Alcoa at Record Level

Elena
11 Apr, 2006
New York City

U.S. stocks recovered from earlier weakness and looked poised for strong opening after the world''s largest cell phone maker Nokia announced that it was selling phones at higher-than-expected prices. After market close, Alcoa posted more-than-doubled quarterly income on surging metal prices and robust demand from manufacturers. The company earned $260 million, or 30 cents per share on 16% sales growrth.

[R]9:15AM Stock futures indicated a higher start.[/R]
U.S. stock futures turned positive, following news that the world’s largest cell phone company Nokia ((NOK)) was selling phones at higher-than-expected value. The company's announcement boosted shares of rival companies like Motorola ((MOT)) which rose 1.4 % in trading on the Inet electronic brokerage network. Earlier in the morning, futures were sitting below the flat line, despite stronger-than-expected earnings from Dow component Alcoa ((AA)), which reported a quarterly profit rise above analysts' estimate. On Monday, the major U.S. equity indices finished with a mixed performance, as a rise in oil prices weighed on stocks. S&P 500 futures were up 0.3 point, above fair value. Dow Jones industrial average futures rose 11 points, and Nasdaq 100 futures rose 2.5 points.

Crude oil prices surged on supply worries, raised by Iran’s nuclear standoff, violence in Nigeria and declining gasoline stockpiles. Light sweet crude May delivery gained 49 cents to $69.23 a barrel. Gasoline added 2 cents to $2.0260 a gallon, while heating oil was steady at $1.9447. Natural gas futures traded at $6.862 per 1,000 cubic feet. London Brent rose 75 cents to reach an all-time high of $69.70. European gold sharply rose on weaker dollar, higher energy prices and strong speculative buying. In London gold climbed to $599.50 per troy ounce, up from $587.30. In Zurich the precious metal rose to 599.85 from $592.90 In Hong Kong gold rose $5.10 to close at $601.60. Silver opened at $12.40, up from $11.90. The U.S. dollar was mixed versus major currencies. The euro traded at $1.2118, up from $1.2096. The dollar bought 118.52, up from 117.50. The British pound was quoted at $1.7432, up from $1.7412.

Nova Measuring Instruments, ((NVMI)), manufacturer of semiconductors reported that its Q4 net loss was 10 cents a share, down from 2 cents a share a year ago due to 11% revenue decline. The company said that during Q1 of 2006 it started seeing positive changes in market conditions. The bookings stream increased relative to the previous quarters, including orders for delivery in the following quarters, and a moderate growth was expected in the following quarters.

Mosaic Co. ((MOS)), phosphate and potash crop nutrients producer, reported a Q3 loss of 19 cents a share, swinging from. a profit of 9 cents a share in the year-ago period, missing analysts’ predictions for a profit of 1 cent a share. Revenue declined to $1.07 billion from last year''s $1.14 billion, due primarily to weakness in its potash business. The company aded it expects Q4 revenue rebounding from Q3 levels.


[R] 8:15 AM European averages lost ground at mid-day.[/R]
European markets lost ground at mid-day dealings. The Italian MIB-30 stock exchange erased most of yesterday’s gains, falling sharply down to 0.9% on uncertainty over the weekend’s elections leadership victory. The German DAX 30 dropped 0.7% on disappointing economic data, the French CAC 40 fell 0.5%, while London FTSE erased earlier gains to trade down 0.1% as mining companies Rio Tinto and BHP Billiton declined on falling commodity prices. However, oil companies like Royal Dutch Shell and BP limited decline, making gains on surging oil prices over $69 a barrel.


[R]7:45AM Asia closed mostly down.[/R]
Asian-Pacific benchmarks finished mostly in the negative, reflecting general weakness among technology and semiconductor stocks. The Nikkei moved lower for a second day in a row on investor cautiousness ahead of the new stream of earnings reports and news that BOJ decided to leave benchmark interest rate at zero percent. Among losers, chip-related stocks Advantest dropped 2.8%, Elpida Memory fell 3.6%, and Kyocera lost 0.6%. Banking and retail shares were also among notable decliners. South Korea’s Kospi dropped 0.9%, awaiting quarterly corporate results. Hong Kong’s Hang Seng fell off recent highs on profit taking after a five-session rally. The index lost 0.3% as strength among automakers limited losses. Australia’s All Ordinaries surged to 0.8%, lifted by strong mining stocks.