Showing posts with label Wal-Mart. Show all posts
Showing posts with label Wal-Mart. Show all posts
Friday, October 1, 2010
Monday, September 27, 2010
Wednesday, September 15, 2010
Wednesday, September 1, 2010
European and North American Markets Review – September 1st 2010
Bulls Ruled Europe and North America
Better-than-expected economic data from China and US triggered hefty gains in Europe and North America on Wednesday. DAX index jumped 158.68 points to end at 6,083.90 or up 2.68%, while FTSE 100 rallied towards 5,366.41 or gained 2.70%. North American markets also rallied, with the Dow ended at 10,269.47 after leaping 254.75 points throughout the day, Nasdaq Composite gained 2.97% to settle at 2,176.84, while S&P 500 landed at 1,080.29 after a 2.95% rise.
Data, Data, Data …
After China PMI triggered a mood swing towards positive in Asia, the effect still lingered throughout midday Europe (for China data, read previous post). Then, US data were out, and despite the ADP report went in below the expectations, ISM data posted a better-than-expected reading and thus further powered the rally among European and North American shares.
ADP report showed that 10,000 jobs were cut in August, against a gain of 37,000 jobs in the previous month. The market had expected an addition of 20,000 jobs into the private sector in August. The missed result was unable to stop the rally that already brought over 100 points of gains on Dow Jones index.
The boost came from the Institute for Supply Management (ISM) index for the manufacturing sector that beat the expectation of a fall towards 53.00. Instead of falling, the index rose from 55.5 in July to 56.3 in August, indicating that manufacturing activity remained robust throughout August.
Final piece of the economic data on Wednesday was construction spending that declined 1% to $805.2 billion. June’s figure was revised down to -0.8% against prior estimate of +0.1%.
Earlier, European data showed unimpressive results. German PMI for manufacturing sector was stagnant at 58.2 in August, the same as July’s level. UK’s PMI for manufacturing unexpectedly fell from 56.9 to 54.3, below the expected rise to 57.0. Meanwhile, retail sales fell 0.3% (m/m) in Germany while on the year-on-year basis sales grew 0.8% after a 4.7% jump in prior month.
More data to come on Thursday, as US jobless claims and pending home sales will grab the market’s attention aside from other data coming from Europe. Claims were expected to rise again to 478,000 after it dropped towards 473,000. Pending home sales were expected to fall 1.5% in July, at a better pace than June’s -2.6%.
Daimler AG gained significantly to €40.46 or 5.46% higher than Tuesday’s close after UBS raised its rating from SELL to NEUTRAL.
BMW bea
t Toyota’s Lexus at the American market for luxury cars in August as the sales climbed to 19,540. 1 Series and 7 Series had their sales up by 53% and 42%, respectively. Lexus however, declined 15% to 19,465. Daimler’s Mercedes sales were up 10% to 18,826 units, as the E-Class contributed a month-on-month increase of 26% in August while since the start of the year its sales were up 71%. BMW gained 2.99% at €42.91 while Volkswagen advanced 2.24% to €73.36.
Among the three, Lexus was on top with 145,490 units (+11%), Mercedes in the second place with 139,867 units (+18%), and BMW next at 139,236 units (+7.8%). Further down, Ford Motor Co. had 6,428 units of Lincoln models sold (+9.4%), Volkswagen’s Audi with 9,182 units (+14%) along with its Porsche’s sales of 2,032 units (+33%). Honda’s Acura and Nissan’s Infiniti sales were a 11,534 units (+20%) and 9,428 units (+22%), respectively.
BP will resume the work of plugging of its well in the Gulf of Mexico on Thursday which had been held by rough seas since August 30th. BP’s shares hovered at 388.75 pence at the end of the session.
Shares with significant gains in Europe were Daimler at the top (+5.46%), Barclays Plc. (+4.33%) and Deutsche Boerse (+3.69%).
