Meandering Markets

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

Interest in Apple and Intel fail to spark rally in tech stocks. Oil volatility lead most oil companies higher. European and Asian stocks closed mostly lower. Washington Mutual agrees to buy Providian for $6.45 billion for cash and stock.

In the morning hours averages trade in split fashion. Energy and related companies are trading higher on mild up tick in oil price. Apple and Intel shares are trading above average volume.

Retail stocks are in favor in the today’s session. CVS, Best Buy, Circuit City, J C Penney and Nordstrom are trading higher.

Weatherford international has agreed to buy oil drilling and technical services unit of Canada based Precision Drilling for $2.28 billion in cash and stock deal. The units have annual revenue of C$1.1 billion and strong presence in Middle East and Africa.

Washington Mutual agreed to buy Providian for $6.45 billion in cash and stock. The combined company will focus on “middle market”.

Discount air carrier Jet Blue reported 32% jump in traffic in May on 25% in crease in capacity and 4.8% rise in load factor to 866% and 27.7% rise in number of passenger to 1.2 million. For the year-to-date the traffics rose to 5.9 million.

Packaging Dynamics Corp shares fell 6% on lower revenue and earnings forecast from management. The company cut its full-year outlook for operating earning to $1.13 -$1.23 from $1.20-$1.30.

At mid-day markets in Europe were mildly down in Germany, France, the Netherlands and Switzerland. Averages in U.K. were trading higher by 0.12%. The shares are trading in the negative territory on higher crude oil prices and weakness in tech sector.

Mining stocks of BHP Billiton and Chilean copper company Antofagsta were up 1% in London mid-day trading.

Euro and British pound trade higher in the morning in European currency markets.

French government said that it will sell between 6% and 8% stake in France Telecom and lower its holding to 33% to 35%. FT Shares in Paris were down before stocks were suspended for trading. STMicroelectronics were down 1.5% and that of Alcatel were down by 0.1%.

Asian markets closed mixed after lower early and midday trading levels reflecting last week's disappointing US jobs report. Philippines, Thailand and Malaysia rallied but markets in Tokyo and Hong Kong were up mildly. U.S. slower job creations loomed on region’s exporters.

Japan’s Ministry of Finance reported that 1Q corporate capital expenditure rose by 7.4% stronger than 3.5% rate of growth in the previous quarter.

Semiconductor stocks in Taiwan rose on optimism on Intel’s earnings release this week. Shares of Taiwan semiconductor rose 0.7% and United Micro rose by 0.9%.

Pakistan stock market in recent days has seen daily volatility of more than one percent. The good agricultural crop and financial liquidity is aiding economy. The U.S. injection of funds to support the current dictatorial regime and the U.S. debt forgiveness has led GDP projection for the fiscal year 2005 to more than 8%.