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DOW & STI

Stocks rise on tech and bank earnings

By Julianne Pepitone, staff reporterApril 21, 2010: 10:04 AM ET


NEW YORK (CNNMoney.com) -- Stocks opened higher Wednesday on solid earnings reports in the technology and financial sectors, in addition to upbeat results from many blue-chip Dow index components.

The Dow Jones industrial average (INDU) added 30 points, or 0.3%. The S&P 500 index (SPX) gained 4 points, or 0.3%. The Nasdaq composite (COMP) was up 8 points, or 0.3%.

Earnings: Morgan Stanley (MS, Fortune 500) said it swung to a $1.8 billion profit in the first quarter Wednesday before the bell, as strong trading revenue boosted the Wall Street firm's latest results. Shares of Morgan were up about 4%.

Wells Fargo (WFC, Fortune 500) reported a $2.5 billion profit before the bell, beating Wall Street expectations. The company said that credit conditions have "turned the corner" from the weakness of the financial crisis. Wells shares rose 1.5%.

Overall, the finance sector was up 10.8% in morning trade.

In addition to banks, investors digested quarterly results from several Dow components ahead of the bell, including:

-- AT&T (T, Fortune 500), which beat estimates on a boost from strong sales of Apple's iPhone.

-- Boeing (BA, Fortune 500), whose profit and revenue dropped amid fewer airplane deliveries

-- McDonalds (MCD, Fortune 500), whose earnings rose above predictions as sales rose across all its markets, especially Europe and Asia

--United Technologies (UTX, Fortune 500), which also beat estimates.

Late Tuesday, iPod and Mac maker Apple (AAPL, Fortune 500) posted a record quarter that blew past Wall Street's estimates. Apple shares rose 5% in early trading.

Yahoo (YHOO, Fortune 500) also delivered earnings that beat expectations, although its sales came in below estimates. Shares fell 5% in early trading.

Also, Chrysler announced that it earned its first operating profit since exiting bankruptcy on June 10, 2009. The profit follows nearly $4 billion of losses logged by the automaker during that time.

The results will continue after the markets close, with coffee chain Starbucks (SBUX, Fortune 500) and other major names reporting results.

World markets: European shares drifted lower in morning trading. The FTSE 100 in Britain and France's CAC 40 were both about 0.8% lower, while Germany's DAX fell 0.3%.

Asian markets ended the session mixed. Japan's Nikkei rallied 1.7% and the Shanghai Composite surged 1.8%. The Hang Seng in Hong Kong lost 0.5%.

Other markets: The dollar edged higher against the euro and yen but remained weak versus the pound.

The price of oil gained 24 cents to $84.09 a barrel. Wednesday marked the first day of the June contract. The government's weekly oil inventory report was due at 10:30 a.m. ET.

COMEX gold for June delivery prices were up $1.80 to $1,140.40 an ounce.

Treasury prices were higher, with the yield on the benchmark 10-year note at 3.78%. Bond prices and yields move in opposite directions. 

 

Bullish outlook for equities and commodities

Stocks and commodities made an astounding comeback in 2009 after a disastrous 2008. Emerging markets and Asia ex-Japan equities posted their best performance last year — with strong 67.7 per cent and 61.7 per cent gains respectively while the MSCI World Equities Index managed only a 23.8 per cent gain.

Unfortunately, equity performance in January 2010 cast a wet blanket over expectations. However the market picked up a positive momentum later in the quarter.

Economic data to date have been encouraging. Many nations, such as China and Singapore, have reported strong economic growth and even lag indicators — such as unemployment rate — have been showing encouraging signs of recovery globally.

We continue to hold our view that risky assets such as equities and commodities will continue to do well in 2010 as more news of economic recovery and strong corporate performance present themselves.

We also believe that the current low interest rate in most parts of the world will come to an end in the later part of the year as more signs of economic recovery turn up. We are therefore bearish on bonds this year.

We suggest investors shift the weight of their portfolios towards equities and commodities and away from bonds. ETFs are extremely helpful when constructing investment portfolios and should be used as the starting point of any portfolio construction.

The global economic recovery however fuels the fear of inflation.

With loose monetary and generous fiscal policies present in many parts of the world, many are now concerned that inflationary pressures will start to force governments to take early evasive action to prevent inflation from becoming a full blown issue. However, others are of the view that the shaky world economy may not be ready for a withdrawal of fiscal policies and a tightening of monetary policy.

