Apple earnings extend ‘scary good’ US stock rally

NEW YORK, United States—Banner earnings from Apple, a big drugstore merger and another twist in the Federal Reserve’s message on interest rates highlighted a week that produced modest gains for US stocks.

Major indices lodged their fifth straight week of gains, with the Dow Jones Industrial Average ending up 16.84 (0.10 percent) to 17,663.54.

The broad-based S&P 500 added 4.21 (0.20 percent) at 2,079.36, while the tech-rich Nasdaq Composite Index advanced 21.89 (0.44 percent) to 5,053.75.

The gains pushed major indices up more than eight percent for October, a “scary good” month after a dreadful third quarter, said Briefing.com analyst Patrick O’Hare.

However, O’Hare said the October rally lost some steam as the month progressed, shifting from a broad-based surge that lifted most stocks, to one enjoyed primarily by giants like Microsoft and Amazon.

“The scary good October rally went from a distinctly broad rally early in the month to a noticeably narrower rally by the end of the month,” he said.

“It’s possible the underlings could pick up some steam, but if the big guys lose their mojo, that will be a challenging proposition and most likely an invitation to scare some of the scary good October rally out of the market in the near term.”

Apple had a good week, pushing aside worries about slowing momentum and reporting that fiscal fourth-quarter profits rose 31 percent to $11.1 billion behind a 22 percent increase in revenue to $51.5 billion.

Analysts were especially pleased with results from China, where revenues came in at $12.5 billion, double the level of the year-ago period and an indicator that conditions in the world’s second-biggest economy are not as bad as feared.

But one of the week’s most disappointing earnings reports came from micro-blogging company Twitter, which lost nearly 10 percent after it reported adding just four million monthly active users in third quarter to 320 million.

The market initially swooned at the prospects of a big merger between two big US pharmacy chains, bidding up Walgreens Boots Alliance and Rite Aid on initial reports of an imminent deal.

But investors turned on the combination after the two companies unveiled the $17.2 billion deal. Antitrust experts expect a tough once-over from US regulators.

In another sign that dealmaking remains vibrant in health care, pharmaceutical giant Pfizer and Botox-maker Allergan said they were in “friendly” merger talks.

The talks follow an unsuccessful campaign by Pfizer to acquire British company AstraZeneca in 2014. Pfizer said it still wants to shift its tax domicile overseas where tax rates are lower. Allergan is based in Ireland.

Another pharmaceutical company in the news was Canada’s Valeant Pharmaceuticals International, which continued to plummet amid questions over its drug-pricing and accounting practices. Shares lost nearly 20 percent last week.

A more optimistic Fed

In Washington, the Federal Reserve concluded its October monetary policy meeting by keeping benchmark interest rates near zero, but gave a more positive appraisal of the US economy.

Fed policy makers expressed more faith in the strength of the economy than expected, brushing over recent weak spots and focusing on what they called “solid” consumer spending and business investment.

They also dropped a warning from September that the global downturn could affect the US, even as worries mount over China’s slowdown and falling commodity prices.

The Fed’s stance was seen as keeping alive the prospects of a December interest rate increase.

Yet US economic data for the week was lackluster, with the Conference Board’s reading of consumer confidence dropping in October and durable goods falling in September. The Commerce Department reported that US third-quarter growth fell to 1.5 percent from 3.9 percent in the second quarter.

Peter Cardillo, chief market economist at Rockwell Global Capital, said the feeble data could work to Wall Street’s advantage.

“I think the market still has room to go higher, especially with soft economic data there’s more probability the Fed would hold off on raising rates in December,” he said.

Fed Chair Janet Yellen will be on Capitol Hill next week for testimony before Congress. Other highlights include the October jobs report and earnings from Disney and Facebook.

source: business.inquirer.net

Tech lifts US stocks as market awaits Fed

NEW YORK—Apple and some other technology stocks led US markets higher Thursday ahead of next week’s hotly anticipated Federal Reserve monetary policy meeting.

The tech-rich Nasdaq Composite Index jumped 39.72 points (0.84 percent) to 4,796.25.

The Dow Jones Industrial Average rose 76.83 (0.47 percent) to 16,330.40, while the broad-based S&P 500 added 10.25 (0.53 percent) at 1,952.29.

Apple powered up 2.2 percent a day after unveiling a spate of new and upgraded smartphone, tablet and television products. Biotech stocks like Gilead Sciences (+3.3 percent) and Biogen (+3.0 percent) were also big gainers.

Charlie Bilello of Pension Partners said investors increasingly believe the Fed is unlikely to make the leap to raise zero-level benchmark interest rates at its policy meeting next Wednesday and Thursday.

“There’s increasing hope that they’re not going to do anything,” he said. “My view is that they’re not data-dependent, they’re stock market-dependent.”

Besides Apple, strong performers in the Dow included pharma giants Merck (+1.5 percent) and Pfizer (+2.1 percent).

ZS Pharma, a much smaller biopharmaceutical company, shot up 28.6 percent after Bloomberg reported it had been approached by Switzerland-based Actelion in a deal that would value ZS at about $2.5 billion.

Snack-food giant Mondelez International climbed 0.9 percent as it confirmed that it expects organic net revenue growth of at least three percent in 2015. It also announced plans to lift the share of revenues from healthy snacks to 50 percent by 2020.

Yoga-attire maker Lululemon Athletica tumbled 16.4 percent after it projected 35-37 cents per share in third-quarter earnings, well below the 43 cents expected by Wall Street analysts.

Cybersecurity company Palo Alto Networks rose 7.4 percent as it forecast sales of $280-$284 million for the current quarter, more than the $269.7 million expected by analysts.

Trucking and logistics company Con-way shot up 33.8 percent on news it will be acquired by rival XPO Logistics for $3.0 billion. XPO fell 11.0 percent.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.23 percent from 2.19 percent Wednesday, while the 30-year advanced to 2.99 percent from 2.95 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks surge for 2nd straight day; S&P 500 up 2.43%

NEW YORK—US stocks posted big gains for the second straight session Thursday as strong American economic data extended a global rally that began with a surge in beaten-down Chinese equities.

The Dow Jones Industrial Average rose 369.26 points (2.27 percent) to 16,654.77.

