Wall Street ends flat as hope for ECB move increases

NEW YORK - U.S. stocks closed little changed on Tuesday after the International Monetary Fund reduced its growth forecasts for 2015 and 2016, increasing speculation central banks would take more aggressive policy moves to spark economic improvement.

The lower forecasts implied less demand for fuel through 2016, contributing to another fall in crude oil, although some bullish results from major energy companies kept the sector afloat. The S&P energy index eked out a gain of 0.09 percent.

The IMF cut its forecasts for both years by 0.3 percentage points and advised advanced economies to maintain accommodative monetary policies to avoid increases in real interest rates as cheaper oil increases deflation risk.

The European Central Bank is expected to announce a bond buying program on Thursday to boost the region's flagging economy.

"Any sense at all that the ECB disappoints, you will see the markets correct rather harshly," said Ken Polcari, Director of the NYSE floor division at O’Neil Securities in New York.

"You can speculate all you want and investors can take the market higher all they want, but until the ECB comes out and says it, you are not really going to know."

The Dow Jones industrial average rose 3.66 points, or 0.02 percent, to 17,515.23, the S&P 500 gained 3.12 points, or 0.15 percent, to 2,022.54 and the Nasdaq Composite added 20.46 points, or 0.44 percent, to 4,654.85.

U.S. crude settled down 4.7 percent to $46.39 per barrel, after hitting an intraday low of $45.89, while Brent settled down 1.8 percent at $47.99.

Halliburton Co and Baker Hughes Inc warned that a fall in drilling activity would hurt 2015 results, though the companies also reported better-than-expected fourth-quarter profits. Halliburton rose 1.8 percent to $39.83 while Baker gained 1.2 percent to $57.26.

Johnson & Johnson fell 2.6 percent to $101.29 as the biggest drag on both the Dow and S&P 500 after adjusted earnings beat expectations but revenue missed forecasts.

Morgan Stanley reported a drop of 81 percent in revenue from trading fixed-income securities, currencies and commodities, though earnings rose on a sharp drop in legal costs. Shares dipped 0.4 percent to $34.75.

FXCM Inc plummeted 87.3 percent to $1.60 on volume of over 91 million shares, its most active day ever. The retail foreign exchange laid out details of a rescue loan after $200 million of losses on last week's shock removal of the cap on the Swiss franc.

After the closing bell, Netflix shares surged 12.1 percent to $391 after posting a quarterly revenue increase of 26.3 percent, while IBM lost 1.6 percent to $154.51 after its results.

NYSE declining issues outnumbered advancers 1,894 to 1,207, for a 1.57-to-1 ratio; on the Nasdaq, 1,639 issues fell and 1,128 advanced, for a 1.45-to-1 ratio favoring decliners.

The S&P 500 posted 47 new 52-week highs and 17 new lows; the Nasdaq Composite recorded 70 new highs and 109 lows.

Volume was moderate, with about 7.2 billion shares traded on U.S. exchanges, roughly in line with the 7.29 billion average so far this month, according to BATS Global Markets.

source: interaksyon.com

US urges air bag repairs as Toyota expands recall

WASHINGTON — US authorities on Monday urged owners of vehicles with potentially deadly defective Takata air bags to seek repairs as Toyota recalled about 247,000 vehicles over the parts flaw.

The Transportation Department’s safety agency issued a bulletin to owners of 4.7 million vehicles made by Toyota and five other automakers, highlighting an apparently higher level of danger from the faulty air bags for car owners in areas with high humidity.

“The National Highway Traffic Safety Administration urges owners of certain Toyota, Honda, Mazda, BMW, Nissan, and General Motors vehicles to act immediately on recall notices to replace defective Takata air bags,” the NHTSA said.

“The message comes with urgency, especially for owners of vehicles affected by the regional recalls in the following areas: Florida, Puerto Rico, Guam, Saipan, American Samoa, Virgin Islands and Hawaii.”

The air bag could improperly inflate and rupture, potentially sending shrapnel into the car’s occupants.

Honda has the highest number of vehicles covered by the recall at roughly 2.8 million. Toyota is second at 778,000, followed by BMW at 574,000.

The high-profile alert came as Toyota Motor Sales USA said it was recalling Toyota Corolla, Matrix, Sequoia, Tundra and Lexus cars, sport utility vehicles and pick-up trucks produced from 2001 to 2004 to replace the air bag inflator for the front passenger seat.

Toyota expanded on an earlier airbag-related recall especially to include vehicles in high humidity areas, including southern Florida, Gulf Coast states, Hawaii and Puerto Rico, where the vehicles “appear to warrant immediate action” based on testing by Takata.

According to Toyota, Takata is still testing whether high humidity is an important factor in the airbag problem.

Toyota said it had received no reports yet of injuries or fatalities related to the airbag problem.

Still, the seriousness of the risk to occupants of the front seat was underscored in the company’s details on the recall process .

If a replacement inflator part is not available when the vehicle is brought in for servicing, the dealer will temporarily disable the front passenger air bag.

In that case, the dealer will install a warning that the front passenger seat should not be occupied until the repair has been completed.

Toyota’s US-traded shares were up 3.1 percent at $113.24 in afternoon trade on the New York Stock Exchange.

source: interaksyon.com

Dow, S&P 500 end at record highs after data

NEW YORK - The Dow and the S&P 500 edged up to end at record highs on Friday, wrapping up four straight months of gains, after mixed economic data gave investors little reason to rush into stocks.

After the benchmark S&P 500's latest record closing high - its fourth in the last five sessions - gains may be harder to come by until the market's direction becomes more clear. Payrolls data and a European Central Bank meeting will be the major catalysts next week.

U.S. consumer spending fell for the first time in a year in April, but the decline probably will not change expectations for a rebound in growth this quarter. An inflation gauge rose at its quickest pace since November 2012 while business activity in the U.S. Midwest rose in May at its strongest pace since October 2013.




"Very mixed signals, which prevents bears from getting aggressive and keeps bulls in place. It’s effectively forestalled any real significant directional shift to what we’ve seen thus far," said Peter Kenny, chief executive officer of Clearpool Group in New York.

"This is an unusual time and place in the market, in that we are in a real holding pattern, and the markets are looking for more in the way of confirmation in the way of economic data that suggests our economic activity is accelerating."

Equity investors kept an eye on U.S. Treasury yields. The 10-year note's yield rose after the strong Chicago PMI data, but remained below 2.5 percent, near an 11-month low hit during Thursday's session.

The low yields helped to bolster dividend-paying stocks. High-yielding utilities ranked as the best-performing S&P sector on Friday, up 0.8 percent for the day.

The Dow Jones industrial average rose 18.43 points or 0.11 percent, to 16,717.17. The S&P 500 gained 3.54 points or 0.18 percent, to 1,923.57. The Nasdaq Composite fell 5.33 points or 0.13 percent, to 4,242.62.

Friday's gain lifted the Dow above its previous record close of 16,715.44 set on May 13.

For the week, the Dow rose 0.7 percent, the S&P 500 gained 1.2 percent, and the Nasdaq climbed 1.4 percent.

The Dow gained 0.8 percent for May and the S&P 500 rose 2.1 percent, marking the fourth straight month of gains for both indexes. The Nasdaq, up 3.1 percent, scored its first monthly gain in three.

Big Lots shares jumped 13.1 percent to $42.44 after the closeout retailer posted better-than-expected results and higher sales.

In contrast, shares of apparel retailers Express and Guess slumped a day after the companies forecast disappointing profits for the current quarter amid a sluggish revival in consumer spending. Express shares sank 7.5 percent to $12.61. Guess fell 5.1 percent to $25.50.

