The market review for November, 2st

Stock trades in the U.S. on November 2 major indexes finished higher, but growth was more moderate than in the early trading session. Favored on investor sentiment reflected macroeconomic news, exceeding forecasts of experts. Thus, the American Institute for Supply Management reported that the index of business activity in U.S. industry (ISM index) in October 2009. compared with the September revised value increased by 3.1 points and totaled 55.7 points. Analysts also expect the index value at 53 points.

In addition, the amount exceeded forecasts of construction costs. In September of 2009. According to the report of the Ministry of Commerce (US Department of Commerce), figure rose by 0,8% compared with the revised figure in August 2009. and amounted to 940.3 billion U.S. experts, however, expected to reduce the cost of construction by 0,2%.

Positive macroeconomic indicators have strengthened the position of the company, profitability is substantially dependent on the state of the economy. Able to strengthen its position in the trading floors of companies whose profitability depends substantially on the state of the economy. Thus, the 0,5% increase in prices of securities of the largest U.S. aluminum producer Alcoa, shares a multi-industrial conglomerate General Electric added to the price of 1,5%, and the world’s largest producer of consumer products Procter & Gamble — 1,6%.

Not spared the attention of investors and corporate news, and especially the financial report of one of the largest U.S. automakers Ford Motor. Ford’s net profit in the III quarter of 2009. amounted to 997 million dollars, while during the same period a year earlier the company received net losses of $ 161 million revenue company in the III quarter of this year decreased by 2,5% and reached 30.9 billion dollars against 31.7 billion dollars a year earlier. Received by the financial results far exceeded the forecasts of experts, in connection with which quotes Ford jumped 8.3%.

Negative ended the trading session for financial company CIT Group, which is one of the largest U.S. organizations that provide loans to small and medium businesses. Quotations its shares have fallen to 65,3% since the company filed a petition for protection from creditors under bankruptcy law.

At 4,8% increase in prices securities from a U.S. bank BB & T Corp., As analysts at Sandler O’Neill raised his recommendation to «hold» from «sell.» At the same time feel less sure of other big banks: Citigroup shares fell 2.4%, and Morgan Stanley — by 0,4%.

Dow Jones index rose by 76.71 points (0.79%) — up to 9,789.44 points
NASDAQ — rose by 4.09 points (0.20%) to 2,049.20 points
S&P — at 6.69 points (0.65%) to 1,042.88 points.

Sector :

Sector : 2009-11-03

Industry :

Industry : 2009-11-03

Key earnings/guidance since yesterday’s close:
-UBS (UBS) reported a net loss of 564 mln Swiss francs in the third quarter, compared with a net gain of 283 mln Swiss francs in last year’s period, due to 1.44 bln Swiss francs in credit losses, 409 mln Swiss francs in charges related to the sale of its Brazilian investment bank Banco Pactual and 305 mln Swiss francs related to a convertible note bought by the Swiss government. Removing those charges, operating income rose 4% y/y to 5.77 bln Swiss francs. But the company also cautioned that heavy withdrawals from wealthy clients will persist in coming months following a dismal performance from its private bank. Shares of UBS are down nearly 7% premarket.
-Johnson & Johnson (JNJ) reaffirmed its 2009 EPS guidance of $4.54-$4.59 (First Call consensus $4.58) as it announced restructuring initiatives. It will eliminate 6%-7% of its workforce and expects to record an associated pre-tax, restructuring charge in the range of $1.1-$1.3 bln in the fourth quarter, treated as a special item. Shares of JNJ are showing little direction premarket.

Technical Perspective:
The Dow was the last of the stock indices to reach support at its 50-day averages and it outperformed again yesterday as it continued to hold near its 50-day ema. The Russell 2000, which has lagged the other averages for the last several weeks, held near its September low/200-ema and formed a loss of momentum doji. Given that the recent best and worst performing indices have tested/stabilized near supports of note and that both intraday and daily indicators are holding on to an extended technical posture, it raises potential that the market may have formed a short term bottom. A breach/close above the high of the low bars (Monday highs) would be a near term positive.

Key economic data:
-September Factory Orders at 10:00ET (consensus 0.8%; prior -0.8%)

Federal Reserve/Treasury calendar:
-None

Key Note/Bond auction results:
-None

Earnings:
-84 companies are confirmed to report today after the close, though none are expected to be market-moving releases

Key industry conferences:
-Oppenheimer Healthcare Conference (Day 1 of 2) — Companies presenting: BIOD, MNTA, QSII, RDEA, AHS, ARIA, DVAX, LHCG, AET, GILD, MD, AMED, ELOS, NBIX, PRXL, BPAX, BRLI, CYPB, IMGN, IRIS, BMRN, HMA, NUVA, SVNT, TRGT, CYH, GPRO, RIGL, SGEN, VTAL, GTIV, IDIX, IMMU, AMRI, BJGP, NVAX, OSIP, SUNH, CBRX, CRIS, HITK, NGSX, UAM, AIS, ANCI, ARQL, SYNO, VPHM

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