U.S. Capital Goods Orders Fall, New Home Sales Rises

Nichole Harper
26 Nov, 2014
New York City

In stock trading, market averages lacked direction ahead of OPEC meeting tomorrow. Dollar fell, stocks generally rose and crude oil futures traded at a four-year low. U.S. jobless claims unexpectedly rose and capital goods orders fell. New home sales rose in October.

[R]2:20 PM New York – In stock trading, market averages lacked direction ahead of OPEC meeting tomorrow. Dollar fell, stocks generally rose and crude oil futures traded at a four-year low. U.S. jobless claims unexpectedly rose and capital goods orders fell. New home sales rose in October.[/R]

Stocks in New York lacked direction as investors digested a flood of economic news and awaited OPEC meeting tomorrow.

Economic Data

Weekly jobless claims at the end of last week increased 21,000 to a seasonally adjusted 313,000, the Labor Department said on Wednesday.

The weekly claims rose above 300,000 for the first time since September and the four-week moving average claims remained below 300,000 mark for the 11th week in a row.

Capital goods orders unexpectedly declined for the second month in a row in October, the Commerce Department said today.

Non-defense orders excluding aircraft, decreased 1.3%, following similar fall in September. Overall orders for durable goods increased 0.4%, after falling two months in a row.

Orders for automobiles increased 0.3% last month, after two months of declines.

Single-family homes sales rose in October by 0.7% to a seasonally adjusted annual rate of 458,000. Sales rose 1.8% from a year ago month.

Median price of new homes increased to a record high of $305,000, an increase after dropping in September.

Market Indexes

Tollbooth Index edged up 0.01% or 1.08 to 10,007.72.

S&P 500 index rose 2.27 or 0.1% to 2,069.31 and the Nasdaq Composite Index gained 15.68 or 0.3% to 4,773.97.

U.S. Movers

Analog Devices, Inc ((ADI)), the integrated circuit maker said net revenues in the fourth-quarter ending on November 1 climbed 20.1% to $814.2 million from a year ago period.

Net income in the quarter plunged 46.1% to $108.7 million or 34 cents a diluted share compared to $201.6 million or 64 cents from a same quarter last year.

Deere & Company ((DE)), the agriculture and turf equipment maker net revenues in the fourth-quarter ending in October dropped 5% to $8.97 billion from a year ago period.

Net income in the quarter tumbled 19.5% to $649.2 million or $1.83 a diluted share compared to $806.8 million or $2.11 from a same quarter last year.

Hewlett-Packard Company ((HPQ)), the hardware and software provider reported net revenue for the fourth-quarter ending in October fell 2% to $28.41 billion from a year ago period.

Net income in the quarter declined 5.7% to $1.33 billion or 70 cents a diluted share compared to $1.41 billion or 73 cents from a same quarter last year.

For the fiscal 2015, the company forecasted earnings between $3.23 and $3.43 per share and adjusted earnings in the range of $3.83 to $4.03 per share.

European Markets

The Department of National Statistics, UK said second estimated GDP in third quarter rose by 0.7% unchanged from previous estimate.

Separately, the department added seasonally adjusted service sector index in UK jumped 3.4% in September from a year ago month.

In London trading, FTSE 100 index decreased 0.07 to 6,731.21 and in Frankfurt the DAX index gained 0.5% or 52.44 to 9,913.65.

In Paris, CAC 40 index slid 0.05% or 2.35 to 4,379.96.

Thomas Cook Group Plc, the U.K.-based traveling service provider reported revenues in the year ending in September declined 7.8% to £8.59 billion from £9.32 billion a year ago period.

Net loss in the year narrowed from a year ago to £115 million compared to £213 million and diluted loss per share dropped to 8.2 pence from 17.1 pence.

The company announced chief operating officer Peter Frankhauser will replace chief executive Harriet Green with immediate effect.

Wolseley Plc, the U.K.-based building material distributor said revenues in the first-quarter ending in October jumped 5.2% to £3.51 billion from £3.33 billion a year ago period.

Profit in the quarter soared 13.5% from a year ago to £233 million compared to £216 million.

Asian Markets

Topix index in Tokyo edged lower after advancing for five days in a row. Tokyo Stock Exchange abandoned its plan to increase or add trading hours after resistance from brokerage firms. Inpex, Japan Petroleum Exploration and Taiyo Nippon Sanso dropped after oil dropped to a four-year low.

Stocks in Tokyo edged lower after crude oil futures slid to a four-year low. The steady and persistent decline in oil price in the last five months has changed the dynamic of the many economies in Asia and emerging markets.

The Bank of Japan said services producer price index in October climbed 3.6% from a year earlier, increase for the 16th months in a row.

The Nikkei 225 Stock Average fell 24.04 to 17,383.58 and the broader Topix index slid 2.75 to 1,406.40.

The Topix index declined for the first time after rising for five days in a row.

The yen slipped 0.2% to 117.61 against one dollar.

The Tokyo Stock Exchange scrapped a plan to increase or add trading hours in a day amid resistance from brokerage firms.

Yesterday, Japan Exchange Group Inc. Chief Executive Officer Atsushi Saito told reporters in Tokyo that the exchange will not implement any of the options.

In Mumbai trading, the Sensex Index increased 48.14 or 0.2% to close at 28,386.19. The CNX Nifty added 12.65 or 0.2% to 8,475.75.

MRF Limited, the tire maker said net in the fourth-quarter surged 72.1% to Rs 316.91 crore. Net revenues rose 7.15% to Rs 3,386 crore.

Reliance Capital Ltd, the financial service provider said Japan-based Nippon Life Insurance agreed to raise its stake from 26% to 49% in Reliance Capital Asset Management.

Reliance Capital’s asset management has $34 billion under management.

Siemens Limited, the diversified conglomerate reported net in the fourth-quarter soared 192.8% to Rs 436.78 crore.

Total revenues slid 0.7% to Rs 3,250.29 crore.