11 terrorist attacks. On the session, decliners were led by Bank of America, off 25 cents (1.5%) to $16.97; JPMorgan, down 52 cents (1.2%) at $42.50; and Chevron, which slid 70 cents (1%) to $70.75. For financials, the decline on Friday stemmed from a series of solid gains throughout the week, with traders looking to pare some of those positions into the weekend. Helped by banks, the Dow closed last week up 164.14 (1.74%). Chevron was hurt by a 3.7% drop in crude oil prices, though oil snapped a two-week losing streak. Among other indexes, the Standard & Poor's finished Friday down 1.41 (0.14%) to 1,042.73, ending the week off 26.33 (2.59%). The Nasdaq Composite lost 3.12 points (0.15%) to 2,080.90 on Friday, and closed the week down 62.12 (3.08%). For both indexes, it was the best weekly performance on a point and percent basis since the week ended July 24. For both Friday and the week as a whole, transports were the hottest sector. Leading the move on Friday, FedEx tacked on $4.66 (6.4%) to $77.32, after the package delivery giant said its fiscal first-quarter earnings will exceed its previous expectations and projected a profit this quarter above analysts' estimates as the company benefits from international improvement and cost controls. MGM Mirage, up 60 cents (5.3%) at $11.84, said all holders who participate in the heavily indebted casino giant's pending debt swap will receive a $50 bonus per $1,000 of notes, not just those who tendered as of Thursday's bonus deadline. Wynn Resorts received Hong Kong regulatory approval to list its Macau casino operations in the city in a $1bn initial public offering, according to a report. Wynn closed up $2.35 (3.8%) at $64.50. Cliffs Natural Resources rose $2.13 (7.6%) to $30.23, after saying it expects its North American iron-ore and coal sales this year to be slightly better than it previously thought as customers increase steel production. EnCana, the largest natural gas producer in North America, increased $4.34 (7.9%) to $58.97. The company said it was reviving plans stalled by the credit crunch to split off its oil sands business from its core natural gas holdings. Weighing on technology stocks, National Semiconductor fell 94 cents (5.9%) to $15.03, as its fiscal first-quarter profit dropped 63% and revenue shrank by a third, though the analogue-chip maker said demand was rebounding. Best Buy fell $1.29 (3.1%) to $39.76, after analysts said the retailer's second-quarter sales could disappoint Wall Street's forecasts when it reports on Tuesday. Cree lost $1.89 (5.2%) to $34.83. The semiconductor materials maker priced an offering of 11m shares at a 3.3% discount to Thursday's closing price. For Australian ADRs listed on the NYSE, BHP Billiton gained 47 cents (0.71%) to US$66.57, Rio Tinto Plc advanced $2.09 (1.21%) to US$174.29, ResMed slid 24 cents (0.52%) to US$45.87, Telstra Corporation increased 26 cents (1.84%) to US$14.41, Telecom Corporation of NZ slipped 4 cents (0.42%) to US$9.56 and Westpac rose 4 cents (0.04%) to US$105.60. In economic news, US Federal Reserve Bank of Chicago President Charles Evans said that the US economy is "tentatively" emerging from a severe recession. He added that unemployment remains high and inflation is under control. Wholesale inventories tumbled 1.4% to a seasonally adjusted $387.2bn in July, but the rate of liquidation is easing, helping the economy grow in the third quarter. Deficit spending by the US government tied an all-time record in August, the product of a recession that has added to a mountain of debt. The federal government's August deficit came in at $111.40bn. Treasury prices were bouncing around flat Friday as investors booked profits after a solid rally this week. At 7:45 AM (AEST), the 10-year Treasury note yield was 3.35% and the five year yield was 2.30%. European shares closed higher for the seventh straight session on Friday, with miners and carmakers that benefit from emerging-markets demand leading the way to a fresh 11-month high. After a modest rise on Thursday, the pan-European Dow Jones Stoxx 600 index finished with an advance of 0.5% to 241.78 for the session and a rise of over 3% on the week. Every Stoxx 600 sector but telecoms traded higher. Regional markets were also firm, with the UK’s FTSE 100 index up 0.5% to 5,011.47, the French CAC-40 index adding 0.8% to 3,734.89 and the German DAX index up 0.5% to 5,624.02. At the forefront of the market’s 56% rally since March, metals companies were once more among the strongest Stoxx 600 sector performers on Friday. Steelmaker Salzgitter rose 5.3% and silver miner Fresnillo rose 5.1%. Commodity prices usually benefit from a weaker US dollar as they are priced in dollars. The greenback hit fresh lows on Friday after a raft of positive economic data from China added to the growing sense of a worldwide recovery. Volkswagen, which announced Chinese investment plans, added 4.4%, while Fiat shares jumped 4.7%. The Italian carmaker was upgraded to outperform from underperform. A company that could be on the verge of restructuring is Air France-KLM, shares of which traded up 6.5% in Paris. The carrier plans to restructure its cargo unit, according to reports. On the FTSE 100, Rio Tinto firmed 73.50 pence (2.89%) to 2,618.50 pence and BHP Billiton added 49.50 pence (2.97%) to 1,715.97 pence. Chinese shares headed into the weekend with strong gains as a rush of upbeat data reaffirmed that the economic recovery was continuing. The Shanghai Composite advanced 2.2% to 2,989.79, while in Hong Kong, the Hang Seng Index rose 0.4% to 21,161.42 for its best finish since Aug. 29, 2008. Japan's Nikkei 225 Average bucked the trend and ended 0.7% lower at 10,444.33. Sentiment was damped by revised gross domestic product for the April-June period showing a 0.6% expansion from the previous quarter, below the preliminary result for 0.9% growth. Car makers were hurt by the growing strength of the Japanese currency, with Toyota Motor down 1.8% and Honda Motor 2.1% lower. Base metals on the London Metal Exchange traded mostly lower in Europe, staying near the low of the previous session, and traders and analysts said investors are starting to pay more attention to metal fundamentals and not just tracking outside markets. Base metals on the LME finished down. Aluminium fell $10 (0.54%) to $1,845 while copper weakened $75 (1.19%) to $6,240 and nickel dropped $445 (2.57%) to $16,875. Zinc shed $30 (1.58%) to $1,870 and lead lost $30 (1.43%) to $2,065. Comex copper was last quoted at 282.75 US cents per pound. Gold futures settled above the closely watched $1,000-an-ounce level, supported by further weakness in the US dollar and with traders using a correction lower earlier in the week as a buying opportunity. Spot gold was last quoted at $1,003.95. Comex gold futures added $9.60 (0.96%) to $1,006.40. Spot silver was last quoted at $16.74. Crude oil prices settled lower on Friday, posting the biggest single-day loss in two weeks on worries over near-term supplies outpacing demand. West Texas Intermediate was last quoted at US$69.29 per barrel. The yen extended its recent rally on Friday, marking a fresh seven-month high against the US dollar. At 08:05 a.m. (AET) the US dollar was quoted at 0.6851 euros, 90.37 yen, 1.160 AUD and 59.94 pence. [ Next Thread | Previous Thread | Next Message | Previous Message ] |
| Subject | Author | Date |
| Re: Friday September 11th 2009 US Federal Reserve Bank of Chicago | US economy is"tentatively" emerging from a severe recession. | 18:55:36 09/13/09 Sun |