Markets Get a Boost from Fed Comments

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

Treasuries rally on Fed Chairman's belief that flatter yield curve does not reflect slowing economy. 10-year yield on treasury fell below 3.89%. Monsato raised its adjusted earnins outlook for the quarter and ConAgra said it will miss the current quarter earnings by 10 cents. oil and metals are in decline for the session so far. GM stock rises as far as 1.8%.

Enthusiastic buying in the equities market drove the stock averages in the morning hour in the positive territory. Stocks in the auto, energy, and tech sectors were trading above average volume.

Every stock in the Dow Jones Average was trading higher after more than an hour of trading.

Energy and metals markets are trading lower. Crude, gasoline, propane, heating oil are trading lower on the possible rise in OPEC supply. Copper, gold, silver, and platinum are trading lower in the opening hours in NY.

China’s Cnooc said that it is still considering bidding for Unocal threatening the $16.4 billion merger between Unocal and Chevron.

Stocks of healthcare provider are trading higher after Apria Healthcare confirmed that it has received interest in purchasing outstanding stocks. The shares are trading up 12%.

GM Chairman and CEO announced that the company will cut at least 25,000 people staff at its assembly and component plants over the next three years, while addressing shareholders meeting. The stock in the morning trading is trading up 1.7%.

In the current quarter ending April 30, Sears Holdings reported loss of 7 cents a share on revenue of $7.9 billion, including the inventory related accounting charge of $81 million or 65 cents per share. The results include K Mart’s 13 week performance and that of Sears’ five weeks. Sales at Sear grew one percent and at K Mart lost 2.3%.

Monsato, maker of herbicide and pesticide, reported that it has increased its adjusted earnings outlook for the 3Q from $1 to $1.05 per share. The company forecasted net earnings for the quarter of 12 to 17 cents vs. 15 to 22 cents. The company left unchanged the annual forecast of $2 to $2.05.

ConAgra Foods reported that the company will miss the 4Q earnings by 10 cents on the weakness in packaged meat business. The company will also reduce staff in the unit to save costs by $100 million. The stock fell by 6%.

Alberton’s, supermarket chain, reported tripled 1Q net income, or 27 cents per share vs. 10 cents a year ago on acquisition and continued recovery. Analysts had expected earnings of 26 cents a share. Same-store sales increased 1.8%. The company backed its 2005 guidance.

American Woodmark, manufacturer of kitchen cabinets, posted 4Q lower net income of 44 cents per share compared with 50 cents in the prior- year same period. Net sales jumped 15%.

Most markets in Asia closed lower on weaker US dollar as investors worried that this will deflate value of exporters’ profit when repatriated into local currencies. Averages in Hong Kong, Japan, South Korea and the Philippines were trading down whereas the stocks in India traded higher by 0.34%, Malaysia 0.57% and Singapore 0.25%.

European markets finished higher at mid-day gaining on Siemens’s long-awaited deal to divest control of its unprofitable handset unit as well as on a move that lowers Pernod Ricard’s chances to buy Allied Domecq.

The stocks of the Japanese automakers Honda, Toyota and Mazda ended down. Advantest and Sony from the tech sector also lost ground. Honda dropped 1.9%, Sony fell 1.0%.

The euro rose against the US dollar reaching $1.23 level. The greenback fell against the Japanese yen to 106.60.

One week before the OPEC meeting crude oil prices lose ground but keep higher than $54 a barrel levels as the frenzy heating oil buying slowed down.

The flat-panel maker LG Philips LCD advanced 2.7% after announcing a three-year supply contract of $5 billion with Hewlett-Packard.

Siemens AG agreed on handing control to Ben Q of Taiwan over the company’s handset division putting a stop to the long search for a partner for this loss-making business. The transaction which is to complete in the quarter ending Sept. 30 will take a pretax charge of $429.7 million. Boosted by the deal Siemens shares gained 1.9%.