Stocks turn mixed despite U.S. housing, factory data - USA Today Stocks turn mixed despite U.S. housing, factory data - USA Today

Wednesday, May 16, 2012

Stocks turn mixed despite U.S. housing, factory data - USA Today

Stocks turn mixed despite U.S. housing, factory data - USA Today

The market's gains are being held back by continuing worries that Greece's political deadlock could fracture the European Union and roil global markets.

Home builder stocks rose after the Commerce Department said builders started work on new homes at an annual pace of 717,000 last month, 2.6% more than in March.

Also, the Federal reserve reported that factory production increased 0.6% in April, helped by a gain in auto production.

Target stock (TGT) rose after a strong earnings report. Target said revenue at stores open at least a year rose 5.3%, strongest performance in six years for that period.

But all the positive news wasn't enough to get investors excited enough to start buying stocks in earnest.

"We're in a period where there's little conviction to buy," said Richard Cripps, chief investment officer at broker Stifel Financial. "The road ahead is too uncertain because of European concerns and the Presidential election later this year."

As signs of a global economic slowdown persist, prices of commodities have come off their highs. Crude oil continued its march downwards from $105 at the beginning of the month and was trading at $93 at midday, down $1 on the day. Gold prices fell $10 to $1,547, the lowest since December. The dollar continued its two-week climb against the euro.

In Europe, a potentially chaotic situation was developing in Greece, where power-sharing talks collapsed Tuesday and new elections were called for next month. There is already concern in other European countries about how a possible Greek exit from the euro would affect the rest of the continent.

On Wednesday, Spain's prime minister warned that the country, which is trembling under a 24.4% unemployment rate, could be locked out of international markets due to problems in the EU.

Financial pressures extend well beyond Europe too. The Indian rupee hit an all-time low against the dollar as investors seek safe places to put their money. The rupee sank to 54.49 against the dollar Wednesday, surpassing the prior low of 54.39 on December 15.

Among other stocks making big moves:

JC Penney plunged 17%, the most in the S&P 500 index, after the retailer reported a bigger-than-expected first-quarter loss. Sales plummeted as shoppers are rejecting the retailer's new plan of getting rid of big sales throughout the year in favor of everyday low pricing.

— Abercrombie & Fitch fell 13% after reporting that its first-quarter net income shrank 88% because of higher costs and declining sales in established stores and in Europe.

General Electric rose 4%, the most of the 30 stocks in the Dow, after the company said its finance unit will pay a special dividend of $4.5 billion to the parent company this year. It had suspended the payments in 2009 during a freeze in credit markets.



Stocks with Strong Financial Metrics (NYSE: COT) - takeoverchatter.com
Shares of COT remained unchanged at $7.12. NYSE is trading at a price to book ratio of 1.18. This indicates that the shares are relatively cheap compared to book value which means the market is pricing in going concern value. The PEG is 1.53. The price to sales ratio came in at 0.29. Hence, the firm is extremely cheap relative to its top line sales figures. On average, 333964 shares of COT exchange hands on a given day and today's volume is recorded at 592238. These financial metrics combined make this company seem undervalued. Lookout for any takeover chatter or takeover news regarding this stock as one of the bigger players may have an eye on this one.

Cott Corporation (Cott) is a retailer brand beverage company.



London close: Stocks fall on Greek exit talk - Life Style Extra
- Greek exit speculation sinks stocks again

- ECB stops funding to some Greek banks (report)

- Eurozone crisis to limit UK GDP in 2012, says BoE

After a temporary foray into positive territory, the FTSE 100 slipped late on to finish in the red for a third straight day as concerns over a potential Greek exit from the Eurozone began to escalate.

With the main political parties in Greece unable to reach an agreement on the formation of a coalition government, the country is expected to go back to the polls in mid-June. Parliament is expected to be dissolved on Monday or Tuesday with a caretaker prime minister to be appointed. According to analysts, the new vote is being seen as a referendum on whether Greece will stay in the Eurozone as Syriza party leader Alexis Tsipras - staunchly opposed to the terms of the bailout agreement - grows in popularity.

