U.S. and Global Markets in Weekly Losses, Earnings in Focus

Bikram Pandey
26 Oct, 2012
New York City

Indexes in Wall Street struggled to stay in the positive zone. For the week, the Nasdaq Composite index declined 0.4% and the S&P 500 index fell 1.6%. Investors focused on earnings and Amazon, Expedia, Goodyear Deckers Outdoor and CA were in focus.

[R]4:00 PM New York – Indexes in Wall Street struggled to stay in the positive zone. For the week, the Nasdaq Composite index declined 0.4% and the S&P 500 index fell 1.6%. Investors focused on earnings and Amazon, Expedia, Goodyear Deckers Outdoor and CA were in focus.[/R]

U.S. indexes struggled to stay in the positive zone and closed lower for the week and consumer confidence rose.

The government report said that the U.S. economy expanded at 2% in the quarter to September following 1.3% increase in the previous quarter on the rising consumer spending and real estate investments.

The University of Michigan’s final read on consumer confidence index rose to 82.6 in October from 78.3 in September, a five-year high. The fall in gas prices and a slight decline in unemployment rate to 7.8% contributed to the increase.

In earnings news, Amazon ((AMZN)) third quarter net swung to loss and Aon gained 3% on lower tax rate. Comcast ((CMCSA)) profit surged 132% on higher ad rates for Olympics games. Merck quarterly net increased and cuts outlook. Rockwell Collins fourth quarter net dropped 13% and reiterated fiscal guidance.

Expedia Inc ((EXPE)) soared 10% after the online travel agency reported third quarter earnings ahead of expectations.

Goodyear ((GT)) dropped 10% after the company posted quarterly adjusted profit of 53 cents a share, below the 58 cents estimated by several analysts. CA Inc ((CA)) fell more than 8% after the software maker lowered its sales outlook for fiscal 2013. Deckers Outdoor Corp ((DECK)) plunged 16% after the seller of popular UGG brand sheepskin boots cut its annual sales outlook by two-thirds.

The European indexes declined. The euro area leading economic index fell in September and German consumer confidence estimated to rise in November. Spanish jobless rate rose in the third quarter. Italy raised €4 billion in an auction today.

Ericsson earnings slumped 42% but Statoil net surged 47% in the third quarter. Technicolor quarterly revenue rose 10.9% to €928 million. Anglo American chief executive steps down. Vinci estimates annual net income to decline between 3% and 4%.

Market indexes in Asia closed sharply lower and the indexes in Japan dropped 1.3%, in Hong Kong declined 1.2% and in India fell 0.7%.

Nikkei index in Tokyo turns lower from the four-week high after Asian markets dropped and more companies report weak earnings outlook. Industrial Robots maker Fanuc lowered its earnings outlook for the current year by 2% and NTT DoCoMo cut its estimate by 9%. Panasonic is expected shrink its mobile business and Canon Inc lowered its forecast.

Australian market index declined 0.8% and extended losses for the week to 2%. The dollar held firm. Macquarie Group said first half net income increased on lower operating costs. AMP said third quarter cash flow increased on the growth in self-managed super annuation funds.

Commodities, Bonds and Currencies

U.S. treasury yield on 10-year bond decreased to 1.75% and on 30-year bond fell to 2.92%.

The U.S. dollar inched higher to $1.293 to a euro and increased against the Japanese yen to 79.69 yen.

Immediate delivery futures of Texas crude oil increased 4 to $86.09 a barrel and Brent crude rose 58 cents to $109.03, futures of natural gas decreased 0.03 cents to $3.40 per mbtu and gasoline traded up 1.53 cents to 269.27 cents a gallon.

In metals trading, copper decreased 0.60 cents to $3.55 per pound, gold decreased $0.70 to $1,712.30 per ounce and silver decreased 1 cent to $32.06.