Market Lower on Lack of Buying

123jump.com Staff
30 Nov, -0001
New York City

Oil, gold, and stocks fell during the session. Oil is trading up 20% from a year ago and consumer sentiment is rebounding on the declining prices of oil and heating fuel in the last one month. Shares of IBM are down 20% for the year. French voters rejected proposed EU constitution formed to keep it expanding from current 470 million people strong. The high unemployment rate of 10% convinced several of 70% eligible voters to vote No.

In late morning trading stocks in New York are trading lower, oil and gold are trading lower and shares of AIG are trading 1.2% lower after filling delayed 10-K report. Gold fell $6 to $416.70 and oil fell 55 cents to $51.30 per barrel.

Alcoa shares were lower by 1.5% after it said the company received subpoena related to aluminum industry investigation. IBM is down by 1.1% and has fallen over 20% for the year so far. Boeing is trading higher by 0.7% after shrugging off the EU complaint with WTO.

Shares of Calpine are up 8% on the news that a partnership between Mitsui and British International Power for app. $900 million.

Renovis and Pfizer have entered into a world-wide collaboration and licensing to commercialize treatments targeting VR1. The stock fell 18%.


Wellington Management, Boston based fund management company, joined a list of companies to invest in proposed merged airlines U.S. Air and America West. $150 million cash will be added to the already committed $1 billion in funds from investors, aircraft providers, and suppliers. The momentum to refinance and consolidate airline industry is gathering around discount carriers threatening price competition to the traditional three large airlines.

In the weekend referendum in France, voters rejected EU constitution. More than 70% eligible voted in this Sunday’s vote and rejected and 55% of voters rejected the constitution on the fears too rapid expansion of EU. All 25 members of the union must approve the 300-page constitution.

The French vote will have an impact to the expansion rate of 470 million people strong EU. Voters across France, the Netherlands and UK are worried of high unemployment rate. The Netherlands votes on referendum approved by nine of the twenty five members on June 1st. UK and Czech Republic vote on the referendum next year.

French President appointed Dominique de Villepin as Prime Minister following the defeat of EU constitution referendum.

A month of critical political events in Europe has cautioned traders in Europe and the U.S. for the stronger Euro. With the fall of Italian government, regional election defeat for the ruling party in Germany, substantial reduction in ruling party majority in U.K. and voters in France rejecting EU constitution expansion have turned traders worried on the prospect of Euro for the rest of the year.

All major European exchanges close lower led by decline in Amsterdam by 0.76% and on weakness in Euro. The currency hit seven-month low after trading at 1.2384 to a dollar.

China on Monday rescinds the proposed tariffs on certain textile exports in the wake of quota imposed by EU and the U.S.

In overnight trading markets in Asia closed higher led by Indonesia, Pakistan, and Philippines up better than 2%. Tokyo and Hong Kong markets were up 0.09% and 0.16%. Shares in Tokyo traded above and below previous close on thin trading and lack of corporate news. Textile shares in HK failed to hang on to their earlier gains.

Indian industry trade group released fiscal 2005 economic growth forecast of 7.2%.

Ryanair, Irish budget carrier, reported 29% increase in annual profit and 33% increase for the second half. The airlines yield rose 2% for the year which helped to offset the rising fuel costs.

Dataram posted 4Q net earnings of 44 cents per share including an income tax benefit and staff reduction charges. Excluding these items the company's earnings would be 16 cents per diluted share vs. 17 cents a year ago. The stock jumped 18% in the morning trading.

United Natural Foods reported 3Q 16.7% net income rise, or 26 cents per share compared to 22 cents a year ago excluding special items. Sales reached $534.3 million with $85.4 million growth. The stock is up 2%.

Small World Kids, the parent company of Small World Toys, announced signing a Letter of Intent to acquire assets of toy maker Imagix, as well as the rights to all of its best-known patents & trademarks. The deal is for $200,000 cash and $500,000 in restricted shares.

TIBCO, a software company, posted 2Q preliminary results. Earnings are expected to be 4 cents a share on revenue estimated between $100 million and $ 102 million excluding amortization and restructuring charges. The stock is up 0.95%.

Conn's, home retailer, reported 1Q record net income increase of 26.1%, or 41 cents per share compared to 33 cents last year. Total revenues rose 17.3% including net sales jump of 7.3% and same store sales of 7.3%. The company reaffirms its full-year guidance of about $1.40 per diluted share. The stock is down 1% at mid-day trading.

Frontlines released 1Q interim results which translate to net profit of $279.7 million, equivalent to $3.74 per share and cash dividend of $3.10 a share.