Wall Street weakens but up for quarter
March 31, 2010
A late sell-off saw Wall Street close lower on the last day of the first quarter as investors locked in profits. The market is eagerly awaiting the release of the government report on unemployment, due out Friday.
Despite the fall the Dow finished the quarter 4.1% higher, making it the best first quarter for the index in 11 years.
In employment news, according to the ADP monthly report 23,000 jobs were cut by private-sector employers in March after 24,000 jobs were lost the previous month. Forecasts were for an increase of 40,000 jobs.
In economic news, the Chicago PMI fell from 62.6 the previous month to 58.8 in March. Economists forecast the regional reading on manufacturing to decrease to 61.
Meanwhile, the Census Bureau reported factory orders for manufactured goods increased a slightly better than anticipated 0.6% in February. Factory orders rose 2.5% in January.
The Dow Jones dropped 50.79 points, or 0.47%, to 10,856.63, the S&P's 500 shed 3.84 points, or 0.33%, to 1,169.43 and the NASDAQ lost 12.73 points, or 0.53%, to 2,397.96.
The heavyweight financials were within 1% either side of the gain line. Citigroup and Goldman Sachs weakened 1% and 0.4%, while JPMorgan, Bank of America and Wells Fargo were between 0.4% and 0.9% higher.
Cisco and Microsoft led tech stocks lower, shedding 2.3% and 1.6% respectively.
Research in Motion lost 1.3% before the BlackBerry maker released its quarterly earnings after the close of trade. The company missed expectations with a profit of US$710.1 million, or US$1.27 per share, on revenue of US$4.08 billion. Forecasts were for earnings of US$1.28 per share on revenue of US$4.31 billion.
However, the company forecast earnings of between US$1.31 and US$1.38 per share for the current quarter, beating analysts’ estimates of US$1.23 per share.
Boeing fell 1.3% as it expects a 20c per share reduction in first-quarter earnings as it will no longer be able to claim an income tax deduction related to prescription drug benefits provided to retirees as a result of the health-care legislation.
Exxon Mobil and ConocoPhilips slid 0.1% and 0.2% despite a rise in the price of crude. Chevron added 0.7%.
NYMEX light crude oil for May delivery rose US$1.39 to settle at US$83.76 a barrel.
COMEX gold for June delivery added US$7.80 an ounce to US$1,116.10.
European Markets
European stocks retreated on the back of an unexpected fall in ADP’s monthly jobs report in the US and Moody’s downgrading of some Greek banks. Financials led the slide, while miners countered following a mainly positive session for metals prices in London.
The UK benchmark FTSE 100 added 7.32, or 0.13% to 5,679.64. The French CAC40 shed 13.40, or 0.34% to 3,974.01, while the German DAX advanced 11.10, or 0.18% to 6,153.55.
French bank BNP Paribas fell 2.5%, while Germany’s Deutsche Bank lost 1.6%.
UK banks faired better with Lloyds and Royal Bank of Scotland gaining 2.3% and 1.7%. Barclays added 0.6%, while HSBC shed 0.3%.
EFG Eurobank Ergasias and National Bank of Greece slumped after Moody’s cut the Greek bank’s debt ratings.
Bank of Ireland surged 24% after the National Asset Management Agency said Ireland’s banks require $43 billion in new capital. The central banks gave the major banks one-month to decide how they will raise the capital.
Among the miners Xstrata and Anglo American put on 1.5% and 1.4%.
Rio Tinto rose 0.2%, while Aussie peer BHP Billiton shed 0.4%.
BG Group was the best of the energy majors, adding 0.8%.
British Sky Broadcasting rallied 3.4% after market regulator Ofcom said it would limit the requirements of the pay-television provider to offer its channels to competitors.
Japanese Markets
Japan’s Nikkei fell of 18-month highs as investors booked profits on the popular belief the recent rally was overdone. Electric appliance makers were the major drag after outperforming the market in recent months.
The Nikkei 225 climbed 110.67, or 1.01% to 11,097.14.
Mitsubishi UFJ Financial and Sumitomo Mitsui Financial lost 1.4% each on concerns the government may double the cap on deposits at Japan Post, therefore directing deposits away from lenders.
A price target cut sent brokerage Nomura Holdings’s shares 1.9% lower.
Sony and Panasonic dipped 0.8% and 0.6%, while Toshiba fell 1%.
Automaker Toyota slid 0.7%, while Mazda climbed 4.8%.
Hong Kong Markets
The Hang Seng edged lower Wednesday as the Hang Seng posted a decline over the March quarter after the three previous quarters rose. Ironically, it was property stocks, which have been so strong for the index in the past, which lost ground Wednesday.
The Hang Seng lost 135.44, or 0.63% to 21,239.35.
Many of the banks helped cap losses Wednesday, with Bank of China adding 0.5%, while China Construction Bank rose 1.6%. Bank of Communications jumped 4.4% after posting a bigger than expected profit for last year.
However those gains were countered by a 1.2% fall from heavyweight HSBC.
Among the property stocks, Henderson Land Development dropped 4.2% after its profit missed estimates.
Meanwhile, China Oilfield Services slumped 6.9% after painting a challenging outlook for the company.
