Wall Street Meanders; Global Markets Cautious

Bikram Pandey
20 Jan, 2012
New York City

Stocks in New York traded sideways after a mixed bag of earnings. Technology companies were in focus after Intel, Microsoft and Google reported earnings. Intel forecasted stronger revenues in the current quarter and Google missed its revenues and earnings outlook.

[R]4:00 PM New York – Stocks in New York traded sideways after a mixed bag of earnings. Technology companies were in focus after Intel, Microsoft and Google reported earnings. Intel forecasted stronger revenues in the current quarter and Google missed its revenues and earnings outlook. Capital One and American Express edged lower after earnings.[/R]

The U.S. indexes traded sideways ahead of the outcome of stalled talks between Greece and its international lenders.

Investors were cautious in early trading despite positive earnings from tech companies. Intel quarterly net rose 4.6% and Google net rose 7% but fell short of expectations. Financials traded mixed after American Express reported quarterly earnings of $7.74 billion and Capital One Financial Corp said fourth quarter profit dropped 42%.

General Electric said quarterly revenues decreased 8% and quarterly earnings dropped 18%. Revenues at the largest industrial company in the U.S. declined on 9% fall at its financial services unit. As the GE Finance unit become smaller it also has become larger contributor to the profit growth at the company.

Google Inc plunged 8% after it missed earnings outlook. IBM gained 4% after it reported net income increase of 4%.

European markets struggled as investors focused on the difficult negotiations between Greece and international lenders. Hong Kong-based Cathay Pacific agreed to buy six Airbus aircraft for $1.628 billion. ThyssenKrupp said first quarter operating earnings are expected to be lower.

German annual producer price inflation accelerated in December. French leading economic index declined and consumer spending in the Netherlands eased in November.

The UK indexes fluctuated after retail sales volume rebounded in December. Irish economy is estimate to weaken this year. Vodafone won its tax case against Indian government for the purchase of a stake in the local telecom carrier.

Financials and real estate developers led the Tokyo market advance as investors rotated sectors on rising trading volume. Exporters and electronics maker rose after positive earnings and economic data in the U.S.

Australian stocks traded higher and the benchmark index gained 1% in the week and closed up 4.5% in the year. Australian terms of traded declined from seven decade peak in the fourth quarter after a fall in prices of iron ore, cotton and cereals. Retailers suffered strong decline in sales in 2011.

Commodities, Bonds and Currencies

The yield on 10-year U.S. bond increased to 2.03% and 30-year bond closed up at 3.11%.

The U.S. dollar edged down 0.3% to $1.293 to one euro and traded higher against the Japanese yen to 76.95.

Immediate delivery futures of Texas crude oil decreased $2.19 to $98.20 a barrel and futures of natural gas fell 3 cents to $2.35 per mbtu and gasoline price decreased 3.1 cents to 278.50 cents a gallon.

In metals trading, copper decreased 5.9 cent to $3.74 per pound, gold increased $8.60 to $1,663.10 per ounce and silver increased $1.33 to $31.84.