These fears will continue to resurface periodically causing stock prices to correct whenever markets gain new highs. We therefore also suggest that investors consistently use available covered warrants to protect their portfolio when equity indices hit new highs (with put warrants) and extend their position (with call warrants) when positive momentum returns.

Bullish outlook for equities and commodities

This article is contributed by Roger Tan and Edmund Seow from SIAS Research.

 

How about STI then.

 

Stocks rise on earnings

By Alexandra Twin, senior writerApril 20, 2010: 4:09 PM ET

NEW YORK (CNNMoney.com) -- A surge in energy prices and better-than-expected profit reports from Goldman Sachs and others helped stocks Tuesday.

Quarterly earnings from Yahoo and Apple are due after the close.

The Dow Jones industrial average (INDU) added 26 points, or 0.2%. The S&P 500 index (SPX) gained 10 points, or 0.8%. The Nasdaq composite (COMP) gained 20 points, or 0.8%.

Stocks seesawed Tuesday morning as investors mulled Goldman Sachs (GS, Fortune 500)' improved earnings and analysts grilled the firm over SEC charges that it defrauded investors in a deal involving the marketing of subprime mortgages.

But stocks turned higher as investors focused on better-than-expected reports from Coca-Cola, Johnson & Johnson and others, as well as a rally in energy, mining and metal prices and stocks.

Investors took a "sell the news' approach to IBM's improved results released late Monday, with weakness in that stock limiting the Dow's gains. IBM is the Dow's most heavily weighted component.

Stocks ended mostly higher Monday as worries about Goldman Sachs eased and Citigroup's strong earnings soothed investors. Concerns about the potential fallout from Goldman Sachs dragged on stocks at the end of last week. But investors took comfort Monday from reports that said that regulators decided to pursue charges against the firm by just a narrow majority.

"The Goldman risk has been built into the market, along with some of the fear about financial reform regulation," said David Chalupnik, head of equities at First American Funds. "Now earnings are back in the driver's seat."

Goldman: The company reported a better-than-expected first-quarter profit of $3.5 billion on strength in its investment banking business and improved trading volume.

But Goldman Sachs (GS, Fortune 500) stock lost 1% as investors also listened to the testimony from its executives, who denied that the company misled investors.

Quarterly results: IBM (IBM, Fortune 500) posted higher quarterly sales and earnings that topped estimates late Monday. The company also boosted its full-year 2010 earnings forecast. But shares fell 1.7% Tuesday as investors worried about a surprise decline in the backlog, Chalupnik said.

Johnson & Johnson (JNJ, Fortune 500) reported higher quarterly earnings that beat estimates on higher revenue that met estimates as strong sales of medical devices overshadowed weaker sales of prescription drugs and consumer products.

The Dow component also trimmed its full-year 2010 earnings forecast due to currency rate fluctuations and the impact of the U.S. health care bill. Shares were little changed.

Tech bellwethers Apple (AAPL, Fortune 500) and Yahoo (YHOO, Fortune 500) report results after the close of trading Tuesday.

S&P 500 earnings are currently on track to have risen 45% versus a year ago, according to the latest from Thomson Reuters. Revenues are on track to have risen 11%.

World markets: In overseas trading, European markets rose, with London's FTSE gained 1%, France's CAC 40 gained 1.3% and Germany's DAX gained 1.5%. Asian markets were mixed, with Hong Kong's Hang Seng index up 1% and Japan's Nikkei down 0.1%.

Bonds: Treasury prices slipped, raising the yield on the 10-year note to 3.82% from 3.81% late Thursday. Treasury prices and yields move in opposite directions.

The dollar and commodities: The dollar gained versus the euro and the yen.

COMEX gold for June delivery rose $3.40 to settle at $1,139.20 per ounce.

U.S. light crude oil for May delivery rose $2 to settle at $83.45 a barrel on the New York Mercantile Exchange, the last day of the May contract. The June contract settled at $83.85 a barrel, up 72 cents from Monday's closing price.

Market breadth was positive. On the New York Stock Exchange, winners beat losers four to one on volume of 860 million shares. On the Nasdaq, advancers topped decliners two to one on volume of 1.03 billion shares. 

