Stock Market Update - Wednesday, October 27, 2010 Cautious Choppy Trend

Stock Market Update

Wednesday, October 27, 2010

Latest US Economic News Headlines:

USA EQUITY INDEXES: (OCT. 27, 4:05 PM EDT)
Dow Jones 11,126.28 -43.18 (-0.39%)
S&P 500    1,182.45 -3.19  (-0.27%)
Nasdaq     2,503.26 +5.97  (+0.24%)

Dow Jones 2:00 PM Averages: DJIA 11,055.18 DN 114.28
  30 INDUS     11,055.18 DN  114.28 OR    1.02%
  20 TRANSP     4,697.66 DN   82.06 OR    1.72%
  15 UTILS        399.78 DN    4.48 OR    1.11%
  65 STOCKS     3,829.70 DN   48.37 OR    1.25%

US DOLLAR FUTURES INDEX DXY: OCT. 27, 4:01PM EDT: 78.11   0.40 (0.51%)

US COMMODITY PRICES: (OCT. 27, 4:05 PM EDT)

Crude Oil     81.94     -
Natural Gas     3.34     + 1.52%
Gasoline     2.10     -
Heating Oil     2.24     -
Gold     1325.85     - 1.08%
Silver     23.58     - 1.17%
Copper     3.77     - 2.33%

US DOLLAR UP STOCKS DECLINE

US STOCKS CLOSED MIXED
The dollars increase and mixed economic reports and earnings news created moderate investor sentiment and a mixed end of day index spread.

The Dow Jones average closed down at 11,126.28, The S&P closed down 3 to 1,182.45, and the Nasdaq closed up 0.24% at 2,503.26.
 
Economic news like; orders for US non-military capital equipment excluding airplanes, dropped in September, helped to support a lower open and day trading theme on the US.market.  But the main driver in the decline of commodities and equities remains the slightly stronger dollar showing today.

In early trading the Dow Jones Industrial Average declined over 140 points in morning trading, while the Standard & Poor's 500-stock index slipped 12 points to 1173 and the Nasdaq Composite was off at 2479.

Energy stocks were the biggest drag on the stock market, after weekly oil inventory numbers showed stockpiles growing by about five million barrels. Exxon Mobil fell 1.6% and Chevron dropped 1.4%, as crude-oil futures fell 1.6% to $80.96 a barrel.

Durable goods orders in the world’s largest economy jumped 3.3 percent in September after falling a revised 1.9 percent the month prior amid economists expectations of 0.5 percent, while orders excluding transportation unexpectedly tumbled 0.8 percent. Indeed, transportation equipment was the main driver behind today’s report, while inventories added 0.5 percent for the month.

Subsequent to the report, the EURUSD rallied, but the advance quickly reversed course as price action remains capped by the 20-day moving average. At the same time, U.S. equity futures continued their southern journey as risk aversion regains its footing.


U.S. Dollar Rally Gathers Pace, Euro To Test 1.3500 For Support
The U.S. Dollar continued to strengthen against its major counterparts on Wednesday, with the EUR/USD falling back to a low of 1.3770 during the overnight trade. Next critical support now comes in by 1.3695 and a break below could really get things going.

The dollar was higher versus most major rivals Wednesday, rising to 81.66 yen, from 81.47 yen late Tuesday in New York. The euro fell to $1.3794, from $1.3855.

CRUDE OIL - ENERGY STOCKPILE REPORT

US Crude Oil: $ 81.94 per barrel - Nymex Crude Closes Down 61c At $81.94/Bbl

US DOE Reports US Inventory Data: 
US Crude Oil Stocks +5.007 Mln Bbl At 366.206 Mln Bbl
US Gasoline Stocks -4.387M Bbl In Wk; Seen -0.2M Bbl

US Distillate Stocks -1.613 Mln Bbl At 168.442 Mln Bbl
US Refineries Ran At 83.7% Vs 82.5% Week Ago

U.S. crude inventories rose 5.007 million barrels, far above an expected 700,000-barrel rise in the week ended Oct. 22, according to data released Wednesday by the U.S. Department of Energy. The price per barrel declined to $80.90 range in early trading.

Crude oil stockpiles gained 1.4% in the week and now stand at 366.2 million barrels, up 7.8%, or 26.4 million barrels from a year ago.

