Americas Stay updated with Business News, Pakistan news, Current world news and latest world news with Business Recorder.. http://www.brecorder.com/markets/equity/americas.html Wed, 22 Oct 2014 22:15:46 +0000 SRA Framework 2.0 en-gb US stocks flat after good Yahoo, Boeing earnings http://www.brecorder.com/markets/equity/americas/201131-us-stocks-flat-after-good-yahoo-boeing-earnings.html http://www.brecorder.com/markets/equity/americas/201131-us-stocks-flat-after-good-yahoo-boeing-earnings.html imageNEW YORK: Wall Street stocks Wednesday opened little changed following solid earnings from Boeing and Yahoo as US equity markets paused after three days of gains.

Five minutes into trade, the Dow Jones Industrial Average stood at 16,602,45, down 12.36 points (0.07 percent).

The broad-based S&P 500 added 1.24 (0.06 percent) at 1,942.52, while the tech-rich Nasdaq Composite Index rose 1.94 (0.04 percent) to 4,421.42.

Dow member Boeing advanced 0.1 percent after it raised its 2014 full-year profit forecast for the third quarter running following a 17.6 percent jump in third-quarter profit to $1.36 billion behind strong commercial aircraft deliveries.

Yahoo leaped 5.6 percent as third-quarter net profit surged to $6.8 billion behind its divestment of shares in Chinese Internet commerce company Alibaba, which netted $6.3 billion.

But cloud computing company VMware slumped 8.4 percent on concerns about its outlook after the company offered no forecast for 2015.

Copyright AFP (Agence France-Presse), 2014

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imad_kueconomist@yahoo.com (Imaduddin) Americas Wed, 22 Oct 2014 13:55:46 +0000
Strong Apple earnings push US stocks higher http://www.brecorder.com/markets/equity/americas/200957-strong-apple-earnings-push-us-stocks-higher.html http://www.brecorder.com/markets/equity/americas/200957-strong-apple-earnings-push-us-stocks-higher.html imageNEW YORK: Apple's strong earnings helped push US stocks higher in early trade Tuesday, offsetting the impact of third quarter profit drops from Coca-Cola and McDonald's.

About 35 minutes into trade, the Dow Jones Industrial Average stood at 16,469.97, up 70.30 points (0.43 percent).

The broad-based S&P 500 jumped 18.54 (0.97 percent) to 1,922.55, while the tech-rich Nasdaq Composite Index gained 51.41 (1.19 percent) to 4,367.48.

Apple, the biggest US company by market capitalization, rose 1.9 percent as fourth-quarter profits jumped 13 percent to $8.5 billion on strong iPhone sales.

Apple's earnings came as the third quarter earnings season picked up pace. As of Monday afternoon, 57 companies in the S&P 500 had reported earnings that beat analyst expectations, 16 missed and eight matched estimates.

Coca-Cola shares plunged 6.2 percent Tuesday as net income for the third quarter dropped 13.6 percent to $2.12 billion. Results were weighted down by slower economic growth and volatile currencies.

McDonald's fell 0.6 percent on earnings that tumbled 30 percent to $1.07 billion in part due to a food-safety scandal in China and amid intense competition in the United States.

Consumer staples giant Kimberly-Clark advanced 1.3 percent as third-quarter earnings reached $1.61 per share, above the $1.54 forecast by analysts. The company announced it would trim 1,100-1,300 jobs through the end of 2016.

Defense contractor Lockheed Martin fell 4.4 percent as it forecast that 2015 net sales will decline at a low single digit rate from 2014.

Semiconductor manufacturer Texas Instruments rose 3.0 percent on third-quarter earnings that rose 31.3 percent to $826 million, besting expectations.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.22 percent from 2.18 percent Monday, while the 30-year advanced to 2.98 percent from 2.96 percent. Bond prices and yields move inversely.

