Another year for the bull?
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Asian Fish Producers Advanced This Week; McDonald's Japan Shares Declined
Dec. 26 (Bloomberg) -- Asian fish processors such as Kyokuyo Co. surged this week on speculation consumers will turn to seafood after tests showed a cow in the U.S. contracted mad cow disease and amid outbreaks of bird flu and swine fever in South Korea. McDonald's Holdings Co. Japan Ltd. slid.
``Consumers probably won't enjoy eating chicken, pork and beef for the time being,'' said Kim Yung Min, who manages $125 million at Dongwon Investment Trust Management Co. in Seoul. ``For seafood processors, it's a good chance to see shares jump, though they are overshooting a bit.''
Japanese steelmakers such as JFE Holdings Inc. and Nippon Steel Corp. rose after China, the world's largest steel producer, removed import tariffs on five types of steel products. Shipping companies such as Nippon Yusen K.K. also paced gains this week after the Nihon Keizai newspaper reported Japan's three largest will buy more ships to satisfy increasing Asian trade.
For the week, Japan's Topix index rose 1 percent to 1018.47 in Tokyo. Fish processors, steelmakers and shipping companies were among the top ten percentage gainers of the index's 33 industry groups. The Nikkei 225 Stock Average gained 1.3 percent to 10,417.41. The benchmarks rose for a second week.
The Morgan Stanley Capital International Asia Pacific Index, which tracks more than 800 stocks across the region, added 1.3 percent to 85.18, its fourth weekly advance in five. The index is set for its first annual gain in four years.
Seafood Companies
Shares of Asian fish companies have advanced as the U.S. announced its first case of mad cow disease, which is linked to a deadly brain-wasting illness in humans. In Korea, thousands of chickens have been slaughtered after the government said bird flu is spreading, while swine fever was detected in the country.
Kyokuyo, which distributes seafood such as tuna, added 11 percent to 168 this week. Maruha Corp., which sells seafood products such as raw fish and scallops, climbed 4.4 percent.
Dongwon Industries Co., South Korea's biggest maker of canned fish and processed seafood, surged by 18 percent for the week. Deep-sea fishing company Sajo Industries Co. soared 74 percent this week, while rival Oyang Fisheries Co. surged 94 percent.
McDonald's Holdings fell 10 percent in the three days following news of the disease. Even though Japan's biggest fast- food chain gets all of its burger beef from Australia, investors are concerned Japan's ban on U.S. beef imports will raise prices.
The Japanese government said that it will offer financial assistance and advice to small and mid-sized companies affected by the discovery of mad cow disease in the U.S.
Beef Importers
The decision helped boost shares of some beef importers that slumped in previous trading. Yoshinoya D&C Co., a restaurant chain that serves bowls of rice topped with beef slices, gained 2 percent to 153,000 yen, snapping a two-day, 12 percent slide.
Nippon Meat Packers Inc., the nation's largest meat processor, added 4.8 percent to 1,045 yen, after losing 9.2 percent in the past two days.
The Topix Iron & Steel Index gained 5.4 percent this week making it the second-biggest percentage gainer after shipping companies. It has climbed 81 percent this year, making it the best-performing index among the 33 industry groups.
JFE Holdings, Japan's largest steelmaker by market value, jumped 6.7 percent to 2,880 yen. Nippon Steel, Japan's biggest steelmaker, advanced 3.7 percent to 227 yen.
Steel and Shipping
China lifted tariffs of as much as 23 percent that it imposed on some types of hot- and cold-rolled steel, stainless steel and other steel products in November 2003.
``China has greatly contributed to gains this year among some of the raw material stocks and that's going to continue into next year,'' said Kikuo Osone, who helps manage $7.1 billion at Fukoku Capital Management Inc. in Tokyo.
Increasing demand from Asia has also raised optimism that shippers will benefit from increased trade within the region.
Nippon Yusen, Mitsui O.S.K. Lines Ltd. and Kawasaki Kisen Kaisha Ltd., Japan's three biggest shipping lines, are expected to jointly invest more than 1 trillion yen in the next four to five years, the Nihon Keizai reported earlier this week.
Nippon Yusen, Japan's largest shipper, jumped 12 percent this week. The company said it will order four container vessels and invest 770 billion yen to build 160 ships over five years as it forecasts marine cargo demand will increase worldwide.
SK Corp.
Korea's Kospi Index shed 2.8 percent for the week. SK Corp. led declines as speculation diminished that the nation's biggest oil refiner would be taken over by Sovereign Asset Management Ltd. and its allies. Its shares dropped 13 percent for the week.
Itochu Corp. and Taiyo Oil Co. bought a combined 0.74 percent stake in SK Corp. for $24.4 million. The purchase by the two Japanese companies, customers of SK Corp., is meant to help fend off a possible hostile takeover bid by Sovereign Asset Management Ltd., the Seoul Economic Daily said.
Earlier this week, a Seoul court backed SK Corp.'s plan to sell 10.4 percent of its shares to friendly parties. The stake cannot be used to vote as long as it is held by SK Corp.
Monaco-based hedge fund Sovereign, which has 15 percent of SK Corp., is seeking to oust the SK Corp. board at a shareholder meeting in March as it tries to gain control of the company. SK Group earlier asked local creditors of its affiliates and other allies to buy SK Corp. shares to win a vote in the March meeting.
