Thursday, October 28, 2010

Stock Market Update - Friday, October 29, 2010 Cautious Choppy Trend

Stock Market Update
Friday, October 29, 2010

Latest US Economic News Headlines:
USA EQUITY INDEXES: 
(OCT. 29, 4:00 PM EDT)
Dow Jones 11,118.49 +4.54
S&P 500    1,183.26 -0.52
Nasdaq     2,507.41 +0.04


Dow Jones CLOSING Averages: DJIA 11,118.49 UP 4.54  30 INDUS     11,118.49 UP    4.54 OR    0.04%
  20 TRANSP     4,754.29 UP   20.11 OR    0.42%
  15 UTILS        404.86 UP    0.88 OR    0.22%
  65 STOCKS     3,863.64 UP    7.24 OR    0.19%


Stock Trading Activity (4:00 p.m. EDT)

Market        Advancing       Declining
NYSE        547,904,157     437,266,854
AMEX          8,958,804       4,329,232
NASDAQ    1,169,540,942     849,912,695


US DOLLAR FUTURES INDEX DXY: OCT. 29, 4:00 PM EDT: 77.18  Down 0.13 (0.17%)  

US COMMODITY PRICES: (OCT. 29, 4:05 PM EDT)
Crude Oil     81.37     - 0.07%
Natural Gas     4.05     + 0.20%
Gasoline     2.10     - 0.45%
Heating Oil     2.22     - 1.04%
Gold     1358.40     + 1.04%
Silver     24.72     + 3.09%
Copper     3.73     - 1.32%


SECTOR SUMMARY: (4 p.m. EDT)
Basic Materials +0.54%
Capital Goods     +0.19%
Conglomerates     -0.44%
Cons. Cyclical     +0.01%
Cons. Non-Cyclical +0.83%
Energy     +0.29%
Financial     -0.06%
Healthcare     -0.32%
Services     +0.22%
Technology     -0.15%
Transportation     +0.35%
Utilities     +0.23%




SOFT US TRADING - LAST TRADING DAY
U.S. stocks moved between positive and negative territory Friday on low volume.

Stocks wavered with the dollar and after a mixed batch of economic and earnings news Friday, and as investors continued to weigh the potential effect of the election and the next steps from the Federal Reserve.

Friday, third-quarter economic growth came in just short of expectations while investors remained skittish about next week's Federal Reserve meeting and midterm elections.

In early trading, the Dow Jones Industrial Average edged up 6 points, or 0.1%, to 11120, in recent trading. Microsoft led the measure's gains, up 1.1%. The software giant's fiscal first-quarter profit climbed 51%, benefiting from a continued strong response to the Windows 7 operating system and Office 2010, with each business seeing year-over-year revenue growth.

Slower-than-expected U.S. economic growth and fresh buying from a new exchange-traded fund helped buoy oil and gold prices Friday.

Commodities edged higher as the dollar declined after the GDP report. Traders were disappointed by third quarter U.S. economic growth. The gross domestic product rose at an annual rate of 2.0%, better than the 1.7% reported for the second quarter, Commerce Department data show.

As the market opened, the dollar weakened slightly, with the U.S. Dollar Index, which tracks the U.S. currency against a basket of six others, off 0.1%. Meanwhile, Treasurys edged higher, pushing the yield on the 10-year note down to 2.63%. Crude-oil futures fell while gold futures advanced.

The U.S. Commerce Department said Friday that GDP in the U.S. rose 2% in the third quarter. That was roughly in line with expectations from economists who expected GDP growth of 2.1% for the world's largest oil consumer.

Consumer Sentiment Dips - Lowest in 11 Months
U.S. consumer sentiment worsened more than expected in October, hitting its weakest level since November 2009, with concern about the economy high leading into next week's election, a survey showed on Friday.


Gallup Poll Sees Fear of Layoffs
Employees' anxiety and fears of layoffs have been aggravated by the stormy economic climate of the past two and a half years. Those fears can be worsened in work environments where low trust, poor communication, or unclear expectations prevail.

http://gmj.gallup.com/content/144044/Exacerbating-Fear-Layoffs.aspx


Consumers Issue a Cautious 
Christmas Spending Forecast
After two anemic holiday retail seasons, U.S. consumers remain budget-conscious in estimating how much money they will lay out on Christmas gifts this year. The average of $715 they predict they will spend is similar to their $740 estimate of last October, although off sharply from $909 in October 2007.
http://www.gallup.com/poll/143987/Consumers-Issue-Cautious-Christmas-Spending-Forecast.aspx



OIL FUTURES:
US Crude Oil: $ 81.75 per barrel Nymex Crude Closes 73c Lower At $81.45/Bbl

Crude Oil Slips As Dollar Gains Ground

Crude futures slipped on Friday as the dollar gained ground, but a report on third-quarter gross domestic product that was roughly in line with expectations kept prices from straying too far south.

Light, sweet crude for December delivery fell 50 cents, or 0.6%, to $81.68 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange lost 35 cents, or 0.4%, to $82.24.

The drop in crude prices came as the dollar advanced against other currencies, making assets priced in the U.S. currency relatively expensive. The dollar and oil have had an off and on, inverse trading relationship for years, particularly when supply and demand indicators have not clearly steered crude prices.

The ICE Dollar Index, which measures the greenback against a basket of other currencies, rose to 77.347 from 77.179 earlier.Front-month November reformulated gasoline blendstock, or RBOB, fell 0.44 cent, or 0.2%, to $2.1095 a gallon. November heating oil shed 1.27 cents, or 0.6%, to $2.2308a gallon.

NATURAL GAS:
Futures Close Up 3.9% At $4.042/MMBtu

Natural gas futures climbed Friday on speculation that cooler weather in some major gas-heating markets during the coming week will boost demand for the fuel.

Natural gas for December delivery settled up 14.8 cents, or 3.8%, to $4.038 a million British thermal units on the New York Mercantile Exchange. The benchmark contract hasn't settled above $4/MMBtu since Sept. 23.

Strong U.S. gas production this year has bloated U.S. gas inventories, to 3.754 trillion cubic feet last week, the Energy Information Administration said Thursday, just short of the record high of 3.837 set in November 2009.

PRECIOUS METALS:
US Gold: $ 1,357.10
US Silver: $ 24.60

Gold Up On Dollar Weakness - New ETF Debut
The most actively traded contract, for December delivery, was recently up 0.2%, or $2.8, at $1,345.30 per troy ounce on the Comex division of the New York Mercantile Exchange.

Gold prices are also seeing support from a new exchange traded fund. ETFS Precious Metals Basket, which trades under the symbol GLTR, is the latest addition to the market. Launched by ETF Securities last week, the fund lets buyers invest in a basket of gold, silver, platinum and palladium.

THE IMF SOLD 32 TONS

The International Monetary Fund- IMF reported they sold 32.3 metric tons of gold In September.

The International Monetary Fund sold a total of 32.3 metric tons of gold in September, including the sale of 10 metric tons to Bangladesh's central bank.

The 22.3 metric tons that were sold into the market last month--valued at nearly $959 million at Friday's prices--bring the total amount of on-market sales to 129.1 metric tons, a fund spokesman said Friday.

The sales are part of the IMF's plan to offload 403.3 metric tons to create a more stable income model and boost support for low-income countries.

The IMF has been steadily selling in the market since early in the year, coordinating the effort with regularly scheduled sales by European central banks to avoid market disruptions. About 212 metric tons were sold off-market to central banks of India, Mauritius and Sri Lanka in November.

The IMF's sales come as the price of gold has been soaring against a backdrop of low interest rates and a weakening dollar.


2% PERCENT US GDP
US Economy Grows, But Pace Still Slow
US economic growth edged up as expected in the third quarter but not enough to chip away at high unemployment or change perceptions of more monetary easing from the Federal Reserve next week.

The last trading day of October was heading for a soft start before the Commerce Department reported the US economy grew at a 2% clip in the third quarter.

CHICAGO DATA: SLOW ECONOMIC GROWTH, INFLATION UP
U.S. economic activity rises modestly during October, according to a survey of Chicago area purchasing managers. Inflation surge during month, defies a trend of low inflation Fed says is hampering economic recovery. The Chicago PMI in October rose to 60.6 from 60.4.

12 HOME LOAN BANKS POST 3Q GAINS
The 12 regional Federal Home Loan Banks report positive combined 3Q net income of $732M, compared to combined losses of $165M one year ago, when five banks reported losses.





US BONDS:
Total Sales : 597,000
Daily Volume: 119,400
3 Month     0.09%     -0.02 (-18.18%)
6 Month     0.15%     -0.01 (-6.25%)
2 Year     0.34%     -0.02 (-5.56%)
5 Year     1.14%     -0.02 (-1.72%)
10 Year     2.60%     -0.01 (-0.38%)
30 Year     3.99%     -0.01 (-0.25%)


CHEVRON PROFIT DOWN 1.6% AFTER 2009 GAINS
Oil giant's 3Q earnings slip to $3.77 billion, or $1.87 a share, as revenue increases 7.5% to $48.55 billion benefiting from higher commodity prices and stronger refining margins. Shares fall 2%.

EMPLOYMENT COSTS RISE 0.4%
Labor Department says its 3Q employment cost index climbed 0.4%, below the 0.5% rise expected by analysts, as a tight job market continues to hold down compensation increases. Wages and salaries inch up 0.3%, with benefit costs up 0.6%.

