Posted on 22 July 2014. Tags: Dow Jones, Nasdaq, S&P 500
The leading Wall Street indexes ended the first session of the week with declines. The market participants closely follow geopolitical conflicts and are waiting for the report for the second quarter of leading public companies. Dow Jones fell with 0.28% to 17,053.11 points, S&P 500 erased 0.23% of its value to 1,973.68 points and Nasdaq fell by 0.17% to 4,424.70 points.
Because of the events in Eastern Ukraine and Israel and Gaza price of dollar-denominated commodity prices are rising. On the New York Stock Exchange the crude oil futures rose with 1.5%, or 1.46 USD to 104.59 USD per barrel, while the futures of the gold grew by 0.5%, or 4.50 USD to 1 313.90 USD per ounce. Moreover, the USD increased its price against the currencies of major US trading partners, and the yield on 10-year US government bonds fell by one basis point to 2.47%.
The geopolitical situation weighs heavily on the markets, and it going this week in high season reports. The fact that large-capitalization companies perform better than smaller ones, tells us that during this bull market is a clear sign that investors are beginning to worry and rely more secure. You might be bullish, but you still have to build and less protection. Of course the market players are cautious amid these conflicts, and the markets went through strong gains.
General Electric led the losers of Dow Jones participants. The shares of GE fell with 1.81% after JPMorgan lowered its assessment for them. Reynolds American shares fell with 1.11% to 58 USD. Florida Court decided that the manufacturer of tobacco products has to pay compensation amounting to 23.6 billion USD.
The shares of Allergan rose with 2.23% to 171.14 USD. Market value of Halliburton added 0.1% to 71 USD per share after the company’s sales topped expectations. The price of shares of Herbalife fell by 11.21% to 54.02 USD. The hedge fund manager Bill Akman told, that can reveal the “great deception” during a presentation in New York on Tuesday. Hasbro shares fell by 2.69% to 51.78 USD after the maker of games and toys reported weaker than expected second-quarter earnings.
Posted in Finance, Indexes
Posted on 17 July 2014. Tags: MICEX, Rosneft, Russia
The stock market in Russia reacted negatively to new sanctions imposed by USA against some of the largest companies in the country. In the beginning of the trading session the main stock index Micex retreat with 1.8% to 1,448 points. Also Rosneft shares dropped by 4.5%, while Novatek lost 3.9% from its market cap. The shares of Alrosa also dropped with 5.1% and only 2 from the all 50 leading companies of the Russian Micex index started the session with increases.
The sanctions over are targeted the financial, energy and defense sectors of Russia. They are a natural extension of the current travel bans and freezing of assets of individuals and entities involved in the Ukrainian crisis and the annexation of the Crimea and the continuing crisis in Eastern Ukraine. USA focused the sanctions over several major Russian banks, including Gazprombank and Vnesheconombank. In the list of affected energy and defense companies are Rosneft and Novatek.
Another leading index in Russia - RTS, lost 3.15% today and reached a value of 1,308 points. The majority of the affected Russian companies can not rely on long-term financing by the US funds, and a few companies in the defense sector has imposed an asset freeze.
In the list of sanctioned companies fall eight companies from the defense sector, including the manufacturer of the machines Kalashnikov. The individuals affected by the actions of USA are people from the senior Russian intelligence, a member of parliament and minister responsible for the Crimea.
Posted in Finance, Indexes
Posted on 17 July 2014. Tags: Dow Jones, Nasdaq, S&P 500
The leading Wall Street indexes ended the session on Wednesday on green territory. Dow Jones record 15th consecutive record this year. The investor optimism was supported by the corporate accounts and acquisitions. The US Federal Reserve publishes its Beige Book and its President Janet Yellen answer the questions of representatives of the Finance Committee of the Senate.
Dow Jones Industrial Average rose with 0.45% to 17,138.01 points, while Nasdaq grew with 0.22% to 4,425.97 points and S&P 500 rose with 0.42% to 1,981.56 points. The stock indicators remained on high values after the publication of the Fed’s Beige Book. The central bank described the pace of economic recovery as moderate.
Tech stocks were among the most profitable today. Several large companies gave their financial statements earlier in the day. The shares of Intel rose with 9.27% to 34.65% after the solid profit growth in the second quarter. The internet company Yahoo also announced a profit for the second quarter, which was amounted to 0.37 USD per share, trailing slightly from the projected 0.38 USD. The capitalization of the company declined by 5.11% to 33.79 USD per share. The shares of Apple fell with 0.57%, while those of IBM rose with 2.05% after the partnership agreement announced today.