Last Updated: December 26, 2003 02:54 EST
Dec. 26 (Bloomberg) -- Asian fish processors such as Kyokuyo Co. surged this week on speculation consumers will turn to seafood after tests showed a cow in the U.S. contracted mad cow disease and amid outbreaks of bird flu and swine fever in South Korea. McDonald's Holdings Co. Japan Ltd. slid.
``Consumers probably won't enjoy eating chicken, pork and beef for the time being,'' said Kim Yung Min, who manages $125 million at Dongwon Investment Trust Management Co. in Seoul. ``For seafood processors, it's a good chance to see shares jump, though they are overshooting a bit.''
Japanese steelmakers such as JFE Holdings Inc. and Nippon Steel Corp. rose after China, the world's largest steel producer, removed import tariffs on five types of steel products. Shipping companies such as Nippon Yusen K.K. also paced gains this week after the Nihon Keizai newspaper reported Japan's three largest will buy more ships to satisfy increasing Asian trade.
For the week, Japan's Topix index rose 1 percent to 1018.47 in Tokyo. Fish processors, steelmakers and shipping companies were among the top ten percentage gainers of the index's 33 industry groups. The Nikkei 225 Stock Average gained 1.3 percent to 10,417.41. The benchmarks rose for a second week.
The Morgan Stanley Capital International Asia Pacific Index, which tracks more than 800 stocks across the region, added 1.3 percent to 85.18, its fourth weekly advance in five. The index is set for its first annual gain in four years.
Seafood Companies
Shares of Asian fish companies have advanced as the U.S. announced its first case of mad cow disease, which is linked to a deadly brain-wasting illness in humans. In Korea, thousands of chickens have been slaughtered after the government said bird flu is spreading, while swine fever was detected in the country.
Kyokuyo, which distributes seafood such as tuna, added 11 percent to 168 this week. Maruha Corp., which sells seafood products such as raw fish and scallops, climbed 4.4 percent.
Dongwon Industries Co., South Korea's biggest maker of canned fish and processed seafood, surged by 18 percent for the week. Deep-sea fishing company Sajo Industries Co. soared 74 percent this week, while rival Oyang Fisheries Co. surged 94 percent.
McDonald's Holdings fell 10 percent in the three days following news of the disease. Even though Japan's biggest fast- food chain gets all of its burger beef from Australia, investors are concerned Japan's ban on U.S. beef imports will raise prices.
The Japanese government said that it will offer financial assistance and advice to small and mid-sized companies affected by the discovery of mad cow disease in the U.S.
Beef Importers
The decision helped boost shares of some beef importers that slumped in previous trading. Yoshinoya D&C Co., a restaurant chain that serves bowls of rice topped with beef slices, gained 2 percent to 153,000 yen, snapping a two-day, 12 percent slide.
Nippon Meat Packers Inc., the nation's largest meat processor, added 4.8 percent to 1,045 yen, after losing 9.2 percent in the past two days.
The Topix Iron & Steel Index gained 5.4 percent this week making it the second-biggest percentage gainer after shipping companies. It has climbed 81 percent this year, making it the best-performing index among the 33 industry groups.
JFE Holdings, Japan's largest steelmaker by market value, jumped 6.7 percent to 2,880 yen. Nippon Steel, Japan's biggest steelmaker, advanced 3.7 percent to 227 yen.
Steel and Shipping
China lifted tariffs of as much as 23 percent that it imposed on some types of hot- and cold-rolled steel, stainless steel and other steel products in November 2003.
``China has greatly contributed to gains this year among some of the raw material stocks and that's going to continue into next year,'' said Kikuo Osone, who helps manage $7.1 billion at Fukoku Capital Management Inc. in Tokyo.
Increasing demand from Asia has also raised optimism that shippers will benefit from increased trade within the region.
Nippon Yusen, Mitsui O.S.K. Lines Ltd. and Kawasaki Kisen Kaisha Ltd., Japan's three biggest shipping lines, are expected to jointly invest more than 1 trillion yen in the next four to five years, the Nihon Keizai reported earlier this week.
Nippon Yusen, Japan's largest shipper, jumped 12 percent this week. The company said it will order four container vessels and invest 770 billion yen to build 160 ships over five years as it forecasts marine cargo demand will increase worldwide.
SK Corp.
Korea's Kospi Index shed 2.8 percent for the week. SK Corp. led declines as speculation diminished that the nation's biggest oil refiner would be taken over by Sovereign Asset Management Ltd. and its allies. Its shares dropped 13 percent for the week.
Itochu Corp. and Taiyo Oil Co. bought a combined 0.74 percent stake in SK Corp. for $24.4 million. The purchase by the two Japanese companies, customers of SK Corp., is meant to help fend off a possible hostile takeover bid by Sovereign Asset Management Ltd., the Seoul Economic Daily said.
Earlier this week, a Seoul court backed SK Corp.'s plan to sell 10.4 percent of its shares to friendly parties. The stake cannot be used to vote as long as it is held by SK Corp.
Monaco-based hedge fund Sovereign, which has 15 percent of SK Corp., is seeking to oust the SK Corp. board at a shareholder meeting in March as it tries to gain control of the company. SK Group earlier asked local creditors of its affiliates and other allies to buy SK Corp. shares to win a vote in the March meeting.
Last Updated: December 26, 2003 02:54 EST
- Mensagens: 23939
- Registado: 5/11/2002 11:30
- Localização: 4
Turkish Stocks Advance; Dogan Gains on Forecast for $4 Billion in Sales
Dec. 26 (Bloomberg) -- Turkish stocks rose. Dogan Sirketler Grubu Holding AS, the country's biggest media group, advanced after its chief executive said full-year sales will increase 15 percent from last year to more than $4 billion.
