Stock Market Update - Thursday, November 18, 2010 - Dollar Down Choppy Outlook

Stock Market Update

Thursday, November 18, 2010

Latest US Economic News Headlines:

USA EQUITY INDEXES: (NOV. 18, 4:05 PM EST)

Dow Jones 11,181.23 +173.35 (+1.57%)
S&P 500    1,196.69 +18.10  (+1.54%)
Nasdaq     2,514.40 +38.39  (+1.55%)


Dow Jones 3:30 PM Averages: DJIA 11,185.66 UP 177.78
  30 INDUS     11,185.66 UP  177.78 OR    1.62%
  20 TRANSP     4,853.94 UP   94.28 OR    1.98%
  15 UTILS        399.03 UP    2.00 OR    0.50%
  65 STOCKS     3,890.29 UP   58.66 OR    1.53%

US COMMODITY PRICES: (NOV. 18, 4:05 PM EST)

Crude Oil     81.92     + 0.09%
Natural Gas     4.03     + 0.45%
Gasoline     2.23     -
Heating Oil     2.30     -
Gold     1353.81     + 1.31%
Silver     26.98     + 5.56%
Copper     3.78     + 1.45%

US DOLLAR FUTURES INDEX DXY: NOV. 18, 4:08PM EST: 78.59  Down 0.49 (0.62%)

U.S. Stocks Up Dollar Down

U.S. Stocks were steady in late afternoon trading as the Dow jumped up almost 2 points off the 200 DMA. The dollar's decline boasted commodities and material providers throughout the World driving the S&P average to touch resistance at 1200.

In early morning trading the Dow gained more than 170 points as the dollar held below its Wednesday close. The Dow is touching resistance near the 11200 mark, and the S&P is at the 1200 range. That may be a near-term market top for the day. The materials, energy and industrial sectors led the broad index's gains. The technology-heavy Nasdaq Composite jumped 1.8% to 2520. 

The market sentiment was led by General Motors successful market entry, as it started actively trading on the New York Stock Exchange under the ticker symbol "GM" and was recently up 8% at $35.63. GM's on pace for one of the biggest U.S. initial public offerings ever. Stock indexes held gains on Thursday after the government said new U.S. claims for unemployment benefits rose slightly last week. Among the top performers are Alcoa, jumping 4.6%, while American Express rose 2.5% and Caterpillar added 2.4%.

In early trading, the Dow Jones Industrial Average rose 167 points, or 1.5%, to 11175. Alcoa led the blue-chip index's gains, jumping 4.6%, while American Express rose 2.5% and Caterpillar added 2.4%. All 30 of the Dow components were trading in positive territory in early Thursday morning trading.

The Standard & Poor's 500-share index gained 1.7% to 1198, led by the materials, energy and industrials sectors. The technology-heavy Nasdaq Composite jumped 1.8% to 2520.  

Stock futures pointed to a sharply-higher open Thursday as Wall Street welcomed the return of General Motors to the New York Stock Exchange. Unemployment data may impact the market open, but as of this posting  stock index futures held gains on Thursday after the government said new U.S. claims for unemployment benefits rose slightly last week.

Before the bell, US stock futures surged alongside global markets Thursday, pointing to a much stronger open. The dollar pulled back against most majors Thursday morning, as conditions improved in the global markets. The dollar's retreat followed news that the U.S. core consumer prices rose just 0.6 percent in October from a year earlier, the smallest rise in records kept since 1957.

The euro and Asian equities gained some respite after Ireland agreed to work with EU and IMF officials on steps to shore up its shattered banking sector.

PHILADELPHIA BUSINESS ACTIVITY 
SEES INCREASE
The Federal Reserve Bank of Philadelphia said Thursday its November index of general business activity came in at 22.5 from 1.0 in October. It had been expected at 4.5.

The bank said that its new orders index was 10.4, from -5.0, while its shipments index hit 16.8, from 1.4. Meanwhile, hiring picked up, with the employment index at 13.3, after October's 2.4.

Inflation pressures quickened, with the prices paid index at 34.0, after 31.5 in October, while the prices received index was -2.1, from -9.0 the prior month.

