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Stock futures higher after recent losses

admin — Sun, 22 Aug 2010 17:46:47 +0000

NEW YORK | Mon Aug 23, 2010 8:08am EDT

NEW YORK (Reuters) – Stock index futures rose on Monday, following two weeks of losses for the S&P and Dow, as sentiment was lifted by several potential mergers and deals.

Hewlett-Packard Co (HPQ.N) bid $24 a share in cash for data storage company 3PAR Inc (PAR.N), sending the stock up 37 percent to $24.70 in premarket trading. HP, a Dow component, fell 1 percent to $39.45.

Campbell Soup Co (CPB.N) may make a $2.3 billion break-up bid for Britain’s United Biscuits, which is owned by private equity firms PAI Partners and Blackstone Group LP (BX.N), according to the London-based Sunday Times.

And George Buckley, the chief executive of 3M Co (MMM.N), said the Dow component may spend about $2 billion on acquisitions in 2010, twice its previous estimate.

“All this M&A activity is a sign of confidence that the situation out there has a silver lining about it,” said Andre Bakhos, director of market analytics at Lek Securities in New York.

“Nothing seems to be of heavy impact, but these things are all adding up.”

Last week Intel Corp (INTC.O) moved to acquire software maker McAfee Inc (MFE.N) for $7.7 billion.

S&P 500 futures rose 5.6 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures rose 37 points, and Nasdaq 100 futures rose 11.5 points.

Concerns about the strength of the recovery have intensified in recent weeks, with weak economic data adding to the cautious tone and depressing trading volume levels.

A $20 billion compensation fund for economic victims of the BP Plc (BP.L) (BP.N) Gulf oil spill opens for business on Monday amid accusations that the rules established by its administrator are unfair. U.S.-listed shares of BP slid 1 percent to $36.03 in premarket trading.

October crude futures edged slightly higher to $74.12 per barrel, though prices were close to last week’s six-week lows on bulging inventories.

The Federal Reserve plans to reduce American International Group Inc’s (AIG.N) credit line by about $3.6 billion in a sign of growing confidence that the government bailed-out insurer can emerge from taxpayer support, Bloomberg said, citing a person with knowledge of the proposal.

U.S. stocks slipped on Friday and the S&P 500 and Dow fell for a second straight week on persistent concerns the recovery has tapered off. For the week, the S&P 500 was down 0.7 percent and the Dow slipped 0.9 percent, while the Nasdaq gained 0.3 percent on some positive outlooks in technology shares.

(Editing by Padraic Cassidy)

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EURUSD squeezes back higher on Portugal reaffirmation

admin — Sat, 27 Mar 2010 14:09:52 +0000

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World markets mostly higher after US stocks gain (AP)

admin — Tue, 23 Mar 2010 00:25:33 +0000

were mostly higher Tuesday, helped by an overnight rise on
U.S. health care
measure.
Major markets gained by 1 percent or less, reversing course after declines the day before. The dollar was up modestly against the euro and the yen, while
held above $81.
Sentiment was buoyed by another advance on Wall Street, where investors seemed relieved after U.S. lawmakers ended months of uncertainty and passed
that would extend benefits to millions and have a wide-ranging effect on companies.
Asian and European stocks lost ground on Monday as more questions about Greece’s ability to resolve its debt crisis dogged investors. Though Germany’s chancellor said over the weekend a bailout wouldn’t be up for negotiation at a European summit this week, other regional leaders suggested a deal that might include help from the International Monetary Fund was in the works.
As trading got started in Europe, France’s CAC-40 and Britain’s FTSE 100 both rose 0.9 percent while
was up 0.7 percent.
In Japan, the
stock average fell 50.57 points, or 0.5 percent, 10,774.15, bucking the broader move higher as it caught up with losses from the previous session.
Hong Kong’s market added 54.53, or 0.3 percent, to 20,987.78 and South Korea’s index rose 0.6 percent to 1,681.82.
Australia’s index gained 0.9 percent, lifted by shares of major resource companies after commodity prices edged higher. India’s market climbed 0.3 percent and Singapore shares rose 0.6 percent.
In oil, benchmark crude for May delivery was up 6 cents to $81.66 a barrel in Asia. The contract added 63 cents to settle at $81.60 on Monday.
The dollar was higher at 90.38 yen from 90.10 yen. The euro was off at $1.3521 from $1.3560.
In the U.S. Monday, markets were led higher by shares of drug and hospital companies after the
’s approval.
The Dow rose 43.91, or 0.4 percent, to 10,785.89, its highest level since October 2008.
The Standard & Poor’s 500 index rose 5.91, or 0.5 percent, to 1,165.81. The
rose 20.99, or 0.9 percent, to 2,395.40.