Bank of America reported a net profit of 2.3 billion USD, which is 4 billion USD less than the same quarter last year. The revenue reached 21.96 billion USD, decreasing from 22.9 billion USD reported in the quarter an year earlier. However, the creditor may pay 13 billion USD to resolve court settlement and the shares of the bank fell with 1.90% to 15.51 USD.
The largest management company BlackRock announced a profit of 4.89 USD per share in the second quarter, which exceeded the market expectations of 4.46 USD per share. The shares price grew with 0.44% to 325.17 USD.
Shares of Time Warner rose 17% to 83.13 USD after the company rejected a takeover bid worth 80 billion USD made by 21st Century Fox.
Meanwhile, the industrial production in USA expanded with just 0.2% on monthly base in June, compared to growth of 0.5% a month earlier. With the same pace increased also the retail sales in the country, diverging expectations. The better-than-expected data on the index of producer prices in USA are also expected to support trade in the early hours of the session. On a monthly basis the index excluding food and energy products meet the expectations of analysts with a rise of 0.2%, while the annual exceeded forecasts by 0.1%, increasing by 1.8%.
Meanwhile the USD grew against the currencies of major US trading partners. The yields on 10-year US government bonds fell to 2.537%. The gold futures rose with 0.2% to 1,299.80 USD per ounce, while contracts on crude oil grew with 1.2% to 101.20 USD per barrel.
Posted in Finance, Indexes
Posted on 10 July 2014. Tags: Dow Jones, Nasdaq, S&P 500
Wall Street went on green on Wednesday, after two days of negative sessions. The market participants received an incentive from the start of season reports and the latest news from the US Federal Reserve (Fed). Fed confirmed the recovery of the economy and the labor market in the second quarter and claim that the positive direction of the US economy must be followed till the end of the year. Last month, the central bank reduced by another 10 billion USD the monthly bond purchasing program to 35 billion USD.
During the session the index Dow Jones rose with 0.47% to 16,985.61 points, S&P 500 rose with 0.46% to 1,972.83 points and technological benchmark Nasdaq registered a growth of 0.63% to 4,419.03 points.
It is clear that the Fed is serious about his program ended, apparently in October. At this stage the talks should focus entirely on exit strategy ‘, told CNBC chief market strategist at BTIG Dan Greenhouse.
The shares of Alcoa rose by 5.66% to 15.69 USD after the aluminum producer performs better than expected financial results in Q2 2014. Cisco Systems led the winners in the composition of the Dow Jones, as its shares rose with 1.48% to 25.44 USD per share. The Mortgage Bankers Association reported an increase of 4% of applications to purchase homes last week despite rise in interest rates in recent weeks.
The USD started decreasing trend against the currencies of major US trading partners. The yields on 10-year bonds used to set interest rates on mortgages and some other consumer loans declined by one basis point to 2.551%. The Gold futures for August delivery rose with 0.6% to 1,324.30 USD per ounce. The contracts on crude oil for delivery in August also dropped with 1.1% to 102.29 USD per barrel.
Posted in Finance, Indexes
Posted on 09 July 2014. Tags: CAC 40, DAX 30, FTSE 100
The European shares recorded the strongest decline since three months, led by shares of tourist companies after Air France-KLM lowered its forecast for the full financial year. The regional Europe Stoxx 600 fell with 1.4% to 340 points. The index recorded a decline for the third consecutive day after yesterday recorded the strongest decrease of 2 weeks. The German DAX 30 fell with 1.34% to 9,773 points, the UK FTSE 100 dropped with 1.25% to 6,738 points, while the French CAC 40 erased 1.42% to 4,343 points.
The analysts commented that the market participants may start selling after their expectations for profit growth started and fade, as the markets may have reached their peaks.
The market capitalization of Air France-KLM dropped with largest stake since October 2011. The carrier announced that it expects lower earnings because of overcapacity on routes to North America and Asia weakened freight disputes with Venezuela. The worsened outlook of the airline comes just weeks after and Lufthansa said it expects lower profits.
The shares of Commerzbank fell reaching its lowest level since December 2011, after publication that USA has begun negotiations with the financial institution for an agreement in a criminal case for violating US sanctions against Iran and other countries. The market participants await the start of the season of the accounts. First published later this evening its financial results for the second quarter Alcoa.
