Archive for January, 2011
Wall Street futures fall ahead of U.S. payrolls
* U.S. stock index futures edged down on Friday, as caution prevailed ahead of the release of U.S. non-farm payroll figures, with futures for the S&P 500 SPc1, the Dow Jones DJc1 and the Nasdaq NDc1 down 0.1 to 0.2 % by 0942 GMT.
* Economists expect U.S. non-farm payrolls, due at 1330 GMT, to show 175,000 new jobs created in December, the highest level since May, though the unemployment rate is seen edging down only slightly to 9.7 from 9.8 %.
* Key jobs information report comes following 8 percent rise inside the S&P 500 since the start of December.
* U.S. stocks slipped on Thursday, pressured by soft retail sales and a sharp rise in the dollar.
* Ben Bernanke delivers his first congressional testimony since the Federal Reserve launched a controversial bond-buying policy, and may put the brakes on some of Wall Street’s optimism surrounding a recent rebound in key economic data.
* U.S. Republicans acknowledged on Thursday they will have to sign off on more deficit spending to avoid a debt default that could roil monetary markets and bring the government to a grinding halt.
* In company news, Sara Lee Corp (SLE.N) is considering the spin-off of its meat and coffee businesses right after rejecting a takeover bid final month from Brazil’s JBS SA (JBSS3.SA), a source familiar with the situation said on Thursday.
* The Chinese securities regulator on Friday approved the local joint ventures of J.P. Morgan Chase & Co (JPM.N) and Morgan Stanley (MS.N), bringing the banks a step closer towards operating securities businesses in China that they, and other banks, have long sought.
* Citigroup (C.N) is seeking buyers for CitiFinancial, the largest consumer finance company in the United States, in a deal that could raise hundreds of millions of dollars, the Financial Times said.
* The Pentagon has overhauled the Lockheed Martin Corp (LMT.N) F-35 fighter project for the second time in a year and said it would buy 41 Boeing Co (BA.N) F/A-18 combat planes over the next three years to offset slower production of the Lockheed plane.
* The United States plans to cut $78 billion in defense spending over five years, including a reduction of up to 47,000 troops, in a politically contentious move that would trim the government’s growing budget deficit.
* Three dry wells drilled by Murphy Oil Corp (MUR.N) off the Republic of the Congo will cost it $36 million inside the fourth quarter, the U.S. oil company said on Thursday.
* The board of bailed-out insurer American International Group (AIG.N) approved a dividend for shareholders on Thursday that assumes its recapitalization plan will close as soon as next week.
* In Europe, the pan-European FTSEurofirst 300 .FTEU3 index of top shares was down 0.three percent in early trade, with investors cautious ahead of the widely-watched U.S. payrolls information.
GLOBAL MARKETS-U.S. jobs data hits equities
Equities extended losses and Wall Street looked set to open lower on Friday following investors were disappointed by a U.S. jobs data that was not as positive as they hoped.
U.S. non-farm payrolls in December increased by 103,000 within the month. A Reuters poll had shown expectations that 175,000 jobs would be created. [ID:nN06134458]
However, the jobless rate fell to 9.4 percent, its lowest in more than 1-1/2 years and October and November payrolls numbers were revised upwards.
The FTSEurofirst 300 .FTEU3 was down 0.4 % following earlier being flat.
The dollar, up 0.3 % against a basket of major currencies .DXY, wobbled but then recovered to be essentially unchanged by the information.
GLOBAL MARKETS-Debt worries hit euro, stocks waver on jobs
The euro struggled to stay above the key $1.30 level against the dollar on Friday as investors braced for upcoming bond sales from the more debt-stricken euro zone countries.
Meantime, global equities struggled to find direction as a softer-than-expected U.S. labor market report cooled some of the economic optimism that has fueled a rally since November. Copper prices eased on concerns about demand.
U.S. non-farm payrolls increased by 103,000 in December, the government said, falling short of a Reuters poll that forecast 175,000 new jobs last month.
However, the jobless rate fell to 9.4 percent, its lowest in more than 1-1/2 years, while payroll numbers in October and November were revised upward.
“You can’t ignore the fact that, regardless of a disappointing payrolls outcome, U.S. growth is still looking better than Europe, and the euro sovereign stress is still there,” said Richard Franulovich, senior currency strategist at Westpac in New York.
