World Markets Mixed as Oil Dips to New Low

Nichole Harper
31 Jul, 2015
New York City

Market indexes on Wall Street turned lower and commodities declined after crude oil price declined to a new low and extended losses deeper. Euro zone inflation was stable at 0.2% and jobless rate at 11%.

[R]3:25 PM New York City, New York – Market indexes on Wall Street turned lower and commodities declined after crude oil price declined to a new low and extended losses deeper. Euro zone inflation was stable at 0.2% and jobless rate at 11%.[/R]

Market indexes on Wall Street turned lower in the afternoon trading after crude oil dropped to a new multi-year low.

On Wall Street, Tollbooth Strategy Index edged up 5.58 to 10,868.88.

S&P 500 index edged up 4.29 or 0.2% to 2,112.97 and the Nasdaq Composite Index rose 23.76 or 0.5% to 5,152.54.

Crude oil in New York dropped $1.63 to $46.81 a barrel and gold gained $5.60 to $1,094.30 an ounce.

U.S. Movers

Chevron Corporation ((CVX)) dropped 3.7% or $3.46 to $89.62 after the petroleum refiner said total revenues in the second-quarter ending in June plunged 30.3% to $40.36 billion form a year ago period.

Net income in the quarter tumbled 89.3% to $571 million or 30 cents per diluted share compared to $5.67 million or $2.98 from the same quarter last year.

Exxon Mobil Corporation ((XOM)) declined 4.3% or $3.60 to $79.41 after the oil and natural gas refiner reported revenues in the second-quarter ending in June plummeted 33.4% to $74.11 billion form a year ago period.

Net income in the quarter plunged 52.3% to $4.19 billion or $1 per diluted share compared to $8.78 billion or $2.05 from the same quarter last year.

LinkedIn Corp ((LNKD)) plunged 9.1% or $20.66 to $206.73 after the professional networking site operator reported net revenues in the second-quarter ending in June soared 33% to $711.74 million form a year ago period.

Net loss in the quarter widened to $67.7 million or 53 cents per diluted share compared to $1 million or one cent from the same quarter last year.

LinkedIn added cumulative members in the quarter climbed 21% to 380 million and monthly unique visiting members jumped 16% to an average of 97 million.

The company forecasted revenue for the third-quarter in the range of $745 million to $750 million and earnings per share of about 43 cents.

For the year, LinkedIn lifted revenues estimate of about $2.94 billion from previous guidance of $2.90 billion and earnings per share of about $2.19 compared to earlier forecast of $1.90.

European Markets

Euro-zone seasonally adjusted unemployment rate in June was stable at 11.1% from May but dropped from 11.6% in June 2014.

In EU28 region unemployment rate was stable at 9.6% from May but fell from 10.2% in June 2014, the Statistical Office of the European Communities reported.

Separately, the department said in a preliminary estimate the annual inflation in the euro area was unchanged at 0.2% in July compared to June.

In London trading, FTSE 100 index rose 12.76 or 0.2% to 6,681.35 and in Frankfurt the DAX index fell 58.10 or 0.5% to 11,205.59.

In Paris, CAC 40 index edged down 3.86 to 5,042.56.

For the week, FTSE 100 index increased 1.5% and the DAX index slipped 1.3% and the CAC 40 index slid 0.3%.

For the month, FTSE 100 index gained 1.1% and the DAX index rose 0.2% and the CAC 40 index jumped 3.3%.

For the twelve month period to July, FTSE 100 index fell 0.7% and the DAX index surged 19.1% and the CAC 40 index soared 18%.

Airbus Group SE soared 4.2% to €65.02 after the aerospace and defense contractor reported revenues in the first-half ending in June jumped 6% to €28.89 billion or €27.20 billion in a year ago period.

Net profit in the period surged 34% from a year ago to €1.52 billion compared to €1.14 billion and diluted earnings per share gained to €1.94 from €1.45.

Airbus said revenues in commercial aircraft segment climbed 9% to €21.08 billion and revenues in helicopters segment increased 5% to €2.95 billion while revenues in defense and space business was nearly flat at €5.53 billion.

BNP Paribas SA jumped 2.7% to 59.22 after the France-based banking and financial services provider said revenues in the first-half ending in June surged 13.7% to €22.14 billion or €19.48 billion in a year ago period.

Net in the period swung to profit from a year ago to €4.20 billion compared to a loss of €2.82 billion and diluted earnings per share swung to €3.22 from diluted loss per share of €2.35.