Volume was modest, with about 5.92 billion shares traded on U.S. exchanges, slightly above the 5.75 billion average for the month, according to data from BATS Global Markets.

Advancing stocks outnumbered declining ones on the New York Stock Exchange by 1,523 to 1,485. On the Nasdaq, decliners beat advancers by 1,594 to 1,018.

source: interaksyon.com

Twitter stock slumps 50% as Goldman, Deutsche Bank still say `buy’

Twitter Inc investors who heeded the advice of high-profile banks such as Goldman Sachs Group Inc and Deutsche Bank AG to buy the social media company’s shares might be kicking themselves.

Much more accurate calls were made by Wells Fargo, Atlantic Equities and Macquarie Research, whose analysts advised clients to get out of the high-flying stock about the time it peaked in December.

On Wednesday the stock fell as low as $37.24, 50 percent below its peak of $74.73 the day after Christmas, wiping almost $18 billion off Twitter’s market capitalization.

The downgrades, and the subsequent swoon by the stock, reflect concern about slowing growth in Twitter’s user base and the company’s ability to reverse the trend. Year-on-year growth in the number of Twitter users has fallen for five straight quarters, and the company said on Tuesday that its 255 million monthly users, on average, appeared to check the service less frequently than a year ago.

That in turn has fueled doubts that Twitter could one day attract as many users as Facebook Inc’s 1.2 billion, or match its much larger rival’s power as an advertising vehicle. It’s also raised questions over whether it can sustain growth over the long term. While no one is suggesting Twitter will lose its consumer cachet as happened to companies such as MySpace or Orkut, neither can anyone guarantee that as tastes change newer rivals won’t usurp it.

“Can they become a mainstream company? That’s the open question,” said Ben Schachter, the Macquarie Securities analyst who downgraded Twitter’s stock to “underperform” on December 27 – the day after it peaked.

It’s a far cry from the enthusiasm that greeted the company when it debuted on the New York Stock Exchange on November 7 and its shares soared 73 percent over the offering price. There was no let-up for the next two months, as the stock scaled fresh highs with little or no news to justify the valuation.

That got some analysts worried. Schachter, speaking to Reuters on Thursday, recalls a “runaway momentum.”

Starting mid-December, seven brokerages downgraded the stock within a span of three weeks. Wells Fargo and SunTrust Robinson kicked off the first round of downgrades on December 16, followed by Atlantic Equities. Macquarie timed its downgrade to perfection.

In his downgrade note on December 16, Wells Fargo analyst Peter Stabler said investors were “underestimating the challenges facing the company”.

A common theme was that Twitter, though innovative, well-run and full of potential, simply did not warrant such a rich valuation, so soon.

“They are focusing on the right things. I only have positive things to say about the company. My quibble is with the stock,” said Brian Wieser, Pivotal Research Group analyst, who was among the first to urge clients to retreat.

He downgraded the stock to “sell” immediately after Twitter’s shares jumped on its opening day. At the time, he had a $30 target price on the stock and recommended selling after they breached the $45 level in their market debut.

The risks
Twitter said in 2010 that it aims one day to have 1 billion users. It did not specify a time frame.

Some of the analysts who downgraded the stock in December are not as confident in Twitter’s long-term outlook, much of which will hinge on the company’s ability to increase both the number of users and how much time they spend on the site.

A fast-growing and engaged user base would help Twitter rake in more advertiser dollars; however, those are issues over which management has limited control, Atlantic Equities analyst James Cordwell said in December.

Investor worries were reflected in the response to Twitter’s quarterly results this week, when the market overlooked higher-than-expected revenue to focus instead on the slow user and usage growth. Twitter’s shares fell 10 percent.

The expiration on May 5 of Twitter’s six-month “lockup” – the period after the initial public offering during which early investors are barred from selling their shares – could put the stock under more pressure. Restrictions on about 470 million shares will be removed.

Twitter’s co-founders, Jack Dorsey and Evan Williams, and Chief Executive Richard Costolo have said they do not plan to sell their shares after the post-IPO restrictions are lifted.

Only one other major investor, Benchmark Capital Management Co LLC, which owns 31.6 million shares, has publicly stated that it will not sell the stock when the lock-up expires.

“Despite some key investor and executive statements that they will not sell near term, we estimate that 50-70 percent of shares could be unlocked,” JPMorgan Chase & Co analyst Doug Anmuth said in a research note on April 30.

The other camp
Still, Goldman and Deutsche Bank, both underwriters of the high-profile IPO, maintain their positive views of the stock, in spite of the user trends, two consecutive quarters of disappointing results and the decline in its shares.

Twitter shares trade at 334.2 times forward earnings, far more than Facebook’s 38.1 times, according to StarMine, or the average of 17.95 for the Standard & Poor’s 500 Index, according to Thomson Reuters data.

“The company continues to execute near-flawlessly around items in its control like revenue and expenses,” Deutsche Bank analyst Ross Sandler wrote in a note on Thursday, a day after Twitter posted its second-quarter results. Sandler didn’t immediately return a phone call and an e-mail. Goldman Sachs analyst Heath Terry was traveling and not available for comment, his assistant said.

Sandler said market sentiment would eventually shift away from users toward revenue growth. Facebook, he argued, also struggled with slow user growth last year before regaining Wall Street’s favor thanks to its strong mobile ad business.

Schachter, the Macquarie analyst, says much will depend on how successful Twitter will be in revamping its site to attract mainstream users.

“They are executing well in terms of innovation, but the user growth is a bit of a concern,” he said. “The hope is that they can change the site, to make it more user-friendly.”

source: interaksyon.com

Wall Street sells off after Fed sticks with stimulus cuts

NEW YORK - U.S. stocks dropped more than 1 percent on Wednesday, hitting session lows after the Federal Reserve stuck with its plan to scale back stimulus even in the midst of emerging market turmoil.

With the day's decline, the S&P 500 is down 4 percent for the month - its worst monthly loss since May 2012. Some investors have been bracing for a correction, given the S&P 500's gain of 30 percent last year.

Trading was volatile after the Fed's move, which further reduces its monthly bond purchases by $10 billion a month. Declines were fairly broad-based, with nine of the 10 S&P 500 sector indexes ending lower. Shares of Boeing Co ranked among the biggest drags on both the Dow and the S&P 500.

Overall improvement in the U.S. economy suggested the central bank would continue to cut the purchases, but some investors had speculated in recent days that the Fed might rethink its plan because of the emerging market problems.

"I think investors had hoped that the Fed would somehow respond to the recent turbulence and show they had their back," said Jack Ablin, chief investment officer of BMO Private Bank in Chicago.

But the Fed really wants "to move to the sidelines here and get out of the QE business."

In its announcement, the Fed said it would buy $65 billion in bonds per month starting in February, down from $75 billion now. In what was Fed Chairman Ben Bernanke's last policy-setting meeting, the central bank also maintained its longer-term plan to keep U.S. interest rates low for some time to come.

The benchmark S&P 500 has lost ground in four of the past five sessions as fears over slowing growth in China and large capital outflows from developing markets prompted investors to seek safe-haven assets.

The Dow Jones industrial average fell 189.77 points or 1.19 percent, to end at 15,738.79. The S&P 500 ost 18.30 points or 1.02 percent, to finish at 1,774.20. The Nasdaq Composite dropped 46.53 points or 1.14 percent, to close at 4,051.43.

The CBOE Volatility Index or VIX, Wall Street's barometer of fear, jumped 9.81 percent to end at 17.35.

The Fed's quantitative easing program has supported not just the U.S. economy but overseas economies as well by increasing liquidity, so cutting the stimulus has been a big factor in the emerging markets' selloff.

Stocks were lower early in the session even after bold efforts by Turkey and South Africa to stabilize their currencies.

