Market Up, Gold Hits a New High

Elena
16 Sep, 2005
New York City

Asian markets finished mostly down with the Nikkei losing 0.2% on tech stocks sell-off. European shares were trading higher at mid-day ahead of general election in Germany with the DAX 30 higher1.4%. No major earnings reports are expected today. Economic data on current-account deficit and consumer sentiment due later in the day.

U.S. MARKET AVERAGES

Stock futures are trading higher after the mixed performance of the three major averages on Thursday. Markets are even expected to increase their current gains on market opening. What attracts investors’ attention is economic data release later in the morning. Market sentiment will not be supported by major earnings and corporate reports as such are not expected today.

Dow Jones futures were recently up 32 points, while Nasdaq futures were ahead 5.5 points and S&P futures were up 4 points.

The Commerce Department is due to release the current-account report for the second quarter at 8:30 a.m. EDT Friday. Economists expect a modest narrowing of the current-account deficit to $193.0 billion from $195.1 billion in the prior quarter.

The University of Michigan will release its consumer-sentiment index at around 9:45 a.m. EDT. Economists look for a preliminary reading of 84.0 for September compared with a final reading of 89.1 for August.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks ended mostly down, reflecting confusing economic news coming from the U.S. The Japanese stocks declined 0.2% on tech stock issues sell-off because of negative earnings prospects of high-tech companies. Across the region, Hong Kong’s Hang Seng lost 0.4%, while South Korea’s Kospi advanced 0.4%.

European stocks were trading in the positive at mid-day on lower crude-oil prices and approaching general election in Germany with resource stocks and spot gold being the leading gainers. The German DAX 30 rose 1.4% rebounding from recent losses, the French CAC 40 advanced 0.7%, and London’s FTSE 100 climbed 0.5%.

ENERGY, METALS, CURRENCIES

Oil prices further declined on lower OPEC demand forecast. U.S. light sweet crude October delivery lost 65 cents to $64.10 a barrel in electronic trading on the Nymex. Heating oil fell 3 cents to $1.8810 a gallon. Gasoline lost more than 3 cents to $1.8650. London Brent fell 65 cents to $63.01.

Gold prices reached a 17-year high as the appeal for the precious metal increased on inflation concerns. Gold for immediate delivery in London rose $3.25 to $459.00 per troy ounce. December gold contract gained $3.40 to $462.70. In Hong Kong gold climbed $8.40 to close at $457.85. Silver opened at $7.07, up from $7.01.

The U.S. dollar fell against the other major currencies in European trading. The euro was quoted at $1.2273, up from $1.2216. The dollar changed hands at 110.81 yen, up from 110.36.. The British pound traded at $1.8110, up from $1.8053.

EARNINGS NEWS

SSA Global Technologies Inc., ((SSA)) software applications producer, posted 4Q net earnings of 4 cents a share, up vs. a net loss of $4.24 a share in the same time last year on strong revenue growth. The company stated 4Q pro forma earnings of 31 cents a share.


Adobe Systems Inc., ((ADBE)) software producer, reported fiscal a 3Q profit rise to 29 cents a share, up from 21 cents a share a year earlier on 21% revenue growth, topping analyst estimate of 27 cents a share.

[Clarcor Inc., ((CLC)) environmental filtration products, posted 3Q earnings of 40 cents a share, up from a year-earlier profit of 31 cents a share. Sales increased 4.9% The company raised its earnings outlook for the full year to earnings of $1.38 to $1.42 a share from a previous projection for a profit of $1.32 to $1.38 a share.

Tektronix Inc., ((TEK)) maker of testing equipment, posted 1Q net earnings of 17 cents a share, down vs. 43 cents a share in the same period a year ago on revenue growth, missing analysts’ forecasts of 23 cents a share.. The company reported first-quarter pro forma earnings of 25 cents a share.

Media General, Inc., ((MEG)) media firm, issued a warning that its 3Q profit would be 38-41 cents a share, below the last year period level of 66 cents a share. The Company stated lower advertising revenue and higher fuel costs, among other factors accounting for the warning. Analysts predicted earnings of 62 cents a share.