The broad-based S&P 500 jumped 47.15 (2.43 percent) to 1,987.66, while the tech-rich Nasdaq Composite Index advanced 115.17 (2.45 percent) to 4,812.71.

The Commerce Department reported that the US economy grew at an annual rate of 3.7 percent in the second quarter, much higher than the 2.3 percent initially estimated.

The US growth report added to positive momentum from a 5.34 percent rise in the Shanghai stock exchange, ending the worst five-day rout for almost two decades, and solid gains in European bourses.

Stocks were positive all day, but lost most of their gains during a bumpy mid-afternoon stretch before regaining their footing.

“We have returned to a period where volatility has grown,” said David Levy, portfolio manager at Kenjol Capital Management. “We’ve seen very intense swings.”

Some investors were growing more confident after the US market held two straight days of gains.

“We went through a rocky week or two,” said David Kotok, chief investment officer at Cumberland Advisors. “I think we’re heading higher.”

All 30 members of the Dow rose, with specially large gains in Chevron (+6.2 percent), General Electric (+4.2 percent) and Nike (+3.6 percent).

Other petroleum-linked stocks surged after oil prices climbed more than 10 percent, rebounding from deep falls. Drilling company Nabors Industries jumped 12.2 percent, EOG Resources gained 6.8 percent and ConocoPhillips added 5.7 percent.

Technology stocks enjoyed big gains, including Netflix (+6.8 percent), Tesla Motors (+8.1 percent) and Apple and Facebook (both +2.9 percent).

Metals and oil producer Freeport-McMoRan powered 28.7 percent higher as it announced deep cuts to its capital budget in light of weak commodity prices. Freeport now expects to spend $4 billion in 2016, down 29 percent from its estimate a month ago.

PVH, which owns the Tommy Hilfiger and Calvin Klein apparel brands, rose 6 percent as it lifted its full-year profit forecast to $6.90-$7.00 per share, five cents above the prior range.

Bond prices were mixed. The yield on the 10-year US Treasury rose to 2.19 percent from 2.18 percent Wednesday, while the 30-year dropped to 2.93 percent from 2.94 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks finish lower; Apple -3.2%

NEW YORK–US stocks finished lower Tuesday following a mixed batch of earnings reports and another big decline by technology giant Apple.

The Dow Jones Industrial Average dropped 47.51 points (0.27 percent) to 17,550.69.

The broad-based S&P 500 fell 4.72 (0.22 percent) to 2,093.32, while the tech-rich Nasdaq Composite Index slid 9.84 (0.19 percent) to 5,105.55.

Apple fell 3.2 percent, leaving it down more than 12 percent since its July 21 earnings release. Analysts have cited fears of slowing growth, in part due to weakening conditions in China, a key Apple market.

Insurer Allstate fell 10.2 percent after a rise in payments for auto accidents dented second-quarter earnings, while handbag and accessories retailer Coach rose 3.2 percent after reporting better-than-expected results.

Biopharmaceutical company Baxalta jumped 11.9 percent on news that Dublin-based Shire offered to acquire the company for $30 billion. Shire fell 5.4 percent. Baxalta rejected the offer, saying it “significantly undervalues” the company.

Netflix shot up 7.7 percent as it confirmed it will launch its streaming television service in Japan on Sept. 2.

Priceline and Tesla Motors gained 3.5 percent and 2.4 percent, respectively, ahead of earnings releases Wednesday.

Chinese online marketplace Alibaba rose 1.1 percent on news that it appointed a senior Goldman Sachs banker, Michael Evans, as president, with an emphasis on globalizing the company.

American Express fell 0.3 percent after a US judge threw out a proposed class-action settlement with merchants on litigation over AmEx swiping fee restrictions. AmEx said it was disappointed with the decision.

CVS Health slid 2.5 percent after projecting earnings in the current quarter of $1.27-$1.30 per share, below the $1.37 forecast by Wall Street analysts.

American International Group shed 2.8 percent as net income for the second quarter rose 5.4 percent to $1.9 billion. The insurer also hiked its dividend and authorized up to $5 billion in new share repurchases, moves that BMO Capital Markets said were intended to compensate for a weak underwriting performance in some businesses.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.23 percent from 2.15 percent Monday, while the 30-year advanced to 2.90 percent from 2.86 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks surge on China stimulus, earnings

NEW YORK–US stocks rose sharply Monday on the latest Chinese stimulus measures and some prominent earnings that bested forecasts.

The Dow Jones Industrial Average gained 208.63 points (1.17 percent) at 18,034.93.

The broad-based S&P 500 rose 19.22 (0.92 percent) to 2,100.40, while the tech-rich Nasdaq Composite Index surged 62.79 (1.27 percent) to 4,994.60.

China’s central bank announced Sunday it would cut the level of funds that commercial banks must hold in reserve in the world’s second-largest economy by one percentage point, the second such move this year to boost lending.

Investment bank Morgan Stanley gained 0.6 percent and toymaker Hasbro climbed 12.6 percent after both companies reported better-than-expected first-quarter earnings.

“There’s been a positive tone to earnings so far,” said Dan Greenhaus, chief global strategist at BTIG. “So far they’re coming in a touch better than expected.”

The gains almost reversed sharp losses Friday when fears about a Greek debt default sent global equities tumbling.

Several prominent tech companies bolted higher, including Apple (+2.3 percent), Facebook (+2.9 percent) and Amazon (+3.8 percent).

Industrial real-estate company Prologis added 0.4 percent on news it will acquire KTR Capital Partners for $5.9 billion.

Prologis holds 54 percent of the venture that is buying KTR, with Norges Bank Investment Management, manager of the Norwegian government pension fund, holding 45 percent. The transaction adds KTR properties in leading US markets, including Chicago and Seattle.

Royal Caribbean Cruises sank 8.0 percent after slashing its full-year forecast on the strong dollar and higher fuel prices.

Big-box retailer Costco Wholesale rose 1.2 percent on news it will lift its quarterly dividend from 35.5 cents per share to 40 cents and reauthorize its stock repurchase program.

Online coupon company Groupon rose 0.7 percent after announcing plans to sell a 46 percent stake in its Ticket Monster business in South Korea to a partnership that includes KKR for $360 million. The company also announced a new $300 million share repurchase program.