The National Index of Turkey's 100 largest companies added 104.42, or 0.6 percent, to 17,748.16. Of the index companies, 51 rose, 20 fell and 29 were unchanged.
The following companies are moving or among the most active on the Istanbul Stock Exchange. Stock symbols are in parentheses after the company name.
Dogan Holding (DOHOL TI), which publishes Turkey's best- selling daily newspaper Hurriyet and runs its biggest chain of gas stations, rose 45 liras, or 1.9 percent, to 2,470 liras. The group's sales will exceed $4 billion this year, Chief Executive Tufan Darbaz said in an interview with Hurriyet. Income before interest, tax and amortization probably will increase 45 percent from a year ago to $275 million, Darbaz said.
Yapi ve Kredi Bankasi AS (YKBNK TI), Turkey's fourth-biggest non-government bank, rose 75 liras, or 2.8 percent, to 2,750 liras. The lender said in an e-mailed statement it will sue the government for failing to repay loans of farmers that were fully backed by the Treasury. Yapi Kredi said it is owed about 626 trillion liras ($443 million) from loans which were initially made to hazelnut growers in 1990.
``It's a positive development for Yapi Kredi if they can collect any of this money,'' said Cenk Ozcelik, an analyst at Koc Securities in Istanbul. ``But I suspect they'll get little or nothing.''
Gubre Fabrikalari TAS (GUBRF TI), which makes fertilizer, jumped 2,500 liras, or 13 percent, to 22,200 liras after telling the stock exchange it will start distributing eight bonus shares for each share held by investors on Jan. 5.
Last Updated: December 26, 2003 05:25 EST
Dec. 26 (Bloomberg) -- Turkish stocks rose. Dogan Sirketler Grubu Holding AS, the country's biggest media group, advanced after its chief executive said full-year sales will increase 15 percent from last year to more than $4 billion.
The National Index of Turkey's 100 largest companies added 104.42, or 0.6 percent, to 17,748.16. Of the index companies, 51 rose, 20 fell and 29 were unchanged.
The following companies are moving or among the most active on the Istanbul Stock Exchange. Stock symbols are in parentheses after the company name.
Dogan Holding (DOHOL TI), which publishes Turkey's best- selling daily newspaper Hurriyet and runs its biggest chain of gas stations, rose 45 liras, or 1.9 percent, to 2,470 liras. The group's sales will exceed $4 billion this year, Chief Executive Tufan Darbaz said in an interview with Hurriyet. Income before interest, tax and amortization probably will increase 45 percent from a year ago to $275 million, Darbaz said.
Yapi ve Kredi Bankasi AS (YKBNK TI), Turkey's fourth-biggest non-government bank, rose 75 liras, or 2.8 percent, to 2,750 liras. The lender said in an e-mailed statement it will sue the government for failing to repay loans of farmers that were fully backed by the Treasury. Yapi Kredi said it is owed about 626 trillion liras ($443 million) from loans which were initially made to hazelnut growers in 1990.
``It's a positive development for Yapi Kredi if they can collect any of this money,'' said Cenk Ozcelik, an analyst at Koc Securities in Istanbul. ``But I suspect they'll get little or nothing.''
Gubre Fabrikalari TAS (GUBRF TI), which makes fertilizer, jumped 2,500 liras, or 13 percent, to 22,200 liras after telling the stock exchange it will start distributing eight bonus shares for each share held by investors on Jan. 5.
Last Updated: December 26, 2003 05:25 EST
- Mensagens: 23939
- Registado: 5/11/2002 11:30
- Localização: 4
Dow, S&P 500 Rise for Fifth Week, Led by GM, Allegheny Shares
Dec. 26 (Bloomberg) -- The Dow Jones Industrial Average and the Standard & Poor's 500 Index rose for a fifth straight week, on optimism corporate profits will grow as the economy expands.
``We're anticipating that, on average, company earnings will surprise on the upside,'' said Harvey Hirschhorn, head of asset allocation and strategy at Columbia Management Group, which oversees $150 billion. ``That will continue to supply support for somewhat higher equity prices.''
Biotechnology companies involved in livestock testing gained after the U.S. Department of Agriculture said it would almost double the number of inspections conducted on cattle. A laboratory in the U.K. confirmed a cow from Washington state tested positive for mad cow disease.
For the week, the Dow average gained 0.5 percent to 10,324.67. The index closed Friday 16.59 points off its 19-month high from Tuesday. The S&P 500 Index added 0.7 percent to 1095.85. The index's fifth straight weekly advance is its longest streak since May.
The Nasdaq Composite Index added 1.1 percent to 1973.14, its third consecutive weekly gain.
Trading this week was less active than usual because of the Christmas Holiday. Stock exchanges were closed on Thursday and shut at 1 p.m. on Wednesday and Friday. In the last two years, the daily average trading volume on the New York Stock Exchange during Christmas week fell 49 percent and 73 percent, respectively.
GM, Allegheny Rise
General Motors Corp. jumped 5.1 percent, to $52.97 for the second-biggest gain in the Dow. The world's largest automaker said it will reduce its pension deficit with the spinoff and sale of Hughes Electronics Corp. to News Corp. for $6.6 billion in cash and stock.