 

Stocks gain on improved earnings

By CNNMoney.com staffApril 20, 2010: 9:54 AM ET


NEW YORK (CNNMoney.com) -- Stocks inched higher Tuesday as investors looked past Goldman Sachs' fraud case and focused on its strong quarterly earnings.

Better-than-expected reports from Coca-Cola, Johnson & Johnson and others also bolstered stocks.

The Dow Jones industrial average (INDU) added 20 points, or 0.2%. The S&P 500 index (SPX) gained 6 points, or 0.5%. The Nasdaq composite (COMP) lost 10 points or 0.4%.

Stocks ended mostly higher Monday after a choppy trading day as optimism over Citigroup's strong profit report was offset by worries about the fallout from the SEC's fraud suit against Goldman Sachs.

Goldman: Shares of Goldman Sachs (GS, Fortune 500) fell 1% after gaining in pre-market trading. The bank reported first-quarter profit of $3.5 billion Tuesday, delivering a much-needed shot to the firm's ailing reputation as it faces questions over its role in structuring a security tied to subprime mortgages.

On a per-share basis, Goldman earned $5.59 per share. Consensus estimates were for the company to record a profit of $2.4 billion, or $4.01 per share, according to Thomson Reuters.

But investors and analysts will most likely focus on the civil fraud suit brought against by the company last week by the Securities and Exchange Commission.

The fraud suit has weighed on Wall Street, although reports saying regulators were split on the decision to bring charges against Goldman helped lift investor sentiment.

Earnings: IBM (IBM, Fortune 500) posted higher quarterly sales and earnings that topped estimates late Monday. The company also boosted its full-year 2010 earnings forecast. But shares fell 2.8% in morning trading.

Apple (AAPL, Fortune 500) and Yahoo (YHOO, Fortune 500) are due to report their latest financial results after U.S. markets close.

World markets: European shares posted strong gains in early trading. Germany's DAX and France's CAC 40 both gained more than 1%, while the FTSE 100 in Britain was up about 0.7%.

Asian markets ended the session mixed. Japan's Nikkei slipped, while the Hang Seng in Hong Kong rallied 1%.

Other markets: Oil prices rebounded Tuesday after falling nearly 3% the day before.

Crude for May delivery was up $1.15 to $82.60 a barrel. The May contract be volatile Tuesday, the expiration day.

Trading in the June contract has already made it the dominant contract. Crude for June delivery was up 82 cents to $83.95 a barrel.

Meanwhile, the dollar continued to drift, treading water against the euro at about $1.35. The greenback slid 0.4% against the British pound to $1.54. The dollar was up 0.4% versus the yen at ¥92.79.

Treasury prices were lower across the board, with the yield on the benchmark 10-year note edging up to $3.8%. 

 

Dow pulls out a gain

By Alexandra Twin, senior writerApril 19, 2010: 6:16 PM ET


NEW YORK (CNNMoney.com) -- Stocks ended mostly higher Monday as investors set aside some worries about the fallout from Goldman Sachs and scooped up financial, consumer and energy stocks.

The Dow Jones industrial average (INDU) added 73 points, or 0.6%, after having been down by as much as 41 points earlier. The S&P 500 index (SPX) gained 5 points, or 0.5%. The Nasdaq composite (COMP) ended just below unchanged.

Late in trading a published report said the SEC voted narrowly to approve the charges against Goldman, a signal that the case might not be as strong as some in the industry feared. The company reports quarterly results Tuesday.

Goldman Sachs (GS, Fortune 500) gained 1.6% and the KBW Bank (BKX) sector index rose 1%. Citigroup shares gained 7% following its profit report.

A better-than-expected reading on leading economic indicators was also in play, while the strong dollar hurt commodity shares.

A recovery in financials near the close helped the Dow and S&P 500 end with gains and the Nasdaq cut losses.

Energy, metal and mining shares ended mixed after falling through the afternoon in tune with commodity prices. Prices fell on the stronger dollar and concerns about the spread of ash from a volcano in Iceland. Airline stocks fell as most European airports remained closed. The Amex Airline index lost 2.2%.

After the close, IBM (IBM, Fortune 500) posted higher quarterly sales and earnings that topped estimates and also boosted its full-year 2010 earnings forecast. Shares fell 2% in extended-hours trading after rising 1% during the session.

