U.S. Stocks Rise on Retail Sales, APEC

Mayank Mehta
16 Nov, 2009
New York City

U.S. stocks traded higher after the release of October retail sale. The sales increased 1.4% from the revised September sales decrease of 2.3%. Lowe

[R]10:10 AM New York – U.S. stocks traded higher after the release of October retail sale. The monthly sales increased 1.4% from the revised September sales decrease of 2.3%. Lowe’s third quarter net decreased 30% to $344 million. Markets in China jumped after 21-member nations reassured markets with a pledge to keep stimulus intact.[/R]

U.S. stocks traded higher in the early morning after the release of October retail sales. In the overnight trading Asian markets closed higher after 21-member Asia-Pacific Economic Cooperation group agreed to keep economic stimulus in place until the economy recovers to a sound footing.

Monthly sales increased 1.4% after dropping at a revised 2.3% in September according to the Commerce Department.

Retail sales adjusted for seasonality and calendar increased 1.4% to $347.5 billion from September and fell 1.7% from October 2008. Total sales from August to October period rose 1.5%.

Excluding autos, retail sales increased 0.2% after rising 0.4% in September.

Federal Reserve New York reported manufacturing index increased in November, fourth monthly increase in a row but at a slower pace than in October. The Empire State index declined to 23.5 from 34.6 in October.

Crude oil increased 95 cents to $77.30 a barrel and natural gas edged up 8 cents to $4.47. Gold increased $12.80 to $1,129 an ounce. Yields on 10-year bonds traded at 3.40% and 30-year bonds traded at 4.31%.

U.S. Earnings Review

Lowe’s Companies, Inc, the home improvement retailer reported third quarter sales fell 2.7% to $11.4 billion from $11.7 billion a year ago. Net income in the quarter fell 30% to $344 million or 23 cents per diluted share compared to net income of $488 million or 33 cents per share a year ago.

ReneSola Ltd, a manufacturer of solar wafers reported third quarter revenues fell 34.7% to $140.9 million from $215.8 million a year ago. Net loss in the quarter was $10.2 million or 7 cents per diluted share compared to net income of $32.4 million or 23 cents per share a year ago.

European Earnings Review

EADS NV, the aerospace, defense and related services said third quarter revenues fell 2% to €9.53 billion from €9.70 billion a year ago. Net loss in the quarter was €87 million or €0.11 per diluted share compared to net profit of €679 million or €0.84 per share a year ago.

ERG SpA, the oil refiner said third quarter revenues fell 47% to €1.76 billion from €3.32 billion a year ago. Net loss in the quarter was €14 million compared to net profit of €40 million a year ago.

ThyssenKrupp AG, the steelmaker said full-year sales fell 24% to €40.6 billion from €53.4 billion a year ago. Net loss in the full-year was €1.86 billion or €4.01 per diluted share compared to net profit of €2.20 billion or €4.59 per share a year ago.

Tiscali SpA, an internet communications company said nine months revenues fell 9.5% to €221.6 million from €244.9 million a year ago. Net loss in the nine months was €418.4 million compared to net loss of €98.2 million a year ago.

Lonmin Plc, the platinum miner said full-year revenues fell 52.5% to $1.06 billion from $2.23 billion a year ago. Net loss for the full-year was $285 million or 163.7 cents per diluted share compared to net profit of $455 million or 276.9 cents per share a year ago.

Asian Earnings Review

GS Yuasa Corporation, the battery maker said first-half sales fell 24.2% to ¥109.4 billion from ¥144.4 billion a year ago. Net profit for the first-half fell 33.2% to ¥1.67 billion compared to net profit of ¥2.51 billion a year ago.

Hitachi, Ltd, the maker of consumer products and electronic devices said first-half revenues fell 22.3% to ¥4,124.9 billion from ¥5,310.5 billion a year ago. Net loss for the first-half was ¥133.2 billion compared to net loss of ¥50.6 billion a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 20.87 or 0.21% to 9,791.18, and Hang Seng index in Hong Kong increased 390.35 or 1.73% to 22,943.98, and CSI 300 index in China higher 107.08 or 3.04% to 3,625.80. ASX 200 index in Australia increased 48.80 or 1.04% to 4,755.20. The FTSE Bursa KL Composite index in Malaysia was higher 7.35 or 0.58% to 1,278.31.

The Kospi Index in South Korea increased 20.48 or 1.30% to close at 1,592.47. SET index in Thailand closed higher 8.42 or 1.21% to 706.75. JSE Index in Indonesia increased 41.87 or 1.73% to 2,468.68. The Sensex index in India increased 183.68 or 1.09% to 17,032.51.

Europe Markets Review

In London FTSE 100 Index traded higher 65.27 or 1.23% to 5,361.65, in Paris CAC 40 Index increased 35.95 or 0.94% to 3,841.96 and in Frankfurt DAX index traded higher 60.77 or 1.07% to 5,747.60. In Zurich trading SMI increased 54.04 or 0.85% to 6,405.12.

ASX 200 Index Movers

AJ Lucas Group Limited led the decliners in the ASX 200 index of 5.2% followed by losses OM Holdings Limited of 3.9%, in PaperlinX Limited of 2.7%, in iSOFT Group Limited of 2.5% and in Westpac Banking Corporation of 2.0%.

Boart Longyear Limited gainers in the ASX 200 index with a rise of 9.6% followed by gains in St Barbara Limited of 9.5%, in Minara Resources Limited of 7.8%, in Mount Gibson Iron Limited of 7.0% and in SEEK Limited of 6.9%.

Nikkei 200 Average Movers

Mitsui Chemicals, Inc. led the decliners in the Nikkei 225 index of 13.2% followed by losses in Hitachi, Ltd. of 8.5%, in Oki Electric Industry Company, Limited of 7.4%, in GS Yuasa Corporation of 6.6% and in Sumitomo Mitsui Financial Group, Inc. of 5.8%.

Marui Group Co., Ltd. led gainers in the Nikkei 225 index with a rise of 6.9% followed by gains Denki Kagaku Kogyo Kabushiki Kaisha of 5.5%, in The Chiba Bank, Ltd. of 5.4%, in Fast Retailing Co., Ltd. of 5.1%, and in Minebea Co., Ltd. of 3.1%.