Copyright AFP (Agence France-Presse), 2014

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imad_kueconomist@yahoo.com (Imaduddin) Americas Tue, 21 Oct 2014 14:28:37 +0000
Brazil sugar output to fall as drought devastates crop http://www.brecorder.com/markets/equity/americas/200799-brazil-sugar-output-to-fall-as-drought-devastates-crop.html http://www.brecorder.com/markets/equity/americas/200799-brazil-sugar-output-to-fall-as-drought-devastates-crop.html imageSAO PAULO: Drought will drive sugar production in Brazil's cane-rich center-south nearly 8 percent lower than last year, hammering the world's main supplier of sugar, commodities market analysts Datagro said.

Brazil's main center-south cane region will produce 31.6 million tonnes of sugar in 2014/15, down from 34.3 million last year and 32.3 million tonnes seen a month ago due to a severe drought, Plinio Nastari, president of Datagro said on Monday.

The world's top sugar producing region is unlikely to recover next season, he said, predicting sugar output of between 29.1 million and 31.3 million tonnes in 2015/16.

New York ICE sugar futures were relatively somber, as was the mood the mood at the two-day Datagro conference on sugar and ethanol in Sao Paulo.

Before dawn Monday, a fire razed a warehouse owned jointly by Cargill and Louis Dreyfus at the main sugar port in Santos, the third major sugar warehouse fire in a year.

A major national milling group GVO revealed over the weekend that it began debt talks with creditors, the latest of scores of mills in the past several years to undergo restructuring.

GVO is one of the founding groups of the country's largest sugar and ethanol trader Copersucar, whose 10-million-tonne port terminal in Santos lost most of its capacity a year and two days ago.

"Brazil's sugar and ethanol industry is living through its worst crisis in history," Nastari told a conference room full of sugar executives and traders in opening remarks at the conference.

He also spoke of a potential for a turnaround in sugar prices in the near future as the world shifts from a glut in sugar into a 3.24 million tonne production deficit in the 2014/2015 year beginning in October.

In Brazil, the center-south cane crush will drop to 550.2 million tonnes this year from 597 million tonnes in 2013/14. Output next year will not differ greatly from this year. Mills are expected to crush 520 million to 560 million tonnes.

Monday was marked by a drop in temperature as isolated showers spread over the center-south cane belt that has been decimated by drought. Although the rains turned out to be light, they are seen as a precursor for the first major storm of the spring rains since the dry season started some-six months ago.

Copyright Reuters, 2014

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rocking.saad.jabri@gmail.com (Saad Jabri) Americas Tue, 21 Oct 2014 04:02:11 +0000
Wall St to open higher on earnings boost http://www.brecorder.com/markets/equity/americas/200358-wall-st-to-open-higher-on-earnings-boost.html http://www.brecorder.com/markets/equity/americas/200358-wall-st-to-open-higher-on-earnings-boost.html imageNEW YORK: US stocks were set for a higher open on Friday following a batch of solid earnings reports and on hopes the Federal Reserve might slow the wind-down of its stimulus in light of recent weakness in global demand.

The benchmark S&P index is on track for its fourth straight weekly decline, its longest streak in more than three years, and is down more than 7 percent from its record high as concerns about the health of the global economy and possible spread of the Ebola virus have prompted investor selling.

Investors were looking toward corporate earnings to offset concerns about a slowdown in the global economy. General Electric shares rose 2.9 percent to $24.95 and was the most actively traded stock on the New York Stock Exchange in premarket trading after the company reported third-quarter earnings that topped analyst expectations.

"It seemed like it was almost a perfect storm of factors that led to this recent selloff," said David Lebovitz, global market strategist at J.P. Morgan Funds in New York. "With earnings season beginning to ramp up, it is important to focus on the earnings picture because if the fundamentals continue to support equity prices - we continue to see earnings growth - that means equity prices should move higher." The S&P 500 and Nasdaq eked out slight gains on Thursday after another choppy session as economic data eased fears about the potential effect of a weakening global economy on the United States and remarks by St. Louis Federal Reserve Bank President James Bullard that the US central bank may want to keep up its bond buying stimulus for now.

The central bank had been widely expected to end its massive monthly bond-buying program this month. In a speech early Friday, Federal Reserve Chair Janet Yellen said the growth of income and wealth inequality caused her great concern. She did not comment on recent market volatility or on monetary policy.