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If GBPUSD is going to squeeze higher 1.5179 needs to give way above.

admin — Fri, 26 Feb 2010 17:54:48 +0000

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Stocks edge higher after mixed economic news (AP)

admin — Fri, 26 Feb 2010 12:59:21 +0000

NEW YORK – The stock market eked out a gain Friday as investors took downbeat economic news in stride.
and the Standard & Poor’s 500 index logged their best month since November.
The latest bad news came from several corners including the financial industry.
. reported a larger than expected fourth-quarter loss. The company said its primary insurance business was hurt in part by the economy.
The National Association of Realtors said sales of previously occupied homes fell 7.2 percent in January. It marks the second straight month of a big drop. Analysts had predicted a gain. The Realtors’ report comes two days after the Commerce Department said that
fell last month.
Meanwhile, the Commerce Department reported that the nation’s economy grew at a faster pace than initially estimated for the end of 2009. The stronger growth from the third quarter to the fourth quarter was welcome news but analysts say much of the gain is tied to businesses rebuilding inventories.
grew at an annual rate of 5.9 percent, above the 5.7 percent previous estimate. Growth is expected to slow in the coming quarters.
The mixed reports added to investors’ confusion about the economy. Analysts are divided over whether a recovery is on track. That has led to swings in the stock market after nearly a year of huge gains. Major stock indexes were strong in February but are down about 1 percent for the year. This week, stocks have fallen, jumped and slid again as worries about the economy intensified and eased.
“We’re in a time period where the range of potential outcomes is probably wider than it’s been for some time,” said Colleen Supran, a
at Bingham, Osborn & Scarborough in San Francisco. She pointed to concerns about everything from unemployment and housing to heavy debt loads in Greece and other parts of Europe causing another recession.
“Are we going to have a double dip? Are corporations going to be able to grow earnings? That’s sort of the bottom line for stock prices in the long run.”
The Dow rose 4.23, or less than 0.1 percent, to 10,325.26. It fell 0.7 percent for the week but rose 2.6 percent for the month. That’s the best run since it jumped 6.5 percent in November.
rose 1.55, or 0.1 percent, to 1,104.49. It fell 0.4 percent for the week and climbed 2.9 percent in February.
rose 4.04, or 0.2 percent, to 2,238.26. It fell 0.3 percent for the week. For February, the gain came to 4.2 percent.
Bond prices rose, pushing yields lower. The yield on the benchmark 10-year Treasury note fell to 3.62 percent from 3.64 percent late Thursday.
The dollar fell against other major currencies. Gold rose.
Crude oil rose $1.49 to $79.66 per barrel on the
.
hitting the Northeast. More than 20 inches fell in New York’s Central Park.
Investors were unwilling to make big moves ahead of economic reports next week. Most important, the
is expected to release its February payrolls report on Friday. Reports are also due on
and spending, manufacturing, construction spending and home sales.
Inconsistent reports are a part of economic recoveries but the size of the problems like unemployment and housing have brought concerns that a recovery will stall.
“It’s just complicating the ability to forecast with any degree of confidence how this is all going to settle out,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.
The questions about the economy have been tugging at the market. Stocks fell Monday and Tuesday after
. and Campbell Soup Co. warned that
will be slow to recover and after a drop in consumer confidence. The market then barreled higher Wednesday after
reiterated that interest rates would stay low to help the economy. On Thursday, stocks plunged and then recovered most of their losses as concerns shifted about unemployment and Greece.
“It really speaks to the level of angst that’s out there,” Luschini said, referring to the swings.
The report from AIG brought a reminder of the strains that still exist in the financial system. AIG said it lost $8.87 billion in the fourth quarter of 2009. That’s improved from a year earlier but weaker than analysts expected. AIG fell $2.74, or 10 percent, to $24.77.
Private equity firm Thomas H. Lee Partners said it is planning to acquire the parent of Carl’s Jr. and Hardee’s restaurants. The offer for
. totals $619 million in cash and $309 million in debt. Analysts like to see takeovers because it is a sign of confidence in the economy. CKE jumped $2.46, or 27.6 percent, to $11.37.
Meanwhile, a fifth straight monthly increase in the
provided some hope about the strength of manufacturing. The Chicago PMI rose to 62.6 in February from 61.5 in January.
, where consolidated volume came to 4.22 billion shares compared with 4.58 billion Thursday.
of smaller companies fell 1.90, or 0.3 percent, to 628.56.
Overseas, markets rose after improved economic reports in Britain and Japan boosted optimism about a global recovery. The U.K. government revised higher its estimate of the nation’s economic growth for the fourth quarter. In Japan, output from factories rose by more than expected in January and February retail sales jumped.
Britain’s FTSE 100 rose 1.5 percent,
gained 1.2 percent, and France’s CAC-40 rose 1.9 percent. Japan’s Nikkei stock average rose 0.2 percent.
closed the week down 77.09 points, or 0.7 percent, at 10,325.26. The Standard & Poor’s 500 index fell 4.68, or 0.4 percent, to 1,104.49. The
fell 5.61, or 0.3 percent, to 2,238.26.
The Russell 2000 index, which tracks the performance of small company stocks, fell 3.06, or 0.5 percent, for the week to 628.56.
U.S. Total
— which measures nearly all U.S.-based companies — ended at 11,343.17, down 48.18, or 0.4 percent.