Allegheny Energy Inc., a Maryland-based utility owner, had the biggest rise in the S&P 500, climbing 17 percent to $12.67. The company, which has delayed filing quarterly results since November 2002 when it began a review of its financial statements, said it had a $290.3 million loss in the first half of this year. Allegheny may sell one of its 10 U.S. coal-fired power plants to help repay $5.75 billion in debt, Chief Executive Officer Paul Evanson said.
Research In Motion Ltd., the maker of Blackberry wireless e- mail pagers, surged 51 percent to $67.86 after it predicted profit this quarter will surpass analysts' estimates. Earnings for the period ending February, excluding litigation costs, will be 45 cents a share to 55 cents a share, more than double the average analysts' forecast of 22 cents in a Thomson Financial survey.
Economic Reports
Stocks rose amid mixed signs on the economy. Americans earned and spent more in November than a month earlier, suggesting shoppers will continue to underpin growth, the Commerce Department said. The University of Michigan's consumer sentiment index was 92.6 this month, 3 percentage points higher than the preliminary estimate two weeks ago.
Orders for goods made to last at least three years fell 3.1 percent in November from a revised 4 percent gain the previous month, the Commerce Department said. Economists polled by Bloomberg News forecast an increase of 1 percent.
The U.S. economy may expand 4.4 percent next year, the most since 1997, kindled by business and consumer spending, according to a monthly survey of economists by Bloomberg News. The economy is expected to grow 3.1 percent this year after expanding 2.4 percent last year, based on the median forecast.
Rally Stalls?
Benchmark indexes are poised for their first annual gain in four years as growth in the world's largest economy rebounds, fueling higher corporate profits. The S&P 500 has gained 24 percent this year, and the Nasdaq Composite Index has climbed 47 percent.
Investors such as Warren Koontz, who helps manage $55 billion at Loomis Sayles & Co. in Boston, said the rise in stocks this year already reflects the prospects for earnings growth.
``The economy will continue to do well, but it's probably time for stocks to take a little rest,'' said Koontz. He has been buying shares of drugmakers, which have lagged in this year's rally. ``The fundamentals of the economy and earnings need to catch up with some of the stock's moves.''
The discovery Tuesday of a cow in Washington state that tested positive for mad cow disease hurt shares of meat producers and restaurants. Companies involved in livestock testing surged after the announcement.
Tyson Falls
Tyson Foods, the world's largest meat processor, fell 9.9 percent since Tuesday to $12.59. McDonald's Corp., the world's biggest hamburger-restaurant chain, dropped 4.7 percent to $24.09. Rare Hospitality International Inc., which owns three steakhouse chains including Bugaboo Creek Steak House, fell 6.1 percent to $24.
Deere & Co., the world's largest maker of farm equipment, fell on concern demand for beef raised on grain-based animal feed will drop. Deere lost 4.1 percent to $64.32, for the second biggest decline in the S&P 500 this week.
Bio-Rad Laboratories Inc., which makes the best-selling test for mad cow disease in animals, jumped 25 percent since Tuesday to $62.15. V.I. Technologies Inc., a money-losing biotechnology company developing a compound to remove prion proteins, the cause of mad cow disease, soared 58 percent to $1.33.
Last Updated: December 26, 2003 15:24 EST
Dec. 26 (Bloomberg) -- The Dow Jones Industrial Average and the Standard & Poor's 500 Index rose for a fifth straight week, on optimism corporate profits will grow as the economy expands.
``We're anticipating that, on average, company earnings will surprise on the upside,'' said Harvey Hirschhorn, head of asset allocation and strategy at Columbia Management Group, which oversees $150 billion. ``That will continue to supply support for somewhat higher equity prices.''
Biotechnology companies involved in livestock testing gained after the U.S. Department of Agriculture said it would almost double the number of inspections conducted on cattle. A laboratory in the U.K. confirmed a cow from Washington state tested positive for mad cow disease.
For the week, the Dow average gained 0.5 percent to 10,324.67. The index closed Friday 16.59 points off its 19-month high from Tuesday. The S&P 500 Index added 0.7 percent to 1095.85. The index's fifth straight weekly advance is its longest streak since May.
The Nasdaq Composite Index added 1.1 percent to 1973.14, its third consecutive weekly gain.
Trading this week was less active than usual because of the Christmas Holiday. Stock exchanges were closed on Thursday and shut at 1 p.m. on Wednesday and Friday. In the last two years, the daily average trading volume on the New York Stock Exchange during Christmas week fell 49 percent and 73 percent, respectively.
GM, Allegheny Rise
General Motors Corp. jumped 5.1 percent, to $52.97 for the second-biggest gain in the Dow. The world's largest automaker said it will reduce its pension deficit with the spinoff and sale of Hughes Electronics Corp. to News Corp. for $6.6 billion in cash and stock.
Allegheny Energy Inc., a Maryland-based utility owner, had the biggest rise in the S&P 500, climbing 17 percent to $12.67. The company, which has delayed filing quarterly results since November 2002 when it began a review of its financial statements, said it had a $290.3 million loss in the first half of this year. Allegheny may sell one of its 10 U.S. coal-fired power plants to help repay $5.75 billion in debt, Chief Executive Officer Paul Evanson said.
Research In Motion Ltd., the maker of Blackberry wireless e- mail pagers, surged 51 percent to $67.86 after it predicted profit this quarter will surpass analysts' estimates. Earnings for the period ending February, excluding litigation costs, will be 45 cents a share to 55 cents a share, more than double the average analysts' forecast of 22 cents in a Thomson Financial survey.