The declines last Friday fell at the end of an otherwise upbeat period on Wall Street. The Dow and Nasdaq have risen for eight of the last nine weeks and the S&P 500 for seven of the last nine weeks. Last week, the Dow and S&P 500 moved just below 18-month highs, while the Nasdaq reached a near 22-month high.

Following such a run, stocks could be in for a bigger retreat, said Liz Miller, founder of Summit Place Financial Advisors.

"I certainly think a pullback is expected and would be reasonable here, but as I look out longer term, I can see the market higher," Miller said.

"The Dow is at an 18-month high and we have a number of areas that have rebounded to those levels, corporate profits are increasing and we're still in a low-interest rate environment," she said. "These factors should continue to move the market higher."

Citigroup: Citigroup reported quarterly profit that trounced Wall Street estimates, earning $4.4 billion or 15 cents per share, versus a loss a year ago. Analysts thought Citi would report break even in the quarter, according to a survey by tracker Thomson Reuters. Citi shares gained 7%.

The quarter was driven by higher trading revenue, particularly in the company's bond business. But Citi's CEO warned that the company remains cautious on its outlook, given the uncertain economic recovery.

Roughly 25% of the S&P 500 or 123 companies are due to report results this week, including 11 Dow components. Earnings are currently on track to have risen 41% from a year ago, according to Thomson Reuters. Revenues are on track to have climbed 11% from a year ago.

Economy: The index of leading economic indicators (LEI) rose 1.4% in March after climbing a revised 0.4% in the previous month, according to a Conference Board report released Monday. Economists surveyed by Briefing.com thought the March increase would be 1.1%.

Toyota: Toyota will pay a record $16.4 million fine for waiting months to notify the Department of Transformation about a pedal defect that led to the recall of more than 8 million autos. Shares eased 0.4%.

World markets: In overseas trading, European markets fell, with London's FTSE down 0.3%, France's CAC 40 down 0.4% and Germany's DAX down 0.3%. Asian markets tumbled, with Hong Kong's Hang Seng index down 2.1% and Japan's Nikkei down 1.7%.

Bonds: Treasury prices slipped, raising the yield on the 10-year note to 3.81% from 3.77% late Friday. The 10-year yield had risen as high as 4% a week ago, an 18-month peak. Treasury prices and yields move in opposite directions.

The dollar and commodities: The dollar gained versus the euro and the yen.

COMEX gold for June delivery fell $1.10 to settle at $1,135.80 per ounce.

U.S. light crude oil for May delivery slid $1.79 to settle at $81.45 a barrel on the New York Mercantile Exchange.

Market breadth was negative. On the New York Stock Exchange, losers beat winners eight to seven on volume of nearly 1.27 billion shares. On the Nasdaq, decliners beat advancers eight to five on volume of 2.16 billion shares. 

 

Wah, uncle pharoah, why u so negative huh? We must let as many people soak in this euphoric feeling until almost everyone believe that this recovery is here to stay mah ! Or else if you keep warning people like that, the bear will not wake up lah !

pharoah88      ( Date: 18-Apr-2010 14:01) Posted: Aaaaand we're back! America is back!  We were, at least,  when Newsweek mailed a sell alert to 3.1 million people... Newsweek's "America's Back: The Remarkable Tale of our Economic Turnaround" issue with a glossy red, white, and blue cover could bring an end to "America's recovery" party. Historically, publications like Newsweek have had a real knack for being contrarian indicators, hyping the over-hyped and succumbing to the American psyche. But they're not alone in this business... When BusinessWeek published its "Death of Equities" cover in 1979, it was time to mortgage the house and plow savings into anything and everything. That very cover was followed by a huge bull market of the 1980s. When Time published "Home Sweet Home" in 2005, talking up the housing boom, it was time to sell your home and take money out of the market. That very cover called the top of the housing bubble. And less than a year after his cover shoot as Person of the Year for Time's 1999 issue, Jeff Bezos' Amazon — along with most of the Internet bubble — collapsed more than 90%.

 

Wealth Daily [wd-eletter@angelnexus.com]

 

Aaaaand we're back! America is back! 

We were, at least,  when Newsweek mailed a sell alert to 3.1 million people...

Newsweek's "America's Back: The Remarkable Tale of our Economic Turnaround" issue with a glossy red, white, and blue cover could bring an end to "America's recovery" party.