Analyst Craig Erlam from Alpari said today that a Greek exit could lead to Italy or Spain requiring a bailout and "if this does happen, it is widely believed that there would not be enough cash in the bailout funds to successfully support such an event." He thinks that the European Central Bank (ECB) is likely to restart "some form of cheap lending" in an effort to ease the pressure.

Mario Draghi, the President of the ECB, said in Frankfurt today that "the governing council's strong preference is that Greece will continue to stay in the euro area," he said.

However, a report by Reuters late on said that, according to central bank sources, the ECB has ceased funding operations for some Greek banks. "It was unclear exactly how many banks were affected," the news agency said.

Meanwhile, in domestic news, the Bank of England (BoE) has said it now expects the UK economy to grow by 0.8% this year, down from the earlier forecast of 1.2%, with the Eurozone crisis continuing to pose a threat. There is a "risk of a storm heading our way from the continent", according to BoE governor Mervyn King. The Bank also said that inflation would stay above the government's 2% target "for the next year of so".

UK unemployment was down 45,000 to 2.63m in three months to March, pushing the unemployment rate down from 8.3% to 8.2%. The number of people claiming unemployment benefits in April was also down 13,700 to 1.59m, the Office for National Statistics said. Forecasters had expected unemployment to remain steady and the claimant count to rise by 5,000.

FTSE 100: Ex-div stocks, miners provide a drag

Some heavyweight constituents were weighing on London's benchmark after trading without the right to their latest dividends. These ex-dividend stocks include Glencore, Morrison, Polymetal, Sainsbury and Whitbread.

??Miners were once again bearing the brunt of the risk-off attitude that has gripped markets over the last week as metals prices continue to fall. Xstrata, ENRC, Fresnillo and Kazakhmys were among the worst performers. Both Xstrata and Glencore were also being pressured lower by downgrades from UBS.

Heading the other way were financial stocks, despite the gloomy Eurozone newsflow, with Aberdeen Asset Management, RBS, Man Group, Hargreaves Lansdown and Barclays performing well. Even interdealer broker ICAP, which fell early on, finished in the blue despite seeing full-year revenues and profits decline as ongoing economic fears dented trading volumes.

Utilities group SSE rose after the group upped its full-year dividend by 6.8% following a 2% rise in adjusted pre-tax profits.

Catering firm Compass edged higher after posting results that were slightly better than expected, driven by new business wins and a high rate of contract retention.

FTSE 250: Lamprell plummets after trading update

Oil and gas engineering firm Lamprell has seen its share price plunge after it warned that its performance is being severely hampered by the paucity of specialised jack-up rig components. The group said it will most likely make a small loss in the first half of the year, though a recovery is expected in the second half. ?

Oil and gas group Ophir Energy was the high riser after announcing that its joint venture with BG Group found its fifth consecutive gas discovery in Tanzania with the Mzia-1 well in Block 1 showing "significant potential upside".

?Digital sports media company Perform Group also jumped after announcing that it is to acquire Swiss firm RunningBall, a real-time sports data provider, for between 101-120m. ??