Jobless Claims in U.S. Increase Less Than Forecast
Weekly U.S. jobless claims rise 2,000 to 439,000 in reflection of slow hiring trends.

Initial unemployment claims rise by 2,000 to 439,000 in the week ended Nov. 13, better than economists' expectations of an 8,000 hike in new claims, but still a reminder of the continued weakness in the labor market.

US Conference Board Report

The U.S. economy is fixed for a modest pace of growth over coming months, according to an index designed to describe the economy's future path.

Private Research Group the Conference Board reported Thursday that its composite index of leading economic indicators rose by 0.5% in October, matching the revised increase seen the prior month. The increase in the key economic barometer was a little short of the 0.6% gain forecasters had been expecting.

The overall index rose on the back of financial forces. Six of the 10 measures making up the index were positive, lead by interest rate spreads, stock prices and real money supply. The Conference Board noted that the six-month change in the index was a 1.6% gain, a moderation from the 4.6% annualized gain seen over the prior six month period.

"The LEI remains on an upward trend, suggesting the modest economic expansion will continue in the near term," said Conference Board economist Ataman Ozyildirim. "The LEI's growth has been slowing this year, but gains in the financial components helped its pickup in October."

The October LEI data fit in with the broad consensus of forecasters the economy will continue to grow over coming quarters. But the problem is that rate of growth is expected to come in right around the economy's long term trend rate, which means there will not be enough of an expansion to lower high unemployment rates much.

That tepid rate of growth is why the Federal Reserve has embarked on its controversial campaign to buy longer dated government bonds, in a bid to make the expansion faster than it would otherwise be.



EQUITIES:

Among stocks in focus, Sears Holdings dropped 3.7% after its fiscal third-quarter loss widened more than analysts expected as margins fell and sales dropped, especially at the company's namesake stores.

Food company J.M. Smucker's fiscal second-quarter earnings climbed 6.9% on higher margins and topped analysts' expectations, but revenue was surprisingly flat. Smucker also raised its target for the year by five cents. Smucker shares edged 2% lower.

Office-products retailer Staples' fiscal third-quarter profit rose 7.2% as sales and margins showed modest improvement. Shares rose 2.9%.

Dollar Tree's fiscal third-quarter earnings rose 37% as the discount retailer reported stronger-than-expected sales growth. The company narrowed its profit target for the year and boosted revenue expectations, while anticipating same-store sales up by the low- to mid-single digits on a percentage basis. Shares rose 2.9%.

In deal activity, Cardinal Health said it will buy privately held pharmaceutical distributor Kinray Inc. for $1.3 billion. Cardinal Health, the second-biggest drug distributor in the U.S. by market value, is looking to boost its presence in smaller pharmacies in the northeastern U.S. Shares rose 4.4%.


DELL and The GAP Reported Earnings After Hours
Dell Jumps 7.1% after hours as it resumes trading. 
The Gap declined after hours as sales were reported as flat. 

Dell Inc.'s (DELL) fiscal third-quarter earnings more than doubled on strong international corporate demand and supply-chain efforts that helped boost margins, with profit handily topping analysts' expectations. Dell reported a profit of $822 million, or 42 cents a share. Shares closed at $13.66.  

Dell has seen notable year-to-year improvement of late in its sales of desktop PCs as well as notebooks and other mobile devices, as customers have begun easing their grip on their wallets, though the threat of high unemployment looms. That has kept consumer demand in check; such revenue rose 4% on year for Dell.

Market researcher iSuppli Corp. said in September that Dell regained its No. 2 rank on the global PC maker ladder during the second quarter.  

Gap 3Q Profit Down 1.3% On Margin Drop

Shares of Gap were down 2.1% at $20.47 after hours as margins fell and the company said it would close fewer stores than previously planned. The company posted a profit of $303 million, down from $307 million year earlier. On a per-share basis, the bottom line rose to 48 cents from 44 cents because the latest quarter had 11% fewer shares outstanding.

The Gap is now predicting it will close 100 stores. Of all Gap's operations, only lower-priced Old Navy saw same-store sales decline, though it had the toughest comparison of all the divisions. It reported a 2% drop versus a 10% increase last year. Namesake North American stores and upscale Banana Republic both reported a 1% climb, while international same-store sales were up 3%.


