Markets in Cautious Trading Mood

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

European and Asian markets trade lower in anticipation of U.S. economic review from Fed Chairman. Oil had rebounded on the worries of gasoline supply in the comnig months. UPS shares are trading lower on downgrade, Intel and other semiconductors are also on the decline in the morning trading. H&R Block is up 10% on earnings news.

In the morning hours of trading averaged are trading with a cautious tone. Markets are waiting to hear the Fed Chairman’s testimony on the heath and direction of U.S. economy.

Bond market yields are on the rise this morning as result financials and utility stock are trading lower. Energy sector is on the rise with jump in oil price but the network storage, semiconductors and healthcare stocks are trading lower.

UPS is trading lower by $1.50 on the downgrade from Morgan Stanley.

In the energy market in the morning trading Crude oil, heating oil and gasoline are trading higher. Crude oil is trading up 49 cents to $53.03 per barrel. In metals market gold, silver, copper and platinum are trading lower on the strength in dollar.

Maurice Greenberg, late Wednesday, resigned from the board of AIG, the company which he led for 40 years as CEO and built it into an insurance giant.

Navistar, truck & specialty vehicle maker, reported 2Q profit rise of 2%, or 70 cents a share vs. 68 cents a year ago on favorable market conditions. Analysts had expected 71 cents a share. Stocks jumped 5.7% to $34.03 in pre-market activity. The company raised its 2005 guidance.

ITT Industries sees earnings higher than previously expected , or $1.28/1.32 per share compared with $1.17 last year. Shares remained unchanged at $93.57 on NYSE.

Richemont, Cartier jewelry maker, posted 1Q sales increase of 15% on higher luxury goods demand. Net income rose 33% to 881 million euro, operating earnings climbed 71% to 505 million euro.

European stocks declined in midday trading as investors were awaiting the economy testimony given by the US Fed Reserve Chairman. The average in France slipped 0.51%, UK 0.6%, Germany 0.12%. Chip shares were lower before the chip maker Intel’s update. Oil companies were also trading in the negative territory.

Most Asian markets closed down on cautious trading, technology shares declined as markets in the region waited on the economy briefing from Fed Chairman. Japanese stocks ended 1.1% down, followed by Thailand 1.0% and India 0.37%. However South Korea’s average edged up 1.2% on lower interest rates, shares in China gained 1.1%.