U.S. Markets Flat; Gold Another High

Mukesh Buch
25 Nov, 2009
New York City

U.S. stocks traded flat after the weekly jobless claims declined 35,000. October durable goods orders decreased 0.6% and personal income increased 0.2%. Single family new home sales increased 6.2% in the month. Gold trades at a record high.

[R]10:30 AM New York – U.S. stocks traded flat after the weekly jobless claims declined 35,000. October durable goods orders decreased 0.6% and personal income increased 0.2%. Single family new home sales increased 6.2% in the month. Gold trades at a record high.[/R]

Stocks in the early trading were nearly unchanged after a raft of economic data in the U.S. and Europe. Gold traded at a new high on the talks that the Reserve Bank of India may increase its purchase of the metal.

After one of hour of trading Dow Jones Industrial Average was nearly unchanged, the Nasdaq increased 0.2% and the S&P 500 index added 0.2%.

Gold futures of immediate month increased $14.60 to $1,182 an ounce.

Seasonally adjusted weekly jobless claims unchanged to 466,000 from the revised previous week claims of 501,000. The preliminary unemployment rate in the week ending November 14, unchanged from the prior week''s unrevised rate of 4.1%.

October durable goods orders decreased 0.6% or $1.0 billion to $166.2 billion, second monthly decline in the last three months. Orders increased 2.0% in September. Excluding defense new orders edged up to 0.4%.

October personal income increased 0.2% and disposable personal income increased 0.3%. Personal consumption expenditure increased 0.7% in the month. In September personal income increased 0.2%, DPI increased 0.2% and PCE decreased 0.6%.

Single family new home sales in October increased 6.2% to a seasonally adjusted 430,000 according to the latest data from the Commerce Department. The new home sales increased 5.1% from a year ago month. The median sale price of new homes sold in the month was $212,200 and average price was $261,100 with 6.7 months of inventory.

UK Q3 GDP Shrink Revised to 0.3%

In quarter three of 2009, the unemployment rate stood at 7.8% compared to last quarter its increase 0.1 percentage points. In the third quarter, GDP fell by 0.3%, the sixth consecutive quarter of contraction.

Earnings Review

Deere & Company, the agricultural equipment company reported fourth quarter sales fell 28% to $5.33 billion from $7.40 billion a year ago. Net loss in the quarter was $222.8 million or 53 cents per diluted share compared to net income of $345 million or 81 cents per share a year ago.

Net sales for the fiscal year 2009 fell 19% to $23.1 billion from $28.4 billion a year ago. Net income for the year fell 57.4% to $873.5 million or $2.06 per diluted share compared to net income of $2.05 billion or $4.70 per share a year ago.

Tiffany & Co, the jewelry group reported third quarter sales fell 3% to $598.2 million from $616.2 million a year ago. Net income in the quarter fell 1% to $43.3 million or 35 cents per diluted share compared to net income of $43.8 million or 35 cents per share a year ago.

H. J. Heinz Company, the food maker said second quarter sales rose 2.3% to $2.67 billion from $2.61 billion a year ago. Net income in the quarter fell 16.4% to $231.4 million or 73 cents per diluted share compared to net income of $276.7 million or 87 cents per share a year ago.

J.Crew Group, Inc, the seller of clothes, shoes and accessories said third quarter revenues rose 14% to $414.1 million from $363.1 million a year ago. Net income in the quarter rose 131% to $43.9 million or 67 cents per diluted share compared to net income of $19.0 million or 30 cents per share a year ago.

European Earnings Review

Remy Cointreau SA, the producer and distributor of wines and spirits said first-half revenues fell 0.9% to €361.9 million from €365.2 million a year ago. Net profit in the first-half fell 18% to €39.4 million compared to net profit of €48.3 million a year ago.

Johnson Matthey Plc, the specialty chemicals company said first-half revenues fell 18% to £3.58 billion from £4.36 billion a year ago. Net profit for the first-half fell 20% to £79.0 million or 37.3 pence per diluted share compared to net profit of £98.6 million or 46.2 pence per share a year ago.

London Stock Exchange Group Plc, said first-half revenues fell 9.2% to £310.9 million from £342.5 million a year ago. Net profit for the first-half fell 40% to £49.3 million or 18.4 pence per diluted share compared to net profit of £81.7 million or 30.0 pence per share a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 40.06 or 0.43% to 9,441.64, and Hang Seng index in Hong Kong increased 188.66 or 0.84% to 22,611.80, and CSI 300 index in China higher 81.55 or 2.30% to 3,629.63. ASX 200 index in Australia increased 37.20 or 0.79% to 4,722.20. The FTSE Bursa KL Composite index in Malaysia was lower 1.09 or 0.09% to 1,271.00.

The Kospi Index in South Korea increased 5.46 or 0.34% to close at 1,611.88. SET index in Thailand closed higher 19.47 or 2.88% to 695.69. JSE Index in Indonesia decreased 10.36 or 0.42% to 2,461.53. The Sensex index in India increased 67.87 or 0.40% to 17,198.95.

Europe Markets Review

In London FTSE 100 Index traded higher 23.08 or 0.43% to 5,347.04, in Paris CAC 40 Index increased 16.43 or 0.43% to 3,801.05 and in Frankfurt DAX index traded higher 10.69 or 0.19% to 5,780.00. In Zurich trading SMI increased 6.11 or 0.10% to 6,403.64.