Broad Buying in Early Trading

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

Early trading is dominated by Texas Instuments news of revised earnings and revenue for the quarter. Oil declines by 50 cents but energy stock still rise. IAC/Interactive is in deal to sell its stake in VivendiUniversal for $3.4 billion.

Markets open higher as reflected in the futures trading. Falling oil prices, positive outlook from Texas Instruments contributed to the early trading momentum. Crude oil is trading lower by 46 cents at $53.30 per barrel. Market is awaiting the U.S. inventory data at 10:30 AM.

Stocks of truck transportation companies are trading lower. Shares of Imclone, IAC/Interactive, Gilat Satellite and American Ecology are trading higher.

IAC/Interactive is in a deal with Vivendi Universal to sell its stake to NBC for $3.4 billion.

Investment vehicle, Tracinda Corp, of Kirk Kerkorian raised its stake in General Motors to 7.2% after it purchased 18.9 million shares in the tender offer that expired yesterday. However the offer failed to raise its stake to 8.8% as planned. On Tuesday, GM Chairman said that it plans to reduce workforce by 25,000 by the end of 2008. The plan is viewed with skepticism by investors and union and is viewed too little and too late.

Asian-Pacific markets finished higher as technology shares attracted investors and led gain after the chip maker Texas Instruments lifted its profit and sales outlook. Japanese stock average climbed 0.6% up, Hong Kong edged up 0.4%, China’s Shanghai Composite index surged 8.2% on talk that government could be acting behind scenes to prop up shares.

European shares traded lower in mid-day trading on mixed corporate earnings news. Investors were also influenced by mixed Tuesday US markets but there was some positive news for the tech sector coming from Texas Instruments which announced boosted 2Q profit outlook. U.K. stock average fell 0.32%, followed by Germany 0.17% and France 0.16%.

FGL, sportswear retailer, reported 1Q net loss of 23 cents compared with net profit of 3 cents a year ago on soft corporate sales and lower margin. Comparable store sales fell 4.3%.

Comtech, communication equipment maker, posted 3Q 75 % profit rise of 39 cents vs. 22 cents last year beating estimates of 24 cents on strong sales. Revenue rose 47%.

Hayes Lemmerz, reported 1Q 4.0% sales increase to $618 million and operating earnings decline from $14.8 million down from $28.2 million. The company confirmed its 2005 earnings outlook.