US housing starts and permits rose in September, as groundbreaking rose 6.3 percent to an annual 1.02 million-unit pace.

The preliminary Thomson Reuters/University of Michigan reading on consumer sentiment is due at 9:55 a.m. (1355 GMT). Morgan Stanley rose advanced 3.6 percent to $33.71 before the opening bell after posting an 87 percent rise in third-quarter earnings.

Honeywell shares gained 3.3 percent to $89.21 before the opening bell after the maker of aircraft cockpit parts and other electronic equipment reported its quarterly results.

S&P 500 e-mini futures were up 22.5 points and fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract, indicated a higher open. Dow Jones industrial average e-mini futures rose 162 points and Nasdaq 100 e-mini futures added 54.25 points.

Urban Outfitters shares slumped 13.5 percent to $29.90 after the retailer said its negative third-quarter comparable sales pace has continued.

Volume of nearly 180,00 share represented over 7 percent of its 10-day average.

The earnings of S&P 500 companies are expected to grow 6.9 percent in the third quarter, according to Thomson Reuters data through Thursday, on revenue growth of 4.1 percent.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Americas Fri, 17 Oct 2014 16:20:40 +0000
TSX opens higher on US data, commodity prices http://www.brecorder.com/markets/equity/americas/200356-tsx-opens-higher-on-us-data-commodity-prices.html http://www.brecorder.com/markets/equity/americas/200356-tsx-opens-higher-on-us-data-commodity-prices.html imageTORONTO: Canada's main stock index jumped on Friday as positive US economic data and gains in the prices of some commodities helped support most major sectors.

The Toronto Stock Exchange's S&P/TSX composite index was up 161.95 points, or 1.2 percent, at 14,221.92 shortly after the open.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Americas Fri, 17 Oct 2014 16:18:14 +0000
TSX hits one-week high as energy shares rebound http://www.brecorder.com/markets/equity/americas/200343-tsx-hits-one-week-high-as-energy-shares-rebound.html http://www.brecorder.com/markets/equity/americas/200343-tsx-hits-one-week-high-as-energy-shares-rebound.html imageTORONTO: Canada's main stock index jumped to its highest level in a week on Friday as positive US economic data and a rise in oil prices helped revive the battered energy sector.

Data showing that US housing starts and permits rose in September signaled the US economic recovery might be on track.

Stock markets have been in a corrective phase over the past month, weighed on by worries over global economic growth, oil demand and the direction of US Federal Reserve policy.

The Toronto stock market's energy group, which was hit hardest by the recent carnage, rebounded for a second straight session, jumping more than 3 percent on Friday.

Investors appeared to be subscribing to a perception that some sectors fell too steeply in the selloff, making their valuations more appealing.

"We're seeing oil prices move close to a bottom," said Philip Petursson, managing director, portfolio advisory group, at Manulife Asset Management.

"Oil is oversold and oil stocks are oversold as well," he said. "They represent an attractive value and opportunity."

"I don't think the US economy will pull the rest of the world out, but it will remain the center of strength," Petursson said.

The Toronto Stock Exchange's S&P/TSX composite index was up 211.15 points, or 1.5 percent, at 14,264.12. Eight of the 10 main sectors on the index were higher.

Financials, the index's most heavily weighted sector, climbed 1.7 percent. Toronto-Dominion Bank advanced 2.2 percent to C$53.20, and Bank of Nova Scotia added 1.9 percent to C$67.10.

Shares of energy producers were helped by higher oil prices. Canadian Natural Resources Ltd rose 4.1 percent to C$39.12, and Suncor Energy Inc gained 2.8 percent to C$38.16.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Americas Fri, 17 Oct 2014 15:39:18 +0000
TSX climbs as energy, mining shares gain http://www.brecorder.com/markets/equity/americas/200197-tsx-climbs-as-energy-mining-shares-gain.html http://www.brecorder.com/markets/equity/americas/200197-tsx-climbs-as-energy-mining-shares-gain.html imageTORONTO: Canada's main stock index rose in choppy trading on Thursday as gains in the energy and mining sectors helped offset concerns about global economic growth.

Worries about the direction of the global economy and fears that the US Federal Reserve might raise interest rates have hit equity markets hard in recent weeks.