NEW YORK BUSINESS ACTIVITY GAINS IN OCTOBER
Business activity picks up despite a cutback in the volume of spending by area purchasing managers, according to the Institute for Supply Management-New York, whose business conditions index rises to 64.7 from 58.3 in September..

HONDA MOTOR 2Q PROFIT MORE THAN DOUBLES
Honda Motor says its net profit more than doubled in the fiscal 2Q from a year earlier, as government buying incentives boosted domestic sales while cost-cutting contributed to its bottom line, canceling out the impact of the yen's surge.

INTERPUBLIC PROFIT CLIMBS 88%
Advertising firm's 3Q earnings rise to $45.3 million, or 8c a share, on lower costs and higher revenue. Fitch lifts Interpublic's ratings out of junk territory, saying it has demonstrated ability to deliver competitive organic revenue growth.

CONSTELLATION ENERGY SWINGS TO LOSS

Power company swings to a 3Q loss of $1.41 billion, or $6.99 a share, with adjusted results missing analysts' estimates, after the company books major charges related to its nuclear joint ventures. Shares drop 2%.


CATERPILLAR TO BUILD LOCOMOTIVES IN INDIANA
Caterpillar Inc. (CAT) said Friday it will open a railroad locomotive assembly plant in Muncie, Ind., that is expected to employ up to 650 workers by 2012.

Caterpillar, which acquired locomotive builder Electro-Motive Diesel in August, plans to invest about $50 million to prepare an empty 750,000-square-foot building for locomotive assembly work. The site was formerly occupied by ABB Power T&D Co., which left more than a decade ago. Caterpillar, the world's largest manufacturer of construction machinery, also will build a locomotive test track at the 75-acre plant site in east-central Indiana. Initial production at the plant is expected to start in late 2011.

The Muncie plant will position the Peoria, Ill., company to sell locomotives to publicly-funded passenger rail agencies that require their rail equipment to be built in the U.S. Final assembly of Electro-Motive's locomotives now takes place in Canada through power train components for the locomotives are built at a plant in suburban Chicago that also serves as Electro-Motive's headquarters.

Electro-Motive, which was owned for decades by General Motors Corp., is a distant second in the North American market for freight locomotives behind General Electric Co (GE). The two companies are the only locomotive manufacturers serving the freight market.

The Muncie plant will be developed under Caterpillar's Progress Rail subsidiary. The Indiana Economic Development Corp. has offered Progress up to $3.5 million in performance-based tax credits and up to $1 million for job training grants. Delaware County, Ind., officials also will consider a request for about $22.5 million worth of tax abatements and tax increment financing.

The Muncie project is the latest in a series of new plants in the U.S. and abroad announced by Caterpillar the past year. The company is rearranging its global manufacturing to accommodate surging demand for construction machinery in developing countries such as Brazil and China. New U.S. plants are under way in Texas, Arkansas and North Carolina.

The Muncie plant will be largest project tackled by Alabama-based Progress Rail since being acquired by Caterpillar in 2006. Progress specializes in repairing and rebuilding rail cars and locomotives. Caterpillar executives have become increasingly interested in leveraging the company's experience with building large diesel engines into an expanded presence in the global railroad industry.

Caterpillar also is interested in applying the diesel-electric propulsion system used in locomotives to bulldozers, excavators, mining trucks and other construction equipment. Diesel engines in locomotives generate electricity for motors that provide the turning power for locomotives' wheels. The combination enables train locomotives to generate tremendous pulling power at low speeds without the use of a transmission.

Caterpillar's stock fell 10 cents to $78.50 in after-hours trading.

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BEFORE THE BELL:

US Stocks Ease into Open
U.S. stock index futures eased on Friday, with a key reading due on economic growth and caution prompting profit-taking after a strong month. 

S&P 500 futures SPc1 slipped 4.7 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures DJc1 fell 30 points, and Nasdaq 100 futures NDc1 gave up 6.75 points. 

Stocks have traded sideways this week with investors wary of taking significant bets ahead of next week's elections and a likely announcement of more stimulus from the U.S. Federal Reserve.

The gross domestic product report, due at 8:30 a.m. EDT (1230 GMT), will add to the debate over the size and timing of expected further quantitative easing from the Fed.

The GDP is forecast to expand at a 2 percent annual rate, compared with 1.7 percent in the second quarter, according to a Reuters survey of economists. 

The US Dollar steadied overnight heading into the data Friday.  Reports are due at 8:30 a.m. EDT (1230 GMT). The dollar index .DXY added 0.3 percent. The dollar and stocks have developed an inverse relationship of late, though that has weakened somewhat this week.

Mild Increase in Economic Growth Expected in Q3
U.S. economic growth likely edged up in the third quarter but not enough to chip away at high unemployment or change perceptions of more monetary easing from the Federal Reserve next week. The advance (first) estimate of Q3 Gross Domestic Product growth numbers are due at 1230 GMT.

The economy likely expanded at a greater rate last quarter as Americans loosened a tight grip on their wallets. But the expected pickup in growth wasn't strong enough to make a noticeable dent in high unemployment.

MERCK PROFIT FALLS 90%

Merck & Co Inc (MRK) reported quarterly sales that missed estimates and took an almost $1 billion charge related to a government probe. Merck is trimming expenses and adding products to replace revenue from drugs facing competition from generic manufacturers.

The drug maker sets aside $950 million to pay for an expected resolution of a U.S. probe of its former pain drug Vioxx, which contributed to a 90% drop in 3Q profit to $341.6 million, or 11c a share. Revenue jumps 84% to $11.12 billion after Schering-Plough buy.
 

MICROSOFT PROFITS JUMP
Microsoft Corp (MSFT) profits gained 50%, shares moved up 3.1 percent to $27.10 in pre-market trade after its profit beat expectations on higher sales of its flagship software.

____________________________________________________________
Canadian Market:

Toronto Stocks Higher

Toronto stocks ended on a positive note Friday, posting triple-digit gains, with the materials, health care and consumer staples groups notable standouts.

Bullion finished up US$15.10 to US$1,357.60 an ounce in New York, helping lift gold issues higher. Strong earnings this week from the likes of Barrick Gold and Goldcorp also helped propel momentum in commodity stocks, overshadowing tepid U.S. earnings data and any concerns about next week's U.S. Federal Reserve meeting and midterm elections.

The S&P/TSX Composite Index rose 112.15 points, or 0.89%, to 12676.24. Advances led declines 1004 to 618. Trading volume was 484.60 million shares, down from Thursday's total of 473.90 million shares.

The S&P/TSX 60 Index closed up 6.58, or 0.91%, to 728.09 points.

The market was slightly higher early Friday led by materials, with Potash Corp. of Saskatchewan and Research In Motion spearheading broad based, but modest, gains.

At Noon the S&P/TSX Composite Index was up 66.56 points, or 0.52%, at 12629.65. Advances led declines 740 to 595. Trading volume was 193.40 million shares. The S&P/TSX 60 Index was up 4.11 points, or 0.57%, at 725.62.

The Canadian dollar also ended modestly higher Friday after gaining on broadly based U.S. dollar weakness in early trading and then surrendering most of its gains.

The U.S. dollar was at C$1.0199 at 3:27 p.m. EDT (1927 GMT), from C$1.0215 at 8:00 a.m. EDT (1200 GMT) and C$1.0210 late Thursday.

Exchange rates at 3:27 p.m. EDT (1927 GMT), 8:00 a.m. EDT (1200 GMT), and late Thursday.

            USD/CAD   1.0199  1.0215  1.0210
            EUR/CAD   1.4177  1.4161  1.4228
            CAD/JPY    78.90   79.06   79.40


Potash climbed after analysts raised their targets on the stock in the wake of its strong third-quarter earnings report. RIM was up after news that its BlackBerry messenger service will continue to run in India.  


GDP 0.3%
Canada Aug GDP Rebounds 0.3% On Oil & Gas,Trade, Manufacturing
Canada's gross domestic product rebounded 0.3% in August as output bounced back in several sectors, including oil and gas extraction, wholesale trade, manufacturing and finance, insurance and real estate, Statistics Canada said Friday.

The gain in GDP, the sum total of goods and services produced in the country, was in line with market expectations and came after a 0.1% decline in July, which wasn't revised. That drop was the first in 11 months. The bounce-back in August lifted the year-on-year rate to 4.1%

Oil and gas extraction rebounded 1.5% in August with gains in both natural gas and oil production, StatsCan said. These were partly offset by declines in metal ore mining and support activities for mining and oil and gas extraction. Activity in the broad mining and oil and gas extraction rose 0.5%.

Wholesale trade rose 1.1% after three consecutive declines with gains in all major sectors except food, beverage and tobacco, and personal and household goods. The biggest increases were in machinery and equipment and petroleum products. Retail trade edged up 0.1% 

Output in the manufacturing sector bounced back 0.5% with gains in 13 of the 21 major groups. Manufacturers of non-durable goods boosted production by 0.8%. Output in factories producing durable goods rose a milder 0.2%.

Activity in the finance and insurance sector rose 0.6% as personal and business loans, residential mortgages and mutual fund sales increased. The home resale market picked up after three consecutive declines, translating into a 5.8% increase in the output of real estate agents and brokers. Output in the broad finance, insurance and real estate sector rebounded 0.6%.

Construction activity rose 0.4% with gains in all major components, including residential and non-residential builds and engineering and repair works.

Accommodation and food services rebounded 0.7%.


Utilities output declined 0.8% as demand for electricity dropped. Forestry and logging shrank 4%, the second straight decline. Output in the public sector was flat.

 Website: http://www.statcan.gc.ca.