South Africa's central bank raised interest rates for the first time in six years. Its move followed a dramatic rate hike by Turkey's central bank late Tuesday, designed to defend its crumbling currency.

Boeing's stock fell 5.3 percent to close at $129.78, after the aerospace and defense company issued conservative forecasts for profit and cash flow. Investors focused on those projections, though the company reported a surge in quarterly profit.

Yahoo shares dropped 8.7 percent to end at $34.89, a day after the Internet company reported a drop in online ad prices that hurt its revenue for a fourth consecutive quarter.

Among other profit reports, Dow Chemical Co posted a quarterly profit that was well ahead of expectations. It also raised its dividend 15 percent and expanded its stock-buyback program. Dow Chemical's stock rose 3.9 percent to end at $44.73.

After the bell, shares of Facebook rose 9.2 percent to $58.45 after the world's largest social networking company reported quarterly revenue increased 63 percent.

Quarterly earnings expectations for the S&P 500 have improved as more companies have reported results. Growth is now estimated at 9 percent, compared with 7.6 percent at the start of the month, Thomson Reuters data showed.

As the stock market rallied last year, valuations rose for S&P 500 companies. The forward price-to-earnings ratio is at 14.9, compared with 13.1 at the start of 2013.

Volume was higher than average for the month. About 7.5 billion shares changed hands on U.S. exchanges, compared with the average of 6.8 billion so far this month, according to data from BATS Global Markets.

Decliners outnumbered advancers on the New York Stock Exchange and the Nasdaq by slightly more than 3 to 1.

source: interaksyon.com

Wall Street falls as China data trigger selloff in risky assets

NEW YORK - U.S. stocks fell on Thursday, with the Dow Jones industrial average recording its third consecutive day of losses, as risky assets sold off in wake of disappointing manufacturing data in China.

Financials and materials stocks were the day's biggest losers while telecom services was the only positive sector as investors sold growth-oriented stocks and bought defensive ones. Trading volume was heavier than in recent sessions.

The market sentiment was dented by a report on manufacturing in China which showed a mild slowdown at the end of 2013 in the world's second-largest economy had continued into the new year.

U.S.-traded Chinese stocks were down sharply after a U.S. Securities and Exchange Commission judge ruled that the Chinese units of the world's top accounting firms should be suspended from auditing those companies.

Among the biggest losers were Internet services provider Baidu Inc, down 6.2 percent, and SINA Corp, down 5.9 percent, on heavier-than-usual volume. The U.S. shares of Petrochina, the country's largest stock by market value, fell 3.1 percent.

The CBOE Volatility index VIX often used as a fear gauge on Wall Street, closed up 7.2 percent at 13.77 after rising more than 11 percent earlier.

"The day's panic was largely associated with China and I think it's a temporary reaction," said Randy Frederick, managing director of active trading and derivatives at Charles Schwab in Austin, Texas.

"If we have good corporate earnings from a couple of big names or good economic reports, I think we will be right back up to where we were a couple days ago."

The Dow Jones industrial average fell 175.99 points or 1.07 percent, to 16,197.35, the S&P 500 lost 16.4 points or 0.89 percent, to 1,828.46 and the Nasdaq Composite dropped 24.126 points or 0.57 percent, to 4,218.875.

Trading volume was higher than usual with 7.4 billion shares traded on all U.S. platforms compared to a five-day average of 6.7 billion shares, according to BATS exchange data. Both on the NYSE and Nasdaq, decliners beat advancers by a ratio of about 2 to 1.

After the bell, Microsoft Corp said fiscal second-quarter profit rose 3 percent, as strong sales of its Office software to businesses offset another weak quarter for its flagship Windows system, and as consumers increasingly favor tablets over personal computers. The stock rose 3.7 percent in extended trade.

Starbucks Corp's sales at established stores in its U.S.-dominated Americas region cooled more than analysts expected in its latest quarter as consumers spent more time holiday shopping online than at physical stores. The stock rose 1 percent in extended trade.

Apple Inc rose 0.8 percent to $556.18. Activist investor Carl Icahn picked up another $500 million of Apple shares, taking the billionaire's total investment in the iPhone maker to $3.6 billion.

In other earnings, McDonald's Corp reported weaker-than-expected revenue as fewer customers ate at its restaurants. Shares rebounded from earlier losses to close up 0.5 percent to $95.32.

Netflix Inc shares surged 16.5 percent to $388.72 as the best performer on the S&P 500. The world's largest video-streaming company said Wednesday it added more than 2.3 million U.S. customers in the fourth quarter.

Shares of Herbalife fell 10.3 percent to $65.92 in heavy volume after Massachusetts Senator Edward Markey asked for more information about its business practices. The nutrition company has been accused by prominent hedge fund manager William Ackman of running a pyramid scheme.

Thomson Reuters data through Thursday morning shows earnings for the fourth quarter are expected to grow 7 percent. Of the 102 companies in the benchmark that have reported, 63 percent beat expectations, in line with the long-term average.

source: interaksyon.com

With Fed out of the way, what's next on Wall Street?

NEW YORK - With the U.S. Federal Reserve finally announcing it will start tapering its stimulus, removing a big uncertainty in the market, can Wall Street expect a stronger finish to the year? Not really.

The "Santa Claus rally" is a seasonal anomaly that describes a rise in stock prices in December, generally over the final week of trading prior to the new year.

The benchmark S&P 500's average gain during the last five days of December and the first two of January is about 1.5 percent since 1950, according to Stock Trader's Almanac. The equities market has gone up in December about 80 percent of the time for the past 20 years.

Although the S&P 500 is up just about 1 percent so far this month, the index is up about 27 percent for the year and is on track for its biggest gain since 1997.

"It's been a strong year, and I wouldn't be surprised if investors closed out their year today," said Doug Foreman, co-chief investment officer of Kayne Anderson Rudnick Investment Management.

"There isn't much room or news to move higher from here until next year."

Stocks rallied sharply this week, with the Dow and the S&P 500 closing at records on Friday, following the Fed's mid-week announcement it will reduce its $85 billion monthly bond purchases by $10 billion.

For the week, the Dow gained 3.1 percent, the S&P 500 was up 2.5 percent and the Nasdaq added 2.6 percent.

Trading volume this week was also below average as many investors had already locked in their gains for the year ahead of the holidays.

"There's a lot of transparency in the market, but most of the noise has already been made. We should expect to continue seeing light volume and not much selling as we go into next week," said Mark Martiak, senior wealth strategist Premier Wealth/First Allied Securities in New York.

"We're selling our winners and looking to see what sectors could be the ones to be in next year. I like cyclical and industrials. I want to see the news post-holiday season before I start to recommend defensive names."

With Christmas and New Year's holidays in the middle of the week, trading volume is likely to be lower than previous years. The New York Stock Exchange will close early at 1 p.m. ET on Tuesday and will remain closed for Christmas day.

Analysts say next week will be a start of investors finally shifting focus to the fundamentals of the economy, like economic reports and corporate earnings.

"With the Fed out of the way now, the market is going to move back to making more rational decisions and focus on what really matters in the economy," said Scott Clemons, chief investment strategist at Brown Brothers Harriman Wealth Management.

"Fourth-quarter earnings will start coming in January and the market's full focus will be on those numbers and outlooks."

Economic data due next week include personal income and outlays at 8:30 a.m. ET on Monday. Tuesday's data include durable goods orders at 8:30 a.m. ET and new home sales at 10:00 a.m. ET. On Thursday, weekly jobless claims will be released at 8:30 a.m. ET.

source: interaksyon.com

Wall Street retreats from record

NEW YORK - Stocks slipped on Tuesday, a day after a record close on the S&P 500, with traders looking ahead to next week's Federal Reserve meeting in the absence of market-moving economic data.