Historically, publications like Newsweek have had a real knack for being contrarian indicators, hyping the over-hyped and succumbing to the American psyche.

But they're not alone in this business...

When BusinessWeek published its "Death of Equities" cover in 1979, it was time to mortgage the house and plow savings into anything and everything. That very cover was followed by a huge bull market of the 1980s.

When Time published "Home Sweet Home" in 2005, talking up the housing boom, it was time to sell your home and take money out of the market. That very cover called the top of the housing bubble.

And less than a year after his cover shoot as Person of the Year for Time's 1999 issue, Jeff Bezos' Amazon — along with most of the Internet bubble — collapsed more than 90%.

 

Not moving..... ZZZZZZZZZZZZZZzzzzzzzzzzzzzzzzzzzz

 

GLOBAL STOCK MARKETS OPEN NEW ERA. STI >5,000, SSE >8,000, IHSG >5,000  and DOW >15,000. in the coming future.

pharoah88      ( Date: 15-Apr-2010 11:51) Posted: DOW  &  STi NEW  WiNDOWS

 

DOW  &  STi

NEW  WiNDOWS

 

Stocks soar to major milestones

By Julianne Pepitone, staff reporterApril 14, 2010: 4:34 PM ET


NEW YORK (CNNMoney.com) -- Stocks rallied Wednesday, with the Standard & Poor's 500 and Nasdaq composite indexes crossing significant milestones for the first time in more than a year and a-half, after quarterly results from JPMorgan Chase and Intel and strong retail sales figures.

The Dow Jones industrial average (INDU) surged 104 points, or 0.9%, to end at 11,123.11, the highest level since September 2008. Financial and tech shares led the advance.

The S&P 500 index (SPX) gained 13 points, or 1.1%, to close at 1,210.65, marking the first time the index has closed above the 1,200 mark in almost 19 months.

The Nasdaq composite (COMP) added 39 points, or 1.6%, to end at 2,504.86. It was the first time since June 2008 that the index has ended above 2,500.

Year-to-date, the Dow is up 6.7%, the S&P has gained 8.6% and the Nasdaq has soared 10.4% as of Wednesday's close.

The S&P is up 77% from its March 9, 2009 low. However, the index remains 23.5% below the record high set Oct. 9, 2007.

"We were bumping against the 1,200 mark, as close as 1,199, and then backing down," said Art Hogan, chief market strategist at Jefferies & Co. "Crossing that barrier was notable."

The blue-chip Dow and Nasdaq touched fresh 18-month highs Tuesday after slight gains.

"We had an embarrassment of riches today as far as good news goes," Hogan said.

Earnings: JPMorgan Chase (JPM, Fortune 500) reported a $3.3 billion profit for the first quarter, though the bank continued to suffer losses in its consumer loan portfolio.

The New York City-based bank said it earned 74 cents a share during the quarter, up 55% from a year earlier. Analysts surveyed by Thomson Financial were expecting earnings of 64 cents a share.

Shares of JPMorgan ended more than 4% higher.

JPMorgan kicked off the reporting period for big banks, most of which are expected to post a profitable quarter.

"We'll be hearing from 125 S&P 500 companies next week, so we haven't gotten into the meat of it quite yet," said Jefferies' Hogan.

After U.S. markets closed Tuesday, chipmaker Intel (INTC, Fortune 500) reported earnings and revenue that topped Wall Street's estimates. Shares closed 3.3% higher on Wednesday.

"During the worst of the recovery, we were satiated by cost-cutting that boosted bottom-line net income," said Paul Radeke, vice president at KDV Wealth Management. "Now the market is looking for strong top-line revenue, and today it got some of that."

This week's earnings reports are tech heavy, Hogan said, and Intel's results could bode well for companies such as Google (GOOG, Fortune 500) that will report later this week. He expects the technology sector to continue rising in the coming weeks, and energy shares could be a "dark horse" gainer.

Economy: The government's monthly retail sales report and a report on consumer inflation were released before the market opened.

Retail sales jumped 1.6% in March, beating estimates from economists surveyed by Briefing.com. Sales excluding autos rose 0.6%, also topping predictions.

"This string of positive retail sales numbers implies that the rumored death of the American consumer was greatly exaggerated," Hogan said.