Eyes on Apple
Apple demonstrated its new iPods, iTunes and Apple TV. It also introduced iTunes software with more social-networking features that enable users to see their friends’ downloading activities. Apple TV’s set-top box was revamped, video rentals fees were lowered, and Netflix’s content was made available for streaming. Apple unveiled iOS 4.1 at the event, which would be available next week for iPhone and iPod touch via free download. The OS will include GameCenter for multiplayer gaming. Subsequent version, iOS 4.2 will be launched later in November and it would be for iPad, with features like wireless printing, streaming videos and photos. The new iPod Nano will be 46% smaller, 42% lighter, with 24 hour audio playback battery life. The new iTunes 10 will include Ping, as music social network. Apple’s CEO Steve Jobs also said that Disney’s ABC and News Corp’s Fox are available on Apple TV. The new Apple TV will cost $99, has no storage management, and can stream content from computer. It will be available in four weeks time. Apple was placed with an OUTPERFORM rating at MP Securities with price target at $290. Apple gained nearly 3% and ended the day at $250.33.
Amazon.co
m led the North American gainers on Wednesday as it leaped to $132.49 - over 6% gains – as the company was reportedly approaching media companies to start an online video-subscription service to compete with Netflix. One of them was Time Warner Inc.
From Citigroup, the bank will lower the balance requirements of its basic account to reach more customers. The Citigold customers can now be free from monthly fees if the balance requirements are met, which was set at $50,000. Citigroup was up 3.73% at $3.85.
Other ratings revisions were Wal-Mart which was downgraded to SELL from BUY at Crowell Weeden, while Siemens AG downgraded to HOLD from BUY by Deutsche Bank. Wal-Mart ended up 2.11% at $51.20 and Siemens ended at €73.89 or up 2.94%.
Other top gainers were Bank of America with 6.08% jump to $13.21 and Halliburton Co. at $29.73 or up 5.39%.
Better-than-expected economic data from China and US triggered hefty gains in Europe and North America on Wednesday. DAX index jumped 158.68 points to end at 6,083.90 or up 2.68%, while FTSE 100 rallied towards 5,366.41 or gained 2.70%. North American markets also rallied, with the Dow ended at 10,269.47 after leaping 254.75 points throughout the day, Nasdaq Composite gained 2.97% to settle at 2,176.84, while S&P 500 landed at 1,080.29 after a 2.95% rise.
Data, Data, Data …
After China PMI triggered a mood swing towards positive in Asia, the effect still lingered throughout midday Europe (for China data, read previous post). Then, US data were out, and despite the ADP report went in below the expectations, ISM data posted a better-than-expected reading and thus further powered the rally among European and North American shares.
ADP report showed that 10,000 jobs were cut in August, against a gain of 37,000 jobs in the previous month. The market had expected an addition of 20,000 jobs into the private sector in August. The missed result was unable to stop the rally that already brought over 100 points of gains on Dow Jones index.
The boost came from the Institute for Supply Management (ISM) index for the manufacturing sector that beat the expectation of a fall towards 53.00. Instead of falling, the index rose from 55.5 in July to 56.3 in August, indicating that manufacturing activity remained robust throughout August.
Final piece of the economic data on Wednesday was construction spending that declined 1% to $805.2 billion. June’s figure was revised down to -0.8% against prior estimate of +0.1%.
Earlier, European data showed unimpressive results. German PMI for manufacturing sector was stagnant at 58.2 in August, the same as July’s level. UK’s PMI for manufacturing unexpectedly fell from 56.9 to 54.3, below the expected rise to 57.0. Meanwhile, retail sales fell 0.3% (m/m) in Germany while on the year-on-year basis sales grew 0.8% after a 4.7% jump in prior month.
More data to come on Thursday, as US jobless claims and pending home sales will grab the market’s attention aside from other data coming from Europe. Claims were expected to rise again to 478,000 after it dropped towards 473,000. Pending home sales were expected to fall 1.5% in July, at a better pace than June’s -2.6%.