Healthcare stocks were among the most active after company news while utilities was the worst performer of the 10 industry groups on the S&P 500.

The S&P 500 held above key technical indicators including its 14-day moving average, and volume remained below average even for a thinly-traded month.

"It's a bit of consolidation after a run-up to new highs. There's no reason to think this is anything different than that," said Paul Zemsky, head of asset allocation at ING Investment Management in New York.

A number of Fed policymakers suggested on Monday the U.S. central bank may be closer than previously thought to trimming its $85 billion a month in bond purchases. But stronger economic data of late, including a drop in the unemployment rate to a five-year low, helped ease investors' angst over a pullback in the Fed's stimulus.

"Monetary policy responds to changes in the economy and as long as the economy is better, tapering shouldn't be too difficult to endure," said Kevin Caron, market strategist at Stifel, Nicolaus & Co in Florham Park, New Jersey.

The Fed's policy-setting Federal Open Market Committee meets Tuesday and Wednesday next week.

The Dow Jones industrial average fell 52.4 points or 0.33 percent, to 15,973.13, the S&P 500 lost 5.75 points or 0.32 percent, to 1,802.62 and the Nasdaq Composite dropped 8.261 points or 0.2 percent, to 4,060.49.

Twitter hit an all-time high of $52.58, more than doubling its $26 initial price in early November and extending Monday's gains after a spate of product announcements that could boost its revenues. Shares closed up 5.8 percent at $51.99.

Other Internet stocks also performed well on Tuesday with Facebook up 2.9 percent to $50.25 and Yahoo up 3.5 percent to $40.22.

AbbVie shares hit a record high of $54.11 after its all-oral hepatitis C therapy cured 96 percent of difficult-to-treat patients in a late-stage clinical trial, keeping the company well placed in a highly competitive race to deliver new treatments for the serious liver disease. Shares ended up 1.8 percent at $52.14.

Also in the healthcare orbit, pharmacy chain CVS Caremark and pharmaceutical distributor Cardinal Health announced a 10-year agreement to form the largest generic drug operation in the United States, the world's biggest generic drug market.

Cardinal Health closed up 3 percent at $66.22 and CVS added 1.9 percent to $67.99.

Shares of Rambus Inc jumped 12.3 percent to $9.58 after the company settled a patent dispute with Micron Technology.

General Motors Co stock fell 1.2 percent to $40.40. The automaker said Chief Executive Dan Akerson will step down next month and be replaced by Mary Barra, the company's global product development chief.

About 5.8 billion shares changed hands on U.S. exchanges, below the 6.1 billion average so far this month, according to data from BATS Global Markets.

Advancers trailed decliners on the New York Stock Exchange by about 2 to 3, while on Nasdaq almost two issues fell for every one that rose.

source: interaksyon.com

Dow, S&P retreat for second day amid investor caution

NEW YORK - U.S. stocks fell on Tuesday, with the Dow and the S&P 500 retreating further from milestone levels, led by a slide in Best Buy after a disappointing outlook.

Trading remained in a tight range with U.S. Federal Reserve Chairman Ben Bernanke scheduled to speak in Washington at 7 p.m. EST. Charles Evans, the president of the Chicago Federal Reserve Bank, said earlier on Tuesday that the central bank may need to wait until next year, possibly until March, before beginning to wind down its massive bond-purchase program.

Cautious forecasts from Best Buy and Campbell Soup Co gave investors a reason to sell some stocks. Best Buy shares slid 11 percent to close at $38.78, while Campbell Soup fell 6.2 percent to $39.21.

The Dow briefly rose above 16,000 but failed to close above that level for the second day. The S&P 500 retreated further from the 1,800 level it hit on Monday. Despite the two-day decline, the S&P 500 is still up about 25 percent for the year. The benchmark index is on track for its biggest yearly gain since 2003.

"The last couple of days have been a bit choppy, signaling a top here, but the market is extremely resilient to any bad news and funds continue to flow into stocks and risky assets from bonds and fixed income," said Tim Ghriskey, who helps manage more than $1.5 billion as chief investment officer of Solaris Asset Management LLC.

The Dow Jones industrial average slipped 8.99 points, or 0.06 percent, to end at 15,967.03. The Standard & Poor's 500 Index declined 3.66 points, or 0.20 percent, to finish at 1,787.87. The Nasdaq Composite Index dropped 17.51 points, or 0.44 percent, to close at 3,931.55.

Best Buy is cutting prices for the holiday season to thwart fierce competition from Wal-Mart and other discount and online rivals, a move that it warns will hurt margins for the current quarter.

Campbell Soup, the world's largest soup maker, also cut its full-year profit forecast after a drop in demand for its soups and drinks resulted in first-quarter earnings that fell far short of analysts' estimates.

But a recovery in the U.S. housing market helped Home Depot exceed profit and sales estimates for the third quarter, prompting the No. 1 home improvement chain to raise its fiscal-year outlook for the third time this year.

The stock gained 0.9 percent to end at $80.38 after hitting a lifetime high of $82.25.

The S&P 500 has more stocks up so far this year than in almost any other year since 1980, according to Frost Investment Advisors.

"221 stocks in the index are up more than 30 percent. In fact, it has been over 530 trading days now since the stock market has seen the 10 percent correction that many predicted over the last 529 or so days," Frost Investment said in a note to clients.

On Wednesday, minutes from the Fed's October meeting are scheduled to be released. At that meeting, the Fed decided to stick with its bond-buying program. Investors have been bracing for a pullback from the stimulus program since the summer.

"I'd say there's a very low probability the Fed does anything between now and the end of the year," said Dan Veru, chief investment officer of Palisade Capital Management, which has $4.5 billion in assets and is based in Fort Lee, New Jersey.

Tesla Motors shares rose 3.7 percent to $126.09 in a volatile session. U.S. traffic safety regulators launched an investigation into the luxury electric sports car maker's Model S sedan after three car fires in six weeks.

About 5.8 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, slightly below the five-day average closing volume of about 6.1 billion, according to BATS exchange data.

On the New York Stock Exchange, decliners beat advancers by a ratio of slightly more than 2 to 1. On the Nasdaq, nearly two stocks fell for every one that rose.

source: interaksyon.com

Wall Street edges up in choppy trade

NEW YORK - U.S. stocks ended higher on Monday in light trading volume as investors were reluctant to make big bets with S&P 500 index just below the all-time closing high.

The day's lackluster activity was partly due to the Dow and S&P 500 indexes' four consecutive week of gains. Investors were also awaiting the all-important non-farm payrolls report due Friday for further clues on when the Federal Reserve may begin to start tapering its stimulus.

Among individual stocks, U.S.-listed shares of BlackBerry ended down 16.4 percent to $6.50 after hitting a 52-week low of $6.40. The smartphone maker said it was abandoning a plan to sell itself. With Monday's drop, the stock is at levels unseen since October 2003.

Twitter IPO-TWTR.N, meanwhile, raised the upper end of the projected price range for its initial public offering later in the week, an encouraging sign for the social media company.

The otherwise quiet start to the week follows a week of record highs for U.S. stocks. It remains to be seen whether the market can push higher, with much dependent on the steps the Federal Reserve will take in the months ahead in response to economic data. The Fed's massive bond purchases have helped prop up the economy and the equity market for much of the year.

"The rebound in the U.S. stock market in late October pushed the S&P 500 index up to a 24 percent gain since the start of the year. As a result, we believe this is probably a good time for investors to rebalance their portfolios which may now have equity holdings exceeding their recommended allocations," said Gary Thayer, chief macro strategist at Wells Fargo Advisors in New York.

"We remain longer-term positive on U.S. equities but would recommend taking some profits in stocks at this time."