Gasoline stockpiles fell 4.387 million barrels, to 214.9 million barrels, the department's Energy Information Administration said in its weekly report.

Distillate stocks, which include heating oil and diesel fuel, fell 1.613 million barrels to 168.4 million barrels, compared with analysts' forecast of a drop of 1 million barrels.

NATURAL GAS

Futures Settle Down 1.9% At $3.292/MMBtu

Analysts and traders expect government data scheduled for release Thursday to show another above-average build pushing natural gas inventories to last fall's levels.

The U.S. Energy Information Administration is expected to report that 73 billion cubic feet of gas were added to storage during the week ended Oct. 22, according to the average prediction of 16 analysts and traders in a Dow Jones Newswires survey.

The EIA is scheduled to release its storage data Thursday at 10:30 a.m. EDT (1430 GMT).


US GAS:Futures Flat Ahead Of Supply Data, Nov. Expiration

Natural gas futures were nearly flat Wednesday morning as market participants wondered if prices had bottomed out during a string of 13-month lows.

Natural gas for November delivery was recently up 1.1 cents, or 0.3%, to $3.365 a million British thermal units on the New York Mercantile Exchange. The benchmark contract, which expires Wednesday, settled higher Tuesday after reaching three consecutive days of 13-month lows.

Prices have been under pressure recently by swelling supply and a delayed onset of colder weather. The Energy Information Administration's weekly storage report is scheduled for release Thursday at 10:30 a.m. EDT, with a seventh consecutive injection likely.

It's unclear if that bottom has formed, but there are signs. Tops happen overnight. Bottoms happen over a long period of time, particularly when you have the dark cloud of oversupply and under-demand," said futures traders.

PRECIOUS METALS

US Gold: $ 1,323
US Silver: $ 23.53

Engelhard Corp's base price for industrial gold bullion was $1327.40 per troy ounce, down $5.01 from previous.

It's selling price for gold in fabricated form was $1426.96, down $5.38.
Handy & Harman's base price for gold was $1324.50 per troy ounce,
down $5.00. The fabricated form price was $1430.46, down $5.40.

Spot gold slipped to a three-day low Wednesday on a rallying U.S. dollar, as currency markets lowered their expectations for a large monetary easing program from the U.S. Federal Reserve.Gold XAU= fell 0.5 percent and copper MCU3 dipped 0.1 percent.


TREASURYS
The benchmark 10-year Treasury fell, pushing the yield higher to 2.683%.

US BONDS: (As of 1:45 p.m.)
3 Month     0.11%     0.00 (0.00%)
6 Month     0.16%     0.00 (0.00%)
2 Year     0.41%     +0.01 (2.50%)
5 Year     1.29%     +0.02 (1.57%)
10 Year     2.70%     +0.02 (0.75%)
30 Year     4.03%     0.00 (0.00%)

NEW HOME SALES MINOR INCREASE SEEN
Sales of U.S. New Homes Increased

Sales of new homes rose in September for a second month to a pace that signals the industry is struggling to overcome the effects of a jobless rate hovering near 10 percent.

New-home sales in September rose from a rock-bottom level, increasing 6.6% to a seasonally adjusted annual rate of 307,000, more than consensus estimates of a 4.2% increase.

Figures from the Commerce Department showed today in Washington. demand is hovering near the record-low 282,000 reached in May. The supply of homes at the current sales rate fell to 8 months’ supply, down from 8.6 months in August.

A lack of jobs is preventing Americans from gaining the confidence needed to buy, overshadowing declines in borrowing costs and prices that are making houses more affordable. At the same time, foreclosure moratoria at some banks, including JPMorgan Chase & Co., signal the industry will redouble efforts to tighten lending rules, which may depress housing even more.

“These are still very low levels,” said Jim O’Sullivan, global chief economist at MF Global Ltd. in New York.

NAHB NEW HOUSING STARTS UP
September Building Permits Revised To -4.2% From -5.6%

NAHB Sees 2010 Single-Family Housing Starts Up 8.4% On Year . While new-home sales climbed from a depressed level in September, Dawn Wotapka writes, the home-building sector faces signs of further weakness.

