Wall Street Hits Pause After 4-Week Run, Toyota Leads Global Auto Sales

Nichole Harper
28 Jan, 2013
New York City

Market indexes rested in New York after S&P 500 index crossed a give-year high at the end of last week. Durable goods orders increased more than expected in December. Caterpillar reported better than expected earnings. Toyota Motor surpassed GM with 9.75 million global auto sales.

[R]12:10 PM New York – Market indexes rested in New York after S&P 500 index crossed a give-year high at the end of last week. Durable goods orders increased more than expected in December. Caterpillar reported better than expected earnings. Toyota Motor surpassed GM with 9.75 million global auto sales.[/R]

Stocks in early trading in New York rested after markets stretched equity valuations at five-year highs and the S&P 500 index hovered near 1,500 mark reached last in 2007.

Caterpillar reported earnings that lifted market sentiment and hopes that global economic growth may rebound in the year.

Caterpillar results offered yet another confirmation from large companies reporting better than expected and record earnings and contributing to major market averages advancing for the fourth year in a row.

Durable goods orders jumped 4.6% in December and ex-transportation orders increased 1.3%, sharply ahead of what economists had anticipated.

Orders have been on the rise for the four months in a row, for the first time since the record keeping began in 1992.

Aircraft orders increased 10.1% after falling 12.9% in November. Non-defense orders excluding aircraft orders increased 0.2% following a rise of 3% in November and October. Shipment of those goods increased 0.3% after rising 2.2% in November.

World markets advanced after market averages in Europe and in Asia closed mixed.

Market index in London gained 0.2% and in Paris increased 0.1% but in Frankfurt declined 0.2%.

In Asia, Nikkei crossed 11,000 for the first time since April 2010 after the yen declined to 91 against one dollar. At close, Nikkei fell 0.9% and the index in Mumbai decreased 0.2% and in Hong Kong gained 0.4%.

Toyota revised its global sales in 2012 to 9.75 million and surpassed as the largest auto seller crossing the 9.2 million global sales from General Motors. Toyota targeted 9.91 million units in the current year.

General Motors sales in 2012 are estimated at 9.2 million followed by 9.1 million sales by Volkswagen. Honda Motor sales increased 19% to 3.8 million and Nissan sales in 2012 rose 5.8% to 4.94 million.

Stocks in Review

Biogen Idec Inc. ((BIIB)) increased 2.8% or $4.21 to $150.41 after the biotechnology said revenues in the fourth quarter ending in December climbed 7% to $1.42 billion from $1.33 billion in the same period of last year. Net income in the quarter slipped 3% to $292.1 million or $1.23 per diluted share compared to $300.2 million or $1.22 a share a year ago earlier.

Biogen expects full-year revenue to grow nearly 10% and diluted earnings per share between $6.45 and $6.55.

Caterpillar Inc. ((CAT)) gained 2.4% or $2.30 to $97.88 after the construction and mining equipments maker reported total sales and revenues in the fourth quarter ending in December declined 7% to $16.07 billion from $17.24 billion in the same period of last year. Net income in the quarter plunged 55% to $697 million or $1.04 per diluted share compared to $1.55 billion or $2.32 a share a year ago.

Revenue in the quarter from construction segment dropped 25% and power system sales declined 6% while resources industry sales climbed 14% and financial product revenue increased 5%.

Operating profit in the fourth quarter declined $922 million to $1.04 billion from a year ago period.

The company expects sales and revenues for the fiscal 2013 in the range of $60 billion to $68 billion and earnings per share between $7 and $9.