The benchmark S&P index has risen 4.3 percent over the past four weeks as the partial U.S. government shutdown in October pushed back expectations for the Fed to begin curtailing its stimulus into the first quarter of next year.

The Dow Jones industrial average was up 23.57 points, or 0.15 percent, at 15,639.12. The Standard & Poor's 500 Index was up 6.29 points, or 0.36 percent, at 1,767.93. The Nasdaq Composite Index was up 14.55 points, or 0.37 percent, at 3,936.59.

St. Louis Federal Reserve President James Bullard told CNBC television the Fed should not rush a decision to scale back its asset purchases because of low inflation.

Recent manufacturing data have been stronger than expected, lending weight to the argument that the economy may be sturdy enough to handle an earlier-than-expected reduction in the central bank's bond-buying program.

All key S&P sectors were higher, led by telecoms and energy stocks. The S&P energy index .SPNY rose 1.3 percent and the telecoms sector index .SPLRCL gained 0.8 percent.

In earnings, Kellogg Co advanced 0.7 percent to $62.72 after the cereal maker reported a 3 percent rise in quarterly profit, and said it would slash 7 percent of its workforce by 2017.

With about 75 percent of S&P 500 companies having reported results so far, 69 percent have topped Wall Street's expectations, above the long-term average of 63 percent. Just 53 percent have topped revenue forecasts, below the 61 percent average since 2002, Thomson Reuters data showed.

Volume totaled about 5.1 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, below the average daily closing volume of about 6.2 billion this year.

On the New York Stock Exchange, around two stocks fell for every five that rose, while on the Nasdaq, advancing stocks beat declining ones by a ratio of 3 to 2.

source: interaksyon.com

Wall Street ends down as Caterpillar falls, Boeing rallies

NEW YORK - U.S. stocks fell on Wednesday as shares of heavy-equipment maker Caterpillar and semiconductor companies tumbled after they reported earnings, ending the S&P 500's four-session streak of record high finishes.



Results from Caterpillar Inc and Boeing Co, two Dow components, illustrated the quarter's mixed picture of corporate results and outlooks, which have some investors worried.



Caterpillar was one of the biggest decliners on the S&P, slumping 6.2 percent to $83.62 after the manufacturer cut its full-year outlook for a third time and its profit missed expectations. That sent shares tumbling by the most in a day since September 2011.



"There's not a lot of room for error as earnings are growing at such a slow pace, particularly for a globally focused company like Caterpillar, which has been a proxy for global GDP in global markets," said Erik Davidson, deputy chief investment officer at Wells Fargo Private Bank. "It's no secret the rest of the world has suffered, so therefore a company like Caterpillar is going to suffer."



On the upside, Boeing surged 5.3 percent to $129.02 after airplane maker reported a rise in adjusted profit and raising its full-year forecast.



After the market closed, both AT&T and TripAdvisor reported revenue that was slightly below Wall Street's estimates. AT&T's revenue grew from the previous quarter to $32.16 billion compared with Wall Street estimates for $32.19 billion, according to Thomson Reuters I/B/E/S data.



TripAdvisor's revenue rose 20 percent to $255.1 million in the third quarter, below analysts' expectations of $255.9 million. TripAdvisor shares in extended-hours trading were up 5 percent to $79.25 after closing down 0.3 percent at $75.21 in the regular session. AT&T shares were flat.



About one-third of S&P 500 companies have reported thus far, with 66.3 percent topping profit expectations, a rate that is slightly higher than the historical average. Roughly 54 percent have beaten on revenue, below the 61 percent long-term average. Investors worry that much of the growth in earnings has not been generated by revenue.



"Finally the markets are focused on earnings after having been focused on many other things," Davidson, who called third quarter results released so far "tepid."



The semiconductor sector .SOX dropped 3.4 percent a day after Broadcom, Altera and RF Micro Devices  joined Intel and Texas Instruments in lowering their forecasts.



Broadcom shares fell 2.9 percent to $26.36, Altera lost 13.5 percent to $32.30 and RF Micro lost 8.6 percent to $5.63.



The Dow Jones industrial average was down 54.40 points, or 0.35 percent, at 15,413.26. The Standard & Poor's 500 Index was down 8.31 points, or 0.47 percent, at 1,746.36. The Nasdaq Composite Index was down 22.49 points, or 0.57 percent, at 3,907.07.



The S&P 500 closed at an all-time high on Tuesday, its fourth-straight record finish. The index is up 22 percent for the year up to Tuesday, not far from the 23.5 percent advance in 2009.



On Wednesday, 53 percent of total shares traded were declining.



Global equity markets weakened as China's primary short-term money rates rose on concerns the People's Bank of China may tighten its cash supply to counter inflation risks, which could hurt growth in the world's second-largest economy.



Also weighing on sentiment, the European Central Bank said it would put major euro zone banks through rigorous tests next year to build confidence in the sector. Some analysts said that if the review reveals unexpected problems, investor confidence could be undermined.



Netflix shares were up 2.4 percent to $330.24 following a large selloff on Tuesday when billionaire investor Carl Icahn cut his stake in the company.

source: interaksyon.com

Wall Street rises as jobs data supports US Fed policy

NEW YORK - U.S. stocks climbed on Tuesday, pushing the S&P 500 to yet another record high, after weaker-than-expected job creation last month reinforced expectations the Federal Reserve will hold the course on its economic stimulus into next year.



U.S. employers added 148,000 workers last month, well below the 180,000 economists had expected. The data was seen as supporting the Fed's decision to maintain its $85 billion in monthly bond purchases, which has been a major factor in the S&P 500's 2013 rally of 23 percent.



Many economists now think the Fed will refrain from scaling back its easy money policy, which has kept borrowing costs low, until next year. The central bank surprised market participants in September when it held off on any plans to trim its stimulus.



"Another soft report on the employment numbers just continues to lead us to believe the Fed will be with us at the holiday table this year with their full $85 billion and ringing in the New Year probably at that rate as well, which the markets like," said Darrell Cronk, regional chief investment officer at Wells Fargo Private Bank in New York.



But gains were limited on the Nasdaq after some of the year's biggest winners, including Netflix Inc, reversed course to move lower.



"This is a horrible one-day reversal, taking out yesterday's action. We saw both higher highs and lower lows today, which is proof the stock is exhausted," said Frank Gretz, market analyst and technician for brokerage Shields & Co in New York.



Netflix shares fell 9 percent to $323.12, giving back gains that followed the release of the company's earnings report on Monday. With more than 17 million shares traded, volume was nearly eight times the average over the last 50 days.



Apple edged down 0.3 percent to $519.87, though losses ebbed after the company unveiled a new line of iPads.



The Dow Jones industrial average rose 75.46 points or 0.49 percent, to 15,467.66, the S&P 500 gained 10.01 points or 0.57 percent, to 1,754.67 and the Nasdaq Composite  added 9.517 points or 0.24 percent, to 3,929.566.



The gains marked the fourth straight record close for the benchmark S&P index.



Consumer staples, up 1.4 percent, was among the best performing S&P sectors, boosted by a 4.2 gain in Kimberly-Clark Corp to $102.97 after the maker of Kleenex tissues posted bigger-than-anticipated quarterly profit.



Transocean shares rose 6 percent to $49.35 after S&P Dow Jones Indices announced the drilling services company will replace Dell on the S&P 500 index after the close of trading next Monday.



Shares of cloud software maker VMware Inc rose 2.8 percent to $85 a day after it reported a higher-than-expected profit.



According to Thomson Reuters data through Tuesday morning, of the 128 companies in the S&P 500 that have reported earnings, 63.3 percent have topped analysts' expectations, roughly in line with the beat rate since 1994 but below the 66 percent rate over the past four quarters.