Toronto Indexes, Volume; 4:05 PM EDT Composite Up 112.15

 S&P/TSX Composite   12676.24  up  112.15  or 0.9%
 S&P/TSX 60 Index      728.09  up    6.58  or 0.9%
 Financials            179.41  up    1.44  or 0.8%
 Materials             407.75  up    5.21  or 1.3%
 Energy                287.95  up    2.11  or 0.7%
 Industrials           107.53  up    1.25  or 1.2%
 IT                     29.41  up    0.25  or 0.9%

Volume          Friday       Thursday
3-4:15            139.9M      94.4M
9:30-4:15       484.6M     473.8M


____________________________________________________________
South American Markets:


BRAZIL:

Brazil Stocks Close Higher
Brazilian share prices closed higher Friday ahead of Sunday's presidential runoff election in which government-backed candidate Dilma Rousseff is expected to win handily.

Brazil's benchmark Ibovespa stocks index closed 0.5% higher at 70673 points. Volume was moderate at 7.31 billion Brazilian reals ($4.3 billion).

Rousseff is the candidate of the ruling Workers' Party and is warmly supported by incumbent Brazilian President Luiz Inacio Lula da Silva.

Although nominally left-leaning, the Workers' Party in power over the last eight years has been surprisingly business-friendly. In fact, President Lula is leaving the country in excellent economic condition, with growth forecast at 7% or better and unemployment sinking to historic lows.

Rousseff is expected to continue Lula's broadly orthodox policies and may even pump up the economy more with an ambitious infrastructure program. Social Democratic challenger Jose Serra, on the other hand, has failed to make his economic policy plans clear, leaving Rousseff as the favorite among investors.

Polls this week all gave Rousseff a commanding lead of 10 to 12 percentage points going into the Sunday runoff election.

The Brazilian market on Friday shrugged off worries about the slow pace of the global economic recovery.  Investors tended to sell off shares of companies hurt by Friday's lower world commodities prices.

Blue Chips Mixed At The Close

State oil company Petrobras (PBR, PETR4.BR) fell 1.6% to close at BRL25.85 on declining world oil prices.

Mining major Vale SA (VALE, VALE5.BR) saw its shares fall 0.3% to close at BRL47.75. Vale fell because of declining global metals prices Friday.

Telecom leader Tele Norte Leste Participacoes SA (TNE, TNLP4.BR), or Oi, retreated 1.2% to close at BRL26.05.

Steel maker Usiminas (USIM5.BR, USNZY) rose by a robust 1.3% to BRL26.05. Steel rival Cia Siderurgica Nacional (SID, CSNA3.BR), or CSN, was less fortunate, falling 0.4% to BRL28.25. Thursday night, CSN reported a 37% decline in third-quarter net profits from last year to BRL720 million.

Aircraft manufacturer Empresa Brasileira de Aeronautica (ERJ, EMBR3.BR), or Embraer, advanced by a strong 2.2% to BRL12.11. Thursday night, the company reported third quarter profits of BRL1.82 billion. Although lower than year-ago profits, the company's performance was better than expected by analysts.

Minas Gerais utility Cemig (CMIG4.BR) retreated 0.4% to BRL29.94.

Real estate developer Gafisa (GFSA3.BR) advanced 2.1% to BRL14.10.



MEXICO:
Mexico's IPC Stock Index Closes At Record-High 35,568 Points

Mexico's benchmark IPC stock index closed at a new record high Friday as a reported acceleration in U.S. economic growth during the third quarter was seen boding well for the local economy.

The IPC, which comprises Mexico's 35 most-traded issues, rose 0.5%, or 191.5 points, to end the session at 35568.22. Volume was heavy, at 229.2 million shares worth a total value of 7.98 billion pesos ($646.4 million).

"It was quite volatile because it's the end of the month," a trader at the local Santander brokerage said. "But the market is holding up above the 35000-point level, consolidating."

The US GDP report confirmed that Mexico's biggest customer and trade partner continues climbing out of last year's severe recession. A sharp economic slowdown in the U.S. is considered one of the main risks to Mexico's growth in coming quarters.

Local shares were somewhat mixed, with wireless provider and IPC heavyweight America Movil (AMX) L shares falling 0.1% to MXN35.40 and cement giant Cemex (CX) CPO shares tumbling 1.5% to MXN10.82.

On the other hand, retail and beverage conglomerate Femsa (FMX) UBD shares soared 4.1% to MXN67.98, retailer Chedruai (CHDRAUI.MX) B shares jumped 5.1% to MXN39.95, and copper miner Grupo Mexico (GMEXICO.MX) B shares rose 0.4% to MXN40.61.



PERU:

Peru's Main Stock Indexes End Higher; Sol Weakens

Peru's main stock-market indexes ended higher Friday as a number of blue-chip shares gained ground. The Lima Stock Exchange's broad General index closed up by 1.21%, at 19220.93. The Selective blue-chip index ended stronger by 0.94% at 28031.77, while the key mining subindex gained 1.52%.

Precious-metals miner Compania de Minas Buenaventura SAA (BVN, BUENAVC1.Vl) increased 1.35% to end at $52.50, as the price of gold improved.

Financial holding-company Credicorp Ltd. (BAP) rose 0.81% to end at $125.00. It owns Peru's largest bank, Banco de Credito.

Copper miner Sociedad Minera Cerro Verde SAA (CVERDEC1.VL) increased 2.94% to end at $35.00 as the price of copper improved.

Peruvian miner Volcan Compania Minera SAA (VOLCABC1.VL)  also rose, up by 0.92% to 3.30 soles ($1.18). Increased mineral production and higher prices lifted Volcan's third-quarter net income to $60.6 million, compared with $50.3 million in the same period a year earlier.

The sol ended slightly weaker at PEN2.799 per dollar. In the previous session, the sol closed at PEN2.797 per dollar.


____________________________________________________________
European Markets: 

SLIGHT DECLINE IN EUROPEAN SHARES
The Stoxx Europe 600 index finished 0.02% higher at 265.96 points on the last trading day of the month, barely managing a second-straight win.

The index is down 0.9% for the week and up 3.2% for the month. Investors digested a string of U.S. economic reports. Stocks got a boost from the release of U.S. GDP data that showed a slightly faster pace of growth for the third quarter. 


European shares fell slightly in early trading on Friday with miners weaker on lower metals prices as the overnight dollar rose.

The Euro slipped to a low of 1.3806 during the overnight trade as European policy makers maintained a cautious outlook for the region.

Despite some modest gains in the US Dollar against most major currencies in early Friday trade, the Yen continues to surge, with the market quickly closing in on a very critical level.

At 0825 GMT, the FTSEurofirst 300 index of top European shares was down 0.2 percent at 1,083.24 points, after rising 0.4 percent in the previous session. Britain's FTSE 100, Germany's DAX and France's CAC40 fell between 0.1 and 0.2 percent.  

The index is on course for a gain of more than 2 percent for the month of October.
Metals prices fell, as the dollar strengthened. Miners to fall included Antofagasta (ANTO), Anglo American (AAL), Rio Tinto (RIO) and Xstrata (XTA), down between 1.3 and 2.2 percent.


EU VOWS FOR PERMANENT BAILOUT FUND
European Union leaders agreed on the need for a permanent bailout fund for euro-zone members that face fiscal crisis, a step the bloc's leaders acknowledge would require a complex change to its treaties.

LONDON: 
FTSE 100                     5675.16    -2.73   -0.05%
FTSE 250                    10843.50    -5.33   -0.05%
DJ UK Smaller Companies       913.08    -0.89   -0.10%

On Monday traders will be watching UK personal income and spending data for September at 1230 GMT and US ISM manufacturing data for October at 1400 GMT.

The Bank of England is expected to keep policy on hold yet again at its November meeting with strong third quarter gross domestic product growth putting paid to previous forecasts of a possible extension in its quantitative easing program.

UK Consumer Lending Slows
Mortgage Approvals Down
U.K. net consumer lending rose at a slower rate than expected in September as mortgage lending remained subdued and the more forward-looking mortgage approval data fell for the fifth consecutive month.

Russia's Polymetal Seeks Listing In London
Russia's gold and silver miner OAO Polymetal (PMTL.RS) is preparing to obtain a primary listing on the London Stock Exchange through its new holding company, Polymetal International PLC, Kommersant daily reports Friday, citing sources.


Airlines Say UK Passenger Tax Will Hit Economy
British airlines Friday attacked imminent increases in the U.K.'s air passenger tax of up to 55%, saying they'd pass the costs on to passengers in a move that could hurt the fragile economic recovery and the upswing in the aviation sector.


BA, Iberia Merger Gets Boost As Airlines Turn Profits 
The merger of British Airways PLC (BAY.LN) and Spain's Iberia Lineas Aereas de Espana S.A. (IBLA.MC), set to be completed early next year, got a boost Friday when both airlines reported that they had swung to a profit in the most recent quarter.

Virgin Atlantic Warns 
Tax Hike To Suppress Demand
Long-haul carrier Virgin Atlantic said Friday that an extra GBP450 million will be passed on to customers next year as a result of a hike in Air Passenger Duty, or APD, and added that many passengers still remained unaware of the added burden.

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Asian Pacific Markets:

JAPAN:
Japan Leads Asian Stocks Lower
Asian stocks slipped on Friday, led by Japan, on signs of sluggish consumer electronics demand, while the bruised dollar steadied, with dealers focused on how upcoming economic data would impact views on a Federal Reserve meeting next week.

