U.S. Stocks Weak; Euro Rises

123jump.com Staff
01 Oct, 2009
New York City

U.S. stocks declined after weak manufacturing report and rising unemployment claims put investors on an alert. Microsoft decreased after Goldman removed the company from its recommendation list. Euro declined and German retail sales fell 1.5% in August.

[R]12:00 PM – U.S. stocks declined after weak manufacturing report and rising unemployment claims put investors on an alert. Microsoft decreased after Goldman removed the company from its recommendation list. Euro declined and German retail sales fell 1.5% in August.[/R]

Stocks in early trading in New York declined after the release of manufacturing report. The private report indicated that the measure of manufacturing activities in September decreased to 52.6 from 52.9 August when most economists were looking the index to inch higher. The index is prepared and tracked by the Institute for Supply Management.

The various sub indexes showed an increase but at a slower pace indicating that the economy may in the process of recovery but the pace of rebound will be uneven.

The index of export orders fell to 55 from 55.5 and the employment index decreased 46.2 to from 46.4.

The recent rise in manufacturing has been supported by the cash-for-clunker program that acted as a catalyst to sell 700,000 vehicles.

Euro declined after comments from ECB President Jean-Claude Trichet. The central bank officials in Europe have been talking up dollar in the last one month. Today, after a meeting of finance ministers of 16 member nations in Gothenburg, Sweden said, “There is very strong sentiment that we have a shared interest in a strong international financial system.” His comments were reported by Reuters and Bloomberg News.

Earlier on Sept 28, he had reiterated that it is “extremely important” that the U.S. dollar is strong.

Earnings Review

Constellation Brands, Inc, the wine and spirits maker reported second quarter sales fell 8.3% to $876.8 million from $956.5 million a year ago. Net income in the quarter was $99.7 million or 45 cents per diluted share compared to net loss of $22.7 million or 11 cents per share a year ago.

CRA International, Inc, a financial, and management consulting services firm reported third quarter sales fell 19.7% to $89.3 million from $111.2 million a year ago. Net income in the quarter fell 31% to $2.9 million or 27 cents per diluted share compared to net income of $4.2 million or 39 cents per share a year ago.

MSCI Inc, the provider of investment decision support tools reported third quarter revenues fell 1.4% to $108.9 million from $110.4 million a year ago. Net income in the quarter rose 10.6% to $20.9 million or 20 cents per diluted share compared to net income of $18.9 million or 19 cents per share a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 154.59 or 1.53% to 9,978.64, ASX 200 index in Australia decreased 42.50 or 0.90% to 4,701.10. The FTSE Bursa KL Composite index in Malaysia was higher 6.27 or 0.52% to 1208.35. Hang Seng index in Hong Kong, and CSI 300 index in China were closed today.

The Kospi Index in South Korea decreased 28.51 or 1.70% to close at 1,644.63. SET index in Thailand closed higher 9.84 or 1.37% to 726.91. JSE Index in Indonesia increased 10.38 or 0.42% to 2,477.97. The Sensex index in India increased 7.71 or 0.05% to 17,134.55.

Europe Markets Review

In London FTSE 100 Index traded lower 28.75 or 0.56% to 5,105.15, in Paris CAC 40 Index decreased 25.18 or 0.66% to 3,770.23 and in Frankfurt DAX index traded lower 28.26 or 0.50% to 5,646.90. In Zurich trading SMI decreased 25.84 or 0.41% to 6,297.34.

ASX 200 Index Movers

Iress Market Technology Limited led the decliners in the ASX 200 index of 5.4% followed by losses in Minara Resources Limited of 4.6%, in Transfield Services Limited of 4.4%, in Westfield Group of 3.9% and in Fortescue Metals Group Ltd of 3.6%.

Energy World Corporation Limited gainers in the ASX 200 index with a rise of 10.7% followed by gains in Sundance Resources Limited of 5.5%, in Virgin Blue Holdings Limited of 4.6% and in Ing Office Fund of 4.4%.

Nikkei 200 Average Movers

Sanyo Electric Co., Ltd. led the decliners in the Nikkei 225 index of 7.5% followed by losses in Matsui Securities Co., Ltd. of 7.1%, in Fuji Electric Holdings Co., Ltd. of 6.6 %, in Shinsei Bank, Limited of 6.5% and in Advantest Corporation. of 5.8%.

CSK Holdings Corporation led gainers in the Nikkei 225 index with a rise of 7.0% followed by gains Fast Retailing Co., Ltd. of 4.7%, in Japan Airlines Corporation of 4.5% and in Mitsubishi Rayon Company, Limited of 3.9%.