Bond prices fell. The yield on the 10-year US Treasury rose to 1.88 percent from 1.86 percent Friday, while the 30-year advanced to 2.55 percent from 2.52 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks surge ahead of Fed meeting

NEW YORK–US stocks plowed higher Monday as the dollar retreated and the market looked ahead to a Federal Reserve policy decision in the next two days.

The Dow Jones Industrial Average bolted up 228.11 points (1.29 percent) to 17,977.42.

The broad-based S&P 500 jumped 27.79 (1.35 percent) to 2,081.19, while the tech-rich Nasdaq Composite Index gained 57.75 (1.19 percent) to 4,929.51.

The dollar’s recent gains have raised worries about the drag on US multinationals, but on Monday the euro rose slightly against the greenback, to $1.0590 from $1.0489 Friday.

Chris Low, chief economist at FTN Financial, said data showing tepid growth of just 0.1 percent in US industrial production in February likely lifted confidence the Fed would take a cautious approach to raising near-zero interest rates, probably deciding to hike them later rather than sooner.

The Fed’s two-day monetary policy meeting begins Tuesday.

Valeant Pharmaceuticals International rose 2.5 percent after lifting its offer for Salix Pharmaceuticals from $158 per share to $173 per share, pushing out rival bidder Endo International. Salix gained 2.0 percent, while Endo rose 2.7 percent.

Biotech company Amgen jumped 5.7 percent as it released promising clinical research for its Repatha medication for lowering cholesterol. Other pharma companies also rose, including Celgene (+2.6 percent) and Gilead Sciences (+1.7 percent).

Dow component Procter & Gamble jumped 2.1 percent on a report that it is considering the sale or initial public offering of some beauty brands.

Dow component DuPont dropped 4.3 percent following a downgrade by Bank of America Merrill Lynch.

Bond prices rose. The yield on the 10-year US Treasury fell to 2.08 percent from 2.12 percent Friday, while the 30-year slid to 2.65 percent from 2.70 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks fall broadly a day after Nasdaq passes 5,000 mark

NEW YORK, United States — U.S. stocks fell from record highs on Tuesday and the Nasdaq dropped below 5,000 a day after passing that milestone for the first time since the dot-com era 15 years ago.

The losses were modest but broad, with eight industry sectors in the Standard and Poor’s 500 index falling. Higher oil prices helped oil drillers and other energy companies buck the trend. They eked out a 0.2 percent rise for the day.

With no major economic news and few earnings reports, investors were at pains to point to a catalyst for the stock slump other than jitters that sometime follow big gains.

“It’s only natural we would get a little flutter after a milestone like yesterday,” said Wells Fargo Funds’ Chief Equity Strategist John Manley, referring to the Nasdaq closing above 5,000. “It may very well go on for a few days.”

Dow Jones falls

The Dow Jones industrial average fell 85.26 points, or 0.5 percent, to 18,203.37. The Standard & Poor’s 500 declined 9.61 points, or 0.5 percent, to 2,107.78. The Nasdaq gave up 28.20 points, or 0.6 percent, to close at 4,979.90.

Ford Motor slumped after reporting U.S. sales from last month that disappointed investors. Ford sales fell 1.9 percent as dealers lacked the inventory to meet demand for the new F-150 pickup truck. Ford dropped 40 cents, or 2.4 percent, to $16.17.

Oil rose on reports that Saudi Arabia raised prices for Asian customers and fears of heightening tensions with Iran after Israeli Prime Minister Benjamin Netanyahu addressed Congress. Several oil drillers surged. Denbury Resources, an oil and gas producer, jumped 28 cents, or 3.4 percent, to $8.58.

With nearly all companies in the S&P 500 having reported their fourth-quarter results, earnings per share for companies in the S&P 500 index are expected to have risen a healthy 7.7 percent, according to S&P Capital IQ.

Drop in earnings

Liquor giant Brown-Forman reports earnings on Wednesday, followed by Costco Wholesale on Thursday. Staples, the nation’s biggest office supply chain, reports on Friday.

Financial analysts expect earnings to drop compared with the year-earlier periods for the next two quarters, but that is mostly because of a drag from energy companies as oil prices have fallen more than 50 percent since last June.

Anastasia Amoroso, global market strategist for J.P. Morgan Asset Management, said she wasn’t surprised by the pullback.

“We’re seeing a market that is fairly valued, earnings are behind us and no major catalysts are coming up,” she said. “It’s a market ready for a pause.”

European loses

The slump in the U.S. followed losses in European markets. France’s CAC 40 and Germany’s DAX each lost 1 percent. Britain’s FTSE 100 dropped 0.7 percent.

On Monday, the Nasdaq rose to just 40 points from its 5,048.62 peak reached March 10, 2000. The index has changed significantly since then. Gone is the heavy weighting of telecommunications stocks and big bets on Internet companies with little or no earnings.

Among other stocks in the news:

— Personal finance company Springleaf Holdings rose $12.19, or 32 percent, to $50.23 after it said it would buy Citigroup’s OneMain Financial for $4.25 billion. OneMain provides personal loans at more than 1,100 branches across 43 states.

—Best Buy gained 55 cents, or 1.4 percent, to $39.18 after the company said it would raise its dividend 21 percent and give shareholders an additional one-time payment. The nation’s biggest electronics chain also reported fourth-quarter earnings that were higher than financial analysts had expected.

Benchmark U.S. crude rose 93 cents to close at $50.52 a barrel in New York. Brent crude, a benchmark for international oils used by many U.S. refineries, rose $1.48 to close at $61.02 a barrel in London.

NYMEX

In other futures trading on the NYMEX:

— Wholesale gasoline rose 5.3 cents to close at $1.950 a gallon.

— Heating oil rose 5.3 cents to close at $1.940 a gallon.

— Natural gas rose 1.4 cents to close at $2.712 per 1,000 cubic feet.

In bond trading, the yield on the 10-year Treasury note rose to 2.12 percent from 2.08 percent on Monday.