U.S. building permits for September were revised to down 4.2% from August to a seasonally adjusted rate of 547,000, the Commerce Department reported Wednesday.

September building permits were originally reported as being down 5.6% at a seasonally adjusted rate of 539,000.



TARP PANEL CRITICIZES TREASURY
Members of a congressionally authorized panel criticize Treasury efforts to wade into the foreclosure crisis, saying an Obama administration goal of keeping 3 million to 4 million people in their homes won't be met.

ConocoPhillips Profit Doubles
ConocoPhillips, the third-largest US oil producer, said profit more than doubled as oil prices rose on recovering energy sector over the Summer.


BEFORE THE BELL:

US MARKET SET TO OPEN LOWER

US Stock Futures Decline On QE Concerns & Economic Reports

US futures point to a lower opening on Wednesday ahead of economic data including durable goods orders and new home sales.

Futures on the S&P 500 are down 0.46 percent, futures on the Dow Jones Industrial Average are down 0.34 percent and Nasdaq100 futures are down 0.27 percent.

US oil prices CLc1 dropped 1 percent to trade below $82 a barrel.

Market doubts continue over how aggressively the U.S. Federal Reserve is going to stimulate a flagging recovery with another round of money-printing weighed on world equities and commodities on Wednesday while boosting the dollar. Investors have been pricing in large scale U.S. Treasury bond purchases by the Fed, lifting equities, commodities and emerging market assets in recent weeks while the dollar has come under pressure against other currencies.

The Wall Street Journal reported Wednesday that the Fed is likely to unveil next week an asset purchase program worth a few hundred billion dollars over several months, and that officials wanted to avoid a "shock and awe" style approach.

 
COMING UP NEXT:
Investors are likely to focus on durable goods orders and new home sales reports to gauge the strength of recovery in the world’s largest economy.


Durable Goods Orders Rise 3.3% Percent
The Commerce Department released September durable goods orders with a rise in big ticket item. A surge in demand for commercial aircraft lifted orders for big-ticket manufactured goods in September, but businesses spent less on computers and machinery.

The Commerce Department says orders for durable goods rose 3.3 percent last month. Overall, it was the best showing since January. But excluding transportation, orders fell 0.8 percent after having risen 1.9 percent in August.

Spending by companies on capital goods dropped 0.6 percent after rising 4.8 percent in August. The category is viewed as a good proxy for business investment in the economy.

New home sales data for the month of September is due to be released after the markets open. Economists have forecast sales of new single-family houses to be 295,000 for September against 288,000 in the previous month. 

US stock-index futures continued to fall Wednesday, as a published report raised questions about the scale of the new monetary stimulus expected to be announced by the Federal Reserve next week. 

Companies including Visa, Symantec and Cincinnati Financial Corp. will release their earnings after the closing bell.

Airgas Still Against Air Products Offer Despite New Directors
Airgas Inc. (ARG), in repeating its case against a hostile bid from Air Products & Chemicals Inc. (APD), emphasized the solidarity of its board, which includes three new directors whom Air Products got elected last month.

Office Depot's Sales Decline
Office Depot Inc (ODP.N) reported on Wednesday a quarterly profit on tight cost controls and a tax benefit, but its sales fell.

P&G Earnings Fall 6.8% on Cost Pressures
Procter & Gamble Co.'s fiscal first-quarter earnings dropped 6.8% as lower margins were offset by strong volume gains. Procter & Gamble reported a first quarter net income of $3.08 billion or $1.02 per share from $3.3 billion or $1.06 per share a year ago


CommScope Agrees to $3.9 bln Carlyle bid
Communications cable maker CommScope Inc (CTV.N) said it agreed to be bought out by The Carlyle Group CYL.UL in a deal worth about $3.9 billion.

International Paper profit trounces expectations
International Paper Co (IP.N) posted a much higher-than-expected quarterly profit as demand rallied, the company further diversified.

Comcast 3Q Profit Falls 8.2%; Adjusted Results Beat Street Views
Comcast Corp. (CMCSA), the nation's largest cable provider, posted an 8.2% decline in third-quarter earnings as a summer slowdown in subscriber growth, and costs related to its deal for NBC.

Mortgage Applications in US Increase, Spurred by Lower Borrowing Costs
The number of mortgage applications in the US increased last week as a drop in borrowing costs.