Aluminum Corp of China lost 1.4%. Chalco said it was looking to phase out unprofitable production of aluminium over the next three years.
Despite the fall the Dow finished the quarter 4.1% higher, making it the best first quarter for the index in 11 years.
In employment news, according to the ADP monthly report 23,000 jobs were cut by private-sector employers in March after 24,000 jobs were lost the previous month. Forecasts were for an increase of 40,000 jobs.
In economic news, the Chicago PMI fell from 62.6 the previous month to 58.8 in March. Economists forecast the regional reading on manufacturing to decrease to 61.
Meanwhile, the Census Bureau reported factory orders for manufactured goods increased a slightly better than anticipated 0.6% in February. Factory orders rose 2.5% in January.
The Dow Jones dropped 50.79 points, or 0.47%, to 10,856.63, the S&P's 500 shed 3.84 points, or 0.33%, to 1,169.43 and the NASDAQ lost 12.73 points, or 0.53%, to 2,397.96.
The heavyweight financials were within 1% either side of the gain line. Citigroup and Goldman Sachs weakened 1% and 0.4%, while JPMorgan, Bank of America and Wells Fargo were between 0.4% and 0.9% higher.
Cisco and Microsoft led tech stocks lower, shedding 2.3% and 1.6% respectively.
Research in Motion lost 1.3% before the BlackBerry maker released its quarterly earnings after the close of trade. The company missed expectations with a profit of US$710.1 million, or US$1.27 per share, on revenue of US$4.08 billion. Forecasts were for earnings of US$1.28 per share on revenue of US$4.31 billion.
However, the company forecast earnings of between US$1.31 and US$1.38 per share for the current quarter, beating analysts’ estimates of US$1.23 per share.
Boeing fell 1.3% as it expects a 20c per share reduction in first-quarter earnings as it will no longer be able to claim an income tax deduction related to prescription drug benefits provided to retirees as a result of the health-care legislation.
Exxon Mobil and ConocoPhilips slid 0.1% and 0.2% despite a rise in the price of crude. Chevron added 0.7%.
NYMEX light crude oil for May delivery rose US$1.39 to settle at US$83.76 a barrel.
COMEX gold for June delivery added US$7.80 an ounce to US$1,116.10.
European Markets
European stocks retreated on the back of an unexpected fall in ADP’s monthly jobs report in the US and Moody’s downgrading of some Greek banks. Financials led the slide, while miners countered following a mainly positive session for metals prices in London.
The UK benchmark FTSE 100 added 7.32, or 0.13% to 5,679.64. The French CAC40 shed 13.40, or 0.34% to 3,974.01, while the German DAX advanced 11.10, or 0.18% to 6,153.55.
French bank BNP Paribas fell 2.5%, while Germany’s Deutsche Bank lost 1.6%.
UK banks faired better with Lloyds and Royal Bank of Scotland gaining 2.3% and 1.7%. Barclays added 0.6%, while HSBC shed 0.3%.
EFG Eurobank Ergasias and National Bank of Greece slumped after Moody’s cut the Greek bank’s debt ratings.
Bank of Ireland surged 24% after the National Asset Management Agency said Ireland’s banks require $43 billion in new capital. The central banks gave the major banks one-month to decide how they will raise the capital.
Among the miners Xstrata and Anglo American put on 1.5% and 1.4%.
Rio Tinto rose 0.2%, while Aussie peer BHP Billiton shed 0.4%.
BG Group was the best of the energy majors, adding 0.8%.
British Sky Broadcasting rallied 3.4% after market regulator Ofcom said it would limit the requirements of the pay-television provider to offer its channels to competitors.
Japanese Markets
Japan’s Nikkei fell of 18-month highs as investors booked profits on the popular belief the recent rally was overdone. Electric appliance makers were the major drag after outperforming the market in recent months.
The Nikkei 225 climbed 110.67, or 1.01% to 11,097.14.
Mitsubishi UFJ Financial and Sumitomo Mitsui Financial lost 1.4% each on concerns the government may double the cap on deposits at Japan Post, therefore directing deposits away from lenders.
A price target cut sent brokerage Nomura Holdings’s shares 1.9% lower.
Sony and Panasonic dipped 0.8% and 0.6%, while Toshiba fell 1%.
Automaker Toyota slid 0.7%, while Mazda climbed 4.8%.
Hong Kong Markets
The Hang Seng edged lower Wednesday as the Hang Seng posted a decline over the March quarter after the three previous quarters rose. Ironically, it was property stocks, which have been so strong for the index in the past, which lost ground Wednesday.
The Hang Seng lost 135.44, or 0.63% to 21,239.35.
Many of the banks helped cap losses Wednesday, with Bank of China adding 0.5%, while China Construction Bank rose 1.6%. Bank of Communications jumped 4.4% after posting a bigger than expected profit for last year.
However those gains were countered by a 1.2% fall from heavyweight HSBC.
Among the property stocks, Henderson Land Development dropped 4.2% after its profit missed estimates.
Meanwhile, China Oilfield Services slumped 6.9% after painting a challenging outlook for the company.
Aluminum Corp of China lost 1.4%. Chalco said it was looking to phase out unprofitable production of aluminium over the next three years.
Leave a Reply