FTSE 100 - Risers

Aberdeen Asset Management (ADN) 255.90p +3.48%

Croda International (CRDA) 2,182.00p +2.97%

Man Group (EMG) 81.90p +2.57%

Royal Bank of Scotland Group (RBS) 21.87p +2.48%

International Consolidated Airlines Group SA (CDI) (IAG) 152.70p +1.87%

Barclays (BARC) 189.05p +1.59%

Hargreaves Lansdown (HL.) 501.50p +1.56%

IMI (IMI) 892.50p +1.31%

Vedanta Resources (VED) 1,026.00p +1.28%

GKN (GKN) 192.40p +1.16%

FTSE 100 - Fallers

Fresnillo (FRES) 1,323.00p -4.13%

Sainsbury (J) (SBRY) 299.80p -3.73%

Sage Group (SGE) 253.30p -2.58%

Aggreko (AGK) 2,121.00p -2.48%

HSBC Holdings (HSBA) 534.20p -2.46%

Smiths Group (SMIN) 1,020.00p -2.02%

Glencore International (GLEN) 363.15p -1.89%

Wolseley (WOS) 2,212.00p -1.73%

Morrison (Wm) Supermarkets (MRW) 272.50p -1.66%

British American Tobacco (BATS) 3,064.00p -1.65%

FTSE 250 - Risers

Ophir Energy (OPHR) 580.00p +12.62%

Perform Group (PER) 330.10p +7.00%

RPC Group (RPC) 368.40p +4.96%

Barratt Developments (BDEV) 123.30p +4.40%

Persimmon (PSN) 570.00p +4.01%

Ruspetro (RPO) 166.80p +3.60%

Hansteen Holdings (HSTN) 73.00p +3.55%

Logica (LOG) 68.70p +3.46%

COLT Group SA (COLT) 110.90p +2.97%

New World Resources A Shares (NWR) 341.00p +2.90%

FTSE 250 - Fallers

Lamprell (LAM) 127.00p -56.92%

Anglo Pacific Group (APF) 259.30p -6.76%

Essar Energy (ESSR) 117.80p -5.99%

Aquarius Platinum Ltd. (AQP) 88.15p -5.97%

African Barrick Gold (ABG) 309.80p -5.61%

Bwin.party Digital Entertainment (BPTY) 131.50p -5.26%

Kentz Corporation Ltd. (KENZ) 377.60p -5.03%

Provident Financial (PFG) 1,105.00p -4.74%

SDL (SDL) 667.00p -4.58%

Gem Diamonds Ltd. (DI) (GEMD) 216.60p -4.46%

BC



Stocks mixed amid ongoing Greece worries - KSAT 12
NEW YORK (CNN Money) -

U.S. stocks turned mixed Wednesday afternoon, as investors weighed strong U.S. economic data against ongoing uncertainty about Greece's political situation.

The Dow Jones industrial average rose 20 points, or 0.2%, the S&P 500 added 1 point, or 0.1%, and the Nasdaq slipped 2 points, or 0.1%.

Investors were encouraged as U.S. housing starts rebounded from a five-month low and industrial production posted its fastest growth in over a year.

Meanwhile, Greece's political future remains fragile. After politicians in Greece failed to agree on a coalition government, President Karolos Papoulias called for all parties to set up a caretaker government that will conduct new elections next month.

The instability in Athens raises questions as to whether the country will be forced to leave the eurozone and what such a move would mean for other troubled European economies.

"We're not at a tipping point yet, but there's concern that we could get there if the Greek election on June 17 goes the way of the previous one -- with an inconclusive result," said Michael Hewson, analyst at CMC Markets in London.

Despite the uncertainty, comments from European leaders helped stem some pressure. German Chancellor Angela Merkel reiterated that her country wants Greece to remain in the eurozone and will make every effort to help the nation get on solid footing. She said she agreed with France's newly elected president Francois Hollande to consider measures to spur growth in Greece.

Spanish Prime Minister Mariano Rajoy also said it would be 'a very big mistake' if Greece were to exit.

Investors' worries were also soothed after the European Central Bank said it would continue funding banks following news that Greeks were withdrawing hundreds of millions of euros from the country's banks.

Borrowing costs initially surged, with Spain's 10-year yield jumping to 6.5%, before pulling back to 6.3%. Italian bond yields also jumped to 6% before easing to 5.8%.

While Europe's debt crisis remains a broad concern for U.S. investors, hope are high that U.S. financial institutions have had ample time to protect themselves from the effects of contagion.

"The U.S. banks have been taking many more steps to deal with delinquent loans and against European sovereigns, something that European leaders have been extremely bad at," said Hewson.

While the 27-nation European Union and the 17-nation eurozone are teetering on the edge of recession, the U.S. economy continues to grow, albeit at a slow pace.

U.S. stocks closed at three-month lows Tuesday as the eurozone debt crisis continued to take a toll on the markets.

World markets: European stocks closed mixed. Britain's FTSE 100 rose 0.1% and France's CAC 40 added 0.3%, while the DAX in Germany slipped 0.3%.

Asian markets ended lower. The Shanghai Composite fell 1.2% and Japan's Nikkei dropped 1.1%, while the Hang Seng in Hong Kong plunged 3.2%.

Economy: Housing starts jumped to an annual rate of 717,000 in April, from the revised level of 699,000 in March. Analysts surveyed by Briefing.com had expected a rate of 680,000.

