U.S. Stocks Fall on Housing Data; Apple Up

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

U.S. stocks edged lower after the housing starts and completions declined in September. Home builders led the decliners. Apple increased on strong rise in sales and earnings. The Producer Price Index decreased 0.6% in September. Brazil index drops 2.5% after it imposes 2% tax on foreign investors.

[R]10:30 AM New York – U.S. stocks edged lower after the housing permits, starts and completions declined in September. Home builders led the decliners. Apple increased on strong rise in sales and earnings. The Producer Price Index decreased 0.6% in September.[/R]

U.S. stocks edged lower after a weak report o housing starts dampened the enthusiasm. Better than expected earnings at Apple and Pfizer were overshadowed by the weakness in the housing market.

Apple increased 4.8% to $198.99 and Pfizer advanced 1.1% to $18.17.

Housing permits in September fell 1.2% to 573,000 units, starts declined 0.5% to 590,000 and completions dropped 10.2% to 693,000. Single family housing starts in September declined 3.9% to 501,000.

The Producer Price Index decreased 0.6% in September on a seasonally adjusted basis after rising at 1.7% rate in August and 0.9% decrease in July. On an unadjusted basis prices of finished goods decreased 4.8% from a year ago month.

Marshall & Ilsley Corp dropped 9.7% after it reported a net loss of 68 cents a share and the company plans to raise $775 million in a stock offering.

Earnings Review

Apple Inc, the maker of portable digital music players and mobile communication devices said fourth quarter sales rose 25% to $9.87 billion from $7.90 billion a year ago. Net income in the quarter rose 46.5% to $1.67 billion or $1.82 per diluted share compared to net income of $1.14 billion or $1.26 per share a year ago.

Texas Instruments Incorporated, the chip maker said third quarter sales fell 15% to $2.88 billion from $3.39 billion a year ago. Net income in the quarter fell 4.4% to $538 million or 42 cents per diluted share compared to net income of $563 million or 43 cents per share a year ago.

World Markers

Australian dollar reached a 14-month high as expectations of another rate hike at the next meeting on Nov 3 increased. The Aussie dollar crossed 93 U.S. cents.

Stocks in Brazil traded lower after Brazil imposed 2% tax on international investors to stem the rise in the real. The benchmark index Bovespa index declined 2.5% to 65,583.31 and the real dropped 1.2% to 1.74 against the dollar.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 100.33 or 0.98% to 10,336.84, Hang Seng index in Hong Kong increased 184.50 or 0.83% to 22,384.96, and CSI 300 index in China higher 48.42 or 1.45% to 3,377.57. ASX 200 index in Australia increased 53.40 or 1.11% to 4,846.20. The FTSE Bursa KL Composite index in Malaysia was higher 4.25 or 0.34% to 1,265.74.

The Kospi Index in South Korea increased 10.08 or 0.61% to close at 1,659.15 SET Index in Thailand closed lower 6.01 or 0.82% to 725.60. JSE Index in Indonesia decreased 18.71 or 0.74% to 2,502.22. The Sensex Index in India decreased 103.00 or 0.59% to 17,223.01.

Europe Markets Review

In London FTSE 100 Index traded lower 5.23 or 0.10% to 5,276.31, in Paris CAC 40 Index decreased 2.77 or 0.07% to 3,889.59 and in Frankfurt DAX index traded higher 0.35 or 0.01% to 5,852.91. In Zurich trading SMI increased 0.79 or 0.01% to 6,437.16.