Daimler AG gained significantly to €40.46 or 5.46% higher than Tuesday’s close after UBS raised its rating from SELL to NEUTRAL.
BMW bea
t Toyota’s Lexus at the American market for luxury cars in August as the sales climbed to 19,540. 1 Series and 7 Series had their sales up by 53% and 42%, respectively. Lexus however, declined 15% to 19,465. Daimler’s Mercedes sales were up 10% to 18,826 units, as the E-Class contributed a month-on-month increase of 26% in August while since the start of the year its sales were up 71%. BMW gained 2.99% at €42.91 while Volkswagen advanced 2.24% to €73.36.Among the three, Lexus was on top with 145,490 units (+11%), Mercedes in the second place with 139,867 units (+18%), and BMW next at 139,236 units (+7.8%). Further down, Ford Motor Co. had 6,428 units of Lincoln models sold (+9.4%), Volkswagen’s Audi with 9,182 units (+14%) along with its Porsche’s sales of 2,032 units (+33%). Honda’s Acura and Nissan’s Infiniti sales were a 11,534 units (+20%) and 9,428 units (+22%), respectively.
BP will resume the work of plugging of its well in the Gulf of Mexico on Thursday which had been held by rough seas since August 30th. BP’s shares hovered at 388.75 pence at the end of the session.
Shares with significant gains in Europe were Daimler at the top (+5.46%), Barclays Plc. (+4.33%) and Deutsche Boerse (+3.69%).
Eyes on Apple
Apple demonstrated its new iPods, iTunes and Apple TV. It also introduced iTunes software with more social-networking features that enable users to see their friends’ downloading activities. Apple TV’s set-top box was revamped, video rentals fees were lowered, and Netflix’s content was made available for streaming. Apple unveiled iOS 4.1 at the event, which would be available next week for iPhone and iPod touch via free download. The OS will include GameCenter for multiplayer gaming. Subsequent version, iOS 4.2 will be launched later in November and it would be for iPad, with features like wireless printing, streaming videos and photos. The new iPod Nano will be 46% smaller, 42% lighter, with 24 hour audio playback battery life. The new iTunes 10 will include Ping, as music social network. Apple’s CEO Steve Jobs also said that Disney’s ABC and News Corp’s Fox are available on Apple TV. The new Apple TV will cost $99, has no storage management, and can stream content from computer. It will be available in four weeks time. Apple was placed with an OUTPERFORM rating at MP Securities with price target at $290. Apple gained nearly 3% and ended the day at $250.33.
Amazon.co
m led the North American gainers on Wednesday as it leaped to $132.49 - over 6% gains – as the company was reportedly approaching media companies to start an online video-subscription service to compete with Netflix. One of them was Time Warner Inc.From Citigroup, the bank will lower the balance requirements of its basic account to reach more customers. The Citigold customers can now be free from monthly fees if the balance requirements are met, which was set at $50,000. Citigroup was up 3.73% at $3.85.
Other ratings revisions were Wal-Mart which was downgraded to SELL from BUY at Crowell Weeden, while Siemens AG downgraded to HOLD from BUY by Deutsche Bank. Wal-Mart ended up 2.11% at $51.20 and Siemens ended at €73.89 or up 2.94%.
Other top gainers were Bank of America with 6.08% jump to $13.21 and Halliburton Co. at $29.73 or up 5.39%.
Friday, August 13, 2010
North American Review – US Stocks Edged Down As Data Failed to Impress
The Dow Jones Industrial Average extended its fall to end 16.80 points lower or 0.2% at 10,303.15 on Friday, while Nasdaq Composite index slipped to 2,173.48 or 0.8% lo
wer and Standard & Poor’s 500 index settled at 1,079.25 or down 0.4%. Lingering worries about US and global economic outlook remained the negative factors that tied the indexes to the red zone on Friday.