The Dow Jones industrial average .DJI rose 8.97 points, or 0.08 %, at 11,706.28. The Standard & Poor’s 500 Index .SPX was up 1.27 points, or 0.10 %, at 1,275.12. The Nasdaq Composite Index .IXIC added 1.60 points, or 0.06 %, at 2,711.49.
Europe’s FTSEurofirst 300 .FTEU3 rose 0.2 %, fighting off a short bout of selling after the U.S. information.
World stocks measured by MSCI All-Country World Index .MIWD00000PUS were little changed. Japan’s Nikkei average .N225 edged up 0.1 % to an eight-month high.
The dollar rose, taking its cue from the revisions inside the U.S. jobs report that seemed to underscore that a broader economic recovery was intact.
Earlier, investors sold bonds of the most indebted euro zone governments before a series of problems next week. An European Union proposal that could force those who lend to banks to bear big losses if they fail also helped knock the single currency lower across the board.
Portugal, widely seen as the next euro zone state that could need a bailout right after Greece and Ireland, will lead a series of debt auctions from European nations next week.
US STOCKS SNAPSHOT-Nasdaq off 1 pct as Wall St falls further
U.S. stocks fell further on
Friday as bank shares were pressured by a court ruling on
foreclosures and a drop in Qualcomm Inc (QCOM.O) dragged the
Nasdaq composite index 1 percent lower.
Massachusetts’ Supreme Judicial Court upheld a lower court
ruling against US Bancorp (USB.N) and Wells Fargo & Co (WFC.N)
which may cause sales of other foreclosed properties to be
invalidated. For details, see [ID:nN07198844].
The Dow Jones industrial average .DJI lost 92.90 points,
or 0.79 percent, at 11,604.41. The Standard & Poor’s 500 Index
.SPX fell 11.85 points, or 0.93 percent, at 1,262.00. The
Nasdaq Composite Index .IXIC dropped 33.44 points, or 1.23
%, to 2,676.45.
Qualcomm fell 2.2 percent to $51.52.
US STOCKS-Wall St falls on bank worries, jobs report
U.S. stocks lost ground on
Friday as financials were hit by a court ruling that voided two
home foreclosures and as information showed disappointing jobs growth
final month.
After trading flat earlier, stocks extended losses as the
euro fell further and oil prices turned negative.
Wells Fargo & Co (WFC.N) and US Bancorp (USB.N) lost a
ruling by Massachusetts’ top court, which said the banks failed
to show they held the mortgages at the time they foreclosed.
The selection could affect foreclosures nationwide. For details,
see [ID:nN07198844]
“It’s going to delay things at best and just increases the
uncertainty as far as the type of exposure they might have,”
said Alan Lancz, president of Alan B. Lancz & Associates Inc in
Toledo, Ohio.
Wells Fargo shares gave up three.1 % at $31.16 and US
Bancorp shed 1 % to $26.03. The KBW Bank index .BKX
lost 1.6 %.
The Dow Jones industrial average .DJI slipped 55.97
points, or 0.48 %, to 11,641.34. The Standard & Poor’s
500 Index .SPX fell 7.12 points, or 0.56 %, to
1,266.73. The Nasdaq Composite Index .IXIC lost 20.03 points,
or 0.74 %, to 2,689.86.
Investors initially treaded lightly following the mixed
employment report that showed non-farm payrolls rose 103,000,
below analysts’ expectations. [ID:nN06134458]
The report also showed a surprisingly large number of
people gave up searching for work, tempering the positive news
of a big drop in the unemployment rate.
The euro fell to a near four-month low against the dollar.
Stocks and the euro showed a significant correlation last year,
with the currency viewed as a proxy for euro zone debt
concerns.
On Capitol Hill, Federal Reserve Chairman Ben Bernanke
sounded cautiously more upbeat than inside the recent past, citing
improvements in consumer spending and a drop in claims for
jobless benefits as hopeful signs for the recovery.
UPDATE 1-AEI withdraws plan for $862.five million IPO
AEI, an power infrastructure asset holding company formerly known as Ashmore Energy International, said it has scrapped plans for an initial public offering.
The Cayman Island-based company, in a regulatory filing on Friday, gave no reason for the selection.
AEI, which owns and operates assets in emerging markets, filed with U.S. securities regulators in 2009 to raise up to $862.five million in an IPO.