On a revenue basis, 52.3 percent of companies in the S&P 500 that have reported results have beaten Wall Street expectations, short of the 61 percent beat rate since 2002 but slightly above the 49 percent rate over the past four quarters.



Advancing stocks outnumbered declining ones on the NYSE by 2,210 to 805, while on the Nasdaq, advancers beat decliners 1,397 to 1,148.

source: interaksyon.com

Dow, S&P 500 end modestly higher on hopeful signs in fiscal impasse

NEW YORK - The Dow and S&P 500 rose on Wednesday as Republicans and Democrats in Congress showed early signs of a possible break in the impasse, and U.S. President Barack Obama invited both sides for talks about ending the government shutdown, now in its ninth day.



Wall Street rebounded in the afternoon after the Nasdaq fell as much as 1 percent, with defensive sectors such as telecommunications and utilities rising on the day.



The Nasdaq, however, closed lower for a third day, pressured as investors sold this year's winning tech stocks including Netflix Inc and Fastenal Co.



"With the uncertainty over the government shutdown and the shaving away of the GDP each day, unfortunately, some investors will start selling these things that were good for the year rather than pulling off the laggards. And tech has been performing very highly," said Michael Matousek, head trader at U.S. Global Investors in San Antonio, Texas.



In the latest Washington developments, Republicans and Democrats floated the possibility of a short-term increase in the debt limit to allow time for broader negotiations on the budget.



At the same time, Obama began inviting lawmakers from both parties to the White House for meetings to discuss the government shutdown and raising the debt limit.



The slight shift in tone was aided by a column by House Budget Committee Chairman Paul Ryan of Wisconsin, who urged a negotiated end to the stalemate but did not mention Republican demands for linking changes in the federal healthcare law with government funding.



The market was also relieved that Obama nominated Federal Reserve Vice Chairwoman Janet Yellen to run the world's most influential central bank, providing some relief to markets that would expect her to tread carefully in winding down economic stimulus.



Yellen, an advocate for aggressive action to stimulate U.S. economic growth through low interest rates and large-scale bond purchases, would succeed Fed chairman Ben Bernanke, whose second term ends on January 31.



The Dow Jones industrial average ended up 26.45 points, or 0.18 percent, at 14,802.98. The Standard & Poor's 500 Index rose 0.95 point, or 0.06 percent, at 1,656.40. The Nasdaq Composite Index was down 17.06 points, or 0.46 percent, at 3,677.78.



The CBOE Volatility Index, a measure of investor anxiety, continued to rise, hitting 21.34, before retreating to 19.60. A level above 20 is generally associated with increasing concern about the near-term direction of the market.



A poll by Reuters showed Wall Street strategists expect the market to rebound toward the end of the year.



The S&P 500 dropped 1.2 percent on Tuesday, its worst decline since August 27, sending the benchmark index to its lowest level since September 6 as traders cashed in gains in some of the year's highest performing tech stocks.



The Federal Reserve's shock decision last month not to reduce its support for the U.S. economy was a "relatively close call" for policymakers, according to minutes of the meeting that also suggested there was still broad support to trim bond-buying this year. Since last month's meeting, the outlook for scaling back bond purchases has grown cloudier.



"Between slow growth and the shutdown, it's clear we're in troubled times. I wouldn't expect any tapering for quarters from now," said Todd Schoenberger, managing partner at LandColt Capital in New York.



In company news, Darden Restaurants Inc shares jumped 7.1 percent to $49.57 after the Wall Street Journal, reported hedge fund Barington Capital LP had taken a 2.8 percent stake in the owner of the Olive Garden and Red Lobster restaurants.



Shares of Hewlett-Packard Co rallied nearly 9 percent to $22.60 after Chief Executive Meg Whitman said she expects revenue to stabilize in 2014 with "pockets of growth" before the business accelerates again in 2015.



Yum! Brands Inc fell 6.8 percent to $66.48 after the KFC parent warned it will take longer than expected for restaurant sales to rebound in China, which accounts for more than half the company's overall operating profit.



Volume was light, with about 5.9 billion shares changing hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average so far this year of about 6.1 billion shares.

source: interaksyon.com

Wall Street ends up, but Dow, S&P fall for week as shutdown drags on

NEW YORK - U.S. stocks rebounded on Friday, but major stock indexes ended the week lower as a federal government shutdown continued for a fourth day, with no sign of an end to a budget stalemate in Washington.

The Nasdaq composite index ended the week higher as Friday's advance accelerated in the afternoon, but gains by the Dow and the S&P 500 were not enough to cancel the week's losses.

Political wrangling continued as House Speaker John Boehner and House Majority Leader Eric Cantor reiterated Republicans' call for negotiations by Democrats, but they did not indicate any change in their positions.

The government shutdown has made investors nervous as it drags on, but the impact from it has been relatively limited.

A more serious concern, investors say, is if the shutdown continues and the budget battle becomes tied up with the federal debt limit, which a divided Congress must raise by October 17 to avoid an unprecedented U.S. debt default.

"I think the market will be in a much nastier mood next week if we still don't have a deal," said Joseph Quinlan, chief market strategist at U.S. Trust Private Wealth Management.

Reflecting a rise in investor anxiety, some options investors were starting to pay more for protection against market turmoil.

The CBOE Volatility Index VIX, a 30-day forecast of stock market volatility measured using a strip of near-term S&P 500 options, rose to 16.73 on Friday from 13.12 on September 20, a sign of increased worry, although this level is still considered low.

Heavy buying activity on Thursday was seen in October and November VIX out-of-the money call options - contracts that are far from the current level - with heavy open interest additions in November contracts.

"This suggests traders are feeling the need to be protected through mid-November and implies that the market expects negotiations in Washington over the government shutdown and debt ceiling will be long and drawn out," said Matt Franz, investment adviser representative at Stutland Volatility Group.

The Dow Jones industrial average was up 76.10 points, or 0.51 percent, at 15,072.58. The Standard & Poor's 500 Index rose 11.84 points, or 0.71 percent, at 1,690.50. The Nasdaq Composite Index was up 33.41 points, or 0.89 percent, at 3,807.75.

For the week, the Dow fell 1.2 percent, the S&P 500 lost 0.1 percent while the Nasdaq added 0.7 percent. The S&P 500 has fallen for nine of the past 12 sessions.

The S&P's biggest loser on Friday was struggling retailer J.C. Penney Co fell to its lowest in more than 30 years, ending down 6.5 percent at $7.86.

Potbelly Corp said late Thursday its initial public offering of 7.5 million shares had priced at $14 each. In its first day of trading, the stock more than doubled to $31.84, with more than 14 million shares changing hands. The stock closed up 119.8 percent at $30.77.

Government economic reports have been delayed by the shutdown, and the September payrolls report from the Labor Department was not released Friday as scheduled.

Twitter Inc gave potential investors their first glance at its financials on Thursday when it filed for an initial public offering. The information showed that revenue at the social networking company almost tripled in 2012, but it posted a loss in the first half of 2013.

Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, said the shutdown would hurt growth in the last quarter of this year, while the Bank of Japan said an extended budget standoff would have a severe global impact.

Trading volume totaled about 5.2 billion shares on the New York Stock Exchange, the Nasdaq and the NYSE MKT, below the average daily closing volume of about 6.1 billion this year.

Advancing stocks outnumbered declining stocks by 1,967 to 995. On the Nasdaq, advancing stocks beat decliners by 1,741 to 779.

source: interaksyon.com

Wall Street falls as U.S. government faces possible shutdown

NEW YORK - U.S. stocks declined on Friday and the S&P 500 and Dow posted their first weekly drop in four, as Democrat and Republican lawmakers struggled to agree on an emergency funding bill to avert a U.S. government shutdown days away.