Meanwhile, building permits fell to an annual rate of 715,000 in April, from the revised figure of 769,000 in March. Analysts expected permits to fall to 730,000.

April's reading "supports our view that housing is in recovery mode," said Paul Diggle, property economist at Capital Economics. "We expect housing starts to rise further later this year."

Diggle also added that he doesn't expect the latest escalation in Europe to derail the U.S. housing recovery.

"After all, the fallout for the U.S. banking system from a Greek exit will be relatively limited," he said. "The flow of credit to homebuilders, institutional buyers and households therefore shouldn't become materially tighter, allowing the volume of housing starts to continue rising."

The Fed's reading on the nation's factory output was also better than expected. Industrial production rose 1.1% in April, rising at the fastest pace since December 2010. Economists were forecasting that industrial production rose 0.5% in April after being unchanged the previous month.

The minutes from the April meeting of the Federal Open Market Committee will be issued at 2 p.m. ET.

Companies: Facebook boosted the size of its IPO by 25%, seeking to raise up to $16 billion, according to an SEC filing.

Shares of retailer JC Penney tumbled after it reported a much bigger than expected loss for the most recent quarter. The company also discontinued its dividend.



Stocks higher on housing but Europe worries linger - Chicago Sun-Times
Story Image

In a Monday, May 7, 2012, photo, specialist Stephen D'Agostino works at his post on the floor of the New York Stock Exchange. Wall Street was headed for a lower opening Wednesday May 16, 2012, with Dow Jones industrial futures losing 0.1 percent and S&P 500 futures down 0.2 percent. (AP Photo/Richard Drew)

NEW YORK — Hopes that the U.S. housing market is starting to recover and the economy is on the mend sent stocks higher on Wall Street.

But the gains are being constricted from continuing worries that Greece’s political deadlock could fracture the European Union and roil global markets.

The Dow Jones industrial average rose 75 points Wednesday to 12,707. The Standard & Poor’s 500 added nine points to 1,340. The Nasdaq composite rose 15 points to 2,908.

Home builder stocks rose after the Commerce Department said builders started work on new homes at an annual pace of 717,000 last month, 2.6 percent more than in March. It was a heartening sign for the beleaguered housing market, which seems to be forming a bottom and starting to recover. Construction rose for both single-family homes and apartments.

Target Corp. rose after a strong earnings report. Target said revenue at stores opened at least a year rose 5.3 percent, the strongest performance in six years for that period. Target’s results illustrate that Americans are beginning to spend cautiously as economic uncertainty persists. Though the job market is still shaky, falling gas prices have given shoppers hope.

As signs of a global economic slowdown persist, prices of commodities have come off highs. Oil prices continued their march downwards from $105 in the beginning of the month to $93. Crude oil prices were down $1 on Wednesday. Gold prices fell $18 to $1539, the lowest level since December.

In Europe, a potentially chaotic situation was developing in Greece, where power-sharing talks collapsed Tuesday and new elections were called for next month. There is already concern in other European countries about how a possible Greek exit from the euro would affect the rest of the continent.

On Wednesday, Spain’s prime minister warned that the country, which is trembling under a 24.4 percent unemployment rate, could be locked out of international markets due to problems in the EU.

“Right now there is a serious risk that (investors) will not lend us money or they will do so at an astronomical rate,” Mariano Rajoy told Spanish lawmakers.

Financial pressures extend well beyond Europe too. The Indian rupee hit a new all-time low against the dollar with investors increasingly seeking a safe place to put their money. The rupee sank to 54.44 against the dollar Wednesday, surpassing the prior low of 54.39 on December 15.

Among other stocks making big moves:

— JC Penney plunged 14 percent, the most in the S&P 500 index, after the retailer reported a bigger-than-expected first-quarter loss. Sales plummeted as shoppers are rejecting their new pricing plan.

— Abercrombie & Fitch fell 11 percent after reporting that its first-quarter net income shrank 88 percent because of higher costs and declining sales in established stores and in Europe.

— General Electric rose 3.6 percent, the most of the 30 stocks in the Dow, after the company said its finance unit will pay a special dividend of $4.5 billion to the parent company this year. It had suspended the payments in 2009 during a freeze in credit markets.


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