In metals trading, gold fell $3.80 to $1,204.40 an ounce, silver fell two cents to $16.30 an ounce and copper lost four cents to close at $2.66 a pound.

source: business.inquirer.net

US stocks drop as oil hits new multi-year low

NEW YORK–US stocks on Monday opened a busy week of corporate earnings sharply lower as oil prices slumped to fresh multi-year lows.

The Dow Jones Industrial Average dropped 96.53 points (0.54 percent) to 17,640.84.

The broad-based S&P 500 sank 16.55 (0.81 percent) to 2,028.26, while the tech-rich Nasdaq Composite Index tumbled 39.36 (0.84 percent) to 4,664.71.

European benchmark Brent oil closed below $50 a barrel for the first time since April 2009 following a gloomy petroleum-market forecast from Goldman Sachs.

Energy equities fell sharply, including Dow member Chevron and Marathon Oil, by 2.2 percent and 5.1 percent, respectively.

“The market is nervous about lower energy prices and whether they are forecasting a slowdown in global economic growth, and not just a supply-demand imbalance,” said Sam Stovall, chief investment strategist at S&P Capital IQ.

NPS Pharmaceuticals bolted 8.2 percent higher after announcing plans to be bought by Ireland-based Shire for $5.2 billion.

Animal-health company MWI Veterinary Supply gained 8.2 percent on news it will be acquired by pharmaceutical distributor AmerisourceBergen for $2.5 billion. AmerisourceBergen lost 2.2 percent.

Drugmaker Bristol-Myers Squibb advanced 3.1 percent on news that a study for its Opdivo lung cancer drug was stopped because an independent panel found that the medicine succeeded in improving survival rates in patients.

Biotech company Celgene tacked on 2.9 percent as it projected 2015 sales of $9-$9.5 billion, a 22 percent increase from last year.

Jewelry chain Tiffany slumped 14.0 percent as it said sales during the key holiday period fell one percent from last year, with an especially weak performance in Japan. Chief Michael Kowalski characterized the results as “disappointing overall.”

SanDisk, which manufacturers data storage products in consumer electronics, lost 13.9 percent after announcing that it expects fourth-quarter sales of $1.73 billion, down from a previous forecast for $1.80-$1.85 billion.

Bond prices rose. The yield on the 10-year US Treasury fell to 1.91 percent from 1.96 percent Friday, while the 30-year declined to 2.49 percent from 2.54 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks dip as oil pushes energy sector lower

NEW YORK—A slump in energy prices pushed the stock market back from record levels on Tuesday.

Energy stocks slid as the price of oil resumed its descent. Traders speculated that member nations of the oil-producing group OPEC would fail to agree on production cuts at an upcoming meeting in Vienna on Thursday. Oil has now dropped almost a third from a peak in June.

While lower oil prices are a long-term boon to consumers and industrial companies, they are a drag on stocks in the near term because energy companies account for about 10 percent of the overall market’s profits.

Despite the losses, the major indexes remain close to all-time highs.

Stocks have been drifting gradually higher this month, having rebounded sharply from a slump in October, as investors have grown more confident that actions from central banks around the world will help bolster the global economy. The gains are likely to continue for now, said Jim McDonald, chief investment strategist at Northern Trust.

“People’s sentiment is still pretty conservative,” McDonald said. “That means that the slow-and-steady market can continue longer than people anticipate.”

The Standard & Poor’s 500 index fell 2.38 points, or less than 0.1 percent, to 2,067.03. The Dow Jones industrial average dropped 2.96 points, or less than 0.1 percent, to 17,814.94. The Nasdaq composite gained 3.36 points, or 0.1 percent, to 4,758.25.

Stocks started the day with small gains after a report showed that the US economy grew at a solid 3.9 percent annual rate in the July-September period, faster than the 3.5 percent that was initially reported. The upward revision was due to higher estimates of spending by consumers and businesses, the Commerce Department said.

That positive report was tempered by news that US consumer confidence fell in November. The Conference Board says its consumer confidence index fell to 88.7, down from a seven-year high of 94.5 in October. The decline primarily reflected less optimism in the short-term outlook as consumers expressed less confidence in current business conditions.

Among individual stocks, Pall, a company that makes filters for the food and health care industries, was the leading gainer in the S&P 500. The company’s stock jumped $3.31, or 3.5 percent, to $98 after its earnings beat the expectations of Wall Street analysts.

Energy stocks slid along with oil prices following reports that the world’s biggest producers are unwilling to cut production to help stop a slump in the price of crude. The sector dropped 1.6 percent and is now down 3.2 percent for the year. It’s the only one of the 10 industry sectors in the S&P 500 that is down for the year.

Representatives from Venezuela, Saudi Arabia, Mexico and Russian state oil giant OAO Rosneft met Tuesday ahead of a meeting of the Organization of the Petroleum Exporting Countries in Vienna and didn’t announce any immediate plans to cut output, The Wall Street Journal reported.

Benchmark US crude fell $1.69 to close at $74.09 a barrel on the New York Mercantile Exchange. Brent crude, a benchmark for international oils used by many US refineries, fell $1.35 to close at $78.33 a barrel on the ICE Futures exchange in London.

In metals trading, the price of gold rose $1.40 to $1,197.10 an ounce. Silver rose 18 cents to $16.55 an ounce and copper fell four cents to $2.96 a pound.

US government bond prices rose. The yield on the 10-year Treasury note fell to 2.26 percent from 2.31 percent Monday. The dollar fell to 117.94 yen from 118.28 yen late Monday. The euro rose to $1.2472.

In other energy futures trading on the NYMEX:

— Wholesale gasoline fell 0.1 cent to close at $2.032 a gallon

— Heating oil fell 0.1 cent to close at $2.395 a gallon.

— Natural gas rose 13.1 cents to close at $4.282 per 1,000 cubic feet– Steve Rothwell

source: business.inquirer.net

US stocks reach new records; Obama hits broadband firms

NEW YORK–US stock markets soared to fresh records Monday but Internet broadband carriers were hit hard by President Barack Obama’s call for tough net neutrality rules.

For the fourth straight session, the Dow Jones Industrial Average broke its all-time closing record, gaining 39.81 points (0.23 percent) at 17,613.74.

The S&P 500 added 6.34 (0.31 percent) at 2,038.26, its fourth record close in a row, while the Nasdaq Composite rose 19.08 (0.41 percent) to 4,651.62.