The market also digested data on Thursday that showed Canadian factory sales recorded their first fall this year in August, their biggest drop in five years.

The Toronto stock market's benchmark TSX index has lost nearly 12 percent of its value since reaching a record high last month.

"We're getting a revaluation. The realization that the market was richly valued has finally hit home," said John Ing, president of Maison Placements Canada.

"In the near term, there's still a little more downside," he added. "The (Canadian) market could go lower before getting a bounce."

The Toronto Stock Exchange's S&P/TSX composite index was up 56.67 points, or 0.41 percent, at 13,926.55. Five of the 10 main sectors on the index were higher.

Shares of energy producers got a bounce after recent weakness. Canadian Natural Resources Ltd added 1.9 percent to C$36.72, and Suncor Energy Inc climbed 1.6 percent to C$36.88.

The materials sector, which includes mining stocks, advanced 0.4 percent. Barrick Gold Corp jumped 2.2 percent to C$15.57.

Financials, the index's most heavily weighted sector, gave back 0.3 percent. Royal Bank of Canada lost 0.8 percent to C$76.68, and Bank of Montreal shed 0.4 percent to C$78.01.

Copyright Reuters, 2014

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imad_kueconomist@yahoo.com (Imaduddin) Americas Thu, 16 Oct 2014 15:26:40 +0000
Shares fall but pare losses on US data, dollar rebounds http://www.brecorder.com/markets/equity/americas/200193-shares-fall-but-pare-losses-on-us-data-dollar-rebounds.html http://www.brecorder.com/markets/equity/americas/200193-shares-fall-but-pare-losses-on-us-data-dollar-rebounds.html imageNEW YORK: Global equity markets tumbled again on Thursday as investors continued to worry about world growth and on fears that Europe's debt crisis was waking up from a two-year siesta, while crude oil slumped to a four-year low.

But new data indicating strength in the US economy helped major US, European and pan-world stock indexes pare losses that had exceeded 1 percent earlier and cut the bid for safe-haven government debt, driving up yields.

Data showing that the number of Americans filing new claims for jobless benefits fell to a 14-year low last week and industrial output rose sharply in September also helped the dollar recover.

But the data was not enough to reverse the tide of bearish sentiment.

"When you get in a mode like we are in now, where the market is clearly bearish, investors are somewhat fearful, they tend to focus more on the negatives than the positives, which is why they are ignoring this jobless claims number," said Randy Frederick, managing director of trading and derivatives for Charles Schwab in Austin, Texas.

Early reports for third-quarter US corporate results were beating expectations, but earnings are backward looking and the market is always forward looking, Frederick said.

Sixty-three companies in the S&P 500 have reported results, with 65.1 percent beating expectations, above a 20-year average but slightly lower than the past four quarters, Thomson Reuters data show. The blended revenue growth estimate is 4.1 percent.

MSCI's all-country world index fell 0.8 percent, while the pan-European FTSEurofirst 300 index fell 0.93 percent to 1,240.22.

The Dow Jones industrial average fell 82.98 points, or 0.51 percent, to 16,058.76. The S&P 500 slid 11.01 points, or 0.59 percent, to 1,851.48, and the Nasdaq Composite lost 32.00 points, or 0.76 percent, to 4,183.32.

The dollar mostly recovered on the view that Wednesday's sell-off was overdone given the relative strength of the US economy and the Federal Reserve's commitment to tighten monetary policy.

A disappointing auction of Spanish debt and data showing that deflation hit five peripheral euro zone countries in September underscored the relative health of the US economy and the divergent outlook for Fed and European Central Bank policy.

The euro was last down 0.49 percent against the dollar at $1.2773. The euro hit an 11-month low against the yen, at 134.16 yen.

The dollar was last up 0.26 percent against the yen at 106.18 yen.

Brent crude recovered, while US crude was lower. Brent has lost more than 28 percent since June. Losses have accelerated in October on signs the Organization of the Petroleum Exporting Countries has no plan to cut output.

Brent crude for November delivery rose 17 cents to $83.95 a barrel. Earlier it had dropped to $82.60 a barrel, the lowest since November 2010.