Sprint Posts Wider Loss Than Estimated on Handset Upgrade Costs
Sprint Nextel Corp., the third- largest US mobile-phone carrier, reported a wider loss than analysts expected. Sprint Nextel’s third-quarter loss widened to $911 million or $0.30 per share. 

Deutsche Bank Pays Investment Bankers More Than Goldman Sachs
Deutsche Bank AG, Germany's biggest bank, set aside more in compensation for employees of its corporate and ...

Illegals' Massachusetts Medical Bills Cost Taxpayers $35.7M

Massachusetts and U.S. taxpayers paid $35.7 million this year in free emergency health care for more than 52,000 illegal aliens in Massachusetts.

The figures show illegal immigrants who belong to MassHealth Limited received $33.8 million in taxpayer-funded in-patient hospital care this year, the Boston Herald reports. They also made 6,160 visits to the state's emergency rooms in the fiscal year ending in June for an additional cost of $1.9 million, a Herald analysis shows.

The figures show 69 percent of the state's MassHealth Limited subscribers are illegal immigrants.Massachusetts has 220,000 illegal immigrants overall.

http://www.myfoxboston.com/dpp/news/local/illegals-medical-bills-cost-taxpayers-357m-20101027

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Canadian Market:

Canadian Stocks Decline in the materials sector.

Toronto stocks ended lower Wednesday. 
the S&P/TSX Composite Index fell 117.43 points, or 0.93%, to 12567.25. Declines led advances 993 to 639. Trading volume was 454.60 million shares, down from Tuesday's total of 494.60 million shares.

The S&P/TSX 60 Index closed down 6.68, or 0.92%, to 723.21 points.

The stock market was down sharply at midday on concerns the U.S. Federal Reserve won't do enough to help jump-start the flagging economy.

Weakness in commodity stocks compounded the pressure, as a drop in the price of oil weighed down energy stocks, while bullion was also down sharply, pressuring gold issues. 

Oil was off US$1.74 to US$80.781 a barrel in New York earlier Wednesday, while gold had shed US$17.10 to US$1,321.40 an ounce.
  

At 11:45 a.m. EDT (1545 GMT), the S&P/TSX Composite Index was down 140.36 points, or 1.11%, at 12544.32. Declines led advances 923 to 489. Trading volume was 214.20 million shares. The S&P/TSX 60 Index was down 8.47 points, or 1.16%, at 721.42.
During early morning trading the TSX Venture Exchange stood at 1,897.71, down 10.36 points from Tuessday's close. The volume at 10 am ET was at 54.2 million shares.


Toronto Indexes, Volume; 2 PM EDT Composite Down 137.77

 S&P/TSX Composite   12546.91  off 137.77  or 1.1%
 S&P/TSX 60 Index      721.57  off   8.32  or 1.1%
 Financials            178.50  off   1.74  or 1.0%
 Materials             396.77  off   5.11  or 1.3%
 Energy                286.39  off   3.51  or 1.2%
 Industrials           106.17  off   2.47  or 2.3%
 IT                     29.38   up   0.23  or 0.8%

   Volume       Wednesday  Tuesday
   1-2                 45.0M             51.1M
   9:30-2             317.0M            327.0M

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South American Markets:

BRAZIL:

(pending news)

MEXICO:

Mexico's Stocks Down

Mexican stocks turned lower in early trading Wednesday, quickly coming off the previous day's record highs.

The benchmark IPC index of the 35 most-traded stocks paused from a week-long rally and was losing 0.7%, at 35,142 points, at around 10:40 a.m. EDT. Volume was 38 million shares worth 1 billion pesos ($80 million).

Global cement and building materials maker Cemex (CX, CEMEX.MX), which had led Tuesday's rally on some debt flexibility from creditors, saw its CPO shares down 1.6% to MXN10.66, and copper miner and railway operator Grupo Mexico's (GMEXICO.MX) B shares fell 0.3% to MXN39.95.

The L shares of Latin America's biggest wireless provider America Movil (AMX, AMX.MX), which reports earnings after Wednesday's market close, were 1.2% lower at MXN35.61. American Movil is the most heavily weighted stock on the IPC index.