Obama’s statement against allowing large Internet service providers to discriminate between customers on Internet access and speeds was seen as a blow to an industry expecting to earn more by offering better broadband service and performance to preferred customers.

Comcast fell 4.0 percent, Time Warner Cable lost 4.9 percent, Charter Communications lost 6.2 percent, and Verizon fell 0.3 percent.

Nike led the Dow blue chips with a 1.3 percent gain, while Intel continued its slide with another 1.0 percent loss.

Among tech stocks, Amazon gained 1.8 percent while Chinese rival Alibaba soared 4.0 percent.

Merck shares dropped 0.9 percent after the failure of tests for an accelerated hepatitis C treatment.

Shares of rival pharmaceutical maker Gilead, whose hepatitis C treatment is selling strong despite a $90,000-plus cost, added 0.5 percent.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.36 percent from 2.31 percent Friday, while the 30-year pushed to 3.09 percent from 3.05 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks finish flat on mixed data

NEW YORK–US stocks finished little changed Monday following mixed economic data as markets paused after last week’s records.

The Dow Jones Industrial Average fell 24.28 points (0.14 percent) to 17,366.24.

The broad-based S&P 500 dipped 0.24 (0.01 percent) to 2,017.81, while the tech-rich Nasdaq Composite Index gained 8.17 (0.18 percent) to 4,638.91.

The Institute for Supply Management’s purchasing managers’ index for October manufacturing rose to 59.0, with companies saying activity is picking up more than expected going into the yearend holiday shopping season.

But the Commerce Department reported Monday that US construction spending fell a second straight month in September, for a 0.4 percent annual decline, surprising analysts who expected a pickup.

“It’s not surprising (investors) are digesting a little bit after the highs” last week, said Mace Blicksilver, director of Marblehead Asset Management.

Chinese online vending giant Alibaba surged 3.25 percent to a new high, one day ahead of its first earnings after IPO.

Social messaging service Twitter, meanwhile, sank 3.0 percent, and Facebook lost 1.5 percent.

Petroleum industry stocks suffered as US oil prices fell to their lowest level since June 2012.

Dow members ExxonMobil and Chevron lost 1.5 percent and 2.6 percent, respectively, while oil services companies Diamond Offshore and Baker Hughes fell 5.7 percent and 2.0 percent.

Covance shot up 25.9 percent on news that it will be acquired by Laboratory Corp. of America for $5.6 billion to create a giant in healthcare diagnostics. LabCorp fell 7.4 percent.

Sapient soared 42.0 percent on news it will be acquired by French public relations giant Publicis for $3.7 billion.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.35 percent from 2.34 percent Friday, while the 30-year rose to 3.07 percent from 3.06 percent Friday. Bond prices and yields move inversely.

source: business.inquirer.net

Anxiety over company earnings sends US stocks lower

NEW YORK–US stocks Monday finished modestly lower as investor caution returned to the market ahead of Wednesday’s unofficial kickoff of third-quarter company earnings reports.

The Dow Jones Industrial Average lost 17.78 points (0.10 percent) at 16,991.91.

The broad-based S&P 500 dipped 3.08 (0.16 percent) to 1,964.82, while the tech-rich Nasdaq Composite Index suffered deeper losses, falling 20.82 (0.47 percent) to 4,454.80.

Investors are nervous about the upcoming earnings reports in part because of fears that the dollar’s big rise has hit US profits, said Peter Cardillo, chief market economist at Rockwell Global Capital.

“People are going to be anxious to see how the few first major reports indicate the rest of the season, especially among the multinationals, because of the strong dollar,” he said.

Aluminum giant Alcoa reports financial results after the market closes Wednesday, kicking off the earnings season.

Analysts also cited profit taking as a factor in Monday’s dip in the wake of a strong September jobs report that pushed Wall Street stocks sharply higher Friday.

Hewlett-Packard advanced 4.7 percent after announcing it plans to split into two separate, listed companies, one focusing on computers and printers, the other on corporate hardware and services operations.

The move by the world’s second-largest personal computer maker is the latest in the technology sector based on the belief that tightly focused firms perform better.

BD, a medical device manufacturer, plans to acquire rival CareFusion for $12.2 billion, the companies announced. BD jumped 7.9 percent, while CareFusion soared 22.9 percent.

Hilton Worldwide fell 0.5 percent after announcing it would sell the legendary Waldorf Astoria hotel in New York City to Anbang Insurance Group of China for $1.95 billion.

Airline stocks fell on concerns about the Ebola virus. American Airlines dropped 3.6 percent, Delta Air Lines fell 2.3 percent and United Airlines lost 2.8 percent.

Bond prices were mixed. The yield on the 10-year US Treasury fell to 2.42 percent from 2.45 percent Friday, while the 30-year held steady at 3.13 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks rally after strong housing report

NEW YORK–US stocks Wednesday finished with solid gains as a strong housing report helped equities regain territory after losses earlier this week.

The Dow Jones Industrial Average jumped 154.19 points (0.90 percent) to 17,210.06.

The broad-based S&P 500 rose 15.53 (0.78 percent) to 1,998.30, while the tech-rich Nasdaq Composite Index advanced 46.53 (1.03 percent) to 4,555.22.

The Commerce Department reported that sales of new single-family houses surged 18 percent in August to an annual rate of 504,000, their fastest pace in more than six years.

The housing report “certainly helped this morning,” said Michael James, managing director of equity trading at Wedbush Securities.

“As has proven to be the case for the last 18 months, every pullback lasts a few days and people start buying stocks,” James said.

Apple fell 0.9 percent as it halted the update for its iOS software powering the iPhone after users complained of bugs, including one that disabled cellular service. Buyers have also complained of bends in the bodies of the new iPhone 6 and iPhone 6 Plus smartphones when carried in trouser pockets.

Home-goods retailer Bed Bath & Beyond shot up 7.4 percent as its full-year earnings forecast came in at $5.00-$5.08, compared with analyst expectations of $5.01. Comparable sales in the second quarter rose 3.4 percent.

