Traders Rally for Now

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

Market averages rise on the back of mercurial consumer sentiment index. Fall in construction spending for the third month in a row drove housing sector down. Pixar stock in not animating investors for now as it revises the earnings expectation downwards. Asian markets closed mixed while European markets are trading higher on the strength in auto stocks. German government of Schroeder lost confidence vote.

U.S MARKET AVERAGES

In the early trading hour the stocks enjoyed wide-spread buying as investors read positive economic indicators. Latest read on consumer confidence from University of Michigan for June rose to 96 from 94.8 in May and better-than anticipated 94.6.

The Institute for Supply Management’ Manufacturing index was also stronger than anticipated. The ISM index for June was reported at 53.8 jumped from 51.4 in May. Construction spending fell by 0.9%, third straight decline drove several housing stocks down.

Weaker than anticipated DVD sales of ‘The Incredibles’ led Pixar to revise its earnings downwards. The stock fell in the early trading 12%.


EARNINGS AND U.S. CORPORATE NEWS

Biomet, medical devices maker, reported 4Q earnings of 41 cents per share vs. 31 cents a year ago on stronger sales almost meeting estimates of42 cents per share. The company projected 2006 earnings in the range of $1.74 to $1.84 per share.

HEI posted 3Q net income of 3cents a share compared with a loss of 12 cents last year due to increased sales.

Intraware, internet services company, announced 1Q preliminary loss of 1 cent per share compared with breakeven on a per-share basis.

Investors Real Estate Trust, posted 3Q net income of 4 cents a share against 3 cents for the prior-year same period on higher revenue.

Lawson Software, software maker, reported 4Q increase in profit to 6 cents per share vs. 3 cents a year earlier on good costs and expenses management.

Quantum Fuel Systems Tech Worldwide, manufacturer of packaged fuel systems, reported net loss of 10 cents per share vs. 6 cents last year on decrease in revenue.

Red Hat, leading distributor of Linux software, posted 1Q earnings rise of 7 cents per share vs. 5 cents for the comparable 2004 period on 46% higher sales. Analysts had expected earnings of 5 cents a share.

SABA Software, provider of human capital management solutions, reported 4Q loss of 2cents per share on a GAAP basis compared with a loss of 16 cents per share This-year fourth quarter results include the effects of the THINQ acquisition.

United Financial Mortgage posted 4Q profit jump of 24 cents a share vs. 17 cents a year earlier.

Verity, enterprise search software provider, reported 4Q net earnings breakeven on a per-share basis compared with 4 cents last year missing estimates of 5 cents a share.

Viisage, identity technology company, posted 1Q net loss of 3 cents per share vs. 5 cents for the last-year same period on higher revenue.


OIL, METALS AND CURRENCIES

Gold futures dropped $2 an ounce ahead of the long holiday weekend in the U.S and next week’s meeting of G8 in Scotland. August delivery traded $2.20 down at $434.90 bid per troy ounce on the New York Mercantile Exchange.

INTERNATIONAL MARKETS

German drug maker Atlanta lost 13% after ending collaboration with Pfizer which announced that it is dropping the development of a HIV- treating drug and another one treating smoker’s lung and asthma as they failed to show significant advantages over standard strategies.

European markets gained at mid-day dealings as automotive shares rose and markets shrugged off concerns that the U.S. Fed Reserve may continue increasing interest rates. Germany’s DAX 30 rose 0.3%, France’s CAC 40 climbed 0.2%, and London’s FTSE 100 added 0.4%. The euro was lower against the dollar at $1.2084.

Asian benchmarks ended mixed after the Federal Reserve announced another increase in a key interest rate and U.S stocks tumbled. In Japan shares closed up erasing early losses on upbeat assessment of business environment. The Nikkei added 0.4%, South Korea’s Kospi climbed almost 1%, but Singapore’s Straits Times shed 0.1%. In late Tokyo trading the dollar quoted at 108.31 yen.