Techs Gain on Google

Elena
04 Jan, 2006
New York City

Asian-Pacific benchmarks closed sharply higher on export and tech shares with the Nikkei reaching a new five-year high of 1.6% to 16,361.54. Jakarta Composite surged to 2.3%, followed by Hong Kong''s Hang Seng and Shanghai Composite, each up 1.7%. European stocks were also strong at mid-day on lower oil and speculations rate-hike cycle is close to an end. Chemicals company Monsanto swung to 22 cents profit in Q1 from a loss of 15 cents a share a year ago, beating estimates of 19 cents.

U.S. MARKET AVERAGES

U.S. stock futures pointed to a flat opening on Wednesday after stocks rallied Tuesday as minutes of the latest FOMC meeting indicated that the U.S. rate-hike cycle is close to an end. In addition, the settlement of Russia-Ukraine gas pricing conflict sent crude-oil futures down which helped to limit any profit taking.

Of companies in focus,Google Inc. is expected to unveil a $200 computer that won't use the Microsoft Corp. operating system and be sold in Wal-Mart Stores Inc.

Shares of drugmakers Pfizer Inc., Schering-Plough Corp. and Merck & Co. are expected to rise as presentations are expected from all three at a Morgan Stanley conference.

Automakers General Motors Corp., Ford Motor Co. and DaimlerChrysler AG also will be in the spotlight on the release of December auto sales, expected later in the session.

On the economic news front, information on November factory orders is due out about a half hour after the opening bell Wednesday. Economists expect the measure to rise by 2.4%, compared to October's advance of 2.2%.

Dow Jones futures were recently down 12 points, S&P 500 futures dipped 1.5 point, and Nasdaq 100 futures edged 2 points lower.

INTERNATIONAL MARKETS NEWS

Most Asian-Pacific benchmarks closed sharply higher, boosted by export-related and tech stocks and speculations the Fed Reserve will stop raising interest rates. In half-day session, the Nikkei hit a new five-year peak of 1.6% to 16,361.54. Jakarta Composite surged to 2.3%, Hong Kong’s Hang Seng rose 1.7%, and China’s Shanghai Composite climbed 1.7%.

European stocks advanced at mid-day after the Fed Reserve signaled that the U.S. rate-hike cycle is close to an end and oil prices slipped, reflecting the settlement of Russia-Ukraine conflict. The German DAX 30 gained 0.8%, the French CAC 40 climbed 0.9%, and London’s FTSE 100 rose 0.5%.

OIL, METALS, CURRENCIES

Crude oil prices retreated below $63 a barrel after Russia and Ukraine resolved the gas pricing dispute between them. Light sweet crude for February delivery fell 16 cents to $62.98 a barrel. Heating oil slipped slightly to $1.7925 a gallon. Gasoline shed 1 cent to $1.74 a gallon. Natural gas slipped 22 cents to $10.40 per 1,000 cubic feet. London Brent dropped 58 cents to $60.77.

European gold advanced to a three-week high as the dollar weakened against the euro, increasing the appeal of the precious metal as an alternative investment. In London gold rose to $533.30 per troy ounce, up from $528.40. In Zurich the precious metal advanced to $528.10 from $516.55. In Hong Kong gold rose $14.30 to close at $534.10. Silver opened at $9.14, up from $9.03.

The U.S. dollar fell to a two-month low against the euro on disappointing economic news and speculations that interest rate hikes will cease. The euro was quoted at $1.2056, up from $1.2023. The dollar bought 116.28 yen, up from 116.03. The British pound traded at $1.7535, up from $1.7452.

EARNINGS NEWS

Greenbrier Cos, ((GBX)), manufacturer of railroad freight cars, reported Q1 net earnings of 51 cents a share, up from 35 cents in the same period last year despite quarterly revenue decline, beating analyst estimate of 37 cents a share. The company''s quarterly margin advanced to $32.9 million from $24.8 million. Greenbrier also set a full-year profit target range of $2.30 to $2.45 a share.

Monsanto Co (( MON)), seed and agricultural chemicals company, reported Q1 net income of 22 cents a share, swinging from a loss of 15 cents a share in the year-ago period, topping analyst estimate of 19 cents a share. Sales Q1 increased 31%.