Wal-Mart Stores gained 2.0 percent after it unveiled a venture to offer no-fee electronic checking accounts aimed at customers without traditional bank accounts. Green Dot, a provider of pre-paid debit cards and Wal-Mart’s partner in the service, shot up 24.4 percent.

Gilead Sciences gained 3.2 percent after announcing successful clinical trials of its tenofovir alafenamide treatment for HIV. The biotech company plans to submit regulatory applications for the medications in the US and European Union in the fourth quarter of 2014.

Other biotech companies, including Biogen (+4.2 percent) and Celgene (+3.3 percent), also rose.

Valeant Pharmaceuticals International bolted 6.9 percent higher as it said it expects third-quarter earnings and revenues to be above prior forecasts. The company also released a letter to Allergan offering to “take the temperature down” over its unsolicited offer to buy the Botox maker.

Allergan, which has fought the deal, rose 4.2 percent.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.57 percent from 2.54 percent Tuesday, while the 30-year increased to 3.28 percent from 3.25 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks finish lower as US, EU sanction Russia

NEW YORK–US stocks Tuesday finished lower after the United States and European Union broadened sanctions on Russia, overshadowing US economic data and earnings reports.

The Dow Jones Industrial Average dropped 70.48 points (0.42 percent) to 16,912.11.

The broad-based S&P 500 fell 8.96 (0.45 percent) to 1,969.95, while the tech-rich Nasdaq Composite Index gave up 2.21 (0.05 percent) at 4,442.70.

The EU, which had been more reluctant than the US to boost its sanctions against Russia, imposed new restrictions on the finance, defense and energy sectors to increase the economic cost to Russia for its intervention in Ukraine.

The US followed with new restrictions on Russia’s energy sector, arms industry and financial institutions.

Jack Ablin, chief investment officer at BMO Private Bank, attributed Tuesday’s drop in stocks entirely to the sanctions, which followed mixed corporate earnings reports.

“There’s always economic blowback” from sanctions, he said. “Whenever trade is restrained in any way, that creates dislocations and distortions that are generally negative.”

Dow component Pfizer finished 1.2 percent lower after reporting adjusted earnings of 58 cents per share, a penny above analyst expectations. Analysts noted some of the drugmaker’s most successful sellers during the quarter will suffer as key patents expire.

Fellow drugmaker Merck, also in the Dow, gained 1.1 percent after earnings of 85 cents per share bested expectations by four cents. Better sales of diabetes medication Januvia/Janumet, anti-cholesterol drug Zetia/Vytorin and other medicines helped offset the effect of patent expirations.

UPS fell 3.7 percent as the delivery company said full-year earnings would be $4.90-5.00 per share, down from the April forecast of $5.05-$5.30 per share. The company said it was increasing spending to boost capacity for the November-December peak holiday season.

Wal-Mart Stores dropped 0.4 percent after Goldman Sachs downgraded the giant retailer, concluding that the company’s current investment campaign to bolster its presence online and in the small-store market, while “understandable,” will harm earnings in the short run.

But Goldman upgraded Costco Wholesale in the same report, in part because of its strong international growth potential. Costco shares rose 1.5 percent.

Bond prices rose. The yield on the 10-year US Treasury fell to 2.46 percent from 2.49 percent Monday, while the 30-year dropped to 3.22 percent from 3.26 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks finish higher on Alcoa earnings, Fed minutes

NEW YORK–US stocks Wednesday scored moderate gains following a solid kickoff to earnings season from Alcoa and Federal Reserve meeting minutes signaling an end to its bond-buying program in October.

The Dow Jones Industrial Average gained 78.99 points (0.47 percent) to 16,985.61.

The broad-based S&P 500 rose 9.12 (0.46 percent) to 1,972.83, while the tech-rich Nasdaq Composite Index advanced 27.57 (0.63 percent) to 4,419.03.

Wednesday’s gains snapped a two-day slide.

Alcoa unofficially kicked off second-quarter earnings season after markets closed Tuesday with profits of $138 million, up from a loss of $119 million a year ago. The company benefited from lower costs and said aluminum demand was on track to increase seven percent in 2014.

Alcoa shares shot up 5.7 percent to $15.69.

The Fed minutes of the June meeting of the policy-setting Federal Open Market Committee showed the central bank plans to end its bond-buying stimulus program in October.

But the Fed also expects it would not begin raising its near-zero benchmark interest rate for “a considerable time” after the asset-purchase program ends, “especially if projected inflation continued to run below the Committee’s 2 percent longer-run goal,” the minutes said.

“They still are not in any rush to change monetary policy,” said Peter Cardillo, chief market economist at Rockwell Global Capital.

American Airlines jumped 4.3 percent as it said it expects second-quarter pre-tax profit margins of 12-13 percent, up from the range of 10-12 percent estimated in May.

The Container Store sank 8.4 percent after the company reported a loss of $3.6 million in its fiscal first quarter on a 0.8 percent drop in comparable store sales.

“Consistent with so many of our fellow retailers, we are experiencing a retail ‘funk,’” said Kip Tindell, chief executive of the Container Store.

Salix Pharmaceuticals announced it reached a deal to combine with an Irish-based subsidiary of Cosmo Pharmaceuticals of Italy. The companies said the transaction will enhance Salix’s holdings in treating gastrointestinal disease and result in lower taxes. Salix shares fell 2.9 percent.

Bond prices rose. The yield on the 10-year US Treasury dipped to 2.55 percent from 2.57 percent Tuesday, while the 30-year dropped to 3.36 percent from 3.38 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks up ahead of ECB decision; new S&P 500 record

NEW YORK–US stocks rose Wednesday, pushing the S&P 500 to a record close, following mixed economic data a day ahead of the closely watched meeting of the European Central Bank.

The broad-based S&P 500 rose 3.64 points (0.19 percent) to 1,927.88, nearly three points above Monday’s record close.

The Dow Jones Industrial Average rose 15.19 (0.09 percent) to 16,737.53, while the tech-rich Nasdaq Composite Index advanced 17.56 (0.41 percent) to 4,251.64, helped by a 1.1 percent gain in Apple, its biggest component.

Stocks treaded in negative territory after early US economic data showed a drop in private-sector job creation in May and a jump in the trade deficit in April to a two-year high.

