Stocks Close Unchanged as Political Rhetoric Notches Up in Washington

Bikram Pandey
30 Nov, 2012
New York City

U.S. dollar inched lower and the euro gained as political rhetoric in Washington ratchet up. Lawmakers show no sign of compromise as the budget negotiation deadline looms. Oil gained and commodities prices edged higher on a cautiously optimistic outlook about economic growth in China.

[R]4:40 PM, New York – U.S. dollar inched lower and the euro gained as political rhetoric in Washington ratchet up. Lawmakers show no sign of compromise as the budget negotiation deadline looms. Oil gained and commodities prices edged higher on a cautiously optimistic outlook about economic growth in China.[/R]

U.S. indexes traded sideways as political rhetoric ratchet up in Washington and President Barack Obama take his budget plan to chief executives and reach out to voters in cities on the campaign trail.

On the economic front, U.S. personal income increased but spending fell in October and Japan announced $10.7 billion of stimulus measures to boost economic growth. Jobless rate rose to 11.7% in the euro zone and German retail sales fell.

In the earnings news, Avago Technologies fourth quarter slid 3% to $159 million. Genesco third quarter net surged 57% and lifted outlook. OmniVision second quarter plunged 51%. United Natural Foods first quarter net jumped 42% and Ulta Salon third quarter net soared 43%.

The euro area jobless rate rose and German retail sales fell in October. Annual inflation in the euro zone eased and UK consumer sentiment soared to an 18-month high in November. Osram plans to reduce 4,700 jobs by 2014.

Ferrovial declared a dividend of one euro per share. Royal Bank of Scotland canceled its agreement to sell its Indian Retail & Commercial banking operations to HSBC.

Nikkei index in Tokyo advanced after Japanese government approved the $1.2 billion stimulus measures ahead of general elections. Nikkei gained the best monthly gain since February. The yen traded near eight month low. Industrial production rose in October on the best monthly surge in electronics parts production linked to iPhone.

Australian stocks opened higher following the gains in Asian and European markets. Banks and resource sector stocks closed up. Qantas said October customer traffic increased 5.9% but revenue per seat declined. Lynas said it started its Malaysian rare earth plant.

Commodities, Bonds and Currencies

U.S. treasury yield on 10-year bond was flat at 1.62% and on 30-year bond rose to 2.81%.

The U.S. dollar inched lower to $1.3007 to a euro and decreased against the Japanese yen to 82.46 yen.

Immediate delivery futures of Texas crude oil increased to $0.77 to $88.84 a barrel and Brent crude rose 34 cents to $111.18, futures of natural gas decreased 0.05 cents to $3.56 per mbtu and gasoline traded down 0.25 cents to 273.09 cents a gallon.

In metals trading, gold decreased $12.50 to $1,718.50 per ounce and silver decreased 92 cents to $33.51 and copper closed up 3.5 cents to $3.64 a pound.