U.S. Stocks Trade Sideways; Dollar Gains

123jump.com Staff
15 Dec, 2009
New York City

Stocks traded sideways in the morning after the release of industrial production and PPI inflation data. The Producer Price Index increased 1.8% in November and total output in the month increased 0.8%. The dollar gains against the euro on the worries that the inflation is gaining a hold.

[R]11:55 AM New York – Stocks traded sideways in the morning after the release of industrial production and PPI inflation data. The Producer Price Index increased 1.8% in November and total output in the month increased 0.8%. The dollar gains against the euro on the worries that the inflation is gaining a hold.[/R]

Stocks in early trading declined after inflation in November was higher than expected and Empire State Index declined to a five-month low of 23.5. The 2.6 decline in November was larger than expected.

The total output in manufacturing, mining and at utilities increased 0.8% in November. The October output was flat.

The Producer Price Index increased 1.8% in November on a seasonally adjusted basis after rising 0.3% rate in October and falling 0.6% in September. On an unadjusted basis prices of finished goods increased 2.4% from a year ago month.

The PPI increased 0.5% excluding fuel and food.

The dollar edged up against the euro to $1.45 and against the yen to 89.90 yen. Crude oil futures increased $1.11 to $70.62.

Baltic Freight Rate Index in London has been on a decline since it reached a peak in November. The index has fallen consistently from the peak of 4,661 and decreased another 1.3% today to 3,530.00.

Earnings Review

TUI AG, the travel and shipping company said full-year sales fell 13.8% to €13.1 billion from €15.2 billion a year ago. Net profit in the full-year rose 889% to €333.3 million or €1.25 per diluted share compared to net profit of €33.7 million or €0.07 per share a year ago.

VeriFone Holdings, Inc, the maker of electronic-payment systems said fourth quarter revenues fell 11% to $217.8 million from $244.7 million a year ago. Net income in the quarter was $3.7 million or 4 cents per diluted share compared to net loss of $366.6 million or $4.35 per share a year ago.

Best Buy Co, Inc, the electronics retailer reported third quarter revenues rose 4.5% to $12.02 billion from $11.5 billion a year ago. Net income in the quarter rose 337% to $227 million or 53 cents per diluted share compared to net income of $52 million or 13 cents per share a year ago.

FactSet Research Systems Inc., the financial-information provider reported first quarter revenues fell 0.3% to $155.2 million from $155.6 million a year ago. Net income in the quarter rose 1.4% to $36.1 million or 74 cents per diluted share compared to net income of $35.6 million or 73 cents per share a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 22.20 or 0.22% to 10,083.48, and Hang Seng index in Hong Kong decreased 271.83 or 1.23% to 21,813.92, and CSI 300 index in China lower 29.41 or 0.81% to 3,583.34. ASX 200 index in Australia increased 19.50 or 0.42% to 4,673.50. The FTSE Bursa KL Composite index in Malaysia was higher 5.36 or 0.42% to 1,270.81.

The Kospi Index in South Korea increased 1.08 or 0.06% to close at 1,665.85. SET index in Thailand closed lower 0.10 or 0.01% to 709.64. JSE Index in Indonesia decreased 11.65 or 0.46% to 2,494.74. The Sensex index in India decreased 220.39 or 1.29% to 16,877.16.

Europe Markets Review

In London FTSE 100 Index traded lower 28.71 or 0.54% to 5,286.63, in Paris CAC 40 Index decreased 8.85 or 0.23% to 3,821.59 and in Frankfurt DAX index traded lower 8.59 or 0.15% to 5,793.67. In Zurich trading SMI increased 5.23 or 0.08% to 6,438.32.

ASX 200 Index Movers

Boart Longyear Limited led the decliners in the ASX 200 index of 5.5% followed by losses Murchison Metals Limited of 3.7%, in Medusa Mining Limited of 3.7%, in Abacus Property Group of 3.6% and in Astro Japan Property Trust of 3.5%.

Platinum Australia Limited gainers in the ASX 200 index with a rise of 7.9% followed by gains in Paladin Energy Ltd of 5.7%, in PaperlinX Limited of 5.4%, in Alumina Limited of 5.1% and in Minara Resources Limited of 5.0%.

Nikkei 200 Average Movers

Shimizu Corporation led the decliners in the Nikkei 225 index of 3.5% followed by losses in Taiheiyo Cement Corporation of 2.9%, in Unitika Ltd. of 2.8%, in Konami Corporation of 2.7%, and in Nippon Sheet Glass Company, Limited of 2.7%.

Sumitomo Realty & Development Co., Ltd. led gainers in the Nikkei 225 index with a rise of 4.5% followed by gains NSK Ltd. of 4.2%, in Hitachi, Ltd. of 4.2%, in Nisshinbo Holdings Inc. of 3.7%, and in The Furukawa Electric Co., Ltd. of 3.4%.