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EURUSD squeezes higher.

admin — Fri, 26 Feb 2010 12:30:31 +0000

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Nestle sees higher growth 2010 after FY beats poll

admin — Thu, 18 Feb 2010 22:39:51 +0000

VEVEY, Switzerland (Reuters) -
NESN.VX
), the world’s biggest food group, is aiming for higher underlying sales growth in 2010 after a robust performance in Asia and the Americas helped it beat forecasts for 2009.
The group behind Nescafe instant coffee, Maggi soup, Gerber baby food and Perrier water beat estimates with 4.1 percent growth in underlying sales last year, ahead of rivals Unilever (
ULVR.L
DANO.PA
) and beating a poll forecast of 3.9 percent.
Strong demand for chocolate, soluble coffee and pet products drove full-year sales to 108 billion Swiss francs ($100 billion), ahead of the average forecast of 105.9 billion francs, while operating profit of 15.7 billion francs also beat the poll figure of 13.174 billion.
“Nestle’s 2009 results combined strong top and bottom line performance in a very challenging environment, thereby reconfirming the group’s long-term commitment to the Nestle Model,” the group said in a statement.
Under the “Nestle model”, the group aims for 5 to 6 percent underlying growth per year over the long-term.
The group expects its Food and Beverages business to achieve higher underlying growth in 2010 than in 2009 and a further increase in its margin on earnings before interest and tax (EBIT) in constant currencies.
Nestle’s results and outlook show it is weathering a tough consumer market better than its peers.
Nestle’s net profits were 10.4 billion in 2009, compared with 18 billion in 2008, when it gained 9.2 billion francs from selling 25 percent of its stake in eyecare company Alcon (
ACL.N
NOVN.VX
).
The sale of the remainder of its Alcon holding, a $28 billion deal last month, will be recorded in its 2010 accounts.
Nestle trades at a 2011 price/equity ratio 14.77, compared with 14.33 for Danone, 13.43 for Unilever and 12.46 for Kraft.
($1=1.081 Swiss Franc)

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USDJPY breaks and moves sharply higher

admin — Thu, 18 Feb 2010 07:32:38 +0000

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Visa posts higher quarterly profit

admin — Wed, 03 Feb 2010 04:53:34 +0000

NEW YORK (Reuters) – Visa Inc posted a stronger-than-expected profit on Wednesday, helped by rising debit card processing volume.
The company’s shares rose 2.6 percent in after-hours trading to $85.75, a stark contrast to a year ago, when it traded at $47.54.
Weakness in the economy has spurred more U.S. consumers to pay using their debit cards instead of their credit cards, Visa executives said. New U.S. regulations have also weighed on credit card spending volume, Visa Chief Executive Joseph Saunders said on a conference call.
“(Credit card spending) is not growing at anything close to the rates that it historically has, and obviously a lot of that has to do with the economy, and a lot of it has to do with the rules and regulations,” Saunders said.
Visa, operator of the world’s largest credit and debit payment network, receives fees whenever consumers use one of its credit or debit cards. As consumers worldwide increasingly pay using plastic, the company’s revenue rises.
The company said quarterly profit was $763 million, or $1.02 a share, in its fiscal first quarter ended December 31, compared with profit of $574 million, or 74 cents per class A share, in the same quarter a year earlier.
That beat analysts’ average forecast for earnings of 91 cents a share, according to Thomson Reuters I/B/E/S.
Revenue was $1.96 billion, compared with $1.74 billion in the same quarter a year earlier.
Revenue rose in large part because payment volume on Visa debit cards for the quarter ended in September rose 8 percent to $268 billion. That translates to revenue in the quarter ended in December. Credit card payment volume was flat over the same period.
Transaction volume in the quarter ended in December rose 14 percent, Visa said, which should translate to higher revenue next quarter.
Visa said it expected annual net revenue growth of between 11 percent and 15 percent. In October, the company said it expected revenue in the lower end of that range.
Visa, which does not lend at all, pulled off a record U.S. IPO almost two years ago as investors seized on its growth potential and lack of direct exposure to the global credit crisis.

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FTSE ends higher on US economic data (AFP)

admin — Mon, 01 Feb 2010 01:35:27 +0000

on Friday as sentiment was lifted by data showing stronger-than-expected US economic growth chalked up in the final quarter of last year.
gained 0.83 percent to end the week at 5,188.52 points.
A US government report earlier showed the US economy roaring to life in the fourth quarter with a 5.7 percent growth rate on the back of brisk business spending to replenish inventories.
Lloyds was the most traded stock, seeing 190 million units change hands, followed by Vodafone, which saw 155 million shares switch owners.
topped the leader board, gaining 45 pence — or 3.3 percent — to finish at 1,409, followed by energy sector consulting group Amec, which added 21 pence — or 2.85 percent — to stand at 758.
The session's biggest loser was independent broker Icap, which slipped 10.5 pence — or 2.75 percent — to close at 371.2, followed by international leisure travel group TUI Travel, which shed 4.8 pence — or 1.817 percent — to finish at 259.7.
Meanwhile, sterling lost ground to the dollar and the euro.
At 17:06, the pound was trading at $1.6008, down from $1.6141 at the same time Thursday, while against the euro, the pound stood at 1.1541 euros, slipping from 1.1552 over the same period.

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