Economic Reports
Stocks rose amid mixed signs on the economy. Americans earned and spent more in November than a month earlier, suggesting shoppers will continue to underpin growth, the Commerce Department said. The University of Michigan's consumer sentiment index was 92.6 this month, 3 percentage points higher than the preliminary estimate two weeks ago.
Orders for goods made to last at least three years fell 3.1 percent in November from a revised 4 percent gain the previous month, the Commerce Department said. Economists polled by Bloomberg News forecast an increase of 1 percent.
The U.S. economy may expand 4.4 percent next year, the most since 1997, kindled by business and consumer spending, according to a monthly survey of economists by Bloomberg News. The economy is expected to grow 3.1 percent this year after expanding 2.4 percent last year, based on the median forecast.
Rally Stalls?
Benchmark indexes are poised for their first annual gain in four years as growth in the world's largest economy rebounds, fueling higher corporate profits. The S&P 500 has gained 24 percent this year, and the Nasdaq Composite Index has climbed 47 percent.
Investors such as Warren Koontz, who helps manage $55 billion at Loomis Sayles & Co. in Boston, said the rise in stocks this year already reflects the prospects for earnings growth.
``The economy will continue to do well, but it's probably time for stocks to take a little rest,'' said Koontz. He has been buying shares of drugmakers, which have lagged in this year's rally. ``The fundamentals of the economy and earnings need to catch up with some of the stock's moves.''
The discovery Tuesday of a cow in Washington state that tested positive for mad cow disease hurt shares of meat producers and restaurants. Companies involved in livestock testing surged after the announcement.
Tyson Falls
Tyson Foods, the world's largest meat processor, fell 9.9 percent since Tuesday to $12.59. McDonald's Corp., the world's biggest hamburger-restaurant chain, dropped 4.7 percent to $24.09. Rare Hospitality International Inc., which owns three steakhouse chains including Bugaboo Creek Steak House, fell 6.1 percent to $24.
Deere & Co., the world's largest maker of farm equipment, fell on concern demand for beef raised on grain-based animal feed will drop. Deere lost 4.1 percent to $64.32, for the second biggest decline in the S&P 500 this week.
Bio-Rad Laboratories Inc., which makes the best-selling test for mad cow disease in animals, jumped 25 percent since Tuesday to $62.15. V.I. Technologies Inc., a money-losing biotechnology company developing a compound to remove prion proteins, the cause of mad cow disease, soared 58 percent to $1.33.
Last Updated: December 26, 2003 15:24 EST
- Mensagens: 23939
- Registado: 5/11/2002 11:30
- Localização: 4
Bonds rise on steady rate outlook
Treasury prices inch higher after Fed's McTeer reiterates the Fed's loose monetary policy.
December 26, 2003: 2:26 PM EST
NEW YORK (CNN/Money) - Treasury prices rose Friday after a Federal Reserve official said the central bank was under no pressure to tighten monetary policy until inflation became a clear danger.
Investors also bought bonds as safe havens after a series of disasters and apparent terrorist attacks overseas.
Short maturities rose higher after Dallas Fed President Robert McTeer told CNNfn in an interview that U.S. inflation was still very dormant and noted there was still plenty of slack left in the economy and labor markets.
The two-year Treasury note, the most sensitive to interest rate expectations, rallied as McTeer spoke, gaining 3/32 in price to 100-4/32, yielding 1.81 percent, down from 1.86 percent at the close on Wednesday.
Five-year notes rose 6/32 to 101 even, yielding 3.15 percent.
The benchmark 10-year note added 8/32 to 100-25/32 to yield 4.15 percent, down from 4.19 percent late Wednesday. The 30-year bond gained 7/32 to 105-30/32 to yield 4.97 percent, down from 4.99 percent late Wednesday. Bond prices and yields move in the opposite direction.
The U.S. bond market closed early at 2 p.m. ET Friday.
Traders said prices had been marked slightly lower overnight since the Christmas holiday passed with no major terrorist attacks. There had been a safe-haven bid into the holiday after the United States raised its terror threat level.
Still, the flow of news was thin on seasonal cheer, with an earthquake in Iran, more U.S. combat deaths in Iraq, a plane crash in Benin, a suicide bombing in Israel, and the attempted assassination of Pakistan's president.
There was little in the way of U.S. economic news, though Wal-Mart Stores Inc. (WMT: Research, Estimates) reported a surge in last-minute holiday shopping.
However, the giant retailer said it still expects to reach only the low end of its December sales forecast of a 3 percent-to-5 percent increase.
"Frankly, the bond market's open in appearance only," said one lonely trader staffing the desk at a U.S. primary dealer. "There's no trading going on and nobody to trade with even if you wanted to."
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In the currency market, the dollar hovered in narrow ranges in holiday-thinned trading.
A lack of momentum in scant post-Christmas trade and wariness about possible intervention by Japanese authorities prevented the dollar from plunging to new lows against the euro and from retesting three-year lows set against the yen earlier this month.
At around 2:00 p.m. ET, the euro hovered not far below record highs of $1.2470 against the dollar, trading at $1.2434, down 0.1 percent on the day but still within sight of the psychologically important $1.2500 mark.
Against the yen, the dollar fell to ¥107.19 from ¥107.36 late Thursday.
Treasury prices inch higher after Fed's McTeer reiterates the Fed's loose monetary policy.
