Lackluster Trading in New York as Funds Reflect Rejigged Indexes

Nichole Harper
28 Jun, 2013
New York City

U.S. stocks wavered and consumer confidence index declined from a six-year high last month. Trading volume is expected to be high today as several funds adjust holdings to reflect changes in indexes. BlackBerry plunged 25% after it missed earnings and revenues targets.

[R]1:40 PM New York – U.S. stocks wavered and consumer confidence index declined from a six-year high last month. Trading volume is expected to be high today as several funds adjust holdings to reflect changes in indexes. BlackBerry plunged 25% after it missed earnings and revenues targets.[/R]

Consumer sentiment index declined less than expected in June from a near six-month high in previous month.

The Thomson Reuters /University of Michigan Consumer Sentiment Index eased to 84.1 in June from 84.5 in May, high since July 2007.

A regional economic activity survey reported by MNI Chicago Report showed that activities in the U.S. declined in June.

The survey of purchasing managers showed the index of business activities fell to 51.6 in June from 58.7 in May.

Trading volume on several exchanges in the U.S. is expected to cross the average daily volume of 7 billion shares this month as fund managers incorporate changes in Russell indexes.

European Markets

European markets rested and failed to build on a rally in Asian markets.

The FTSE 100 index in London declined 0.4% and the DAX index in Frankfurt eased 0.4%. The CAC 40 index in Paris dropped 0.6% and other smaller markets in the region declined between 0.1% and 0.3%.

Retail sales in Germany after adjusting for inflation and seasonal changes increased 0.8% in May from revised 0.1% in April, Federal Statistics Office in Wiesbaden said today.

SAP AG declined 3% after the competitor Accenture Plc lowered its outlook for the year to a range between $6.7 billion and $7 billion.

Asian Markets

Several markets in Asia traded higher after latest batch of economic data in Japan lifted sentiment.

The Nikkei index in Tokyo soared 3.5% after industrial production rose more than expected 2% in May and retail sales were ahead of expectations by 1.5% but Honda reported sixth monthly decline in domestic auto sales.

Sensex index in Mumbai surged 1.8% after the government agreed to end subsidies for the natural companies and pass on higher prices to consumers. The long sought move will dent the government budget deficit and helped the rupee to recover 1.4% from the record low to 59.39 against one dollar.

Stocks in Review

Three companies completed public offering today in New York, despite the recent market volatility.

CDW Corp, the tech products retailer, priced 23 million shares at $17 a share and traded as high as $18.48. The tech company raised $396 million.

Tremor Video, the streaming video networking company, sold 7.5 million shares for $10 each and raised $75 million in an offering underwritten by Credit Suisse Securities and Jefferies.

HD Supply Holdings, an industrial distributor based in Atlanta completed 53.2 million shares at $18 each and raised $957.4 million.


Accenture Plc ((ACN)) plunged 13% after the software and business process outsourcing services cut its full-year outlook. The lowered view also dragged competitor IBM by 3.3%.

Arch Coal ((ACI)) gained 2% after the coal miner agreed to sell its Canyon Fuel subsidiary for $435 million in cash.

BlackBerry ((BBRY)) plunged 25% after the maker of popular wireless device reported unexpected quarterly operating loss and did not disclose detailed information on its latest new line of gadgets.

Molycorp Inc ((MCP)) soared 7% after the rate earths minerals maker said the U.S. Securities and Exchange Commission wound up its investigation of the company without recommending any action.