Earlier this week, media reports said Spanish energy group Iberdrola (IBE.MC) had agreed to buy AEI’s assets in a deal worth $8 billion. Iberdrola denied signing any such agreement. [ID:nLDE704166]
AEI planned to sell 21 million common shares at $12 to $13 per share, with shareholders selling 1 million shares. Goldman Sachs and Credit Suisse were lead underwriters on the deal.
AEI’s largest shareholders are investment funds managed by Ashmore, part of UK-based investment manager Ashmore Group (ASHM.L).
US STOCKS SNAPSHOT-Wall Street ends down with banks
U.S. stocks ended down on
Friday as financial companies were hit following a court ruling
that voided two home foreclosures and as information showed
disappointing jobs growth final month.
Based on the latest available data, the Dow Jones
industrial average .DJI was down 22.55 points, or 0.19
percent, at 11,674.76. The Standard & Poor’s 500 Index .SPX
was down 2.35 points, or 0.18 %, at 1,271.50. The Nasdaq
Composite Index .IXIC was down 6.72 points, or 0.25 %,
at 2,703.17.
UK Stocks — Elements to watch on Monday Jan 10
Britain’s FTSE 100 .FTSE index is noticed opening
up 3-5 points, or 0.1 percent on Monday, based on monetary bookmakers,
recovering a touch following falls inside the prior session, with power troubles
likely to be supported by a firmer crude CLc1 value.
Crude oil pushed back towards $90 a barrel, bouncing back from last week’s
three.2 percent dip, after a leak shut an Alaskan pipeline that carries 12 percent
of U.S. crude output.
The UK blue chip index closed down 35.18 points, or 0.6 percent on Friday at
five,984.33, led lower by banks and miners, with investor sentiment dampened by
disappointing U.S. December jobs data.
U.S. stocks fell on Friday pressured by the lacklustre payroll numbers, and
with monetary problems hit by a court choice in a key foreclosure case.
Wells Fargo & Co (WFC.N) and US Bancorp (USB.N) lost a ruling by
Massachusetts’ top court, which said the banks failed to show they held the
mortgages at the time they foreclosed.[ID:nN07198844]
British lender’s could also be impacted by continuina eurozone sovereign
debt exposure concerns.
Pressure is growing on Portugal from Germany, France and other euro zone
countries to seek economic help from the EU and IMF to stop the bloc’s debt
crisis from spreading, a senior euro zone source said on Sunday. [ID:nLAG006402]
The mounting pressure on Portugal follows a sharp rise within the country’s
10-year bond yields late final week to euro lifetime highs above 7 percent, as
investors fear over the prospect of up to 1.25 billion euros of bond supply it
will offer at an auction on Wednesday. [ID:nLDE7080FG]
On the macro front, no important British economic data is due for release on
Monday, with interest rate components to be the main focus this week.
Both the Bank of England and the European Central Bank will unveil their
latest decisions on monetary policy on Thursday, although no changes are
expected by either central banks to their low interest rates or quantitative
easing programmes.
Right after Friday’s U.S. non-farm payrolls, no important U.S. economic pointers
are due for release on Monday, with the main features this week to be December
consumer inflation and retail sales numbers, both due for release on Friday.
U.S. corporate earnings will be a focus too, with aluminium producer Alcoa
(AA.N) scheduled to kick-off the fourth-quarter reporting season following the Wall
Street close on Monday.
Lender JP Morgan Chase (JPM.N) and chip giant Intel (INTC.O) are also set to
post numbers later within the week.
Retail trading updates will be the main corporate feature in London, with
Tesco (TSCO.L), J. Sainsbury (SBRY.L), Morrision Supermarkets (MRW.L), Marks &
Spencer (MKS.L), and Home Retail Group (HOME.L) just some of the stores firms
issuing statements this week.
Hong Kong stocks to open up on ample liquidity, CCB up
Hong Kong stocks are set to
open 0.12 % increased on Monday as investors chase blue chips
like China Construction Bank Corp (0939.HK) on expectations of
a flood of liquidity.
The benchmark Hang Seng Index .HSI was indicated to open up
28.84 points at 23,715.47. The China Enterprises Index .HSCE of
top Hong Kong-listed mainland stocks was set to open up 33.7
points or 0.26 percent at 12,959.41.
CCB rose about 1 percent to HK$7.13 ($0.92).