December 26, 2003: 2:26 PM EST
NEW YORK (CNN/Money) - Treasury prices rose Friday after a Federal Reserve official said the central bank was under no pressure to tighten monetary policy until inflation became a clear danger.
Investors also bought bonds as safe havens after a series of disasters and apparent terrorist attacks overseas.
Short maturities rose higher after Dallas Fed President Robert McTeer told CNNfn in an interview that U.S. inflation was still very dormant and noted there was still plenty of slack left in the economy and labor markets.
The two-year Treasury note, the most sensitive to interest rate expectations, rallied as McTeer spoke, gaining 3/32 in price to 100-4/32, yielding 1.81 percent, down from 1.86 percent at the close on Wednesday.
Five-year notes rose 6/32 to 101 even, yielding 3.15 percent.
The benchmark 10-year note added 8/32 to 100-25/32 to yield 4.15 percent, down from 4.19 percent late Wednesday. The 30-year bond gained 7/32 to 105-30/32 to yield 4.97 percent, down from 4.99 percent late Wednesday. Bond prices and yields move in the opposite direction.
The U.S. bond market closed early at 2 p.m. ET Friday.
Traders said prices had been marked slightly lower overnight since the Christmas holiday passed with no major terrorist attacks. There had been a safe-haven bid into the holiday after the United States raised its terror threat level.
Still, the flow of news was thin on seasonal cheer, with an earthquake in Iran, more U.S. combat deaths in Iraq, a plane crash in Benin, a suicide bombing in Israel, and the attempted assassination of Pakistan's president.
There was little in the way of U.S. economic news, though Wal-Mart Stores Inc. (WMT: Research, Estimates) reported a surge in last-minute holiday shopping.
However, the giant retailer said it still expects to reach only the low end of its December sales forecast of a 3 percent-to-5 percent increase.
"Frankly, the bond market's open in appearance only," said one lonely trader staffing the desk at a U.S. primary dealer. "There's no trading going on and nobody to trade with even if you wanted to."
YOUR E-MAIL ALERTS
Currency Exchange
Bonds
Disasters and Accidents
Economic Indicators
or Create your own
Manage alerts | What is this?
In the currency market, the dollar hovered in narrow ranges in holiday-thinned trading.
A lack of momentum in scant post-Christmas trade and wariness about possible intervention by Japanese authorities prevented the dollar from plunging to new lows against the euro and from retesting three-year lows set against the yen earlier this month.
At around 2:00 p.m. ET, the euro hovered not far below record highs of $1.2470 against the dollar, trading at $1.2434, down 0.1 percent on the day but still within sight of the psychologically important $1.2500 mark.
Against the yen, the dollar fell to ¥107.19 from ¥107.36 late Thursday.
- Mensagens: 23939
- Registado: 5/11/2002 11:30
- Localização: 4
Stocks still partying
U.S. stock market rises in short, quiet, post-holiday session. Retailers take center stage.
December 26, 2003: 3:01 PM EST
NEW YORK (CNN/Money) - Stocks posted modest gains Friday in a shortened, post-holiday session dominated by news about retailers and lingering concerns over the discovery of mad cow disease in Washington state.
The Dow Jones Industrial average (up 19.48 to 10324.67, Charts), the Standard & Poor's 500 (up 1.85 to 1095.89, Charts) and the Nasdaq composite (up 3.91 to 1973.14, Charts) each rose about 0.2 percent. The stock market closed at 1 p.m. ET following the Christmas holiday.
Treasury bond prices rose while cattle futures tumbled.
Investors focused on retail stocks after Wal-Mart (WMT: Research, Estimates) said its December same-store sales will come in at the low-end of estimates. Wal-Mart's stock barely moved.
But retailers which did not report soft sales were generously rewarded by investors.
Sharper Image (SHRP: Research, Estimates) and Chico's FAS (CHS: Research, Estimates) said sales during the holiday shopping period jumped from a year earlier. Their stocks jumped 8.1 percent and 2.8 percent, respectively.
Online retailer Amazon.com (AMZN: Research, Estimates) also delivered strong holiday sales results and said it set a single-day record with more than 2.1 million units ordered worldwide, although an Amazon spokesman refused to specify which day set the sales record. Amazon.com shares edged higher but closed well off their best levels of the day.
"As we start the new year, we could see tech get a slight boost, but then I think investors will turn to consumer stocks as the economy continues to recover," Ned Riley, chief strategist with State Street Advisors, told CNNfn.
After being battered earlier in the week after a single case of mad cow disease was found in Washington state, restaurant stocks rebounded modestly Friday.
Shares of McDonald's (MCD: Research, Estimates), the world's largest hamburger chain, and Wendy's International (WEN: Research, Estimates), the No. 3 burger chain, rose about 0.5 percent apiece.
Rare Hospitality (RARE: Research, Estimates), owner of the Longhorn Steakhouse chain, rose 1.3 percent.
For the week, the Dow posted a gain of 0.4 percent, the S&P 500 added 0.6 percent and the Nasdaq rose 1.1 percent. So far this year, the Dow is up 24 percent, the S&P 500 is up 25 percent and the Nasdaq has jumped 48 percent.
Volume was low with about 367 million shares changing hands on the New York Stock Exchange and about 525 million shares on the Nasdaq. Market breadth was positive. Both on the NYSE and on the Nasdaq winners outnumbered losers by three to two.
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Treasury bond prices gained. The benchmark 10-year note added 9/32 to yield 4.15 percent. The dollar fell slightly against the yen and was little changed against the euro.