Three sets of economic data were announced during the US session. Retail sales were up 0.4% in July, recovering from a revised 0.3% drop in June, but slightly below the consensus of a 0.5% increase. Although showing recovery, when the headline figure is stripped off its auto component, sales were merely up 0.2%, lower than the expected 0.3% rise. Further, excluding both autos and gasoline sales, retail sales actually dropped 0.1%. This does not bode well given that consumer spending is a crucial component behind economic growth.
Consumer Price Index was in line with expectations. Headline figure showed a rise of 0.3% in July while the core figure which excluded food and energy prices edged up 0.1%. Year-on-year figure on core CPI remained at 0.9%. Tame CPI has been sparking concerns over a potential deflation developing which was recently dismissed as a threat by Thomas Hoenig, the only FOMC member persisting that rates should be raised soon. On deflation, Hoeni
g said that he found no evidence that deflation is the most serious threat to the recovery today. In addition, the president of the Kansas City Federal Reserve Bank criticized the current Fed’s stance on interest rates as a dangerous gamble and risking another cycle of severe recession and unemployment. He viewed that highly expansionary monetary policy is not a good option to accelerate GDP growth.
The final piece of data was consumer confidence which showed an improvement from 67.8 in July to 69.6 in August against the consensus of 68.8. Still, the markets seemed unimpressed by the data and remained
Upgrades and Downgrades
Microsoft seen heading towards a lowered target of $33 at Jefferies as PC sales seen lower, but kept at BUY whereas Bank of America upgraded from Neutral to Buy by Guggenheim. Microsoft ended down 0.37% at $24.40 while Bank of America gained 1.28% to settle at $13.23. Worst performers were Motorola (-4.74%), Starbucks (-1.92%), and Intel (-1.54%).
Week Ahead
US economic data pending for release next week will focus on the housing market and industrial production. On Monday, Home Builders’ Index for August will be released with the consensus at 15 vs. prior 14. On the same day, Empire state index for August is seen expanding from 5.1 to 9.5.
Producer Price Index is due Tuesday. July’s headline index is seen unchanged after dropping 0.5% in June. The core measure is seen edging up 0.1%, at the same pace as June’s. Housing starts for July is expected to show an increase to 560,000 from 549,000 in June, while industrial production is expected to show a 0.6% gains in July against 0.1% in prior month.
No data is expected on Wednesday and Friday, but on Thursday jobless claims is seen to have moderated to 482,000 from 484,000. Philly Fed index is also due and seen to print an increase from 5.1 to 7.0 in August. The final data will be leading indicators which to show an increase of 0.2% after it fell 0.2% in June.
Overall, economic front promises brighter outlook, but should the results turn otherwise, the market sentiment will suffer again.
Earnings Focus
Wal-Mart, Hewle
tt-Packard, Dell, and Home Depot are due to release their earnings report next week along with several other retailers. J.C. Penney delivered a warning on Friday, saying that its customers were vulnerable to weak economic conditions. Wal-Mart and Home Depot will report on August 17th, while HP and Dell will report on August 19th.
Wal-Mart is expected to report an EPS for 2Q of 97 cents a share, up from 88 cents a share last year. Sales are seen at $105.5 billion vs. $100.9 billion. At Home Depot, net profit is seen at 71 cents, gaining from 67 cents a year earlier.
HP had already released its preliminary results for the third quarter last week, and it showed expected revenue of $30.7 billion, an 11% gains from prior year, above last year’s revenue of $27.5 billion or 91 cents a share. Adjusted earnings for the current quarter seen in the range of $1.25 per share to $1.27 per share with revenue seen between $32.5 billion to $32.7 billion. Dell is also going to release its earnings on Thursday, with the consensus on net profit at 30 cents and revenue of $15.2 billion for the second-quarter. Last year, Dell reported earnings of 24 cents per share and revenue of $12.8 billion.
wer and Standard & Poor’s 500 index settled at 1,079.25 or down 0.4%. Lingering worries about US and global economic outlook remained the negative factors that tied the indexes to the red zone on Friday.Three sets of economic data were announced during the US session. Retail sales were up 0.4% in July, recovering from a revised 0.3% drop in June, but slightly below the consensus of a 0.5% increase. Although showing recovery, when the headline figure is stripped off its auto component, sales were merely up 0.2%, lower than the expected 0.3% rise. Further, excluding both autos and gasoline sales, retail sales actually dropped 0.1%. This does not bode well given that consumer spending is a crucial component behind economic growth.
