Cisco Rises on Upgrade

Elena
07 Dec, 2005
New York City

Asian-Pacific benchmarks finished higher with the Nikkei rebounding from Tuesday''s losses and closing up 0.4%. South Korean Kospi climbed 0.3%, reaching a record high on tech stocks. European markets slightly advanced at mid-day, lifted by metals stocks. In economic news, U.S. weekly inventory report is expected to show a 900,000-barrel crude stock draw for the week ended on Friday.

U.S. MARKET AVERAGES

U.S. stock futures are indicating a lackluster to slightly higher start of Wednesday session, though investors are expected to be cautious on renewed concerns over rising oil prices and their effect on consumer spending and corporate profits. This would follow a somewhat disappointing session on Tuesday, in which early gains disappeared in the final hour of trading and stocks finished only slightly higher.

Investors also await the release of U.S. weekly crude inventory data at 10:30 EST with expectations that the data will show a 900,000-barrel crude stock draw for the week ended on Friday.

On the corporate news front Coca-Cola Co. ((KO)), the world’s largest soft-drink maker, will be in the focus due to an announcement of a growth plan.

Microsoft Corp ((MSFT)) was ordered to separate its instant messaging service from its Windows software and allow rival products on its system in South Korea after losing an antitrust case.

Standard & Poor's 500 futures were up 0.3 points, above their fair value. Dow Jones industrial average futures were up 8 points, and Nasdaq 100 futures were up 1.5 points.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks closed higher, supported by U.S. markets gains overnight. The Nikkei helped the upside momentum, recovering from yesterday’s losses and rising 0.4% ahead of economic data Friday. Across the region Indonesian Jakarta Composite surged 2.5%, Hong Kong’s Hang Seng rose 1%, while South Korea’s Kospi gained 0.3%, reaching a new high on tech stocks.

European markets slightly rose at mid-day trading on gains from metals stocks which offset losses in automakers and insurance shares, as well as weaker U.S. markets close. The German DAX 30 gained 0.2%, the French CAC 40 added 0.2%, and London’s FTSE 100 climbed 0.5%.

OIL, METALS, CURRENCIES

Crude oil prices rose on cold weather concerns and expectations of higher fuel demand. Light sweet crude for January delivery gained 39 cents to $60.33 a barrel on the Nymex. Heating oil advanced to $1.7725 a gallon. Gasoline rose nearly a cent to $1.5971. Natural gas climbed 23 cents to $13.718 per 1,000 cubic feet. London Brent surged 55 cents to $58.16.

European gold hit a 24-year high for the second consecutive session on heavy fund buying. In London the precious metal was fixed at $510 per troy ounce. In Zurich gold traded at $513.25, up from $506.55. In Hong Kong gold rose $4.70 to close at $513.25. Silver traded at $8.75, up from $8.62.

The U.S. dollar advanced against other major counterparts. The euro was quoted at $1.1724, down from $1.1794. The dollar bought 121.02 yen, up from 120.74. The British pound traded at $1.7315, down from $1.7418.

EARNINGS NEWS

Synovis Life Technologies Inc ((SYNO)), medical device company, announced that Q4 profit advanced to 2 cents a share, breakeven with the year-earlier period. Earnings per share remained unchanged despite the profit gain because there were more shares outstanding in Q4. Revenue advanced to $16.8 million from $14.6 million in the comparable period a year-ago.

Pall Corp. ((PLL)), maker of filtration systems for industrial applications, announced that its Q1 earnings rose 16 percent to 20 cents per share, up from 17 cents per share in the same period last year on growth in its industrial and biopharmaceuticals segments. Sales increased 4 % and total industrial sales went up 6 %.