Many asset markets have hardly moved this week, but the modest price action belies the tense jostling for positioning ahead of a storm of events and economic data next week that could cause volatility to spike and determine investors' tolerance of risk, including potential new bond purchases by the Fed.

U.S. gross domestic data for the third quarter is due later in the day, though it will probably be viewed as an indicator of just how much QE2, a new Fed money-printing program, will be -- a question that has consumed traders and investors for the past two months.

GDP growth is expected to come in at 2 percent on an annualized basis, a Reuters poll showed."While such acceleration of growth would make QE2 seem less urgent on the surface, core PCE price data will be more important, and if it shows a slowdown, the market will likely increase expectations of the amount of Treasuries the Fed will buy," Dariusz Kowalczyk, senior strategist with Credit Agricole CIB in Hong Kong, said in a note.

Japan's Nikkei share average .N225 fell 1.8 percent to a 1-month low as the yen strengthened broadly and equity futures were sold aggressively.

Electronics makers were under fire after Sharp Corp (6753.T), whose shares were down 5.6 percent, cut its full-year earnings forecast on reduced demand for flat-screen televisions.

A drop in demand for consumer electronics also stung Samsung Electronics Co , which saw its stock fall 1.8 percent after the world's top producer of TVs and flat screens said a supply glut will weigh on memory chip prices and LCD prices will keep falling in coming months.

The MSCI index of Asia Pacific stocks outside Japan slipped 0.3 percent, though remained in a narrow range carved out this month.

A common reason cited by electronics exporters for their grim outlooks is domestic currency appreciation, a subject that will dominate a Group of 20 leaders meeting next month.

The dollar fell 0.4 percent against the yen, the result mostly of spillover from Japanese currency strength against other currencies.

The euro slipped 0.2 percent to $1.3901 after a 1.2 percent jump overnight. The euro had trouble breaking above a technical obstacle around $1.3950, leading some traders to take profits.

The dollar index, a measure of the its performance against a basket of six other major currencies, was up 0.2 percent on the day and basically flat on the week.

The index is down 6.3 percent since September, when expectations grew the Fed would embark on a path to quantitative easing, basically printing money to buy assets and flood the financial system with cash.

Commodities prices, which have been moving tightly in the opposite direction of the dollar for the past few months, were generally under pressure as the dollar held its ground on a broad basis.

Gold was down 0.2 percent to $1,340.50 on ounce, having now slid 2 percent since hitting a record high two weeks ago. Oil futures were down 0.3 percent to $81.91 a barrel, still up $10 since September.


US JAPAN MEETING PLANNED
Japanese Prime Minister Kan and U.S. President Obama to meet November 13th Kyodo reports

Yen Rises as Reports Showing Region's Recovery Slowing
The yen rose against all its major counterparts as Asian stocks dropped amid signs the global economic recovery is slowing, boosting demand for safer assets.

Japan’s currency headed for a fourth weekly gain versus the euro after reports showed South Korea’s industrial production slid and Japanese consumer prices fell. Australia’s dollar fell as data on private-sector credit damped expectations the central bank will raise interest rates next week. Malaysia’s ringgit headed for its first monthly decline since May on speculation policy makers there will act to prevent the currency from gaining too fast.

“Growth in some economies may be tapering off,” said Masanobu Ishikawa, general manager of foreign exchange at Tokyo Forex & Ueda Harlow Ltd., Japan’s largest currency broker.

“Equities are also sliding. Risk aversion seems to be prevailing. The yen and the dollar may be bought.”

The yen advanced to 111.99 per euro as of 12:43 p.m. in Tokyo from 112.87 in New York yesterday, after climbing to 111.91, the strongest since Oct. 20. It has risen 1.4 percent versus the euro this week. Japan’s currency climbed to 80.57 per dollar from 81.03, set for a 3.7 percent gain this month and a 15 percent advance this year.

The greenback rose 0.2 percent to $1.3900 per euro, poised for a second weekly gain. The Australian dollar declined 0.2 percent to 97.67 U.S. cents, paring its second monthly advance.




SOUTH KOREA:

Samsung Electronics Co. said it earned a record KRW4.46 trillion ($3.98 billion) in the third quarter, a 17% jump from a year earlier as solid gains in profits for chips and cellphones outweighed a stumble in TVs. 
 
However, the company's executives were pessimistic about the outlook for the current quarter, citing concerns about pricing pressure in its TV-related businesses and oversupply in the memory chip market.

Third-quarter profit surpassed the company's previous quarterly record, set in this year's second quarter, of KRW4.28 trillion, and analysts expectations for around KRW4.30 trillion. In the third quarter last year, Samsung reported a net profit of KRW3.81 trillion. 

For the first three quarters of the year, Samsung has already earned more money--KRW12.73 trillion--than any previous year in its history. 

Following the earnings announcement, the company's shares fell in response to the weaker outlook. The stock was down 2.1% at KRW748,000 around 0354 GMT, compared with the broader market's 1.4% decline.

"Samsung expects oversupply in the memory semiconductor market will lead to reduced pricing, while prices for liquid crystal display panels will continue to decline. The recent appreciation of the Korean won is also expected to put downward pressure on fourth quarter earnings," Robert Yi, Vice President and head of Samsung Electronics' Investor Relations Team said in a statement.

According to the Bank of Korea data, the dollar averaged KRW1,186 in the third quarter of 2010, sharply lower than the KRW1,241 in the same period of last year.

____________________________________________________________
WORLD FOREX CURRENCIES SNAPSHOT:
(FRIDAY, OCT 29, 2010 4:05 PM EDT)
EUR/USD     1.3895     -0.0033 (-0.24%)
USD/JPY     80.4800 -0.5500 (-0.68%)
GBP/USD     1.6018     +0.0079 (0.50%)
CAD/USD     0.9802     +0.0001 (0.01%)
USD/HKD     7.7519     -0.0039 (-0.05%)
USD/CNY     6.6707     -0.0160 (-0.24%)
AUD/USD     0.9792     +0.0007 (0.07%)


WORLD MARKETS SNAPSHOT:
(FRIDAY, OCT 29, 2010 4:05 PM EDT)
Shanghai     2,978.83     -13.74 (-0.46%)
Nikkei 225     9,202.45     -163.58 (-1.75%)
Hang Seng Index     23,096.32     -114.54 (-0.49%)
TSEC     8,287.09     -66.96 (-0.80%)
FTSE 100     5,675.16     -2.73 (-0.05%)
DJ EURO STOXX 50     2,844.99     -0.54 (-0.02%)
CAC 40     3,833.50     -1.34 (-0.03%)
S&P TSX     12,676.24     +112.15 (0.89%)
S&P/ASX 200     4,661.60     -23.30 (-0.50%)
BSE Sensex     20,032.34     +91.30 (0.46%)



____________________________________________________________
FRIDAY'S U.S. ECONOMIC CALENDAR:

8:30 a.m.
3Q Employment Cost Index ECI Qtlry (expected +0.5%), ECI Yearly (previous +1.8%)

8:30 a.m.
3Q Advance estimate GDP (expected +2.1%), Chain-Weighted Price Index (expected +1.8%), Corporate Profits (previous +0.9%), PCE Price index (previous 0%), Purchase Price Index (previous +0.1%), Real Final Sales (previous +0.9%), Core PCE Price index (Ex Food/Energy) (previous +1%)

8:30 a.m.
Oct ISM-NY Report on Business US ISM-NY Business Index (previous 58.3)

9:45 a.m.
Oct ISM-Chicago Business Survey - Chicago PMI Employment Index (previous 53.4), New Orders Index (previous 61.4), Prices Paid Index (previous 55), Purchasing Managers Index (Adjusted) (expected 58), Supplier Deliveries Index (previous 58.4)

9:55 a.m.
Oct Thomson Reuters / University of Michigan Survey of Consumers - final Sentiment Index End month (expected 68.5), Expectations Index End Month (previous 60.9), 12-Month Inflation Forecast (previous 2.2), 5-Year Inflation Forecast (previous 2.7), Value (Current Period) End Month (previous 79.6)


_________________________________________________________
US STOCK MARKET SUMMARY, THURSDAY, OCT. 28, 2010:

Stocks:
Stocks were mixed, with the Dow Jones Industrial Average falling and the Nasdaq rising, as investors overlooked encouraging jobless claims data and acted with trepidation ahead of the Federal Reserve's meeting next week. "This is a situation where a lot of the Fed's firepower has been discounted in the market," Alan Lancz, president of Alan B. Lancz & Associates.

Treasurys:
Treasurys rose as higher yields from the selling earlier this week lured buyers who are confident that the Federal Reserve will announce additional government-debt purchases next week to support a flagging economy. A well-bid $29 billion auction in seven-year notes added to the rally. Demand for the sale was the strongest since the seven-year notes were reintroduced in February 2009.

Forex:
The dollar dropped broadly against its major rivals as positive global economic data encouraged investors to move into higher-yielding currencies. The prospect of imminent Federal Reserve action to prod a recalcitrant U.S. economy also led investors to shun the greenback. Many traders are bracing for a serious shakeout in currencies over the coming days as the U.S. Federal Reserve prepares its most important monetary-policy decision in years.

The timing, scale and scope of any additional monetary easing from the Fed's Nov. decision will be a make-or-break moment for the dollar.Currencies traders are "targeting an early-November risk event," said analysts at Societe Generale in a note to clients.