US crude was down 56 cents at $81.22 a barrel.

US Treasuries prices fell. Benchmark 10-year notes were down 13/32 in price to yield 2.1375 percent.

Copyright Reuters, 2014

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imad_kueconomist@yahoo.com (Imaduddin) Americas Thu, 16 Oct 2014 15:19:45 +0000
US stocks drop amid global equity selloff http://www.brecorder.com/markets/equity/americas/200182-us-stocks-drop-amid-global-equity-selloff.html http://www.brecorder.com/markets/equity/americas/200182-us-stocks-drop-amid-global-equity-selloff.html imageNEW YORK: US stocks dropped sharply in early trade Thursday, following international markets downward as anxiety over global growth continued to prompt selling.

About 30 minutes into trade, the Dow Jones Industrial Average stood at 16,062.34, down 79.40 points (0.49 percent).

The broad-based S&P 500 fell 13.75 (0.74 percent) to 1,848.74, while the tech-rich Nasdaq Composite Index tumbled 43.05 (1.02 percent) to 4,172.27.

Equity markets in Britain and France were down more than 1.0 percent. Asian markets also fell sharply, with Japan's Nikkei tumbling 2.22 percent.

"Global risk aversion is persisting amid exacerbated global growth concerns, fueled by yesterday's surprising decline in US retail sales," said a market note from Charles Schwab.

"Moreover, a flare-up in Greek debt concerns, festering Ebola fears, and heightened geopolitical concerns are adding to the dampened global mood."

Thursday's declines move the market closer to a full-blown correction, normally considered a drop of 10-20 percent. The S&P 500 has fallen about eight percent since its mid-September all-time high.

Investors brushed off positive news, such as a drop in initial jobless claims to 264,000, the lowest level since April 2000, according to the Department of Labor.

Dow member Goldman Sachs fell 2.1 percent despite reporting a 50 percent increase in third-quarter earnings to $2.14 billion in results that bested Wall Street expectations by a wide margin.

Video-streaming company Netflix plummeted 22.7 percent on disappointing subscriber growth figures. The video-streaming company said it gained just three million members in the past quarter, to boost its subscribers to 53.1 million worldwide.

Apple fell 1.5 percent ahead of an event in California later Thursday at which it is expected to unveil new versions of the iPad.

Chesapeake Energy bolted 13.5 percent higher following news it will sell shale oil and gas assets to Southwestern Energy for $5.4 billion. Southwestern lost 6.9 percent.

EBay dropped 4.9 percent as it projected fourth-quarter revenues of $4.85-$4.95 billion, below analyst forecasts for $5.16 billion. The profit outlook was also on the low end of expectations.

Bond prices were mixed. The yield on the 10-year US Treasury held steady at 2.09 percent, the same level as Wednesday, while the 30-year stood at 2.87 percent, down from 2.88 percent. Bond prices and yields move inversely.

Oil prices briefly dipped below $80 a barrel for the US benchmark contract, before coming back to 80.75, off $1.03 from Wednesday's close.

Copyright AFP (Agence France-Presse), 2014

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imad_kueconomist@yahoo.com (Imaduddin) Americas Thu, 16 Oct 2014 14:23:45 +0000
Bonds rally, stocks fall as global economy fears mount http://www.brecorder.com/markets/equity/americas/200028-bonds-rally-stocks-fall-as-global-economy-fears-mount.html http://www.brecorder.com/markets/equity/americas/200028-bonds-rally-stocks-fall-as-global-economy-fears-mount.html imageNEW YORK: Stocks took a pounding on Wednesday, although Wall Street managed to pedal back from its steepest lows, and safe-haven government debt prices rose after US and Chinese inflation data fanned worries about a global slowdown.

A key gauge of Wall Street anxiety hit its highest level since November 2011 as investors rushed to buy protection against further losses, and options activity surged as investors reevaluated their strategies in light of the latest signs that the global economy may be losing its footing.

The S&P 500 fell as much as 3 percent, briefly turning negative for the year, while European equities finished 3.2 percent lower and marked their biggest one-day slide in almost four years.