The Consumer Price Index (CPI), a measure of consumer inflation, rose 0.1% in March, in line with predictions. Core CPI, which excludes volatile food and energy prices, was unchanged. Economists had forecast a 0.1% jump.

A separate report showed business inventories rose 0.5% in March, slightly higher than the 0.4% jump that was forecast.

Federal Reserve Chairman Ben Bernanke testified before a joint session of Congress on the economic outlook, saying private-sector demand will be "sufficient" to spur moderate recovery in coming months, but more time is needed to recover job losses.

Separately, the Fed released its Beige Book report, which said economic activity expanded "somewhat" in 11 of the central bank's 12 districts.

World markets: Stocks in Europe ended higher, with Britain's FTSE 100, France's CAC 40 and Germany's DAX all in positive territory.

Asian markets also finished the session with gains. Hong Kong's Hang Seng edged higher, and the Nikkei in Japan added 0.4%.

Currencies and commodities: The dollar fell against its major rivals: the euro, pound and yen.

Oil prices snapped a 5-day losing streak, settling up $1.79 to $85.84 a barrel. The government's weekly report on U.S. crude inventories showed oil supplies fell by 2.2 million barrels last week.

COMEX gold for June delivery settled up $6.20 to $1,159.60 an ounce.

Bonds: Prices for U.S. Treasurys fell, with the yield on the benchmark 10-year note rising to 3.83%. Bond prices and yields move in opposite directions.

Market breadth was positive. On the New York Stock Exchange, winners topped losers almost four to one on volume of 1.1 billion shares. On the Nasdaq, advancers also beat decliners four to one, on volume of 3 billion shares. 

 

Singapore 2010 GDP  revised  from  3~4.5%  to 7~9.0%

SINGAPORE 2010 GDP  DOUBLE

Singapore is an ISLAND

Singapore business is EXPORT

Singapore business is SHIPPING BASED

SHIPPING will  DOUBLE

 

Stocks retreat in early trading

By CNNMoney.com staffApril 13, 2010: 9:35 AM ET


NEW YORK (CNNMoney.com) -- Stocks opened lower Tuesday as investors digested a mixed earnings report from Alcoa and took a step back after pushing the Dow industrials above the key 11,000 level.

The Dow Jones industrial average (INDU) was down 6 points, or less than 0.1%, shortly after the opening bell. The S&P 500 index (SPX) slid about one point and the Nasdaq composite (COMP) dipped 2 points.

Stocks managed gains Monday, with the Dow closing above 11,000 points for the first time in 18 months, as investors welcomed a plan to offer low-cost loans to Greece, tempering fears that the nation might have to default on its debt.

Quarterly reports: Aluminum producer Alcoa (AA, Fortune 500) reported first-quarter earnings late Monday that met expectations, but revenue fell short. Shares slipped nearly 3% in premarket trading.

Chip leader Intel (INTC, Fortune 500) reports results after the close. The Dow component is expected to have earned 38 cents per share after earning 11 cents per share a year ago.

First-quarter earnings for the S&P 500 are forecast to jump nearly 37%, when compared with last year's abysmal first quarter, according to Thomson Reuters. Revenue figures should also be up a rosy 10% from a year earlier.

Looking ahead, JPMorgan Chase (JPM, Fortune 500) reports quarterly results Wednesday, while Google (GOOG, Fortune 500) and Bank of America (BAC, Fortune 500) are due later in the week.

Economy: The government reported a larger-than-expected increase in the U.S. trade gap for February.

The nation's international trade deficit in goods and services increased to $39.7 billion in February from a revised $37 billion in January, the Commerce Department said. Economists surveyed by Briefing.com were expecting the gap to widen to $38.5 billion.

The deficit expanded as exports totaled $143.2 billion, while imports reached $182.9 billion.

World markets: Asian markets ended mostly lower. Hong Kong's Hang Seng slipped 0.1%, while the Nikkei in Japan slid 0.8%.

European markets turned mixed in active trading. Shares in London and Frankfurt were lower, while Paris was unchanged.

Currencies and commodities: The dollar was flat versus the euro, but rose against the pound. It fell versus the yen.

The price of oil slid 75 cents to $83.59 a barrel. Gold declined $5.70 to $1,155.90 an ounce.

Bonds: Prices for U.S. Treasurys fell, with the yield on the benchmark 10-year note at 3.81%. Bond prices and yields move in opposite directions.  