But they turned higher after the Institute for Supply Management said services sector activity surged in May.

The US Federal Reserve’s “Beige Book” report was generally positive, saying all 12 districts of the country saw increasing economic activity in recent weeks.

Investors were girding for the ECB to unveil major stimulus actions on Thursday. Analysts said there is a possibility the market will be disappointed if the measures are less aggressive than expected.

Investors are waiting “for hopefully more action than talk from (ECB president) Mario Draghi,” said Jack Ablin, chief investment officer at BMO Private Bank.

Dow member UnitedHealth Group rose 0.8 percent after announcing a 34 percent increase in its quarterly dividend and the renewal of its share repurchase program.

General Motors jumped 3.6 percent on news that chief executive Mary Barra will hold a news conference Thursday to update the ignition-switch recall. GM is expected to release an internal report on why it took so long to recall the vehicles.

Japan’s Dai-ichi Life Insurance announced it was buying US insurer Protective Life for $5.7 billion. Dai-ichi said the deal was aimed at broadening its overseas business beyond Asia by entering the world’s biggest market for insurance sold to consumers.

Protective Life shot up 18.1 percent. Other insurers also gained, including Prudential Financial (+2.4 percent), Met Life (+3.0 percent) and Dow component Travelers Companies (+1.4 percent).

Drugstore chain Walgreens jumped 4.2 percent after reporting that May sales rose 6.0 percent compared with the year-ago period.

Bond prices fell. The 10-year US Treasury rose to 2.61 percent from 2.59 percent Tuesday, while the 30-year increased to 3.44 percent from 3.43 percent. Bond prices and yields move inversely.

source: business.inquirer.net

S&P 500 at new record after solid US data

NEW YORK—The S&P 500 Tuesday notched a record close for the second straight session as US stocks rallied following some solid economic data.

The broad-based S&P 500 gained 11.38 points (0.60 percent) at 1,911.91. On Friday the index closed above 1,900 for the first time; markets were closed Monday for a holiday.

The Dow Jones Industrial Average advanced 69.23 (0.42 percent) to 16,675.50, while the strongest move came from the tech-rich Nasdaq Composite Index, which jumped 51.26 (1.22 percent) to 4,237.07.

Fresh US economic data showed a rise in consumer confidence for May, a surprising increase in durable goods orders for April and an increase in home prices for March on the widely watched S&P/Case-Shiller index.

Wells Fargo Advisors called the economic data “encouraging” in a market note.

Mace Blicksilver, director of Marblehead Asset Management, said the rally in technology stocks was a sign of improving sentiment.

Leading tech companies to gain included Apple (+1.9 percent), Facebook (+3.5 percent), Priceline (+5.2 percent) and Tesla Motors (+2.1 percent).

US chicken producer Pilgrim’s Pride announced a bid to acquire prepared-meats and frozen-foods company Hillshire Brands in a deal worth $6.4 billion, on condition Hillshire scraps its proposed $6.6 billion takeover of Pinnacle Foods. Hillshire said the company stands by its proposed takeover of Pinnacle, but promised to study the offer.

Hillshire shot up 22.1 percent, Pilgrim’s advanced 1.7 percent and Pinnacle slumped 5.4 percent.

Bank of America rose 3.4 percent as it resubmitted its capital plan after the Federal Reserve required the bank to halt shareholder distributions due to a $4 billion overstatement of its capital position.

Botox-maker Allergan released a presentation attacking Valeant Pharmaceuticals in its latest effort to thwart an unsolicited takeover bid. The company raised numerous issues, including Valeant’s ability to promote products of Allergan’s scale and the extensive turnover in Valeant management. Allergan shares lost 1.1 percent, while Valeant fell 2.6 percent.

Bond prices rose. The yield on the 10-year US Treasury dipped to 2.52 percent from 2.54 percent Friday, while the 30-year dropped to 3.37 percent from 3.40 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks rise as investors assess earnings

NEW YORK—The stock market rose for the fifth time in six days Thursday as higher earnings from several big US companies helped investors shrug off discouraging news about jobs and retail spending.

Goodyear Tire & Rubber surged to its highest level in almost six years after the company’s earnings beat analysts’ forecasts. CBS also jumped after the broadcaster beat Wall Street’s profit expectations and speed up its stock buyback program.

Investors’ focus has returned to company earnings after concerns about growth in emerging markets and the health of the U.S. economy pushed the Standard & Poor’s 500 index to its lowest level in more than three months at the start of February. Analysts at S&P Capital IQ expect that earnings at companies in the index increased last quarter at the fastest pace in a year.

“The momentum from earnings continues,” said Andres Garcia-Amaya, a global market strategist at JPMorgan Funds.

The Standard & Poor’s 500 index rose 10.57 points, or 0.6 percent, to 1,829.83. The Dow Jones industrial average climbed 63.65 points, or 0.4 percent, to 16,027.59. The Nasdaq composite rose 39.38 points, or 0.9 percent, to 4,240.67.

Stocks also got a lift from deal news.

Time Warner Cable surged $9.50, or 7 percent, to $144.81 after the company agreed to be acquired by rival Comcast for $45.2 billion in stock. The deal would combine the top two cable TV companies in the United States. Comcast fell $2.27, or 4.1 percent, to $52.97.

The biggest gains in the S&P 500 were posted by utility companies. Gains in these stocks suggest investors are looking to play it safe. Utilities don’t have the best growth prospects, but they pay steady dividends and operate in stable industries.

Stocks opened lower Thursday following lackluster reports on the U.S. job market and retail sales.

The number of people seeking unemployment benefits rose 8,000 last week to 339,000, the Labor Department said. Economist had forecast claims of just 330,000.

A separate report showed that cold weather caused US retail sales to drop in January as Americans spent less on autos and clothing and at restaurants during a brutally cold month. The Commerce Department says retail sales fell 0.4 percent last month, the second straight decline after a 0.1 percent drop in December.

The stock market inched higher throughout the morning. Major indexes turned positive by late morning as investors assessed a handful of encourage corporate earnings reports.

Goodyear Tire & Rubber surged $2.77, or 11.5 percent, to $26.94 after it reported a big earnings gain. Strong sales in the company’s core North American market helped the tire maker’s results.

