Market Stays High

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

Traders have decided to focus on the positive news in the Fed

U.S. AVERAGES

Traders are looking at the sunny side of the Fed’s transcript or may be it is summer heat. Market is trading higher after the Fed’s widely expected short-term rate hike and traders are focusing on the Fed’s statement that the economic expansion is on track with inflation contained.

In the morning hours of trading tech, semiconductor, homebuilders and luxury retailers are trading higher while Internet, oil drillers, and restaurant stocks are trading lower.

Shares of Federated Department Stores are trading up by better than $2 on meeting the earnings estimates. Cicso is trading lower by 4% after reporting rise of 11% in revenue and 12% in earning, however, the company lowered the guidance for the next quarter.

AIG shares are up by better than $1. The company reported this morning earning of $1.52 vs. $1.21 estimates.

Stocks in financial services sector are trading higher with significant gains. The shares of Legg Mason, T.Rowe Price, Alliance Capital are up.

Mittal Steel, largest steel maker, reported 15% lower earnings and predicted lower earnings in the third quarter.

American Italian Pasta shares declined to all-time low a day after company delayed the quarterly filing and estimated net loss for the year.

ECONOMIC NEWS

The weekly crude inventories rose by 2.8 million barrels vs. one million barrels draw down estimated by the market. The gasoline inventory fell by 0.1 million more than estimated and distillate inventories rose by 0.9 million barrels more than anticipated by the market.

The unedited copy of the Weekly Petroleum Report is in the following paragraphs with the web link to the report.

Summary of Weekly Petroleum Data for the Week Ending August 5, 2005

U.S. crude oil refinery inputs averaged nearly 16.0 million barrels per day during the week ending August 5, down 64,000 barrels per day from the previous week's average. Refineries operated at 95.0 percent of their operable capacity last week.

However, gasoline production increased, averaging nearly 8.8 million barrels per day, while distillate fuel production inched up slightly, averaging 4.3 million barrels per day.

U.S. crude oil imports averaged nearly 11.1 million barrels per day last week, up 101,000 barrels per day from the previous week, and the second highest weekly average ever. Over the last four weeks, crude oil imports have averaged 10.7 million barrels per day, an increase of 374,000 barrels per day from the comparable four weeks last year.

Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged nearly 1.2 million barrels per day, the largest weekly average so far in 2005, while distillate fuel imports averaged 182,000 barrels per day.

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) rose by 2.8 million barrels from the previous week. At 320.8 million barrels, U.S. crude oil inventories are well above the upper end of the average range for this time of year. Total motor gasoline inventories fell by 2.1 million barrels last week, putting them in the lower half of the average range.

Distillate fuel inventories increased by 2.6 million barrels last week, and are just above the upper end of the average range for this time of year. A sharp increase in high-sulfur distillate fuel (heating oil) more than compensated for a decline in low-sulfur distillate fuel (diesel fuel).

Total commercial petroleum inventories rose by 3.4 million barrels last week, and are above the upper end of the average range for this time of year.

Total product supplied over the last four-week period has averaged nearly 21.0 million barrels per day, or 0.2 percent more than averaged over the same period last year. Over the last four weeks, motor gasoline demand has averaged nearly 9.5 million barrels per day, or 1.4 percent above the same period last year.

Distillate fuel demand has averaged 4.0 million barrels per day over the last four weeks, or 4.4 percent above the same period last year. Kerosene-type jet fuel demand is down 0.1 percent over the last four weeks compared to the same four-week period last year.

For the complete report, please visit the following page.

http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/weekly_petroleum_status_report/current/txt/wpsr.txt


INTERNATIONAL MARKET NEWS

Asian-Pacific markets closed mostly up with the Nikkei among the leading gainers, rising 1.66% on optimism for the Japanese economy and strong gains on Wall Street after the Fed Reserve raised interest rates in line with expectations. In Tokyo all sectors gained with export-related issues in the lead. Among the other gainers in the regional markets, Hong Kong’s Hang Seng added 1.98% and South Korea’s Kospi rose 0.5%. The dollar was trading at the upper end of 111-yen.

European markets finished higher, boosted by data of slowing inflation in the U.S., increased U.S. interest rates to 3.5%, bullish Japanese equity markets and upbeat results in the regional stocks from insurer Allianz and airline Lufthansa. The German DAX 30 gained 1.65%, the French CAC 40 added 0.8%, while London’s FTSE 100 rose 0.2% with gains capped by losses for stocks that went ex-dividend.