 

DOW is pOsitive

STi  and  ASIA  are  negative  Yesterday and Today ?

 

Dow: 11,000 at the finish line

By Alexandra Twin, senior writerApril 12, 2010: 6:58 PM ET



NEW YORK (CNNMoney.com) -- Stocks managed gains Monday, with the Dow industrials closing above 11,000 for the first time in 18 months, after European leaders made loans available to Greece, tempering fears that the nation might have to default on its debt.

But lingering concerns ahead of the start of the quarterly reporting period limited the gains.

The Dow Jones industrial average (INDU) added 8 points or 0.1%, finishing at 11,005.97, the highest close since Sept. 26, 2008, when it ended at 11,143.13.

"11,000 is a nice number but it's more psychological than anything," said Jim Dunigan, chief investment officer at PNC Wealth Management. "The S&P is getting close to 1,200 and that's another big round number."

The S&P 500 index (SPX) gained 2 points, or 0.2%, ending at 1196.48, an 18-month high. The Nasdaq composite (COMP) edged up 4 points, or 0.2%, to the highest finish since June 19, 2008.

After the close, Dow component Alcoa (AA, Fortune 500) ignited the quarterly reporting period. The aluminum maker posted earnings of 10 cents per share versus a loss of 59 cents a year earlier, meeting the expectations of analysts surveyed by Thomson Reuters. Alcoa reported revenue of $4.89 billion versus $4.147 billion a year ago. Analysts expected revenue of $5.238 billion.

"Alcoa was a pretty good start, but expectations for this earnings period are high and there's the potential for disappointment," Dunigan said.

First-quarter earnings are expected to have risen 37% versus the prior year, while revenue is expected to have risen 10%, according to Thomson Reuters.

Gains are expected to be driven by financials, materials and consumer discretionary -- the sector that includes autos and retailers.

Intel (INTC, Fortune 500) reports results on Tuesday, while Google (GOOG, Fortune 500), JPMorgan Chase (JPM, Fortune 500) and Bank of America (BAC, Fortune 500) are due later in the week.

Stocks closed higher Friday at the end of another up week for stocks. The market has risen in seven of the last eight weeks as economic confidence has replaced jitters about a global slowdown that felled markets in January.

Both the Dow and S&P 500 stand at roughly 18-month highs, while the Nasdaq stands at the highest point in nearly two years.

Greece: Investors got another bout of good news on the global front over the weekend, when European leaders agreed to make loans available to debt-burdened Greece.

The 16 countries that use the euro agreed to provide a collective $40 billion, while the International Monetary Fund (IMF) agreed to kick in $13.5 billion.

The loans, should Greece choose to access them, would have interest rates that are lower than what lenders had been requiring in recent days to hold Greek debt. Last Thursday, Greece's borrowing costs hit an all-time high as investors worried the country might default.

Greece is seen as something of the tip of the iceberg, with investors worrying that a default would exacerbate problems in other debt-burdened nations. Greece is one of the so-called PIIGS, along with Portugal, Ireland, Italy and Spain.

Recession questions: Although most economists think that the recession is over, the panel of economists who are responsible for specifying changes in the business cycle aren't sure yet.

The National Bureau of Economic Research said Monday that it is premature to say whether the recession that began in December 2007 has ended. The group is apparently wary to call an end when there is still the threat of a so-called double dip recession.

World markets: In overseas trading, European markets were mixed, with London's FTSE up 0.1%, France's CAC 40 and Germany's DAX both little changed. Asian markets were mixed, with the Hong Kong Hang Seng down 0.3% and the Japanese Nikkei up 0.4%.

Bonds: Treasury prices rallied, lowering the yield on the 10-year note to 3.85% from 3.89% late Friday. The 10-year had risen as high as 4% Monday, an 18-month high. Treasury prices and yields move in opposite directions.

The dollar and commodities: The dollar fell versus the euro and gained against the yen.

COMEX gold for June delivery rose $3 to settle at $1,162.20 per ounce.

U.S. light crude oil for May delivery fell 58 cents to settle at $84.34 a barrel on the New York Mercantile Exchange.

Market breadth was positive. On the New York Stock Exchange, winners beat losers eight to seven on volume of 976 million shares. On the Nasdaq, advancers beat decliners seven to six on volume of 2.06 billion shares.  

