Google and Apple at New Highs

Elena
25 Nov, 2005
New York City

November rally, which has vaulted the major indexes to four-year highs, extended only for a while in today''''''''s holiday-shortened session, then investors started consolidating gains and stocks returned to flat levels. Friday marked the beginning of the critical holiday sales period for retailers, and early reports suggest higher spending than last year.

U.S. MARKET AVERAGES

Stocks were mixed in post-holiday trade Friday, rebounding from an early advance despite preliminary signs of a strong start to the busy holiday shopping season. As many traders were out of the office for a second day, trading volume was light. Stock and bond markets close at 1 p.m. Commodities markets remained closed.

The averages advanced on the large-scale holiday shopping, which boosted retailers. Since late October gains in retailers have helped the S&P’s retail index rise 12% higher. Retreating oil prices and anticipation that the Fed Reserve is approaching the end of its rate-rising cycle, also helped futures rise.

The retail sector advanced on the start of hectic holiday shopping with electronics like Apple Computer’s iPod media player expected to be the best-sellers. Wal-Mart Stores Inc. rose 8 cents to $50.65, and electronics retailer Best Buy Co. added $1.67 to $50.67, but Target Corp. was down 14 cents at $54.96. Apple gained $1.47 to $68.58.

Alcoa ((AA)) is the best performing Dow component with a gain of 1.9%, taking the aluminum producer to its highest level in nearly 3 months. Intel ((INTC)) and SBC ((SBC)) are strong as well, with gains of 1.5% and 1.2%, respectively.

General Motors ((GM)) is the worst performing Dow component, dropping by 2.1%. Microsoft ((MSFT)) is also weak, falling by 1.1% amid reports of glitches with the recently-launched Xbox 360 video game console.

In late morning trading, the Dow gained 19.85, or 0.18%.The Standard & Poor''s 500 index was up 1.44, or 0.11%, and the Nasdaq composite index dropped 1.27, or 0.06%.

Bonds advanced, with the yield on the 10-year Treasury note sliding to 4.44 percent from 4.47 percent late Wednesday.

MOVERS AND SHAKERS

Taser International Inc has been notified by the Nasdaq Stock Market that its shares could be delisted because the stun-gun maker failed to submit its third-quarter financial report on time. The stock dropped 10.1% to $6.65.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks ended the session mixed with the Nikkei rising for the seventh consecutive session, extending rally to 14,784,29, or 0.3% on economic and corporate news. Across the region, bourses in Hong Kong and Australia closed unchanged, South Korea’s Kospi added 0.1%, while Singapore Straits Times dropped 0.4%.

European markets closed in the positive territory, supported by higher U.S. markets opening and strong resource stocks. A market drag was supermarket Tesco which declined 1% after reporting quarterly sales. The German DAX 30 edged up 0.1%, the French CAC 40 added 0.3%, and London’s FTSE 100 gained 0.2%.

OIL, METALS, CURRENCIES

European gold prices hit an 18-year high, rising close to $500 on building inflation concerns. In London gold traded at $497.35 per troy ounce, up from $493.90.

The U.S. dollar advanced against all major currencies on weak German data and Japanese inflation figures. The euro was quoted at $1.1749, down from $1.1783. The dollar bought 119.36 yen, down from 118.83. The British pound traded at $1.7184, down from $1.7226.