Little News to Give Stocks a Direction

albena
30 Nov, -0001
New York City

Stocks held in the middle of the intraday trading ranges though they got some downward pressure. The major averages slightly declined.Ameritrade reached a new 52-week high on in-line 3Q earnings. Open Text slightly slid on slashed outlook. Investors kept to the sidelines ahead of a slew of key earnings reports due later in the week.

U.S. MARKET AVERAGES

The 10-year Treasury declined 7/32, or $2.19 per $1,000 invested, to yield 4.128%. The 30-year bond dropped 16/32 to yield 4.373%. Yields move inversely to prices.

Ameritrade ((AMTD)) reached to a new 52-week high helped by in-line earnings for 3Q. Among the advancers were also Lowe`s ((LOW)) which continued its 3-day rally, and Best Buy ((BBY)).

Open Text ((OTEX)) has declined sharply on slashed 4Q outlook, reaching a new 52-week low.

General Motors Corp. ((GM)) dropped 1.6% to $35.24 after Deutsche Bank provoked worries about the stock as the automaker prepares for a confrontation with the United Auto Workers union on healthcare cost issues.

Intel Corp. ((INTC)) declined 0.2% after the chip maker and several information tech companies manufacturing or selling computers were attacked by the European Commission as part of an investigation into possible anti-trust violations.

Walt Disney Co. ((DIS)) shed a penny as it was reported it plans to spin off its radio-station network group.

The Home Depot Inc. ((HD)) climbed 1.3% to $40.81 after broker Jefferies & Co. upgraded the home improvement retailer.

TD Banknorth dropped $0.65 to $29.31 after the New England banking company, said it has agreed to acquire Hudson United Bancorp for $1.9 billion. Hudson United Bancorp’s shares advanced $4.20 to $41.70.

Royal Dutch Shell Group agreed to pay $90 million to settle charges brought by shareholders after the company restated proven oil reserves. The company will pay $90 million to plaintiffs plus up to $1 million to cover out-of-pocket expenses as $25 million will be covered by insurers.

ECONOMIC NEWS

No major economic news is scheduled for release Tuesday.

Economy in Singapore advanced at a faster-than-anticipated speed in the 2Q on strong growth in the services sector and improved manufacturing data. On seasonally adjusted and annualized basis GDP rose 12.3% rebounding from a first-quarter slump and allaying fears of recession.

Lehman Brothers continues to add investment bankers to its staff in Japan led by the ambition to be one of the top 5 merger-and-acquisition advisors in Japan over the next three years. It is trying to assert its presence in sectors such as health care, financial technology and natural resources, areas in which Japanese companies are increasingly looking to boost their global presence.

INTERNATIONAL MARKET NEWS

Markets in Europe declined restrained by losses in oil companies and a stronger dollar, although raised forecasts boosted Alcatel and L’Oreal. Averages in Germany shed 0.2%, in France dipped 0.1%, and in the U.K. dropped 0.3%. Crude-oil was trading below $60 a barrel, last up 67 cents at $59.59. Both the euro and the pound gained ground against the dollar, and quoted at $1.2181 and $1.7697 respectively.

Asian-Pacific markets ended mixed with Japanese and South Korean indexes up helped by technology shares and easing crude-oil prices. Japan’s Nikkei extended gains on optimism for strong corporate earnings and closed 0.2% higher. South Korea’s Kospi added 0.3% on the back of strong offshore buying of technology and bank shares. China’s Shanghai Composite rose 3.4% on a late-session surge in blue chips. Hong Kong’s Heng Sang fell 0.1%. The dollar bought 111.16 yen at 5 p.m, in Tokyo it traded between 111.08 and 111.79 yen.

European markets edged off three-year highs on declines in the oil sector and despite lifted forecasts which gave a boost to Alcatel and L’Oreal and telecom gains which offered some support. German’s DAX 30 fell 0.2% after the statistics office said that the value-added tax will be increased to 18%. The French CAC 40 lost 0.1% and the U.K’s FTSE 100 declined 0.2% on mixed corporate news and the continuing aftermath of the terrorist bombings.

ENERGY, METALS AND CURRENCIES MARKETS

Oil futures jumped more than $1 on fears of a new summer storm. August light crude delivery climbed $1.58 to $60.50 a barrel in morning trading on the NYME. London Brent rose $1.32 to $58.76 a barrel.