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Stock Market Update - Thursday, October 28, 2010 - Choppy Rally Continues

Stock Market Update
Thursday, October 28, 2010

Latest US Economic News Headlines:

USA EQUITY INDEXES: (OCT. 28, 4:05 PM EDT)
Dow Jones 11,109.71 -16.57 (-0.15%)
S&P 500    1,183.67 +1.22  (+0.10%)
Nasdaq     2,507.37 +4.11  (+0.16%)

Dow Jones 2:00 PM Averages: DJIA 11,094.34 DN 31.94
  30 INDUS     11,094.34 DN   31.94 OR    0.29%
  20 TRANSP     4,716.41 DN   20.78 OR    0.44%
  15 UTILS        402.87 UP    0.03 OR    0.01%
  65 STOCKS     3,846.61 DN   10.81 OR    0.28%
US DOLLAR FUTURES INDEX DXY: OCT. 28, 4:08PM EDT: 77.29  Down 0.86 (1.10%)

US COMMODITY PRICES: (OCT. 28, 4:30 PM EDT)
Crude Oil     81.96     - 0.27%
Natural Gas     3.91     + 0.41%
Gasoline     2.11     - 0.36%
Heating Oil     2.24     -
Gold     1343.60     + 1.38%
Silver     23.99     + 1.83%
Copper     3.78     + 0.29%
U.S. Stocks Extend In Choppy Rally
Another mixed close was set up before the end of the day. Almost like it was planned. I think we can see this pattern repeat itself up until after November 3rd elections are over.

The dollar was up until European markets opened this morning from a higher trend day yesterday. The U.S. dollar continued its slide throughout the day on Thursday as investors media continued to pump out how investors were weighing the impact of a monetary stimulus expected to come next week from the privately owned off-shore U.S. banking cartel called the "Federal Reserve".

Stocks edge lower despite a large made-up drop in the falsified "seasonally adjusted" weekly jobless claims report and the broad decline in the dollar. Investors traded cautiously today and maintained a low volume ahead of the Federal Reserve's efforts to "boost" the economy by putting the American's further in debt to the world banking cartel.

In early trading, the industrials sector led the way down as 3M Co (MMM) fell more than 6 percent after it shaved 6 cents off its full-year profit forecast, until news about how Halliburton used pore quality cement to plug the oil spill.

Halliburton apparently knew weeks before the fatal explosion of the Macondo well, in the Gulf of Mexico, that the cement mixture they planned to use to seal the bottom of the well was unstable according to reports and test data starting on March 8th. Halliburton, a major oil field services company and one of the nation’s largest defense contractors, was once led by former Vice President Dick Cheney. Halliburton's stock dropped like a rock today.

The consumer and industrial manufacturer's third-quarter profit jumped 16% on higher sales at a bulk of its operating divisions. But 3M merely narrowed its 2010 profit target due to the impact of acquisitions made in recent months.

Also weighing on the Dow were Caterpillar, which fell 1.4% and Cisco Systems' 0.6% drop. Exxon Mobil was one of the biggest gainers in the Dow. The oil giant's third-quarter earnings rose a bigger-than-expected 55% as it benefited from stronger commodities prices and refining margins in the first full quarter that included its June acquisition of natural-gas producer XTO Energy. Shares rose 0.7%.

The Standard & Poor's 500-share index fell 0.1% to 1181, as the industrials and materials sectors dropped. The technology-heavy Nasdaq Composite declined 0.3% to 2497.

The Dow Jones industrial average .DJI was off 21.87 points, or 0.20 percent, to 11,104.41. The Standard & Poor's 500 Index .SPX slipped 1.78 points, or 0.15 percent, to 1,180.67. The Nasdaq Composite Index .IXIC lost 8.23 points, or 0.33 percent, to 2,495.03.
   
The US Dollar has come back under pressure in Thursday trade, and we believe a good deal of this latest price action can be attributed to recent actions by the Fed ahead of next week’s highly anticipated FOMC meeting.

The Governments "better-than-expected" report on jobless claims also gave the market some assurance.

A slew of corporate quarterly reports also weighed on the market. Dow Chemical shares fell 1.4% after the chemicals company reported a 25% drop in third-quarter profit because of the impact from divestitures.

US stocks advanced in early trade on Thursday as better-than-expected jobless claims data buoyed sentiment. The S&P 500 Index advanced 4.72 points, or 0.40 percent, to trade at 1,187.17 at 10:05 am EDT. 

A weaker dollar, which makes oil more expensive in other currencies, has been the main driver behind the commodity rally in September and October. The Dow Jones-UBS Commodity Index is up in early morning trading to 146.760 up 0.743.

The ICE Dollar Index, measuring the greenback against a basket of other currencies, was recently at 77.444, from 78.083 earlier. According to the IMF in a statement before the G-20 meeting issued today; the dollar remains on the "strong side" of its fundamental value, while differences in exchange-rate flexibility among emerging economies is stoking international tensions, the International Monetary Fund told Group of 20 financial leaders over the weekend.

The IMF report, released Thursday, singled out China as contributing to exchange-rate misalignments by keeping the yuan "substantially undervalued."

 It noted that some other emerging economies, notably South Africa and Latin American countries, had allowed their currencies to appreciate to "levels that are looking increasingly overvalued."

Meanwhile, the value of the yen, euro and pound appear to be in line with medium-term fundamentals, the IMF said.

In an indirect reference to Japan, the fund said recent interventions by "some" advanced economies had contributed to currency tensions.

The market also got a lift from a better-than-expected report on jobless claims from the Labor Department on Thursday. Workers filing new claims for jobless benefits fell by 21,000 to 434,000 for the week ended Oct. 23, bucking economist expectations for a slight increase. The previous week's figures were revised upward from 452,000 to 455,000.


RARE EARTH METALS:

RARE EARTH METALS ETF: REMX OPENS
Rare Earth ETF Begins Trading," at 10:56 a.m. EDT

REMX: $19.55 (-0.96) As of 3:45 pm EDT

Van Eck Global on Thursday launched Market Vectors Rare Earth/Strategic Metals ETF  (REMX) on the NYSE Arca exchange. It is the first U.S.-listed exchange-traded fund that invests in companies "primarily engaged in the producing, refining, and recycling rare earth/strategic metals," the asset manager said in a press release.

Policymakers Panicked as China Rare Earth Ban Extends to the West
By Jason Simpkins, Managing Editor

Money Morning

"China for months has blocked shipments of rare earth metals intended for Japan in retaliation for a regional dispute. Now, China appears to have expanded its rare earth embargo to include Western countries - a move that has U.S. and European authorities scrambling to formulate a backup plan.

Rare earth metals are essential to the production of high-tech devices like computers, display screens, smart bombs, and hybrid-car batteries. And despite their name, rare earth metals aren't particularly rare. However, they are difficult to produce and many rare earth production companies have moved their operations to China to capitalize on cheaper extraction costs and the nation's commitment to growing its alternative energy sector.

China, which has one-third of the world's rare earth deposits, accounted for 97% of global production last year. Of course, the near-total monopoly China wields over the sector wasn't a major concern until just a few months ago when the country cut its production and export quotas."

Link to complete article: http://moneymorning.com/2010/10/28/china-rare-earth-metals/



GROWING CONCERN OVER RARE EARTH METALS

Rare earth metals are scarce minerals that have particular properties, such as being magnetic or shining in low light. This makes them particularly useful in some new technologies, such as solar panels or electric cars or light-weight batteries.

China has said it will not use exports of so-called rare earth minerals as a diplomatic bargaining tool.

The country produces more than 90% of these valuable commodities, which are used to produce electronic items such as mobile phones.

The US and the EU asked Beijing to clarify its policy on mineral exports after China stopped shipping to Japan.

The stoppage followed a spat between China and Japan last month over islands whose ownership is disputed.

A spokesman for China's Ministry of Industry and Information Technology, Zhu Hongren, said: "China will not use rare earths as a bargaining tool. We will have cooperation with other countries in the use of rare earths, because it is a non-renewable energy resource."
But Mr Zhu did not answer a reporter's question about when normal exports of rare earth minerals would resume.

China has about 30% of rare earth mineral deposits, but accounts for about 97% of production.
The US Secretary of State Hillary Clinton has called on China to clarify its policy on rare earth resources.

She said recent Chinese restrictions served as a "wake-up call" for the industrialized world which should drive it to look for other suppliers. Clinton said that the US is committed to getting relations with China 'right'

Clinton was in Honolulu for talks with Japanese Foreign Minister Seiji Maehara--whose country is embroiled in a spat with China over a disputed island chain in the East China Sea--at the start of a tour of the region.


CRUDE OIL: 
US Crude Oil: $82.39

Nymex Crude Sees Small Boost From Weaker Dollar
Thursday was on track to be the lowest-volume day all year for Nymex oil-futures contracts. 
Light, sweet crude for December delivery settled up 24 cents, or 0.3%, at $82.18 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange added 23 cents, or 0.3%, at $83.46 a barrel.


Wednesday's inventory report from the U.S. Department of Energy offered a mixed picture for futures traders. Crude inventories rose sharply, while gasoline stocks and distillates, including heating oil and diesel, declined.


NATURAL GAS:
US Futures Fall After Storage Data
US Natural Gas Futures Settle Up 3.4% At $3.89/MMBtu

Natural gas futures fell Thursday. The government report expected to showed a seventh consecutive above-average weekly build in U.S. gas stockpiles.

Natural gas for December delivery fell 1.2 cents, or 0.3%, to $3.751 a million British thermal units on the New York Mercantile Exchange.

