Mixed Opening in the Face of Oil at $60

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

Investors did not like the deal from Zions Bancorp for Texas based Amegy and drove both the stocks lower. The morning weakness in the face of rising oil prices and hurricane related rally in energy futures is spreading to several consumer and retail related stocks. Tech stocks are struggling during the session. In the overnight trading markets were weak in Tokyo and HK but averages in India are at all-time high as foreign institutions rush to invest more in the emerging economy.

U.S. MARKET AVERAGES

Averages negative opening bias has broadened from retailers, restaurants, casinos to consumer durables and select tech stocks. The analysts revised revenue estimates for Intel and Motorola has not much helped the sector this morning.

Energy stocks are loosing the early morning momentum as the weakness in the averages spread across several sectors.

EARNINGS AND CORPORATE NEWS

Airspan Network lowered the 2Q revenue guidance from $24.7million to $21 million and expects wider loss than previously reported $2.9 million.

UT Starcom has signed agreement with Softbank BB in Japan to expand existing Gigabit Ethernet Passive Optical network.

Capstone Turbine has received follow-on order from its Russian distributor totaling 1.7 MW.

ENERGY, METALS AND CURRENCIES MARKETS

August delivery of Crude oil rose 70 cents to $60.29 per barrel as tropical storm cut the oil supply in the Gulf of Mexico and threatens the supply in the coming days. August delivery of Gold gained $1.50 to $425.40 per ounce and September copper delivery jumped 1.30 cents to $1.52.

In European trading dollar made a small advance against euro and pound. Euro traded at $1.1904 vs. $1.1917 against dollar at yesterday’s close and pound traded at $1.7535 vs. $1.7571 against dollar at similar close.

INTERNATIONAL MARKET NEWS

Asian markets advance was mixed but the strength in markets in Mumbai, India was at display again. The new foreign funds investing in India drove banking mining and cement stock to new highs. Tokyo market closed down 0.11% but most large cap stocks with export bias advanced as dollar gained against yen the day’s trading. Shares in Hong Kong were up 0.2% led by CNOOC rise of 3.7% and similar gains in Sinopec and Petrochina. Trading firm Li & Fug advanced 1.7%. In Korea Samsung Electric was up 1.1%. Philippines shares were mostly unchanged.

Brazilian low cost airlines GOL plans to launch a discount carrier in Mexico in partnership with investment group ITA. Less than 2% travelers in Mexico use airplanes for the domestic travel. Even though 18 million people use planes for their domestic and international trips the market potential for discount carrier is as large as 50 million.

OTHER NEWS

London was awarded summer 2012 Olympic games defeating a rival bid from Paris. London hosted games last time in 1948. During its fourth attempt to win the bid London is banking on the fact that investment in East London renewal will help games and the city.