The S&P 500 declined 1.1 percent for the week and is roughly 2 percent below its record high set September 18 when the Federal Reserve announced it would keep its stimulus program unchanged for the present.

Time was running short for lawmakers to avert a partial shutdown of operations by the U.S. government on October 1. Republicans in the House want to use the spending legislation to gut the new healthcare overhaul, a goal of the conservative Tea Party.

The Senate passed the emergency funding bill on Friday, which will keep U.S. agencies operating after September 30. The measure must now be approved by the Republican-controlled House where it is expected to encounter rough going. The House could vote on a bill in an unusual Saturday or Sunday session.

"I think investors right now are contemplating what is the impact on consumer confidence, revenues and earnings if Washington gets caught up in a quagmire," said Fred Dickson, chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon.

Eight of the 10 S&P 500 sectors ended lower, with the materials sector leading losses on the index. The S&P materials index .SPLRCMA declined 1.2 percent.

The Dow Jones industrial average was down 70.06 points, or 0.46 percent, at 15,258.24. The Standard & Poor's 500 Index was down 6.92 points, or 0.41 percent, at 1,691.75. The Nasdaq Composite Index was down 5.83 points, or 0.15 percent, at 3,781.59.

For the week, the Dow was down 1.3 percent and the Nasdaq was up 0.2 percent.

Just before the close, President Barack Obama urged House Republicans to avoid a government shutdown without cuts to his healthcare law or other conditions.

He said he would not agree to delaying or defunding the new healthcare reform law, and that the Senate acted responsibly earlier in the day to keep the government open.

Shares of J.C.Penney fell 13.1 percent to $9.05 and was the worst percentage decliner on the S&P 500 after it said its public offering of 84 million common shares was priced at $9.65 per share.

Shares of Lumber Liquidators Holdings declined 5.2 percent to $107.13 after the company said it was cooperating with authorities after federal agents searched its headquarters and another office in a probe of the import of certain wood flooring products.

Among gainers, Nike Inc jumped 4.7 percent to $73.64, giving the Dow its biggest boost, a day after the maker of sports clothes and shoes reported a stronger-than-expected quarterly profit.

The latest Fed officials to comment on stimulus measures included Federal Reserve Bank of Chicago President Charles Evans, who said the Fed could start reducing its asset purchases this year based on economic forecasts, but the decision to wind back stimulus could be pushed into next year.

Minneapolis Fed President Narayana Kocherlakota told Reuters the Fed needs to speak more clearly and tell the world it will do "whatever it takes" to boost employment.

The day's economic data showed U.S. household spending rose in August as incomes increased at the fastest pace in six months, a sign that momentum could be picking up in the U.S. economy. Another report showed consumer sentiment slid in September to its lowest in five months.

Volume totaled about 5.5 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, below the average daily closing volume of about 6.3 billion this year.

Decliners outpaced advancers on the NYSE by about 2 to 1 and on the Nasdaq by about 1.6 to 1.

source: interaksyon.com

Wall Street posts worst week since June with Fed in mind

NEW YORK - Stocks fell on Friday and posted their biggest weekly decline since June as investors focused on when the Federal Reserve would begin to scale back its stimulus.

All but one of the 10 S&P 500 sector indexes ended lower.

The stock of J.C. Penney Co. skidded 5.8 percent to $12.87 and ranked as the S&P 500's biggest percentage decliner. Bill Ackman, the company's top investor, urged the retailer's board on Friday to replace its chairman.

Richard Fisher, president of the Federal Reserve Bank of Dallas, reiterated late Thursday that the central bank will probably begin cutting back on its massive bond-buying stimulus next month, as long as economic data continues to improve.

The lack of clarity over the Fed's plans gave investors reason to pull a record $3.27 billion out of U.S.-based funds that hold Treasuries in the latest week ended August 7, data from Thomson Reuters' Lipper service showed on Thursday.

"People are looking ahead to the September FOMC meeting and the prospect that the Fed begins its long-awaited exit strategy," said Michael Sheldon, chief market strategist at RDM Financial, in Westport, Connecticut.

The Dow Jones industrial average dropped 72.81 points, or 0.47 percent, to end at 15,425.51. The Standard & Poor's 500 Index declined 6.06 points, or 0.36 percent, to 1,691.42. The Nasdaq Composite Index fell 9.02 points, or 0.25 percent, to close at 3,660.11.

For the week, stocks posted their biggest declines since mid-June. The Dow fell 1.5 percent, snapping a six-week string of gains. The S&P 500 dropped 1.1 percent for the week and the Nasdaq slid 0.8 percent.

A week ago, both the Dow and the S&P 500 ended at record closing highs.

Stocks extended losses late in the session. President Barack Obama said he will make a decision on the nomination for the Federal Reserve chairman in the fall. Fed Chairman Bernanke is expected to step down when his second four-year term ends on January 31.

Bernanke rattled markets in late May by saying the Fed would begin to ease back on its stimulus program once the economy shows some improvement.

While many investors are concerned that economic growth will stall without the Fed's help, stock prices have been supported by some strong earnings and encouraging data overseas.

The S&P 500 is up 18.6 percent for the year so far.

In China, industrial output rose more than expected, adding to a string of data that indicated the economy may be stabilizing after an extended period of tepid growth.

U.S. economic data showed wholesale inventories unexpectedly fell 0.2 percent in June, marking a second straight month of declines, versus expectations calling for a gain of 0.4 percent.

U.S.-listed shares of BlackBerry Ltd jumped 5.7 percent to $9.76 after Reuters reported that the Canadian smartphone maker was warming to the idea of going private, citing sources familiar with the situation.

Priceline.com Inc, rose 3.9 percent to $969.89 a day after the online travel company reported earnings that beat expectations and gave a strong outlook. Some analysts speculate the stock's price will cross $1,000 soon, which would be a first for a Standard & Poor's 500 stock.

Earnings season is winding down, with 446 companies in the S&P 500 having already reported. Of those, 68 percent have exceeded analysts' expectations, slightly above the 67 percent beat rate over the past four quarters, Thomson Reuters data showed.

Volume was roughly 5.3 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, below the average daily closing volume of about 6.36 billion this year.

Decliners slightly outnumbered advancers on the NYSE by a ratio of about 15 to 14. On the Nasdaq, about three stocks fell for every two that rose.

source: interaksyon.com

Dow, S&P slip from record highs on year's lowest volume

NEW YORK - The Dow and the S&P 500 dipped on Monday in the thinnest volume so far this year, following their record closing highs last week as a lack of major news left the market directionless.

Although about 100 companies in the S&P 500 are still scheduled to report earnings, the season is winding down sharply after last week's deluge. The week is also thin in terms of market-moving macroeconomic data.

"It was a pretty quiet day," said Paul Zemsky, head of asset allocation at ING Investment Management in New York. "We're almost done with earnings, and the quarter will remain lackluster. It's hard to disappoint, but earnings are not fantastic."

About 4.6 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, the lowest for a full day of trading so far this year. Daily volume has averaged about 6.4 billion shares this year. Last year, August posted the lowest monthly average volume on U.S. exchanges.

The technology sector was the S&P 500's best performer. A rally in Apple and Facebook shares helped the Nasdaq Composite Index finish Monday's session with a slim gain. Apple rose 1.5 percent to $469.45 after the United States overturned a ban on the sale of some older iPhones and iPads. Facebook, which was the Nasdaq's most actively traded stock, jumped 3 percent to $39.19 after a brokerage upgrade.

Data suggesting economic recovery in the UK and U.S. economies was improving showed British businesses boomed and activity at euro-zone companies expanded modestly in July, while growth in the U.S. services sector rebounded from a three-year low.