Oil prices surpassed $59 a barrel under the threat of a new Atlantic storm after Hurricane Dennis had passed without causing major destruction to oil facilities. U.S. light crude delivery for August went up 31 cents to $59.23 a barrel. London Brent gained 24 cents to $57.68 a barrel.

Gold futures rose in London to $426.95 bid per troy ounce, up from $425.80. In Hong Kong gold gained $2.2 to close at $427.25 per ounce. Silver was also up to $7.11 per ounce from $7.07.

The U.S. dollar dropped against other major currencies. It fell to a2-week low vs. the euro on trade-deficient concerns. The euro quoted at $1.2170, up from $1.2072. The pound traded at $1.7673, a rise from $1.7575. The greenback bought 111.15 yen, down from 111.85.

EARNINGS AND CORPORATE NEWS

More influential earnings are due later this week, including Apple Computer, Advanced Micro Devices and General Electric.

PepsiCo, soft drink maker, posted 2Q profit increase of 70 cents per share compared with 61 cents last year on strong growth in its international business. Analysts had expected net income of 67 cents a share.

Media General , newspaper publisher and broadcaster, reported 2Q doubled profit of $1.61 per share vs. 78 cents a year ago including a gain on the sale of its interest in the Denver post.
Excluding special items net income would be 80 cents a share.

M & T Bank posted 2Q profit growth of $1.69 a share vs. $1.53 last year beating expectations of $1.64 per share. The favorable results are due to a loan and deposit increase and improved credit quality.

Marshall & LLsley, financial services firm, posted 2Q income growth of 81 cents per share vs. 67 cents a year ago on increased total loans and leases beating expectations of 74 cents a share.

Ameritrade, online broker, reported 3Q earnings rise of 18 cents per share vs. 15 cents a year ago on higher interest income and lower expenses. Analysts had expected 17 cents per share.

Audiovox , consumer electronics maker, reported 2Q profit increase of 25 cents per share vs. 16 cents last year on higher sales of flat-screen TVs and a tax benefit.

Bank of Granite posted 2Q earnings rise to 30 cents a share from 24 cents for the last-year same quarter.

Eagle Broadband, provider of broadband and communication services, reported 3Q net loss of $3.95 million, an improvement from a loss of $4.38 million a year ago mainly on depreciation and amortization expenses.

Energy Transfer Partners, posted a record 3Q profit jump to $189.5 million from $21.3 million last year including special items.

Horizon Health, contract manager of clinical services, posted 3Q net income increase of $3.5 million, or 24 per share vs. $2.7 million, or 24 cents a share a year ago. The company projected 2005 earnings between $1 and $1.02 a share.

Open Text, software maker, warned that 4Q results will be weaker than previously announced 30 to 40 cents per share though exact range is not given.

Smart & Final, food and supplies warehouse operator, posted 2Q net income of 25 cents per share compared with 26 cents a year earlier. Same-store sales rose 4.1%.

TTI Telecom International, networking software provider, posted a preliminary narrowed 2Q loss of 21 cents vs. a loss of 55 cents a year ago on positive restructuring effect.

Universal Forest Products, a maker of lumber and building materials, posted 2Q earnings increase of $1.20 a share compared with $1.06 last year on higher sales volume and better results for framing operation. The company raised its 2005 earnings outlook by 15 to 20%.

L’Oreal SA said that strong 2Q results and favorable currency fluctuations ‘lead it’ to expect a considerable improvement in 2005 results. 2Q sales grew 5.45% to $3.62 billion euros. Comparable-store sales rose 5.1%.

Alcatel, French telecom equipment maker, posted 2Q net income of 16 cents per share including a tax benefit and one-time capital gain exceeding analysts’ expectations of 14 cents a share.

Infosys Technologies, Indian software and consulting company, reported rise in 1Q profit of 45 cents per share, up from 31 cents a year ago beating estimates of 43 cents a share. The company lifted its 2Q guidance to the range of 46 to 47 cents a share.

OTHER NEWS

South Korea promised energy aid to poor North Korea trying to encourage it to return nuclear disarmament talks after more than a year deadlock and give up nuclear weapons at the revived six-nation arms talks.

China agreed to take steps against piracy of U.S products as part of a package incremental measures which aim at easing the accumulated anti-Chinese sentiment in the U.S. Congress. The American Commerce Secretary said that the Bush administration would closely supervise the execution of the undertaken measures.