Consumer Price Index was in line with expectations. Headline figure showed a rise of 0.3% in July while the core figure which excluded food and energy prices edged up 0.1%. Year-on-year figure on core CPI remained at 0.9%. Tame CPI has been sparking concerns over a potential deflation developing which was recently dismissed as a threat by Thomas Hoenig, the only FOMC member persisting that rates should be raised soon. On deflation, Hoeni
g said that he found no evidence that deflation is the most serious threat to the recovery today. In addition, the president of the Kansas City Federal Reserve Bank criticized the current Fed’s stance on interest rates as a dangerous gamble and risking another cycle of severe recession and unemployment. He viewed that highly expansionary monetary policy is not a good option to accelerate GDP growth.The final piece of data was consumer confidence which showed an improvement from 67.8 in July to 69.6 in August against the consensus of 68.8. Still, the markets seemed unimpressed by the data and remained
Upgrades and Downgrades
Microsoft seen heading towards a lowered target of $33 at Jefferies as PC sales seen lower, but kept at BUY whereas Bank of America upgraded from Neutral to Buy by Guggenheim. Microsoft ended down 0.37% at $24.40 while Bank of America gained 1.28% to settle at $13.23. Worst performers were Motorola (-4.74%), Starbucks (-1.92%), and Intel (-1.54%).
Week Ahead
US economic data pending for release next week will focus on the housing market and industrial production. On Monday, Home Builders’ Index for August will be released with the consensus at 15 vs. prior 14. On the same day, Empire state index for August is seen expanding from 5.1 to 9.5.
Producer Price Index is due Tuesday. July’s headline index is seen unchanged after dropping 0.5% in June. The core measure is seen edging up 0.1%, at the same pace as June’s. Housing starts for July is expected to show an increase to 560,000 from 549,000 in June, while industrial production is expected to show a 0.6% gains in July against 0.1% in prior month.
No data is expected on Wednesday and Friday, but on Thursday jobless claims is seen to have moderated to 482,000 from 484,000. Philly Fed index is also due and seen to print an increase from 5.1 to 7.0 in August. The final data will be leading indicators which to show an increase of 0.2% after it fell 0.2% in June.
Overall, economic front promises brighter outlook, but should the results turn otherwise, the market sentiment will suffer again.
Earnings Focus
Wal-Mart, Hewle
tt-Packard, Dell, and Home Depot are due to release their earnings report next week along with several other retailers. J.C. Penney delivered a warning on Friday, saying that its customers were vulnerable to weak economic conditions. Wal-Mart and Home Depot will report on August 17th, while HP and Dell will report on August 19th.Wal-Mart is expected to report an EPS for 2Q of 97 cents a share, up from 88 cents a share last year. Sales are seen at $105.5 billion vs. $100.9 billion. At Home Depot, net profit is seen at 71 cents, gaining from 67 cents a year earlier.
HP had already released its preliminary results for the third quarter last week, and it showed expected revenue of $30.7 billion, an 11% gains from prior year, above last year’s revenue of $27.5 billion or 91 cents a share. Adjusted earnings for the current quarter seen in the range of $1.25 per share to $1.27 per share with revenue seen between $32.5 billion to $32.7 billion. Dell is also going to release its earnings on Thursday, with the consensus on net profit at 30 cents and revenue of $15.2 billion for the second-quarter. Last year, Dell reported earnings of 24 cents per share and revenue of $12.8 billion.
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