The November contract expired Wednesday at $3.292/MMBtu after being pressured lower for weeks by abundant supply and tepid demand amid mild autumn weather. The December contract trades at a higher price than the expired November contract, but it is still at its lowest level for this time of year since 2001. Some market participants have been reluctant to bet that prices will fall much below their current level with winter's heating needs approaching


PRECIOUS METALS:
US Gold: $ 1,345
US Silver: $ 23.95

Comex gold futures rallied 1% in Thursday morning trade, supported by a weaker dollar and renewed concerns about inflation.

The most actively traded contract, for December delivery, was recently up 1%, or $13.70, at $1,336.30 per troy ounce on the Comex division of the New York Mercantile Exchange.

.Gold ETF Growth Slows In 3Q
Buying in gold-backed exchange-traded funds moderated in the third quarter but tonnage in the investments still hit a record as gold prices surpassed $1,300 for the first time, an industry body said Thursday.

JP Morgan, and HSBC Being Sued For 'Manipulating' Silver Futures Prices

Two separate lawsuits filed in federal court in Manhattan Wednesday allege that banks J.P. Morgan Chase & Co. (JPM) and HSBC Holdings Inc. (HBC) manipulate the price of silver futures by "amassing enormous short positions."


TREASURYS:
The Treasury's auction of $29 billion of seven-year notes on Thursday afternoon brought a lower yield than expected.

Early market demand for Treasurys rose, pushing the yield on the 10-year note down to 2.67%. $29 billion 7-yr Treasury note auction has solid demand.

A recent rise in yields and talk of aggressive quantitative easing by the Federal Reserve drew buyers to U.S. Treasuries on Thursday and bolstered demand in an auction of seven-year Treasury notes.

The move higher in price comes ahead of next week's expected U.S. Federal Reserve announcement on the scope of a program to buy more assets to help support the economy.
Doubts about the size of the Fed's next asset purchases encouraged some price-cutting this week, pushing yields high enough to draw buyers back into the market.
 


US BONDS:
3 Month     0.11%     0.00 (0.00%)
6 Month     0.16%     0.00 (0.00%)
2 Year     0.37%     -0.02 (-5.13%)
5 Year     1.19%     -0.08 (-6.30%)
10 Year     2.64%     -0.06 (-2.22%)
30 Year     4.03%     -0.04 (-0.98%)



KANSAS MANUFACTURING INDEX DIPS
Manufacturing activity in the Federal Reserve Bank of Kansas City's district continues to expand in October but at a slower rate than in September, as its manufacturing production index slows to 10 from 14 in September.

CREDIT UNION DEBT NOTES FOR SALE
NCUA Guaranteed Notes In Market

$2.82 Billion Of NCUA Guaranteed Notes Now In Market
The National Credit Union Administration is back in the market, this time with $2.82 billion of guaranteed securities backed by commercial mortgages.

This will be the second time the agency, which regulates credit unions and is also known as the NCUA, taps the securitization market to rid itself of $50 billion in tainted assets it acquired as a result of its takeover of five corporate credit unions. These wholesale credit unions are the bankers for retail credit unions, and they became saddled with mortgage-backed securities that carried non-perfoming loans.

The NCUA, with the help of Barclays Capital, has created a securitization trust through which it will offload these securities to investors after wrapping them with a government guarantee.

Earlier this year, Barclays helped the Federal Deposit Insurance Corp. with a similar undertaking. In the first such sale, the NCUA sold $3.85 billion of residential mortgage securities to strong investor demand.

This issue has three triple-A rated classes, with the first class sized at $438 million with a four-year term. The issue, with Barclays as the sole bookrunner, is expected to price early next week. Settlement is on Nov. 10.

For investors in commercial mortgage bonds, it has been a week of plenty after months of light supply. Earlier this week, marketing of nearly $4.66 billion of commercial mortgage securities started, and all of them are expected to price next week.
For additional NCUA news and information, visit: http://www.ncua.gov/


WILLIAMS SWINGS TO STEEP 3Q LOSS
Williams posts a 3Q loss of $1.26 billion, or $2.16 a share, on significant charges that total $1.68 billion, related to a write-off and some properties, primarily in the Barnett Shale. Profit excluding charges falls 1.2%. Shares off 1%.


BEFORE THE BELL:

U.S. Stock Futures Extend Rally as Jobless Claims Decline

The Dow Jones Industrial Average (DJIA) is headed for an opening gain of about 40 points, while the S&P 500 Index (SPX) is trading roughly 6.9 points above fair value. US stock futures extended earnings-related gains after the Labor Department reported that weekly jobless numbers.

Futures on major U.S. stock indices extended their gains on Thursday after the Department of Labor reported that weekly jobless claims fell sharply last week.


434,000 MORE AMERICAN'S WITHOUT A JOB
Jobless Claims Lowest level in three months

A government report showed on Thursday that Initial claims for state unemployment benefits dropped 21,000 to a seasonally adjusted 434,000, the lowest since the week ended July 10, the Labor Department said, and the second straight drop.

Analysts polled by Reuters had forecast claims edging up to 453,000 from the previously reported 452,000. The government revised the prior week's figure up to 455,000.

A Labor Department official said there was nothing unusual in the state data. The economy's painfully slow recovery from the worst recession since the Great Depression has left the labor market subdued and the unemployment rate at 9.6 percent.

US Stock Futures Tick Up as Dollar Eases
Stocks rose modestly on Thursday as the dollar slipped with investors continuing to adjust expectations of further monetary stimulus, while data on the labor market was due later in the morning.

The dollar slipped on Thursday, relinquishing some of its gains from earlier this week as a short-covering rally ran out of steam and U.S. Treasury yields fell after a spike the previous day.

Traders said dollar selling against the euro and other currencies by reserve managers was also helping to push the U.S. currency down. The euro held above a one-week low around $1.3730 hit on Wednesday,

The dollar is holding above a 15-year low of 80.41 yen hit earlier this week, but investors remain vigilant for any yen-weakening intervention after authorities entered the market last month.

By 1130 GMT, the euro EUR had risen 0.6 percent on the day to $1.3849, helped by steady buying by Asian central banks. This helped to push the dollar .DXY 0.62 percent lower versus a currency basket.
Against the yen, the dollar JPY fell 0.6 percent to 81.26. The Japanese currency showed little reaction to a Bank of Japan decision to keep interest rates virtually at zero while holding off from new policy initiatives..

U.S. INITIAL JOBLESS CLAIMS FELL FROM A REVISED 455K TO 434K IN WEEK ENDED OCT 23. 455K WAS EXPECTED.
At 8:30 a.m. EDT, the Department of Labor reported that initial jobless claims decreased by 21,000 to 434,000 for the week ended Oct. 23 from the previous week's revised figure of 455,000, while economists’ expected 450,000. The 4-week moving average of initial claims declined 5,500 to 453,250 from the previous week's revised average of 458,750.


3M PROFIT UP 16% ON BROAD SALES GROWTH
Company posts a 16% jump in 3Q net to $1.11 billion, or $1.53 a share, on solid growth in sales and income across most of its business groups, helped by strong demand in emerging markets and for new products. Shares down 4%.

DOW CHEMICAL NET DOWN 25% ON DIVESTITURES
Chemicals company earns $597 million, or 45c a share, on divestiture impacts, while results from continuing operations top analysts' expectations as sales improved across the board. Shares rise 2%.
EXXON PROFIT CLIMBS 55% ON HIGHER PRICES
Exxon Mobil Profit Rises as Worldwide Growth in Energy Demand Lifts Prices
Exxon Mobil Corp., the world's largest company, posted its third consecutive profit increase as rising worldwide. The oil giant earns $7.35 billion, or $1.44 a share, in 3Q helped by stronger commodities prices and refining margins in the first full quarter that includes its June acquisition of XTO Energy. Revenue climbs 16% to $95.3 billion. Shares up 1%.

KODAK LOSS NARROWS ON MARGINS, LOWER CHARGES
Eastman Kodak's 3Q loss narrows to $43 million, or 16c a share, from a loss of $111 million, or 41c a share, last year, on fewer charges and much higher margins. Revenue is off by 1.3% at $1.76 billion. Shares jump 8%. 


MOTOROLA PROFIT SOARS BOOSTED BY SMARTPHONES
Motorola Profit Rises as Smartphone Launches Ramp Up
Motorola Inc.'s third-quarter profit soared as it sped the release of new smartphones using Google Inc.'s Android software. Telecommunication giant's 3Q profit rises to $109 million, or 5c a share, as it speeds release of new smartphones using Google's Android software. Revenue rises 13% to $4.89 billion. Shares are up 7%.

Goodyear posts loss as rubber costs jump
Goodyear Tire and Rubber Co (GT.N) reported a quarterly loss on Thursday, under pressure from a sharp increase in raw materials costs and charges for a debt refinancing.

_____________________________________________________________________
Canadian Market:

Toronto Stocks Mixed
Toronto Stocks Mixed At Midday; Barrick Up, Potash DownThe stock market was mixed at midday with gains in the materials group offsetting modest losses across other sectors.

The materials group was bolstered by strong earnings reports from Barrick early Thursday and Goldcorp late Wednesday.
At 11:45 a.m. EDT (1545 GMT), the S&P/TSX Composite Index was down 31.33 points, or 0.26%, at 12535.92. However, advances led declines 724 to 607. Trading volume was 216.60 million shares. The S&P/TSX 60 Index was down 3.38 points, or 0.47%, at 719.83.

CANADA CUTS TIES
Canada Cuts Ties With North Korea
Canada is limiting its engagement with North Korea and cutting off bilateral trade over North Korea's sinking of a South Korean warship earlier this year, the government announced Thursday.