The O shares of financial firm Grupo Banorte, which reported strong profit growth in the third quarter on Tuesday, were up 1.3% to MXN52.40.

Mexico's peso lost ground as the dollar firmed broadly on diminished Fed stimulus expectations. The dollar was recently quoted in Mexico City at 12.4650 pesos, compared with 12.4185 Tuesday.

Mexico's August Economic Activity Index Up 7.3% On Year
Also Mexico's August economic activity index rose 0.58% from July of this year.

Mexico's economy continued to recover at a solid pace in August, with industrial production, services and agricultural output all growing from a year earlier.

The National Statistics Institute, or Inegi, said Wednesday that its global indicator of economic activity, or IGAE, rose 7.3% from August 2009, and was 0.58% higher than in July in seasonally adjusted terms.

 Industrial production rose 8.1% from a year earlier, when Mexico was just starting to pull out of a deep recession. Services rose 6.4%, and agricultural production rose 5.3%.

The IGAE numbers, which account for most of gross domestic product, show the economy was still advancing rapidly in the third quarter after an expansion of 5.9% in the first half of the year.

The Finance Ministry last week raised its full-year 2010 GDP growth estimate to 4.8% from 4.5%.


ECUADOR:

Ecuador Foreign Debt $13.43 Billion In August

Ecuador's total foreign debt in August was $13.43 billion, a 4% decrease from $13.95 billion in the same month of 2009, the central bank said. The amount is equivalent to 23.5% of Ecuador's $57 billion gross domestic product forecast for 2010.

According to the bank, the country's public debt totaled $7.88 billion in August, up 5% from $7.49 billion in the year-on-year comparison. The August public debt figure is equal to about 14% of GDP.

Private sector debt, meanwhile, stood at $5.55 billion, down 14% from the $6.46 billion posted in August 2009.


CHILE:

Chile Stocks Gain 1%, 
End At 2nd Straight Record High

Chile's Peso Closes Weaker As Euro and Copper Prices Slip
Chile's peso ended weaker against the dollar Wednesday as major currencies, including the euro, fell against the greenback and international copper prices slipped.

The peso ended at CLP494.50 to the dollar, versus Tuesday's close of CLP491.30, while trading in a range of CLP492.70 to CLP496.20.

Even with the peso's recent fall, Chile's Asexma exporters trade group, earlier Wednesday, called on the government to "use all the available tools in the market" to help the export sector by starting a daily dollar purchase program to  help further weaken the local currency. Exporters argue that the peso's strength eats away at the competitiveness of their products.

In the bond market, yields on inflation-indexed Chilean central bank bonds, or BCUs, ended mixed in light over-the-counter trading as participants awaited a scheduled auction of central bank sovereign bonds.

The yield on five-year BCU bonds ended at 2.71%, from 2.72% on Tuesday, while the yield on 10-year BCUs closed at 3.14% , from 3.13% the prior session.


ARGENTINA:
The Argentinian Stock Exchange is Closed due to a Public Holiday


Argentina's Top Union Vows To Support President
Following the death of former President Nestor Kirchner

Argentina's powerful umbrella union, the CGT, forcefully vowed to back President Cristina Fernandez Wednesday in the wake of her husband's death earlier in the day.

"We will support the president with all our force," CGT Secretary General Hugo Moyano said at a press conference Wednesday.

The death of former president Nestor Kirchner is "a huge blow," Moyano said, citing Kirchner's policies of spurring domestic consumption as the prime motor behind job creation. "After the union, nobody has done as much as Nestor Kirchner," Moyano said.

The CGT has called on its members to gather in front of the presidential palace at the famed Plaza de Mayo on Thursday to show their support for the administration and to mourn Kirchner's passing.

The CGT is a power electoral force and the group's support will play a key role the presidential vote slated for October of next year. Kirchner had been expected to make another run for the office in a plan to alternate power with his wife to avoid the constitutional limit of two consecutive terms.


Argentina's Former President Dies  

Argentina's former President, Nestor Kirchner, has died after suffering a sudden heart attack. He was 60. Mr Kirchner, who had been operated on in September for heart problems, died in El Calafate in southern Argentina.

He served as president from 2003 to 2007, and was being tipped to stand for election again in 2011. His wife, Cristina Fernandez de Kirchner, succeeded him as president in 2007, after he had overseen Argentina's recovery from a severe economic crisis.