"PMIs were better than people thought, and that tells us this idea that the second half could be stronger is still valid. But right now, it's just wait and see," Zemsky said.

The Dow Jones industrial average fell 46.23 points or 0.3 percent, to end at 15,612.13. The S&P 500 slipped 2.53 points or 0.15 percent, to finish at 1,707.14. But the Nasdaq Composite Index added 3.364 points or 0.09 percent, to close at 3,692.951.

United Technologies Corp and The Travelers Companies were the Dow's biggest percentage decliners. United Technologies shares slid 1 percent to $106.64, while Travelers shares fell 1 percent to $83.15.

The Washington Post Co. shares shot up 3.8 percent after the bell following news that Amazon Inc founder Jeff Bezos has agreed to pay $250 million to buy the publishing company's newspaper assets, including its flagship paper - known for its coverage of the Watergate break-in that led to the resignation of President Richard M. Nixon in 1974.

Washington Post Co. Class B shares ended the regular session at $568.70, up 1.6 percent, after climbing to an intraday high at $576, their highest level in more than four years.

The S&P 500 has risen for five of the past six weeks, gaining more than 7 percent over that period. The index closed at an all-time high on Friday despite a mixed reading on the labor market, which showed that hiring slowed in July, but the U.S. unemployment rate ticked lower.

Friday marked the second day in a row for the Dow and the S&P 500 to end at record closing highs, with the Dow ending at 15,658.36 and the S&P 500 at 1,709.67.

The slip in the unemployment rate means that the Federal Reserve is closer to dialing back its $85 billion-a-month bond-buying program, Dallas Federal Reserve Bank President Richard Fisher said on Monday. The stimulus program is given credit for a large part of this year's rally in the U.S. stock market.

On the earnings front, shares of Tyson Foods climbed 4.1 percent to $29.69, a record closing high, after giving a full-year revenue outlook that exceeded expectations.

In contrast, U.S.-listed shares of HSBC Holdings Plc fell 4.5 percent to $55.37 after the company reported a drop in revenue, hurt by slower emerging markets.

Shares of retailer Fossil dropped 6 percent to $107.42 on three times their recent average volume after Barclays downgraded the stock to "underweight."

Of the 391 companies in the S&P 500 that have reported earnings for the second quarter, 67.8 percent have topped analysts' expectations, in line with the average beat over the past four quarters, data from Thomson Reuters showed. About 55 percent have reported revenue above estimates, more than in the past four quarters but below the historical average.

U.S.-listed shares of Compugen Ltd soared 44.5 percent to $7.89 after the company said it would enter into a cancer research partnership with Bayer AG.

Declining issues outnumbered advancers on the NYSE by a ratio of about 3 to 2. On the Nasdaq, the opposite trend prevailed, with 14 stocks rising for about every 11 that fell.

source: interaksyon.com

Tomorrow Is a Big Day for Facebook’s Stock

The New York Stock Exchange and the NASDAQ are both planning to re-open on Wednesday after having ceased all trading for two days as a result of Hurricane Sandy. For some employees at Facebook, Wednesday probably can’t come soon enough.





The first of three big lockups for Facebook stock expired on Monday, giving employees the option to sell off their shares in the company for the first time since Facebook went public in May. In total, 234 million shares of Facebook stock were freed up as part of the lockup expiration, but because the stock market was closed, employees and shareholders have been unable to trade that stock so far this week.

That all changes on Wednesday.

Facebook employees have spent more than five months watching as the company’s stock plummeted from its IPO price of $38 a share to as low as $17.55 in early September, without having the option to sell off any of their shares. CEO Mark Zuckerberg reportedly acknowledged to employees that the declining stock price was “painful” to watch for all.

On the day that the stock hit its all-time low, Facebook announced that it would bump up the first lockup expiration date for employees from Nov. 14 to Oct. 29, which some argued was an attempt by the company to boost employee morale. Since then, Facebook’s stock has staged a bit of resurgence and currently sits at $21.70 a share. While that’s well above the low point, it’s also still well below the IPO price — in fact, as of earlier this month, Facebook employees had lost an average of $2 million each since the IPO.

The big question going into Wednesday is how quickly Facebook employees will be to pull the trigger on cashing out their stock. If they flood the market by selling millions of shares, it could send a signal to investors that even Facebook employees are not confident in the company’s future, which could have a significantly negative impact on the company’s stock price.

A similar situation took place back in August, after the first lockup period expired for 271 millon shares held by Facebook insiders. Peter Thiel, one of Facebook’s first investors, quickly sold off nearly all the stock he owned in the company (about 22 million shares), a red flag for investors that hurt the price of the stock.

The average Facebook employee selling this time around certainly doesn’t have 22 million shares to sell, but if employees begin to sell off en masse, it could have a similarly damaging impact on the stock. What’s more, in two weeks, another lockup period will expire for a whopping 777 million shares, which could disrupt the stock’s performance even further.

source: mashable.com

Wall Street falls in tech-led sell-off

NEW YORK - U.S. stocks fell on Tuesday, led by losses in technology after brokerage downgrades of Intel and other major companies as worries increased about third-quarter U.S. earnings.

Shares of Intel, the world's largest semiconductor maker, lost 2.7 percent to $21.90 after negative reports by at least two brokerages. Robert W. Baird & Co cut its price target on the stock to $26 from $32, citing weak demand for notebooks.

The news triggered selling of large-cap technology shares, including Oracle and Apple. Microsoft shares lost 1.7 percent to $29.28 and ranked as the biggest drag on both the Nasdaq and the S&P 500.

"It's a good bet that companies aren't significantly expanding their tech projects at this point," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.

Nine of the S&P 500's 10 sectors fell, with energy the one gainer for the day as crude oil prices jumped on concerns of a supply disruption in the Middle East.

Earnings warnings have left investors cautious after a rally that has driven the S&P 500 up nearly 16 percent so far in 2012, lifting it to an almost five-year high.

Among other large multinationals that have warned about earnings, citing weak demand in Europe and China, are FedEx Corp, Caterpillar Inc and Hewlett-Packard Co.

"Stocks had a big move for the year. Now people are waiting for more clarity on third-quarter results and fourth-quarter guidance," said Michael James, senior trader at Wedbush Morgan in Los Angeles.

Analysts expect quarterly earnings for S&P 500 companies to decline about 2.3 percent from the year-ago period, according to Thomson Reuters data.

At the close, the S&P 500 was 7.9 percent below its all-time closing high of 1,565.15, reached five years ago on this date.

The Dow Jones industrial average fell 110.12 points, or 0.81 percent, to 13,473.53 at the close. The S&P 500 lost 14.40 points, or 0.99 percent, to 1,441.48. The Nasdaq Composite dropped 47.33 points, or 1.52 percent, to close at 3,065.02.

About 5.8 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average so far this year of about 6.53 billion shares.

More than three issues fell for every one that rose in the NYSE. On the Nasdaq, about seven stocks fell for every two that rose.

Dow component Alcoa Inc reported quarterly results after the bell and its stock rose to $9.20, adding to the slight gain during regular hours. Alcoa closed at $9.13, up 0.1 percent, or 1 cent.

Shares of Netflix slid 10.9 percent to $65.53, reversing Monday's sharp gains after Bank of America Merrill Lynch cut the video streaming company's stock to "underperform" from "buy."

Chinese Internet company Baidu was also downgraded by Credit Suisse to "underperform" from "neutral." Its shares shed 6.8 percent to $106.49.

A number of issues traded on U.S. stock exchanges experienced sudden, big moves on Tuesday before resuming normal trading in the latest case of erratic activity in the stock market.

source: interaksyon.com