Posted in Finance, Indexes
Posted on 03 July 2014. Tags: Dow Jones, S&P 500
The stock exchanges in USA ended the shortened session on the eve of Independence Day with growths. The biggest winners from the sessions were Dow Jones and S&P 500. Tomorrow in the Independence Day in USA and the markets will remain closed. Revival of the trade brought data on the development of the labor market in the USA. Statistics show drop in unemployment in USA in June to 6.1%. Meanwhile, the trade deficit reached a 18-month low, boosted by exports of petroleum products.
Even during the session Dow Jones jumped over the border of 17,000 points for the first time. The positive sentiment remained until the end of the session and the blue chip index ended at 17,068.26 points with an increase of 0.54% compared to the Wednesday session. The week ends with a growth of 1.3% for the index.
S&P 500 closed the week with a growth of 1.3% to a record value of 1,985.34 points. Compared to the previous session on Wednesday the increase is within 0.55%. Nasdaq recorded an increase in value of 0.63% to 4,485.93 points. The technological index ended the week with an increase of 2%.
Among the big winners in the composition of the S&P 500 today is PetSmart, which shares rose more than 12% to a price of 67.30 USD per share. The company reported that hedge fund Jana Partners has acquired a stake of 9.9% of their capital. Winning in the composition of the Dow Jones was led the Goldman Sachs Group. The company’s shares rose 1.54% to a price of 169.46 USD per share. At the opposite pole is the presentation of Johnson & Johnson, whose shares fell 0.42% to a price of 105.42 USD per share.
Posted in Finance, Indexes
Posted on 24 June 2014. Tags: Dubai
The shares of Dubai construction and building company Arabtec still dropped sharply on Tuesday as their price dropped by over 10% for the third consecutive session. After that the Dubai Stock Exchange collapsed with over 6%. This resulted in many aggressive sales of the stock market the emirate. The benchmark DFM deletes 6.68% to 4,009.01 points in afternoon trading in the Middle East. Furthermore Arabtec and many other components took down, including Union Properties, Drake and Scull and even exchange operator Dubai Financial Market.
Arabtec hit saga about the credibility of the entire market, says Arabian Business. Investors are likely to get their profits before the summer lull. Leading Dubai index is still nearly 19% up from the beginning of the year.
“Overall, the sentiment is still negative and auctions continue”, said Julian Bruce, an expert at EFG-Hermes. Dramatic decline in the capitalization of Arabtec came after a series of bad news about the company. It all started from the major shareholder Aabar Investments, which shrunk its stake in the company from 21.57% to 18.85% in the period June 8 to 11 Subsequently, last week the CEO of the company Ismaik Hassan resigned, which led to a significant number of further departures and dismissals of employees.
By Arabtec indicated Tuesday that they fired a “small number” of employees to improve productivity and reduce costs. The company added that all its actions were aimed at protecting the rights of shareholders.
Most of the leavers were employed by Ismaik or perceived as close aides. But the move raises questions about whether the cuts will hamper the ambitious expansion plans of Arabtec, which include multibillion USD deals in the UAE, Egypt and other countries.
Posted in Finance, Indexes
Posted on 24 June 2014. Tags: KOSPI, Nikkei 225, S&P ASX 200, Shanghai Composite
Asian indexes ended the session on green territory despite the tentative first hours. However, the gains were modest as investors continue to vigilantly monitor what is happening in Ukraine and Iraq. The activity was stimulated by positive news about the U.S. economy yesterday. The Japanese Nikkei 225 index closed with a slight increase of 0.05% of 15,376.24 points. The Chinese Shanghai Composite finished with a growth of 0.47% reaching a value of 2,033.93 points. The Hong Kong’s Hang Seng added 0.33% to 22,880.64 points and regained the drop from yesterday. The Australian S&P/ASX 200 is down with 0.38% today to 5,432.78 points. The South Korean benchmark KOSPI rose with 0.98% to 1,994.35 points, which is the best performance for the index in two weeks.
In Japan, it is expected the press conference of Prime Minister Shinzo Abe, during which he will talk about structural reform of its “third economic boom”. An unprecedented quantitative easing program, Bank of Japan, launched to revive the economy of the country of the rising sun, the risk of failure. Suntory Beverage shares rose nearly 3% after parent company Suntory Holdings Takeshi Niynami appoint a new president - the first leader outside the ruling family. Companies in the real estate sector is not performed satisfactorily. The shares of Mitsui Fudosan fell with 2% to trade in the new issue of securities. The movement in the share price of the company carry on the rest of the sector. The capitalisation of Sumitomo Realty and Development, for example, declined by 0.6%.