The couple had faced some criticism within Argentina for appearing to get around presidential term limits by stepping aside for each other, and suffered a setback last year when their Peronist party lost its absolute majority in both houses of Argentina's Congress.

A lawyer by training, Mr Kirchner served as mayor of Rio Gallegos, his hometown in Argentina's Patagonian south, before becoming governor of the wider region - the oil and gas-rich province of Santa Cruz.

He was elected president after Argentina had seen a series of presidents come and go following a major financial crisis in 2001.


Once in office, he oversaw the stabilisation of Argentina's economy, at the time mired in crisis and was seen by many Argentines as tackling poverty and unemployment.

In 2005, he took the major step of renegotiationg terms on most of the country's $100bn (£63bn) privately held debt.


A year later, he paid off the $9.8bn debt to the International Monetary Fund (IMF), which he blamed, along with many ordinary Argentines, for much of the country's financial woes.

Mr Kirchner died with his wife by his side after being admitted to hospital in El Calafate in the early hours of Wednesday morning.

In Venezuela, President Hugo Chavez announced three days of national mourning, and praised Mr Kirchner as someone who fought for international justice.

"I think the bells should chime in Venezuela and in the whole of Latin America and in all the places where they struggle for a world of equals, for a world of peace," said Mr Chavez.

As president Mr Kirchner encouraged changes in Argentina's justice system that set in motion dozens of trials against members of the 1976-1983 military government, who were accused of human rights abuses.

He oversaw Argentina's recovery from the country's economic crisis in 2001 and 2002, and many Argentines credit him with fighting poverty and unemployment.

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European Markets: 

European markets were mixed, with the broad Stoxx Europe 600 index flat.

European stocks closed lower Wednesday, with upbeat data from the euro-zone region helping to lift shares from their lows, but the drag of basic resources stocks couldn't be overcome.


The pan-European Stoxx 600 Index closed down 0.7% at 264.93. The U.K.'s FTSE 100 slipped 1% to 5646.02, France's CAC-40 lost 1% at 3815.77, and Germany's DAX declined 0.7% to 6568.

Late in Europe, the euro at $1.3789, down from $1.3851. The dollar was at Y81.58, up from Y81.44. The pound traded at $1.5781, down from $1.5839.
The dollar moved higher against major currencies, lifted by anticipation that the Federal Reserve's well-telegraphed quantitative easing program may not be as robust as some had expected.

Europe's FTSEurofirst 300 was flat, though the VDAX-NEW volatility index V1XI rose 2 percent after hitting a near three-week high, indicating investors' lower risk appetite.

Britain's FTSE 100 slid 0.4 percent to 5,684.22 and France's CAC-40 fell 0.5 percent to 3,852.18. Germany's DAX was steady, edging up just 0.1 percent to 6,618.48.

Swedish appliance maker Electrolux AB said third-quarter net profit fell 15 percent, while Spain's BBVA bank posted a 17 percent drop. Their shares were down 1.6 percent and 1.4 percent, respectively.

Finnish paper maker Stora Enso Oyj reported a profit, after a loss a year earlier, and its stock rose over 2 percent.

LONDON:

FTSE Closes Lower; Mining Stocks Weigh

FTSE 100                     5646.02   -61.28   -1.07%
FTSE 250                    10827.28  -113.44   -1.04%
DJ UK Smaller Companies       910.14    -7.62   -0.83%

FTSE 100 closes down, with mining stocks declining as commodity prices remain weak. Xstrata -3.8% and Kazakhmys -5%.

UK Inflation Expectations Rise In October 2010
U.K. public inflation expectations rose in October, making it less likely that the Bank of England will feel the need to expand its quantitative easing monetary stimulus in the near term, a survey by Citi and pollsters YouGov showed Wednesday.

U.K. Prime Minister David Cameron fired an opening salvo ahead of this week's European Council meeting in Brussels Wednesday, saying it is "unacceptable" that the European Union budget could rise sharply this year.

British American Tobacco Sales Grow
British American Tobacco PLC (BATS.LN), the world's second-biggest tobacco group by revenue, Wednesday said it posted good growth in sales for the first nine months of the year, but volumes fell year-on-year as smokers struggle with tough global economic conditions.