In Chicago, cattle futures fell the maximum daily trading limit, which was expanded to 3.0 cents a pound after Wednesday's 1.5-cent tumble -- bringing the market to a complete halt in a repeat of Wednesday's action.
Most markets in Europe remained closed for the holiday, but stocks in Asia managed gains overnight.
--*Disclaimer
U.S. stock market rises in short, quiet, post-holiday session. Retailers take center stage.
December 26, 2003: 3:01 PM EST
NEW YORK (CNN/Money) - Stocks posted modest gains Friday in a shortened, post-holiday session dominated by news about retailers and lingering concerns over the discovery of mad cow disease in Washington state.
The Dow Jones Industrial average (up 19.48 to 10324.67, Charts), the Standard & Poor's 500 (up 1.85 to 1095.89, Charts) and the Nasdaq composite (up 3.91 to 1973.14, Charts) each rose about 0.2 percent. The stock market closed at 1 p.m. ET following the Christmas holiday.
Treasury bond prices rose while cattle futures tumbled.
Investors focused on retail stocks after Wal-Mart (WMT: Research, Estimates) said its December same-store sales will come in at the low-end of estimates. Wal-Mart's stock barely moved.
But retailers which did not report soft sales were generously rewarded by investors.
Sharper Image (SHRP: Research, Estimates) and Chico's FAS (CHS: Research, Estimates) said sales during the holiday shopping period jumped from a year earlier. Their stocks jumped 8.1 percent and 2.8 percent, respectively.
Online retailer Amazon.com (AMZN: Research, Estimates) also delivered strong holiday sales results and said it set a single-day record with more than 2.1 million units ordered worldwide, although an Amazon spokesman refused to specify which day set the sales record. Amazon.com shares edged higher but closed well off their best levels of the day.
"As we start the new year, we could see tech get a slight boost, but then I think investors will turn to consumer stocks as the economy continues to recover," Ned Riley, chief strategist with State Street Advisors, told CNNfn.
After being battered earlier in the week after a single case of mad cow disease was found in Washington state, restaurant stocks rebounded modestly Friday.
Shares of McDonald's (MCD: Research, Estimates), the world's largest hamburger chain, and Wendy's International (WEN: Research, Estimates), the No. 3 burger chain, rose about 0.5 percent apiece.
Rare Hospitality (RARE: Research, Estimates), owner of the Longhorn Steakhouse chain, rose 1.3 percent.
For the week, the Dow posted a gain of 0.4 percent, the S&P 500 added 0.6 percent and the Nasdaq rose 1.1 percent. So far this year, the Dow is up 24 percent, the S&P 500 is up 25 percent and the Nasdaq has jumped 48 percent.
Volume was low with about 367 million shares changing hands on the New York Stock Exchange and about 525 million shares on the Nasdaq. Market breadth was positive. Both on the NYSE and on the Nasdaq winners outnumbered losers by three to two.
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Wal-Mart
Stocks
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Stock Exchanges
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Manage alerts | What is this?
Treasury bond prices gained. The benchmark 10-year note added 9/32 to yield 4.15 percent. The dollar fell slightly against the yen and was little changed against the euro.
In Chicago, cattle futures fell the maximum daily trading limit, which was expanded to 3.0 cents a pound after Wednesday's 1.5-cent tumble -- bringing the market to a complete halt in a repeat of Wednesday's action.
Most markets in Europe remained closed for the holiday, but stocks in Asia managed gains overnight.
--*Disclaimer
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- Registado: 5/11/2002 11:30
- Localização: 4
Another year for the bull?
As we get set for the new year, things look good for Wall Street. Still, there are hurdles.
December 26, 2003: 2:38 PM EST
By Justin Lahart, CNN/Money Senior Writer
NEW YORK (CNN/Money) - As they ring out 2003, investors have few reasons to complain.
This year has been very good to them after all -- better, really, than what most people reasonably expected. The war in Iraq was blessedly short. The economy gained traction and, thanks to the tremendous spurt of growth in the second half of the year, the jobs picture is finally improving. There were scandals, sure, but compared with the shenanigans uncovered in 2002, they were small potatoes. Profits came back.
And, of course, the stock market surged, with the Dow Jones industrial average picking up 24 percent, the S&P 500 tacking on 25 percent, and the Nasdaq surging 48 percent, as of Friday's close. After three years of heavy losses, these gains are sweet indeed.
For the moment, at least, it looks like that sweetness can continue into 2004. January is typically a good month for stocks, thanks to an inrush of money into mutual funds. Given this year's market performance, households may well allocate more money than usual to equities. Strong fourth-quarter earnings could also give stocks a boost.
And yet, some investors worry that the stock market could be in for some trouble.
"You could characterize me as a very nervous bull," said Bollinger Capital head John Bollinger. "I think the market is running out of steam."
A few things are bugging Bollinger.
First off, he thinks valuations are excessive, and history says that usually when major new bull markets start, stock prices are downright cheap. This suggests that 2003's stock market rally may be fleeting -- sort of like the many rallies that the Dow saw during the 1970s or, for that matter, like Japan's Nikkei has seen since it topped out in late 1989.
He also worries the market has gotten too complacent. In the options arena, implied volatility has fallen sharply, indicating that few investors see much need to hedge against a drop in stocks. Such a lack of nervousness often means stocks are vulnerable to shock.