Separately, the group said it had booked loss of €5.95 billion in the first-half of last year related to settlement with the U.S. authorities.

The bank added revenues in operating division soared 12.2% and revenues in international financial services surged 20.7% and revenues at corporate and institutional banking climbed 15.6%.

Lloyds Banking Group Plc slumped 2.6% to 83.80 pence after the U.K.-based financial services provider said total revenues in the first-quarter ending in June declined 15.8% to £11.81 billion from £14.03 billion in a year ago period.

Net profit in the period climbed 32.3% from a year ago to £925 million compared to £699 million and diluted earnings per share increased to one penny from 0.8 pence.

Lloyds said underlying profit in the period soared 15% to £4.38 billion from a year ago period mainly due to higher income, flat costs and lower impairment charges.

Asian Markets

Nikkei average jumped on Friday and the index closed up in the week after the latest read on inflation was below central bank’s target.

Inflation index in Japan increased 0.4% in June from a year ago month and was unchanged at 0.1% from the previous month. With the latest decline in energy prices, inflation has been below the Bank of Japan’s target. Inflation may have more downward pressure next month as prices in Tokyo area fell in July.

Consumer prices index in June increased 0.4% from year ago month, the Ministry of Internal Affairs and Communications said.

The department added in a preliminary estimate the consumer price index for Ku-area of Tokyo in July fell 0.2% from the previous month but increased 0.2% from a year ago month.

The Ministry of Land, Infrastructure, Transport and Tourism said housing starts in June climbed 16.3% after increasing 5.8% in May.

Housing starts jumped to 1.03 million in twelve months to June from 0.91 million in twelve month period to May.

The Nikkei 225 Stock Average gained 62.41 or 0.3% to 20,585.24 and the broader Topix index rose 12.31 to 1,659.52.

For the week, Nikkei 225 edged up 0.2% and for the month increased 1.3%.

For the year-to-date Nikkei 225 has soared 17.8% and surged 33.2% from a year ago month.

The yen declined to 124.24 against a dollar.

Honda Motor Co Ltd gained 1.3% to 3.979.50 yen after the auto maker reported net sales in the first-quarter ending in June climbed 15.3% to 3.70 trillion yen from 3.21 trillion yen in a year ago period.

Net income in the quarter soared 19.5% to 186 billion yen compared to 155.6 billion yen and earnings per share dropped to 61.48 yen from 81.78 yen the same period a year ago.

Honda forecasted revenues for the year to climb 8.8% to 14.50 trillion yen and net income to jump 3.1% to 525 billion yen.

Honda added global car sales volume in the first-quarter climbed 4.9% to 1.15 million vehicles.

Mitsubishi UFJ Financial Group Inc increased 0.8% to 900 yen after the financial services provider reported net sales in the first-quarter ending in June surged 19.8% to 1.56 trillion yen from 1.31 trillion yen in a year ago period.

Net income in the quarter jumped 15.5% to 277.76 billion yen compared to 240.49 billion yen and diluted earnings per share rose to 19.74 yen from 16.89 yen the same period a year ago.

MUFG forecasted net profit for the fiscal year ending in March 2016 of about 950 billion yen.

Sumitomo Mitsui Financial Group, Inc jumped 1.1% to 5,544 yen after the banking and financial services provider reported net sales in the first-quarter ending in June jumped 12.6% to 1.26 trillion yen from 1.12 trillion yen in a year ago period.

Net income in the quarter climbed 16.1% to 267.87 billion yen compared to 230.82 billion yen and diluted earnings per share advanced to 195.79 yen from 168.72 yen the same period a year ago.

The bank forecasted net profit for the fiscal year ending in March 2016 to edged up 0.8% to 760 billion yen.

Stocks in Mumbai rose and rupee struggled near low in the year as investors shifted focus to domestic earnings.

The Sensex Index climbed 409.21 or 1.5% to close at 28,114.56. The CNX Nifty advanced 111.05 or 1.3% to 8,532.85.

Rupee weakened 9 paisa to 64.13 against one U.S. dollar.

For the week, Sensex Index slid 0.1% and CNX Nifty rose 0.1%.

For the month, Sensex Index increased 0.2% and CNX Nifty gained 0.9%.

ICICI Bank said quarterly net climbed 12% in 8% increase in revenues. Kotak Mahindra Bank net plunged 26%.