GERMANY:

German Jobless Fell Below 3 Million In October

German Oct Adj Jobless Rate 7.5%
The total number of jobless in Germany, Europe's largest economy, fell below 3 million in October, Labor Minister Ursula von der Leyen told reporters Wednesday.

Von der Leyen told an impromptu briefing that the number of people out of work fell to an unadjusted 2.945 million, from 3.031 million in September.

In September, the Federal Labor Office had recorded 3.031 million jobless in unadjusted terms, and 3.188 million in seasonally-adjusted terms.

The minister also said that the unadjusted jobless rate fell from 7.2% in September to 7.0% in October. In seasonally-adjusted terms, the rate stayed at 7.5%, slightly above economists' expectations.

The Federal Labor Office will release the full employment report for the month Thursday.

Deutsche Bank AG Reported Loss of

euro1.2 billion ($1.7 billion
Deutsche Bank rose 1% after it posted a smaller-than-expected third-quarter net loss of EUR1.21 billion. A pickup in investment banking helped cushion a EUR2.3 billion charge related to the bank's investment in Deutsche Postbank. Deutsche Bank's results lifted sentiment throughout the financial sector.

Deutsche Bank AG reported a euro1.2 billion ($1.7 billion) loss for the third quarter, due to a big charge related to its planned takeover of retail lender Postbank AG. Underlying earnings were not as bad as some investors expected, however, and its shares inched up 0.2 percent.

Shares of SAP AG slumped 2.8%. The business-software giant's third-quarter net profit fell short of expectations.

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Asian Pacific Markets: 

CHINA:

Hong Kong's Hang Seng index tumbled 1.9 percent to 23,164.58 and mainland China's benchmark dropped 1.5 percent to 2,997.05. The Hong Kong's Hang Seng Index slipped 1.9%.

Zijin Mining 3rd-Quarter Net Profit Up 19.0%
Chinese copper and gold miner Zijin Mining Group Co. (601899.SH) said Wednesday its third-quarter net profit rose 19.0% from a year earlier due to higher product prices.

Jiangxi Copper 3rd-Quarter Net Profit More Than Doubles To CNY1.28 Billion

Jiangxi Copper Co. (0358.HK), China's biggest copper producer by output, said Wednesday its third-quarter net profit more than doubled from a year earlier due to rising prices of its products, which also include gold and silver.

JAPAN:

Japan's benchmark Nikkei 225 stock index trimmed gains to close up just 9.65 points, or 0.1 percent, at 9,387.03. Exporters got a modest lift as the yen reversed some of its recent strength against the U.S. dollar. Major Japanese companies including Sony Corp. and Honda Motor Co. report earning later this week. 

Canon Tops Q3 Results, Bucks Yen Strength

Canon Inc's strong quarterly results show the world's largest maker of digital cameras is reaping the benefits of cost cuts and managing to counter the impact of a strong yen.

The shares are expected to trade stronger on Thursday as the maker of IXY compact cameras raised its full-year profit outlook on strong sales of office equipment and cameras and beat forecasts with a 74 percent jump in quarterly profit.

Along with rival camera makers Sony Corp (Tokyo:6758.T - News) and Nikon Corp, Canon is fighting a rising yen that is crimping the value of overseas earnings.

SOUTH KOREA:

South Korea's Kospi fell 0.5 percent to 1,909.54 after government figures showed the country's economic growth slowed sharply in the third quarter on weaker exports and manufacturing. Asia's fourth-largest economy expanded 0.7 percent in the July-September period after 1.4 percent growth in the previous quarter.

AUSTRALIA:

Australia's S&P/ASX 200 shed 0.9 percent to 4,648.10.

Xstrata Abandons Full Takeover Of Sphere
Xstrata Plc (XTA.LN) will abandon its all-or-nothing drive for a full takeover of Australian iron ore developer Sphere Minerals Ltd. (SPH.AU) and settle for control of the company, amidst lackluster takeup of the company's A$2.50-a-share proposal.

