Oil and Tech Lead Rally

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

Oil and techs are driving rally in the early morning trading. Home builder stocks are under pressure and tals of Fed not tightening at the next meeting are gathering steam. European markets are rallying across the region with oil and auto sectors leading.

Morning trading is driven by rise in oil prices, Google stock price target of $350 by CSFB, and May ISM index released at 51.4 vs. consensus at 52.2 and retail comp sales data.

Crude oil prices in London and in NY traded higher. In NY oil traded above $52 at $52.40 per barrel. The summer driving season, hospitalization of Saudi King, and unexpected fall in U.S. crude inventories have turned market very volatile in the lat three weeks. Crude price has jumped 10% from $47 in mid-May.

Terex reported 1Q profit of 59 cents per share compared to 34 cents a year ago on sales jump from $1.04 billion to $1.45 billion. The company raised full-year guidance to $3.77 from $3.50.

Hovnanian Enterprises, homebuilder, posted 2Q earnings jumped 51% net income jump to $1.62 from $1.06 on higher home sales exceeding analyst's' expectations of $1.61. The revenue rose 32% to $1.2 billion. The company raised its 2005 outlook.

Navarre, publisher & software maker, announced 4Q and fiscal 2005 financial results postponed.

Nortel Networks, Canadian communication & networking equipment company, swung to $49 million loss, or a penny per share compared with net earnings of $59 million or a penny per share last year.

Semetech posted lower 1Q earnings of 14 cents a share from 19 cents a year ago on decline in revenue from $61.9 million to $54.2 million. The company expects 2Q earnings of 14 cents per share.

Westaff posted 2Q profit loss of $371,000 or 2 cents a share vs. earnings of $168,000 or a penny per share a year ago.

Markets in Asia closed mildly higher with averages in Tokyo up 0.47%, HK up 0.04%, Philippines up 1.81% and Singapore up 0.7%. Tokyo tech stocks were favored by investors in overnight trading with Yahoo Japan up 0.9% on the news that the company will work two local brokerage firms to provide online stock trading and other financial services.

European markets at mid-day trading were higher on higher oil price, expected No vote in the Netherlands and Euro weakening further to a eight-month low. Market average in Norway led the rally and was up 1.4% followed by Switzerland up 0.8%, German 0.45%, France up 0.4%, and U.K. up 0.26%. Auto and Oil sectors rose across the region.

Airbus delivery of the A380, the latest aircraft for long-range passenger transport, will be delayed from 2 to 6 months. Quantas, Air France-KLM, and Singapore airlines will be affected. These airlines are considering to ask for compensation from Airbus.