Finally, Bollinger worries that too many investors (himself included) share the view that stocks will do well in the first half of the year, and poorly in the second half. That means that a lot of people are nervously eyeing the exits, and that as soon as a few people get up from their seats there could be a rush to sell.
Pass the baton
It doesn't look like the economy is going to be providing investors with any excuses to sell in the first part of 2004, however. If anything, according the Lehman Brothers chief U.S. economist Ethan Harris, the risk is that current forecasts of growth of about 4 percent are too low.
But the quality of growth will be different from what we saw in 2003, when tax cuts and heavy mortgage refinancing activity gave households money to burn.
"Everyone is all zeroed in on the consumer now, but the truth is that the consumer isn't the driver now," said Harris. "Confidence is picking up, but still at average levels. Wage growth is slow and the bulk of the tax cut is already in place. Finally, with all the debt people have taken out over the past several years the burden of paying monthly bills is leaving less for discretionary spending."
Fortunately, businesses appear to be picking up the slack, rebuilding inventories and once again laying out cash on new capital equipment and expansion plans.
Key events in the week ahead
On Tuesday, the Chicago Purchasing Managers' Index is expected to fall to 62.0 from November's level of 64.1 percent, showing that manufacturing activity in the Midwest cooled in the month of December.
The Conference Board's consumer confidence index for December, also due out Tuesday, is expected to fall to 91.0 from its November level of 91.7.
Economists expect November existing home sales figures, also due out Tuesday, to hold at 6.35 million, the same as in October.
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Markets are closed Thursday for New Year's Day.
Automakers release December car and truck sales throughout the day Friday. Sales in November hit an annual rate of 13.5 million for cars and trucks.
The Institute for Supply Management's services index, due out Friday, is expected to slip to 61.0 for December from November's 62.8. Any number above 50 signals expansion in the service economy.
December 26, 2003: 2:38 PM EST
By Justin Lahart, CNN/Money Senior Writer
NEW YORK (CNN/Money) - As they ring out 2003, investors have few reasons to complain.
This year has been very good to them after all -- better, really, than what most people reasonably expected. The war in Iraq was blessedly short. The economy gained traction and, thanks to the tremendous spurt of growth in the second half of the year, the jobs picture is finally improving. There were scandals, sure, but compared with the shenanigans uncovered in 2002, they were small potatoes. Profits came back.
And, of course, the stock market surged, with the Dow Jones industrial average picking up 24 percent, the S&P 500 tacking on 25 percent, and the Nasdaq surging 48 percent, as of Friday's close. After three years of heavy losses, these gains are sweet indeed.
For the moment, at least, it looks like that sweetness can continue into 2004. January is typically a good month for stocks, thanks to an inrush of money into mutual funds. Given this year's market performance, households may well allocate more money than usual to equities. Strong fourth-quarter earnings could also give stocks a boost.
And yet, some investors worry that the stock market could be in for some trouble.
"You could characterize me as a very nervous bull," said Bollinger Capital head John Bollinger. "I think the market is running out of steam."
A few things are bugging Bollinger.
First off, he thinks valuations are excessive, and history says that usually when major new bull markets start, stock prices are downright cheap. This suggests that 2003's stock market rally may be fleeting -- sort of like the many rallies that the Dow saw during the 1970s or, for that matter, like Japan's Nikkei has seen since it topped out in late 1989.
He also worries the market has gotten too complacent. In the options arena, implied volatility has fallen sharply, indicating that few investors see much need to hedge against a drop in stocks. Such a lack of nervousness often means stocks are vulnerable to shock.
Finally, Bollinger worries that too many investors (himself included) share the view that stocks will do well in the first half of the year, and poorly in the second half. That means that a lot of people are nervously eyeing the exits, and that as soon as a few people get up from their seats there could be a rush to sell.
Pass the baton
It doesn't look like the economy is going to be providing investors with any excuses to sell in the first part of 2004, however. If anything, according the Lehman Brothers chief U.S. economist Ethan Harris, the risk is that current forecasts of growth of about 4 percent are too low.
But the quality of growth will be different from what we saw in 2003, when tax cuts and heavy mortgage refinancing activity gave households money to burn.
"Everyone is all zeroed in on the consumer now, but the truth is that the consumer isn't the driver now," said Harris. "Confidence is picking up, but still at average levels. Wage growth is slow and the bulk of the tax cut is already in place. Finally, with all the debt people have taken out over the past several years the burden of paying monthly bills is leaving less for discretionary spending."
Fortunately, businesses appear to be picking up the slack, rebuilding inventories and once again laying out cash on new capital equipment and expansion plans.
Key events in the week ahead
On Tuesday, the Chicago Purchasing Managers' Index is expected to fall to 62.0 from November's level of 64.1 percent, showing that manufacturing activity in the Midwest cooled in the month of December.
The Conference Board's consumer confidence index for December, also due out Tuesday, is expected to fall to 91.0 from its November level of 91.7.
Economists expect November existing home sales figures, also due out Tuesday, to hold at 6.35 million, the same as in October.
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Economy
Financing, Stock Offerings
Taxation
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Markets are closed Thursday for New Year's Day.
Automakers release December car and truck sales throughout the day Friday. Sales in November hit an annual rate of 13.5 million for cars and trucks.
The Institute for Supply Management's services index, due out Friday, is expected to slip to 61.0 for December from November's 62.8. Any number above 50 signals expansion in the service economy.
- Mensagens: 23939
- Registado: 5/11/2002 11:30
- Localização: 4
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