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WORLD FOREX CURRENCIES SNAPSHOT:
(WEDNESDAY, OCT 27, 2010 1:45 PM EDT)

EUR/USD     1.3787     -0.0071 (-0.51%)
USD/JPY     81.5600 +0.1700 (0.21%)
GBP/USD     1.5781     -0.0060 (-0.38%)
CAD/USD     0.9689     -0.0079 (-0.80%)
USD/HKD     7.7592     -0.0004 (-0.01%)
USD/CNY     6.6804     +0.0179 (0.27%)
AUD/USD     0.9698     -0.0161 (-1.63%)

WORLD MARKETS SNAPSHOT:
(WEDNESDAY, OCT 27, 2010 1:45 PM EDT)

Shanghai     2,997.05     -44.49 (-1.46%)
Nikkei 225     9,387.03     +9.65 (0.10%)
Hang Seng Index     23,164.58     -436.66 (-1.85%)
TSEC     8,291.04     -52.19 (-0.63%)
FTSE 100     5,646.02     -61.28 (-1.07%)
DJ EURO STOXX 50     2,829.42     -26.89 (-0.94%)
CAC 40     3,815.77     -36.89 (-0.96%)
S&P TSX     12,538.01     -146.67 (-1.16%)
S&P/ASX 200     4,648.10     -39.70 (-0.85%)
BSE Sensex     20,005.37     -216.02 (-1.07%)

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MONDAY'S U.S. ECONOMIC CALENDAR:

7:00 a.m.
Oct 22 MBA Mortgage Applications Survey Market Composite Index (previous 803.4), Cur Chg (previous -10.5%), Purchase Index (S.A.) (previous 169.7), Cur Chg (previous -6.7%), Refinance Index (previous 4491.1), Cur Chg (previous -11.2%)

8:30 a.m.
Sept. Advance Report on Durable Goods Total Orders (previous +2.5%), Orders, Ex-Defense (previous -1.2%), Orders, Ex-Transportation (previous +2%)

10:00 a.m.
Sept. New Residential Sales Overall Sales (expected 300K), Percent Change (expected +4.2%)

10:30 a.m.
Oct 22 EIA Petroleum Status Report Crude Oil Stocks (previous 361.2M), (Net Change) (expected +600K), Gasoline Stocks (previous 219.33M), (Net Change) (expected -200K), Distillate Stocks (previous 170.06M), (Net Change) (expected -600K), Refinery Usage (expected 82.9%)

12:00 p.m.
Sept. Chicago Fed Midwest Manufacturing Index Manufacturing Index (MoM) (previous -1.4%), (YoY) (previous +8.5%), Auto Output Index (MoM) (previous -6.9%), (YoY) (previous +12.2%)

4:00 p.m.
New York Fed President William Dudley speech on the state of the regional economy .

US STOCK MARKET SUMMARY, WEDNESDAY, OCT. 27, 2010:

Stocks:
The US dollar's influence on the markets was evident throughout the day.Stocks finish ended up but essentially flat after full day of choppy trading as investors evaluated mixed consumer confidence/housing data and a spate of earnings reports.

The Dow Jones Industrial Average edged up 5.41 points, or 0.05 percent, to 11,169.46. The S&P 500 barely budged, ticking up 0.02 of a point, to 1,185.64. NASDAQ gained 6.44 points, or 0.26 percent,at 2,497.29. The S&P/Case-Shiller 20-City index of home prices in major metropolitan areas slipped 0.2 percent in August from July, although they gained 1.7 percent over the past 12 months.

The Conference Board said consumer confidence edged up in October to 50.2 from 48.6 in September, but remained stuck at historically low levels. U.S. stocks inched higher at the close as the dollar relaxed it gain. The wavering came after a rally that sent the Dow to near a six-month high.

Treasurys:
Treasurys fell even after government sold new two-year notes at a record low yield for the sixth month in a row Tuesday, a sign of the strong demand for Treasurys with expectations the Federal Reserve will unveil another large-scale bond buying program next week. Investors remained mindful of the week's remaining note sales.

Forex:
The dollar rose against the yen and the euro as investors wondered whether they have oversold the greenback. A threatened return of Japanese intervention and concerns about smaller-than-expected Federal Reserve stimulus prompted some investors to pull back after weeks of pushing the dollar down in anticipation of Fed quantitative easing, or QE. Overnight, many investors exited positive yen positions after "verbal intervention" by Japanese officials, several analysts said.


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