 

Earnings are currently expected to have risen almost 37% versus the first quarter of 2009, according to Thomson Reuters, while revenues are expected to have risen 10%.

Alcoa (AA, Fortune 500) begins the quarterly reporting period, as is traditional, when it reports results after the start of trading Monday. Alcoa is one of five Dow components due to report results this week. The others are Intel (INTC, Fortune 500), JPMorgan Chase (JPM, Fortune 500), Bank of America (BAC, Fortune 500) and General Electric (GE, Fortune 500). Tech leader Google is also due to report.

Greece: U.S. investors will also be attuned to developments coming out of Europe, amid speculation that debt-laden Greece could receive a bailout from the European Union and the International Monetary Fund (IMF) shortly.

Greece's finance minister said Friday that details of a previously agreed upon rescue package by Euro zone countries and the IMF were being worked out, even as he also said that the nation didn't need a rescue.

Worries that Greece may default on its mounting debt, destabilizing the euro and sparking a bigger debt crisis amid other vulnerable European nations, have weighed on markets intermittently all year. But the fears were exacerbated last Thursday after Greek borrowing costs spiked to an all-time high.

The analysts both said that the threat of a Greek default has been in the market for a while and has therefore already been priced in to stock valuations, to an extent. Nonetheless, they said that any sign of a crisis spreading would batter U.S. stocks.

Monday: Aluminum producer Alcoa is expected to have earned 11 cents per share, according to a consensus of analysts surveyed by Thomson Reuters. Alcoa reported a loss of 59 cents per share a year ago.

Tuesday: Chip leader Intel reports results after the close. The Dow component is expected to have earned 38 cents per share after earning 11 cents per share a year ago.

Wednesday: JPMorgan Chase, which reports results before the bell, is expected to have earned 64 cents per share versus 40 cents a year ago. JPMorgan is the first of a slew of banks that are expected to report strong profits this week.

Thursday: Tech behemoth Google (GOOG, Fortune 500) reports results after the close. The company is expected to have earned $6.57 per share versus $5.16 per share a year ago.

Friday: Bank of America is expected to report a profit of 9 cents per share in the morning, down from 44 cents per share a year ago.

General Electric is forecast to report a profit of 16 cents per share, down from 26 cents a year ago.

Monday: The March Treasury budget, due in the afternoon, is expected to show a surplus of $67.5 billion, versus a deficit of $191.6 billion in February, according to a consensus of economists surveyed by Briefing.com.

Tuesday: The February Trade Balance, due in the morning from the Commerce Department, is expected to have widened to $39 billion from $37.3 billion in January.

Import and export prices are also due in the morning.

Wednesday: The March retail sales report from the Commerce Department leads a busy day for economic news. Sales are expected to have risen 1.1% after growing 0.3% in February. Sales excluding autos are expected to have risen 0.5% after rising 0.8% in February.

The Consumer Price Index (CPI), a measure of consumer inflation, is expected to have risen 0.1% in March versus a flat reading in February. Core CPI, which excludes volatile food and energy prices, is expected to have risen 0.1% after moving up 0.1% in February.

The government also releases the weekly crude oil inventories report and February business inventories report in the morning. The Fed's periodic "beige book" reading on the economy is due in the afternoon.

Thursday: The weekly jobless claims report from the Department of Labor is the highlight of another busy day for news.

Approximately 440,000 Americans are expected to have filed new claims for unemployment last week versus 460,000 in the previous week. Continuing claims, a measure of those who have been receiving benefits for a year or more, are expected to have risen to 4,600,000 from 4,550,000 in the previous week.

Friday: Housing starts and building permits are due out in the morning from the Census Bureau and are likely to move markets. Starts are expected to have risen to a 610,000 unit annual rate in March from a 575,000 unit annual rate. Building permits, a measure of builder confidence, are expected to have fallen to an annualized rate of 626,000 units from a 637,000 rate of units in the previous month.

The April Consumer Sentiment index from the University of Michigan is due after the start of trading. Sentiment is expected to have improved to a reading of 75.0 from 73.6 in March. 

 

Oh yes, Ferbonacci number, it should be reached and it is just a matter or time.

pharoah88      ( Date: 12-Apr-2010 12:21) Posted: D O W 1 1 1 1 1

 

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