Popular trades that have worked for most of the year, including heavy bets on the dollar, more gains in stocks, and on an eventual rise in yields, are unraveling.

A fall in China's inflation rate to a five-year low and a decline in US producer prices for the first time in over a year were worrisome signs to investors already skittish about the path of the global economy and caused them to reassess their views on when the US Federal Reserve might hike interest rates.

"There's concern about an absence of aggregate demand in the world, and that's really what's weakening the market. The big fear out right now is we're not immune from that," said David Joy, chief market strategist at Ameriprise Financial in Boston. "If you look at the lows of the day, maybe we've put in a little bit of a trading bottom here.

But I don't think it makes these concerns go away." The latest news on the spread of Ebola added to a climate of fear, with Texas officials reporting that another healthcare worker in Dallas tested positive for the deadly virus.

Almost 4,500 people have died of the disease, mostly in West Africa.

An MSCI gauge of stocks in major markets was down 1 percent.

The CBOE Volatility Index closed at 26.25, up 15.2 percent, after earlier hitting 31.06, the highest level since November 2011.

The Dow Jones industrial average fell 173.45 points, or 1.06 percent, to 16,141.74, the S&P 500 lost 15.21 points, or 0.81 percent, to 1,862.49, and the Nasdaq Composite dropped 11.85 points, or 0.28 percent, to 4,215.32.

Trading volume in the options market was the busiest of the year, according to Trade Alert data, while equities volume on Wall Street was near 12 billion shares, a nearly 50 percent increase from the average daily volume so far this month. It was also the heaviest trading day for on-the-run 10-year Treasury note contracts since May 2008.

BONDS RALLY, OIL FALLS FURTHER

Flight from risk resulted in a massive rally in US Treasuries, pushing the benchmark 10-year note's yield as low as 1.865 percent, its lowest level since May 2013.

Benchmark yields retraced a large part of the downward move in late trading, but ended lower on the day, with prices up 22/32 to yield 2.1288 percent, compared with 2.206 percent in late trading on Tuesday.

Ten-year Bund yields hit a record low of 0.719 percent before edging up to 0.757 percent.

Rate futures now show the market does not expect the Fed to raise rates until early 2016, a dramatic change from a few weeks ago, which could keep downward pressure on yields.

"Everyone's animal spirit is dead. This is a pretty dramatic move when everyone was expecting higher rates," said George Goncalves, head of US interest rates strategy at Nomura Securities International in New York. "It's all about capital preservation at this point. All the crowded trades are being tested, which is why I'm not sure this is over."

The spread of high-yield corporate bond spreads over the benchmark US Treasuries, which represents the premium paid to investors to compensate for the risky corporate debt, rose to match the high hit in September 2013, at 483 basis points.

The spread had bottomed at 335 bps in June.

A repricing of Fed expectations fueled a selloff in the dollar, which has been rising recently on bets on policy tightening at the Fed while other central banks continue easing.

The soft data "paired with the decline in Treasury yields and declines in energy prices, are all raising concern regarding the timing of the Fed's next move," said Sireen Harajli, currency strategist at Mizuho Corporate Bank in New York.

Although US September retail sales had been expected to decline, the weakness was surprising because it was broad-based.

The euro rose 1.4 percent against the dollar at $1.2836, just below a three-week high of $1.2885 hit earlier.

The greenback lost 1 percent against the yen at 105.93. Spot gold prices rose 0.7 percent, up for the sixth time in the last eight sessions with the help of the weaker dollar, but copper prices tumbled 2.3 percent.

THE CRUDE TRAMPLING

Brent and US crude futures fell, a day after posting their biggest daily drop in years, with more production, less demand and deflation expectations weighing heavily.

Brent lost 2 percent to $83.36 a barrel while US crude fell 1 percent to $81.02.

Emerging markets were also hit with a fall in Russia's rouble to its weakest level on record, while Russian government 10-year yields hovered near a five-year high, and shares in Moscow closed near a seven-month low hit last week.

Copyright Reuters, 2014

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s.rs96@yahoo.com (Shoaib-ur-Rehman Siddiqui) Americas Thu, 16 Oct 2014 04:45:30 +0000