CBS rose $2.76, or 4.5 percent, to $64.61 after reporting fourth-quarter earnings and revenue growth that beat Wall Street’s expectations. Advertising revenue was flat, but there was growth in content licensing thanks to the sale of shows such as “Hawaii Five-O” for domestic reruns.

Despite the recent signs of stabilization, the stock market is still going through a pullback driven largely by the Federal Reserve’s decision to cut back on its economic stimulus program, said Barry Knapp, the head of U.S. equity portfolio strategy at Barclays.

The stimulus underpinned the stock market’s rally last year, but policy makers have reduced it at each of their last two meetings. The Fed has scaled back its bond purchases from $85 billion a month to $65 billion a month.

Typically, pullbacks that are prompted by a change in Fed policy last between two and three month and push stocks lower by as much as 9 percent, according to Knapp.

“It seems a little too soon for (stocks) to have worked their way through this yet,” said Knapp. “We don’t think the uptrend is going to resume right away, stocks will probably still struggle a bit in the first half of the year.”

In government bond trading, the yield on the 10-year note fell to 2.73 percent from 2.76 percent on Wednesday. The price of oil was little changed at $100.35 a barrel. Gold gained $5.10, or 0.5 percent, to $1,300.10 an ounce.

Among other stocks making big moves:

— Whole Foods dropped $4, or 7.2 percent, to $51.46 after the grocery chain reported fiscal first-quarter profit and revenue that came in below analysts’ forecasts. The company, known for its organic and natural food offerings, also lowered its earnings projections for the year again as the company faces more and more competition.

— Cisco Systems fell 58 cents, or 2.5 percent, to $22.27, after the company reported late Wednesday that weaker revenue and special charges weighed down its second-quarter earnings.—Steve Rothwell

source: business.inquirer.net

US stocks tank ahead of earnings reports

NEW YORK—US stocks tumbled Monday ahead of a raft of corporate reports as earnings season gets into full swing this week.

The Dow Jones Industrial Average shed 179.11 points (1.09 percent) at 16,257.94.

The broad-market S&P 500 skidded 23.17 (1.26 percent) to 1,819.20 and the tech-rich Nasdaq lost 61.36 (1.47 percent) at 4,113.30.

Stocks opened modestly lower then traded near the flatline until midday, before steadily selling off all afternoon.

Traders were “likely playing their cards close to the vest before 4Q earnings season and the economic calendar kick into gear,” Charles Schwab & Co. said in a market note.

On Tuesday, before markets open, JPMorgan Chase, the biggest US bank, and Wells Fargo will report earnings and the government will release data on December retail sales covering the important holiday shopping season.

Yoga apparel retailer Lululemon plunged 16.6 percent after lowering its fourth-quarter revenue and earning guidance and highlighting it saw January sales and traffic trends “decelerate meaningfully.”

Fashion retailer Express sank 4.6 percent after lowering its fourth-quarter guidance and reporting weak January traffic to date.

General Motors fell 1.1 percent after signaling it was close to resuming dividends, according to media reports. Its Chevrolet brand won the top car and truck of the year awards at the Detroit auto show.

In merger and acquisition news, Beam, the maker of Jim Beam bourbon, agreed to be acquired by Japan’s Suntory Holdings for $83.50 a share in a $16 billion deal creating the spirit sector’s third-largest player.

Beam skyrocketed 24.6 percent to $83.42.

Google slipped 0.6 percent. After the market closed, the search giant announced it was buying Nest, a smart-home company that makes thermostats and smoke alarms, for $3.2 billion in cash. Shares were up 0.5 percent in after-hours trading.

Chinese search engine Qihoo 360 Technology rose 3.0 percent after a Stifel upgrade from “hold” to “buy,” saying “2014 is the year of significant search monetization for Qihoo, fueling strong revenue growth and potential upside surprise.”

Bond prices rose. The yield on the 10-year US Treasury slipped to 2.83 percent from 2.86 percent Friday, while the 30-year fell to 3.77 percent from 3.80 percent. Bond prices and yields move inversely.

source: business.inquirer.net

US stocks finish lower as Fed meets

NEW YORK—US stocks Tuesday closed lower as investors awaited Wednesday’s conclusion of a much-anticipated US Federal Reserve policy meeting.

The Dow Jones Industrial Average dipped 9.31 points (0.06 percent) to 15,875.26.

The broad-based S&P 500 fell 5.54 (0.31 percent) to 1,781.00, while the tech-rich Nasdaq Composite Index gave up 5.84 (0.14 percent) at 4,023.68.


“Investors are basically sitting on their hands,” said Sam Stovall, chief investment strategist of S&P Capital IQ.

“Yesterday we had an oversold rally,” Stovall said. “And now, investors really don’t want to chase that rally for fear that the Fed will do or say something that turns this market back down.”

The Fed’s Federal Open Market Committee Tuesday kicked off a two-day meeting that will debate whether economic conditions are strong enough to immediately scale back the $85 billion a month quantitative-easing program.

Analysts disagree on the likelihood of a taper, but some, including Stovall, expect the Fed to announce a modest reduction of about $10 billion to bond purchases.

Facebook rose 2.0 percent after beginning to experiment with video ads on news feeds this week, potentially unlocking a big revenue source.

Petroleum pipeline company Williams Companies jumped 4.3 percent after Corvex Management and Soroban Master Fund disclosed that they together had acquired 8.8 percent of the company and seek board representation. The effort is the latest example of shareholder activism in the oil patch.

Dow component Boeing increased 0.9 percent after announcing a $10 billion share buyback and a 50 percent dividend hike.

Fellow Dow member 3M rose 2.9 percent after announcing a 35 percent dividend increase. The company also forecast 2014 earnings of $7.30-$7.55 per share, compared with analyst expectations of $7.40.

Hewlett-Packard tacked on 3.5 percent after JPMorgan Chase upgraded the stock. The JPMorgan note said challenges facing HP are “easing” and that the PC outlook is “starting to improve,” Barron’s reported.

Bond prices rose. The yield on the 10-year US Treasury fell to 2.84 percent from 2.88 percent Monday, while the 30-year declined to 3.87 percent from 3.90 percent. Bond prices and yields move inversely.

source: business.inquirer.net