Markets Struggle in New York, European Markets at New Highs

Bikram Pandey
24 Jan, 2013
New York City

Stocks in New York struggled to gain after reaching a new 5-year intra-day high. Jobless claims declined to a five year low. Tech stocks were in focus after Apple Inc reported flat earnings and a sharp slowdown in growth. Japan swung to trade deficit and business activities level in Germany improves.

[R]3:30 PM, New York – Stocks in New York struggled to gain after reaching a new 5-year intra-day high. Jobless claims declined to a five year low. Tech stocks were in focus after Apple Inc reported flat earnings and a sharp slowdown in growth. Japan swung to trade deficit and business activities level in Germany improves.[/R]

Stocks in New York struggled to stay in the positive zone after technology stocks declined and jobless claims dropped to a five-year low.

Apple Inc’s quarterly results weighed on the market after it reported flat earnings and issued a cautious outlook. Though the sales rose in the holiday period, the growth declined considerable from 2011 and new products introduction also crimped the margins.

The market voted with lot of fear and Apple stock plunged 12% and dragged other tech stocks with it. Altera, the maker of chips also fell 4% after it reported earnings of 37 cents a share and missed expectations by 2 cents. Nokia eliminated dividend after a string of 20 years and Netflix surged 38% after it reported earnings and beat sales outlook.

In other earnings news, Bristol-Myers fourth quarter net jumped 9% and Lockheed Martin profit dropped 17%. Union Pacific quarterly net jumped 7% to $1.04 billion.

European markets advanced to multi-year highs after German business confidence rebounded and a private survey showed that the decline in activities in the euro zone decelerated. Nokia suspended its dividend after 20 years. Logitech plunged 10% after declaring a loss.

Stocks in Tokyo gained for the first time in four days after manufacturing expanded at the fastest pace in five months. The components makers for Apple declined after the phone maker reported stagnant earnings. Japan reported trade deficit of $78 billion on higher energy imports and trade friction with China.

In India, the benchmark index declined 0.5% and Andhra Bank third quarter net declined 15.2%. Educomp signed agreement with Kaizen and Bertelsmann for $5 million investment. HDIL tumbled 22% as managing director Sarang Wadhawan lowered his stake. L&T net surged 13%.

Stocks in Australia traded at a new 20-month high after the latest manufacturing survey from China showed continued strength. Fortescue Metals iron shipment was ahead of expectations. OZ Minerals plunged on copper production outlook.

Commodities, Bonds and Currencies

U.S. treasury yield on 10-year bond closed up to 1.84% and on 30-year bond edged up to 3.04%.

The U.S. dollar inched lower to $1.337 to a euro and increased against the Japanese yen to 89.91 yen.

Immediate delivery futures of Texas crude oil increased 71 cents to $95.94 a barrel and Brent crude gained 46 cents to $113.26, futures of natural gas decreased 9 cents to $3.45 per mbtu and gasoline traded up 3.05 to 286.46 cents a gallon.

In metals trading, gold decreased $18.00 to $1,668.30 per ounce and silver fell 71 cents to $31.76 and copper closed down 0.90 cents to $3.67 a pound.