ENERGY, METALS AND CURRENCIES MARKETS

Global crude-oil prices retreated to $63-a-barrel level after U.S. government data showed that crude stocks swell. Light sweet crude traded as low as $62.91 a barrel and stood at $63.30. London Brent was trading at $62.49.

Gold futures rose on falling dollar in European trading. Gold in London traded at $436.10 per troy ounce, up from $433.35. In Hong Kong gold gained 90 cents too close at $435.65. Silver closed at $7.04, up from $6.96.

Copper advanced on London Metal Exchange on stock speculation and supply concerns. Copper for delivery in three months rose $19 to $3,508 a ton. It has risen 11% this year and is the best performer on the LME.

The U.S. dollar declined against the other major currencies in European trading, despite the increased U.S. interest rates to 3.5%. The euro was quoted at $1.2386, up from $1.2366. The yen stood at 110.43, down from 111.96. The British pound was traded at $1.7963, up from $1.7864.

EARNINGS NEWS

Cisco Systems’s 4Q net income rose 11.6% to 24 cents a share vs. 20 cents a share a year ago. Sales at the network equipment maker rose 11.1% to $6.58 billion.

Walt Disney Co. reported a 41% jump in earnings to 41 cents a share vs. 29 cents a share a year ago. Revenue was $7.72 billion vs. last year's $7.47 billion.

Panera Bread’s 2Q net earnings rose 61% to 33 cents a share vs. 21 cents a share, in the year-ago period, meeting analysts’ forecasts. The company expects a 3Q per-share profit of 34 - 35 cents, and 4Q net earnings of 46 - 47 cents a share. For 2005, Panera forecast net earnings of $1.57 - $1.59 a share and comparable sales growth of 6.2% - 7.8%

ECost.com, online discount retailer, reported a 2Q net loss of 54 cents a share vs. breakeven last year, citing cited additional operating costs and increased public company costs from its spinoff from PC Mall Inc., as well as a $6.5 million non-cash tax provision.

AIG Inc., posted 2Q profit of $1.53 per share vs. $1.01 per share last year, attributing the increase to large accounting gains booked during the quarter. Analysts expected the New York-based insurer to earn $1.21 per share during the period.

Allianz AG, insurer, said 2Q net income, adjusted for goodwill amortization, climbed 65% to 846 million euros, with revenue up 6.6% to 23.7 billion euros, beating the company’s expectations.

Lenovo Group, PC maker, said 4Q earnings rose 6% to HK$357 million ($46 million), with revenue up 234% to HK$19.6 billion.

Lufthansa, airline company, said it reversed to a 2Q profit of 116 million euros as operating profit rose 87.2% and revenue was up 4.3% on increased sales and better average fares.

CORPORATE NEWS

Yahoo is set to pay $1 billion and transfer its China operations to Alibaba.com Corp. to get in return 35% stake in the Chinese e-commerce company. According to the deal, Alibaba will maintain Yahoo brands for its search engine, but would gain access to its users and advertisers.


Tupperware Corp. ((TUP)) is near a deal to buy the direct-selling unit of Sara Lee Corp. ((SLE)) for between $500 million and $600 million, according to reports Wednesday.

Unocal Corp.'s shareholders vote today on Chevron Corp.'s $17.8 billion cash and stock acquisition offer. Cnooc Ltd., China's largest offshore oil producer, last week abandoned a months-long effort to buy Unocal, blaming the political atmosphere in Washington.


SES AMERICOM and Comcast Media Center, a unit of Comcast Cable revealed a joint marketing and services agreement that focuses on providing centralized solutions to support the cable industry delivery of advanced services offerings, such as HD, VOD, and VOIP.

Questerre Energy disclosed the receipt of regulatory approval for the re-entry program at the Beaver River Field in British Columbia. The company targets production from shallow Mattson sands and expects production from the wells in early 2006. Apace Petroleum Inc., the company's farm-in partner, intends to start the first phase of the program in September 2005. It would work on re-entry, perforation and testing of two existing wells, with two additional re-entries scheduled for the winter, and fracture stimulation, if required. Apace Petroleum would fund 100% of the costs of the initial program and would receive 50% interest in the wells for the Mattson and Questerre would retain the remaining 50% interest.

OTHER NEWS

China revealed for the first time that the U.S. dollar, the euro, the Japanese yen, and the Korean won are the main currencies, composing the basket of currencies, used to set the yuan’s value. The currencies of Singapore, Britain, Malaysia, Russia, Australia, Canada and Thailand are also considered in setting the yuan’s