U.S. Holiday Sales Rise 0.7%, Toyota Raises 2013 Outlook

Arthi Gupta
26 Dec, 2012
New York City

U.S. indexes traded higher and the yen dropped to a 20-month low. Holiday sales period increase slowed to 0.7% on Washington gridlock. Covidien agreed to acquire CV Ingenuity. Toyota estimated 2013 worldwide sales to increase 2%.

[R]9:35 AM New York – U.S. indexes traded higher and the yen dropped to a 20-month low. Holiday sales period increase slowed to 0.7% on Washington gridlock. Covidien agreed to acquire CV Ingenuity. Toyota estimated 2013 worldwide sales to increase 2%.[/R]

U.S. indexes traded sideways and trading volume is expected to be light as most traders and investors are away on holidays. European markets are closed and Asian markets closed higher.

Holiday sales declined according to the latest survey by MasterCard Advisors SpendingPulse.

Retail sales increased 0.7% from October 28 through December 24 but declined 2% from a year ago period. The survey tracks total U.S. sales at stores and online processed under all payment forms.

The International Council of Shopping Centers restated that it expects chain stores sales at comparable locations in the holiday period between November and December are expected to increase 3%. The growth in the period a year ago was 3.3%.

The National Retail Federation had estimated holiday sales are expected to increase 4.1% to about $586.1 billion, compared to an increase of 5.6% in 2011.

Indexes in Japan surged 1.5% on the expectations that the new government will implement the stimulus measures immediately and demand more actions from Bank of Japan.

The yen declined to a 20-month low after Shinzo Abe assumed prime minister’s office.

Toyota Motor Corporation, the Japanese automaker estimated 2013 worldwide sales to increase 2% to 9.91 million units but sales in Japan to drop 15% to 2.04 million units.

Mitsubishi Chemical to Acquire Qualicaps

Japan-based Mitsubishi Chemical Holdings Corp. agreed to buy Qualicaps Co. Ltd., a Japan-based maker of pharmaceutical capsules from private equity firm Carlyle Group for 55.8 billion yen.

Covidien to Buy CV Ingenuity

Covidien plc, the healthcare products provider agreed to acquire CV Ingenuity. The companies expect to complete the acquisition in the first quarter of 2013. Financial terms of the transaction were not disclosed.