"Canada takes a principled stand against those who recklessly commit acts of aggression in violation of international law," Foreign Minister Lawrence Cannon said.

"The adoption of a controlled engagement policy and the imposition of special economic measures send a clear message to the North Korean government that its aggressive actions will not be tolerated."

The punitive measures include limiting official contact to regional security concerns, human rights and humanitarian situations, inter-Korean relations and consular issues.

All other government-to-government cooperation and communication has stopped, Cannon said.

Ottawa is also drafting additional sanctions against North Korea that would prohibit all imports and exports, new investments by Canadians, transfers of technology, and the provision of financial services to North Korea.

North Korean ships and aircraft will also be prohibited from docking or landing in Canada or passing through Canada.

The mostly symbolic move comes after a multinational investigation, which included three Canadian naval experts, concluded that the 1,200-ton South Korean naval ship Cheonan was sunk by a North Korea torpedo in March.

CANADIAN EQUITY NEWS:
Barrick Gold: Gold Still Well Supported Above $1,300 >ABX
Gammon Announces Discovery Of New Drill Targets At Venus Project >GRS
Maple Leaf Says Teachers' Representatives Resign From Board >MFI.T
BOC Plans Change In Minimum Nominal Bond Purchases At Auctions>G/CNBK

Potash Corp. of Saskatchewan also posted strong third-quarter earnings, but the company's stock retreated on concerns that the Canadian government could block BHP Billiton's hostile takeover proposal. Potash was down C$5.10 to C$146.70 at midday, while Barrick had risen 0.51 to 47.45. Potash said its third-quarter earnings surged by more 60%, as strong demand for potash, phosphate and nitrogen fertilizer products on the back of rising crop prices lent support for the company's view that BHP Billiton PLC's hostile $38.6 billion bid significantly undervalues the company. Even so, Potash shares shed 2.8%.

Toronto Indexes, Volume; Noon EDT Composite Down 42.73

 S&P/TSX Composite   12524.52  off  42.73  or 0.3%
 S&P/TSX 60 Index      719.16  off   4.05  or 0.6%
 Financials            177.56  off   1.35  or 0.8%
 Materials             399.60  up    2.20  or 0.6%
 Energy                285.28  off   1.35  or 0.5%
 Industrials           105.90  off   0.56  or 0.5%
 IT                     28.77  off   0.51  or 1.7%

   Volume        Thursday    Wednesday
   11-12               72.6M        71.8M
   9:30-12            234.9M       231.2M


_____________________________________________________________________
South American Markets: 

BRAZIL:

Brazil's Main Sugar Output Up 24.5%
Brazil's main center-south 2010-11 sugar output reached 28.6 million metric tons as of Oct. 16, the Sugarcane Industries Association, or Unica, said Thursday.

Mills in Brazil--the world's No. 1 sugar producer--produced 24.5% more sugar than the same period a year earlier in the center-south region, the trade association said in a statement. The area accounts for 90% of the country's cane crop.

The region's total ethanol production reached 21.6 billion liters as of Oct. 16, rising 19% from a year earlier. The country is the world's No. 1 producer of sugarcane-based ethanol.

Industrial yields, known as ATRs, are at 142.2 kilograms per ton of cane, increasing 7% from the same period last season due to the long dry spell between May and early September. This means more sugar and ethanol can be extracted from the cane.

Unica said 55.1% of the region's cane was directed toward making ethanol in the period, with the rest being used for sugar. This compared to 56.2% used for ethanol at the same time last year.

Brazil's center-south region also crushed 470.7 million tons of sugarcane as of Oct. 16, up almost 14% from the same period a year earlier. In the first half of October, mills crushed 26 million tons of cane, down 4% from the previous fortnight due to rainfall and lower agricultural quality of the cane, Unica said. 23 mills stopped crushing their cane for the season as of Oct. 16, compared to two mills at the same time a year ago, Unica said.


Brazil's Central Bank Buys U.S. Dollars
The Brazilian Central Bank on Thursday bought dollars at a second daily snap auction for BRL1.7133 to the dollar. Shortly before the auction, the Brazilian real was trading at BRL1.7141 to the dollar. Shortly after the auction, the real was trading again at BRL1.7141. 



MEXICO:

Mexico's Stocks Turn Lower

Mexican stocks were indecisive in early trading Thursday as initial unemployment claims in the U.S. fell to their lowest level since July, while concern continued over the U.S. Federal Reserve's plans for economic stimulus.

The Mexican peso traded stronger and was recently quoted at MXN12.4090 to the U.S. dollar versus Wednesday's close of MXN12.4630. Traders say the currency still has upside as Mexico remains attractive in debt markets.

The IPC index of 35 most-traded stocks was down 0.1% at 35249 points. Volume was 32.2 million shares, worth 937 million pesos ($75.5 million).

The L shares of Latin America's largest wireless provider, America Movil (AMX, AMX.MX) were off 0.5% at MXN35.30. The cellular giant, whose stock is the most heavily weighted issue on the IPC, reported after the market close Wednesday that its net profit rose 8.8% in the July-September quarter from a year earlier to MXN23.41 billion pesos ($1.86 billion).

Copper miner and railways operator Grupo Mexico (GMEXICO.MX) B shares were up 0.2% to MXN39.95, and Mexico's largest retailer Wal-Mart de Mexico (WALMEX) V shares were 0.4% higher to MXN33.40.

Global cement and building materials maker Cemex (CX, CEMEX.MX) CPO shares were down 0.5% to MXN10.82.

CHILE:

INDUSTRIAL OUTPUT CLIMBED 3%
The government statistics institute reported that industrial output in September grew 3.0% on the year, below expectations of a 4%-5% increase.


Chilean Peso Closes 1.1% Stronger As Dollar Tumbles Broadly

Chile's peso ended sharply stronger against the dollar Thursday on the tumble the U.S. currency took on international markets.

The peso ended at CLP489.10 to the dollar, versus Wednesday's close of CLP494.50, while trading in a range of CLP488.60 to CLP494.00.

The US Dollar fell sharply and broadly against other major currencies Thursday as positive global economic data encouraged investors to step into higher-yielding currencies.

The peso has been trading at two-year highs this month, reducing export competitiveness and fueling private-sector calls for market intervention.  The Chilean economy is highly dependent on its natural resource exports.

In the bond market, yields on inflation-indexed Chilean central bank bonds, or BCUs, ended mixed following the release of lower than expected industrial production data.


ARGENTINA:
Argentina is in observance of the three days of national mourning ordered by the government following the death of former President Nestor Kirchner.

Argentina Bonds, Stocks Rise After National Census Holiday
Argentina's bonds and stocks rose Thursday following a market holiday, as local assets played catch-up to gains in U.S.-traded issues. Investors are betting the death of former-President and political strong man Nestor Kirchner could usher in a period of more market friendly economic policies.

The federal government's benchmark peso-denominated 2033 discount bond was up 10.1% in late-morning trading at ARS175.5, yielding 7.64%.

The Global 2017 bond, issued in June as part of the government's debt swap with the holders of defaulted bonds, was 1.2% higher at ARS420, yielding 8.43%.

The Boden 2015, considered a good proxy for measuring the appeal of newly issued government bonds or the government's ability to sell them, closed 1.9% higher at ARS375.50, yielding 8.62%.

Argentina's 2035 peso-denominated GDP warrants were 2.2% higher at ARS12.53, while U.S. dollar-denominated GDP warrants with the same maturity were up 3.1% to ARS51.40.

Kirchner, who was president from May 2003 to December 2007, died of a heart attack at the age of 60 in his home province of Santa Cruz early Wednesday. His wife, Cristina Fernandez, succeeded him in the presidency. Kirchner was thought to play an active role in crafting economic policies in his wife's government that were characterized by heavy state intervention in the economy and hostility toward the private sector.

_____________________________________________________________________
European Markets: 

European stocks rose on Thursday, as well-received earnings reports from oil giant Royal Dutch Shell and pharmaceutical firm Sanofi-Aventis SA encouraged investors.

The Stoxx Europe 600 index gained 0.4% to 265.90, taking monthly gains so far to 2.4%.

Stocks in Europe were bouncing back from losses seen in the prior session, in a see-saw pattern of volatility that has been stalking markets.
 
The euro advanced 0.77 percent to 1.3876 against the dollar and the yen gained 0.74 percent against the greenback.

European bourses pared gains late in the session as U.S. stocks turned lower on a disappointing outlook from 3M Co. and a drop in the industrial sector.

A top performer among regional indexes was the French CAC-40. It rose 0.5% to 3,834,84, led by France Telecom SA, whose earnings report cheered up investors.

The shares rallied 3.1%. Also in France Dassault Systemes SA rose nearly 8%, as the software firm raised its full-year earnings outlook and reported sharp gains in quarterly revenue and profit.

Shares of microchip group STMicroelectronics SA rose 3.1%. Downward pressure came from auto maker Renault SA.

The shares fell 2.6% after Societe Generale cut the firm's rating to hold from buy, saying the European market could weaken in the first half of next year.

Earlier, European markets extend gains after jobs data and are currently trading higher with FTSE 100 up by 52.24 points, DAX30 up by 65.89 points and CAC 40 up by 39.20 points.

By 1130 GMT, the euro EUR had risen 0.6 percent on the day to $1.3849, helped by steady buying by Asian central banks. This helped to push the dollar .DXY 0.62 percent lower versus a currency basket.

