Home Prices Index Up, Confidence Down

Darlington Musarurwa
27 Oct, 2009
New York City

U.S. stocks gyrated after the latest measure of consumer confidence showed a decline. Metropolitan home prices increased for the third month in a row as the tax incentives supported the market. Crude oil gained. BP plc reported better than expected earnings on cost control.

[R]11:30 AM New York – U.S. stocks gyrated after the latest measure of consumer confidence showed a decline. Metropolitan home prices increased for the third month in a row as the tax incentives supported the market. Crude oil gained. BP plc report better than expected earnings on cost control.[/R]

Stocks in early trading in New York gyrated after the release of indexes that track consumer confidence and metropolitan home prices. Crude oil advanced but precious metals declined.

The confidence index tracked by the Conference Board declined to 47.7 in October from a revised 53.4 in September as more people look for jobs. The index that tracks the employment also hovered near the 26-year low reflecting weak job market.

The controversial S&P/Case-Shiller home price index gained 1% in August from July after adjusting for seasonality. In July, the index increased 1.1%. The metropolitan home prices decreased 11.3% from a year ago. Home sales in the recent months have been supported by the tax credit of $8,000 to the first-time home buyer.

Crude oil edged up 30 cents to $78.98 a barrel and gold declined $4.40 to $1,038.40 an ounce.

Earnings Review

BP Plc, the UK based second largest European energy company reported quarter revenues declined 35% to $67.86 billion. Net income fell to $5.34 billion or 28.18 cents a share compared to $8.05 billion or 42.56 cents a share.

Canadian Pacific Railway Limited, the railroad operator reported third quarter revenues fell 13.5% to $1.09 billion from $1.26 billion a year ago. Net income in the quarter rose 14.5% to $195.4 million or $1.16 per diluted share compared to net income of $170.7 million or $1.10 per share a year ago.

Johnson Controls, Inc, the maker of automotive and building systems reported fourth quarter sales fell 15.5% to $7.87 billion from $9.31 billion a year ago. Net income in the quarter was $300 million or 47 cents per diluted share compared to net income of $16 million or 3 cents per share a year ago.

Net sales for the fiscal year 2009 fell 25.2% to $28.5 billion from $38.1 billion a year ago. Net loss for the year was $338 million or 57 cents per diluted share compared to net income of $979 million or $1.63 per share a year ago.

TD Ameritrade Holding Corp, the online brokerage firm reported fourth quarter revenues rose 1.3% to $657.9 million from $649.2 million a year ago. Net income in the quarter fell 9% to $156.7 million or 26 cents per diluted share compared to net income of $172 million or 29 cents per share a year ago.

Net revenues for the fiscal year 2009 fell 5% to $2.41 billion from $2.54 billion a year ago. Net income for the year fell 20% to $643.7 million or $1.10 per diluted share compared to net income of $803.9 million or $1.33 per share a year ago.

Tata Motors Limited, the manufacturer of automotive vehicles said second quarter sales rose 17.3% to Rs 7,979 crore from Rs 7,079 crore a year ago. Net profit for the quarter rose 110% to Rs 729.14 crore compared to net profit of Rs 346.99 crore a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 150.16 or 1.45% to 10,212.46, Hang Seng index in Hong Kong decreased 420.14 or 1.86% to 22,169.59, and CSI 300 index in China lower 99.52 or 2.91% to 3,314.72. ASX 200 index in Australia decreased 76.80 or 1.59% to 4,753.50. The FTSE Bursa KL Composite index in Malaysia was higher 0.38 or 0.03% to 1,260.30.

The Kospi Index in South Korea decreased 7.58 or 0.46% to close at 1,649.53, SET index in Thailand closed higher 2.71 or 0.38% to 714.54. JSE Index in Indonesia decreased 42.51 or 1.72% to 2,425.20. The Sensex index in India decreased 387.10 or 2.31% to 16,353.40.

Europe Markets Review

In London FTSE 100 Index traded higher 21.51 or 0.41% to 5,213.25, in Paris CAC 40 Index increased 14.28 or 0.38% to 3,758.73 and in Frankfurt DAX index traded higher 18.03 or 0.32% to 5,660.19. In Zurich trading SMI increased 53.51 or 0.85% to 6,356.86.