U.S. Holiday Sales Up 5.5%; Stocks Flat

Arthi Gupta
28 Dec, 2010
New York City

U.S. indexes traded flat after holiday retail sales rose more than expected. Apparel and jewelry sales drove the holiday purchases and higher discounts attracted more shoppers online. Consumer confidence index declined in December and metropolitan home price index fell 1% in October.

[R]11:30 AM New York – U.S. indexes traded flat after holiday retail sales rose more than expected. Apparel and jewelry sales drove the holiday purchases and higher discounts attracted more shoppers online. Consumer confidence index declined in December and metropolitan home price index fell 1% in October.[/R]

U.S. index futures showed early vigor after better than expected holiday sales but turned flat after confidence index declined and home price index fell.

The Conference Board consumer confidence index in December fell to 52.5 from 54.3 in November. The index above indicates still a growing confidence but at a slower pace.

Asian stocks traded mixed on concerns of further Chinese monetary tightening policies and European markets gained. China indexes fell more than 3.6% in a two-day sell-off.

Japan's industrial production rose 1% in November, following the 2.0% plunge in October, according to data from the Ministry of Economy, Trade and Industry released today. However, consumer price index declined for the 28th month in a row in November.

Core consumer prices in Japan declined 0.5% in November, following the 0.6% contraction in October, the Ministry of Internal Affairs and Communications said on Tuesday in a preliminary report.

U.S. Holiday Retail Sales Rise

Apparel and jewelry sales drove the holiday purchases and higher discounts attracted more shoppers online.

MasterCard Advisors' SpendingPulse report found retail sales excluding-auto rose 5.5% annually in the 50-day period between November 5 and December 24. Sales last year rose 4.1% and sales in the similar period in 2008 fell 6.1%.

The latest rise was driven by 15.4% gain in online sales and 11.2% surge on sales of apparels. Electronics sales rose only 1.2%.

HP Wins NASA Contract

Hewlett-Packard is to provide NASA with up to $2.5 billion in information-technology products and services over four to ten years.

Under the terms of this contract, HP Enterprise Services will secure and maintain the essential IT services which the NASA personnel use to support the agency's core business, scientific, research and computational activities.

GE Forms JV with Russian Companies

General Electric Company signed a framework agreement with two Russian companies to form joint ventures in Russia in the field of healthcare and power generation. Financial details of the transactions were not disclosed.

Under the framework agreement, GE plans to form a joint venture in the power generation sector with Russian Technologies State Corporation and electric utility OAO Inter Rao UES JSC to make, assemble, sell and service energy efficient, heavy-duty gas-fired power generation turbines in Russia.

GE and Russian Technologies plan to form a joint venture to make and sell high-tech medical diagnostic equipment in Russia.

Magnum Hunter Acquires Appalachian Assets

Magnum Hunter Resources Corporation entered into an agreement to acquire Appalachian Basin focused NGAS Resources, Inc. for approximately $98 million in common stock and assumed liabilities.

Magnum Hunter agreed to acquire NGAS for $0.55 per share with a fixed exchange ratio of 0.0846 based on an agreed Magnum Hunter stock price of $6.50 per share

Ally Financial Resolves Fannie Mae Repurchase Claims

Ally Financial Inc., the auto and home lender, formerly known as GMAC, said on Monday that its mortgage unit, Residential Capital LLC reached a $462 million settlement to resolve repurchase claims by Fannie Mae on $292 billion in home loans.

Trina Solar Plans to Invest in Changzhou Trina PV Park

Trina Solar Ltd., the Chinese photovoltaic modules maker said it plans to invest about $800 million, over the next three years, in Changzhou Trina PV Park. The company noted that the investments for a period of three years from 2011 to 2013 are intended to expand its manufacturing capacity and research and development facilities.

LDK Solar Co., Ltd. said that it reached the milestone of 3.0 gigawatts annualized capacity at its wafer plants.

Kunlun Energy Buys Stake in PetroChina

Kunlun Energy Company Ltd., a Hong Kong-listed subsidiary of PetroChina won the bid to acquire a 60% stake in PetroChina Beijing Natural Gas Pipeline Co. for 18.87 billion yuan or $2.85 billion from the parent.

PetroChina Beijing Natural Gas Pipeline, which transports gas from Shaanxi Province in northwestern China to Beijing, is 40% held by Beijing Gas Group.

The acquisition is part of Kunlun Energy's effort of expand its gas business, which is expected to contribute the bulk of its sales by 2012.