EU DEMANDS NEW RUSSIA AIR PACTS
The European Commission plans to launch legal proceedings against Germany, France, Finland and Austria to force revisions to bilateral aviation treaties with Russia, which EU authorities say violate the bloc's single-market and competition laws.

LONDON:
London Stocks Close Higher
FTSE 100                     5677.89   +31.87   +0.56%
FTSE 250                    10848.83   +21.55   +0.20%
DJ UK Smaller Companies       913.97   +3.83    +0.42%
FTSE 100 closes higher with traders impressed by a recent spate of 3Q earnings and speculating about more positive news.

ARM Holdings, +3.2%, and Inmarsat, +2.7%, help pace the index higher. ARM and other global tech stocks have reported strong earnings in 3Q, and the market sees buying opportunities in Inmarsat..

Vodafone +2.7% after France Telecom beat analysts' forecasts with its 3Q earnings.

On Friday, traders will be watching UK September mortgage approvals at 0830 GMT and, in the euro zone, September unemployment data and October inflation data both due at 0900 GMT.

RBS Hires Goldman, Morgan Stanley On Insurance Disposal
Royal Bank of Scotland Group PLC (RBS) has hired Morgan Stanley (MS) and Goldman Sachs (GS) to advise it on how it will dispose of its insurance arm, a person familiar with the situation said Thursday.

Shell Profits Surge 88% On Higher Output
Royal Dutch Shell PLC (RDSB.LN) Thursday beat analysts' forecasts to post an 88.4% rise in adjusted profit for the third quarter, driven by higher output and greater demand for refined products and chemicals.

Shell will continue to feel the effect of the Gulf of Mexico oil drilling moratorium for two years, with 2011 oil and gas output in the region 40,000 barrels of oil equivalent a day lower than it would have been without the suspension of activity, said Chief Financial Officer Simon Henry Thursday..

AstraZeneca Quarterly Net Profit Hit
AstraZeneca PLC (AZN) Thursday reported a 27% fall in net profit as a strong performance in emerging markets and sales of key drugs like cholesterol product Crestor were undermined by generic competition in the U.S., restructuring costs and hefty legal charges related to product litigation.


Transmission Capital Group Awarded Fourth UK Windfarm Project
Transmission Capital Partners, a consortium comprising International Public Partnerships Limited (INPP.LN), Transmission Capital and Amber Infrastructure, Thursday said it had been awarded a further project to operate transmission cable connections to offshore wind farms.

Rheochem Unit Gets Licenses For 8 UK Offshore Blocks
Rheochem PLC (RHEP.LN) shares rose over 24% early Thursday following news that its exploration and production subsidiary, Zeus Petroleum Ltd., has been offered eight appraisal and exploration blocks in the U.K. 26th Seaward Licensing Round.


FRANCE:
FRENCH PENSION BILL CLEARS BIG HURDLE
The controversial pension-plan overhaul gained final parliamentary approval, but workers still hoped protests would prevent President Sarkozy from signing it into law.


_____________________________________________________________________
Asian Pacific Markets: 

CHINA:

CHINA HAS SUPERCOMPUTER LEAD
A newly built supercomputer in China appears poised to take the world performance lead, another sign of the country's growing technological prowess.

China has claimed the top spot on the list of the world's supercomputers.

The title has gone to China's Tianhe-1A supercomputer that is capable of carrying out more than 2.5 thousand trillion calculations a second.

To reach such high speeds the machine draws on more than 7,000 graphics processors and 14,000 Intel chips.

The claim to be the fastest machine on the planet has been ratified by the Top 500 Organisation which maintains a list of the most powerful machines.

China's Tianhe-1A (Milky Way) has taken over the top spot from America's XT5 Jaguar at the Oak Ridge National Laboratory (ORNL) in Tennessee that can carry out only 1.75 petaflops per second. One petaflop is the equivalent of 1,000 trillion calculations per second.

The news about the machine broke just before the publication of the biennial Top 500 Supercomputer list which ranks the world's most powerful machines.

Prof Jack Dongarra from the University of Tennessee, one of the computer scientists who helps to compile the list, said China's claim was legitimate.


BEIJING - ICBC To Buy 60% Stake In AXA-Minmetals Insurance JV
Industrial & Commercial Bank of China Ltd. (1398.HK) said Thursday it will buy a 60% stake in AXA-Minmetals Assurance Co., an insurance joint venture between AXA SA (AXAHY) and China Minmetals Corp.

JAPAN:

 Japan, China Foreign Ministers To Meet
The foreign ministers of Japan and China will meet Friday on the sidelines of a regional summit, Japan said Thursday, boosting chances their leaders will hold talks to calm a diplomatic row.

The two rivals are embroiled in their worst spat in years, sparked by the Japanese Coast Guard's Sept. 8 arrest of a Chinese fishing trawler captain after two collisions in a disputed region of the East China Sea.

SOUTH KOREA:

Posco: Considering Potential Acquisition Of Norway's Elkem
South Korea's Posco (005490.SE) said Thursday that it is considering a potential acquisition of Norway's Elkem AS as part of efforts to expand its business operations.


SINGAPORE:
Singapore Minister: SGX-ASX Merger Must Be Positive Sum Game
The proposed merger between Singapore Exchange Ltd. (S68.SG) and ASX Ltd. (ASX.AU) must be by mutual consent between shareholders and the respective government regulators of both sides of the transaction, Singapore's Foreign Minister George Yeo said in an interview with Australian media.


AUSTRALIA:
Australia Independent Lawmakers Oppose Sale Of ASX

The political backlash against a proposed A$8.4 billion takeover of Australia's largest stock-market operator by Singapore Exchange Ltd. (S68.SG) continued Thursday, with a number of key independent lawmakers confirming they will attempt to block the bid in Parliament.

_____________________________________________________________________
WORLD FOREX CURRENCIES SNAPSHOT:
(THURSDAY, OCT 28, 2010 1:15 PM EDT)
EUR/USD     1.3928     +0.0156 (1.13%)
USD/JPY     81.0000 -0.7300 (-0.89%)
GBP/USD     1.5943     +0.0169 (1.07%)
CAD/USD     0.9807     +0.0080 (0.82%)
USD/HKD     7.7565     -0.0018 (-0.02%)
USD/CNY     6.6867     +0.0062 (0.09%)
AUD/USD     0.9785     +0.0062 (0.64%)


WORLD MARKETS SNAPSHOT:
(THURSDAY, OCT 28, 2010 1:15 PM EDT)
Shanghai     2,992.58     -4.47 (-0.15%)
Nikkei 225     9,366.03     -21.00 (-0.22%)
Hang Seng Index     23,210.86     +46.28 (0.20%)
TSEC     8,354.05     +63.01 (0.76%)
FTSE 100     5,677.89     +31.87 (0.56%)
DJ EURO STOXX 50     2,845.53     +16.11 (0.57%)
CAC 40     3,834.84     +19.07 (0.50%)
S&P TSX     12,519.09     -48.16 (-0.38%)
S&P/ASX 200     4,684.90     +36.80 (0.79%)
BSE Sensex     19,941.04     -64.33 (-0.32%)

_____________________________________________________________________
MONDAY'S U.S. ECONOMIC CALENDAR:

8:30 a.m.
Oct 23 Unemployment Insurance Weekly Claims Report - Initial Claims Weekly Jobless Claims (expected 455K), Net Change (expected +3K), (prior week) (previous 4441000), (prior week) (previous -9K)

10:00 a.m.
Oct 16 DJ-BTMU Business Barometer (previous -0.1%), (52 wk) (previous +4.2%)

10:30 a.m.
Oct 22 EIA Natural Gas Storage Report Total Working Gas in Storage (previous 3683B), (Net Change) (previous +93B)

11:00 a.m.
Oct Federal Reserve Bank of Kansas City Survey of Tenth District Manufacturing Manufacturing Activity Index (previous 14), (6 Mon) (previous 23)

4:30 p.m.
Oct 18 Money Stock Measures

4:30 p.m.
Oct 27 Foreign Central Bank Holdings Foreign US Debt Holdings (previous 3.28T), US Foreign Agency Holdings (previous 732.95B), Foreign Treasury Holdings (previous 2.55T)

4:30 p.m.
Oct 27 Federal Discount Window Borrowings Primary Credit Borrowings (previous 20M), W/E Daily Avg (previous 32M)

_____________________________________________________________________
US STOCK MARKET SUMMARY, WEDNESDAY, OCT. 27, 2010:
Stocks:
U.S. stocks finished mixed, with a loss for the Dow Jones Industrial Average and a gain for the Nasdaq Composite, as investors recalibrated their expectations for a major bout of easing by the Federal Reserve to stimulate the economy. Energy stocks were among the biggest drags on the stock market, after weekly oil-inventory numbers showed U.S. stockpiles of crude oil rising by 5 million barrels.

Treasurys:
Treasury prices fell broadly as many investors exited bets that the Federal Reserve would buy government bonds on a large scale. The benchmark 10-year note's yield touched 2.720%, the highest level since Sept. 20--a day before the central bank's last monetary policy meeting. At that meeting, the central bank suggested that it was prepared to buy more Treasurys to stimulate the economy, known as quantitative easing.

Forex:
The dollar rose broadly as investors reconsidered their expectations for the size and scope of possible Federal Reserve action to jolt a slowing U.S. economy. After recently hammering the greenback on the idea the Fed would announce a massive dollar-weakening program to stoke growth, investors turned back to the buck on a Wall Street Journal report the Fed over several months will purchase only a few hundred billion dollars worth of Treasurys in so-called quantitative easing, far from the more than $1 trillion some had expected.



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