In China, the manufacturers of liquor Kweichow Moutai and Sichuan Swellfun added 4% and 10%, respectively, to its market capitalization, after the news that local governments have provided additional support for the sector. The official newspaper of the Communist Party of China - The People’s Daily, criticized those who talked about “weakening outlook” to the real estate market in the country. The newspaper sees “ulterior motives” behind the actions of speakers. The article charges have to Morgan Stanley, Societe Generale, Nomura, UBS and others.
Market in Australia shares trader Country Road clothing rose by 17% after the South African company Woolworths has offered to buy 12% stake billionaire Solomon Lew.
New Zealand company Kathmandu wiped 11% of the value of their shares after the trader has reported a 15% drop in annual profit.
In South Korea, Samsung Electronics shares rose 1.7%, those of LG Display - 3.5% and Hyundai Motor - 2.3%.
Posted in Finance, Indexes
Posted on 17 June 2014. Tags: CAC 40, DAX 30, FTSE 100, Stoxx Europe 600
The trading on the European Stock Exchanges today vacillated between gains and losses, but in the end the major indexes ended in green territory. The European markets managed to record growth for the first time in two sessions. The major influence today proved escalating tensions in Iraq, good sales of new cars in Europe and the sharper than expected rise in US inflation in May.
Stoxx Europe 600 added 0.26% to its value to the level of 346.32 points, erasing a loss of 0.5% in the early trading hours. Yesterday the index closed at its lowest level since June 5th under the influence of the news that the Sunni occupied new territories in Iraq. Today it became clear that the US President Barack Obama is considering air strikes against insurgents. The investors are concerned that the situation will require a new economic or military intervention in the country.
Among the big winners today are the car companies. The data from the European Automobile Manufacturers Association show ninth consecutive month, with sales of new cars. Renault sales in December rose by 19% in May, which increased the price of the company’s shares with nearly 1% to a price of 68.50 EUR per share. With about the same rate rose the shares of Daimler, as during the today’s trading session they cost 69.70 EUR per share.
The German DAX 30 rose in value by 0.37% to 9,920.32 points. The French CAC 40 increase today with 0.58% to 4,536.07 points. The British FTSE 100 was also increased, although at a minimum level of 0.18% to 6,766.77 points.
Posted in Finance, Indexes
Posted on 16 June 2014. Tags: Dow Jones, Nasdaq, S&P 500
The US stocks ended the session with minimal increases after the good economic data failed to overshadow concerns about the conflicts in Iraq and Ukraine. At the end of the session on Wall Street Dow Jones rose 0.03% to 16,781 points, S&P 500 added 0.1% to 1,938 points, while the Nasdaq rose by 0.24% to 4,321 points.
Today the Federal Reserve Bank of New York published data from which it became clear that manufacturing activity in the region has expanded to the highest level since June 2010 this month. Meanwhile in another report by the Fed became clear that the US production increased by 0.6%. The economists expected slightly weaker growth of 0.5%. The car production was pushed to 1.5% in May as in April fell 0.1%. The growth was observed in the production of machinery, equipment, electronics and mining.
The association of construction companies in USA announced today that the confidence among the builders this month has increased. The calculation of the organization and Wells Fargo index rose to 49 points from 45 points last month. Data below 50 points indicate a contraction in activity, but the pace of decline has slowed significantly and the industry is a step in growth.
The IMF, however, lowered to 2% the growth expectations for the US economy this year due to slower growth of employment. The International Monetary Fund warned Washington that should raise the minimum wage to fight poverty.
Meanwhile the Iraqi government is still trying to deal with Islamic militants who took over most of the northern regions of the country and the capital Baghdad occurred. The US Secretary of State John Kerry told that the White House is considering air attack and cooperation with Iran.
The investors continue to monitor the situation in Ukraine after Russia announced this morning that stops gas supplies to the country, unless prepaid. The Ukrainian government does not meet the deadline, which Moscow had set for payment of the undisputed gas debt. The crude oil prices remained relatively stable, closed at 106.9 USD per barrel US light crude oil. Last week, the price of light oil jumped with 4% because of the situation in Iraq and concerns about supply. So far, however, the conflict in the country has no immediate effect on the oil industry. The gold price also increased slightly during the today’s trading session. The precious metal rose with 1.10 USD, or 0.1%, to 1,275.30 USD per ounce because demand for more security by investors.
Posted in Finance, Indexes