GM'S PUBLIC DEBUT Shares On Sale

GM SHARES RISE IN EARLY TRADING AFTER RAISING $20.1BGM SHARES JUMP TO $35.90 A SHARE BEFORE SETTING AT $33.90 

The auto maker's shares climbed 7% after it prices its initial public offering at $33 per share, raising $20.1 billion. Offering raises 50% more than originally expected on a higher price and the share amount than original expectations.



General Motors Co (GM) pulled off the biggest initial public offering in U.S. history on Wednesday, raising $20.1 billion after pricing shares at the top of the proposed range in response to huge investor demand.

Including an option that would allow underwriters to sell more shares, expected to be exercised in coming days, GM looks set to raise $23.1 billion, making it the biggest initial public offering ever.

The strong response to the stock sale reflects a groundswell of investor confidence that GM is moving beyond its unpopular, taxpayer-funded bankruptcy in June 2009 with sharply lower costs and higher profit potential.

The government's stake in GM will drop to about 33 percent from 61 percent if all available shares are sold.

China ACM and China Construction Sign Strategic Alliance
China Advanced Construction Materials Group, Inc. (NASDAQ: CADC)  a leading provider of ready-mix concrete and related technical services in China, today announced that China State Construction Engineering Corporation ("China Construction" or "CSCEC") (Shanghai SE: 601668) and the Company have signed a strategic alliance letter of intent. With annual revenue of $38 billion, CSCEC is ranked number 187 in the Fortune Global 500 list of companies.


Sears Third-Quarter Loss Misses Estimates
Sears Holdings Corp., the largest US department-store chain, said its third-quarter loss widened as consumers remained cautious amid high levels of unemployment. The net loss widened to $218 million, or 1.98 a share, from $127 million, or $1.09, a year earlier.


CHINESE AUTO RETAILER 
TO LAUNCH US IPO

Chinese Auto Retailer Lentuo Files To Hold $115M IPO In US

Chinese auto retailer Lentuo International Inc. announced plans to sell up to an estimated $115 million of American depositary shares in a U.S. initial public offering.

Lentuo, which calls itself the country's largest nonstate-owned auto retailer in Beijing, operates six dealerships, 10 showrooms, one repair shop and one car leasing company in the capital region.

It plans to use proceeds from the IPO to fund growth and upgrade efforts while also developing fleet-car leasing and used-car sales. For the first half of the year, Lentuo reported a 35% increase in profit to CNY67.4 million ($9.9 million) as revenue grew 21% to CNY1.31 billion.

A number of Chinese companies have had successful U.S. IPOs in recent weeks, including automobile marketing website operator Bitauto Holdings Ltd. (BITA), whose stock rose 3.8% in its trading debut Wednesday. Lentuo said its ADS have been approved for listing on the New York Stock Exchange under the symbol LAS.

CRUDE OIL:

U.S. Crude Oil: $81.92 per barrel
OIL FUTURES: Nymex Crude Settles Up $1.41 At $81.85/Bbl

Light, sweet crude for December delivery settled $1.41, or 1.8%, higher at $81.85 a barrel on the New York Mercantile Exchange. The contract expires at settlement Friday. Brent crude on the ICE futures exchange traded $1.82 higher at $85.10 a barrel.

Front-month December reformulated gasoline blend-stock, or RBOB, settled 7.04 cents, or 3.3%, higher at $2.2283 a gallon. December heating oil settled 4.32 cents, or 1.9%, higher at $2.2951 a gallon.

NATURAL GAS:

Natural Gas: $4.01

Gas futures declined Thursday after the EIA natural gas storage report was issued at 10:30 EST showing another record build in domestic inventories.Natural gas futures ended lower Thursday after U.S. inventories hit another record high in data from the Energy Information Administration.

Natural gas for December delivery settled 2.3 cents, or 0.6%, lower at $4.007 a million British thermal units on the New York Mercantile Exchange. Gas production is also holding steady despite low prices, as companies drill in new, energy-rich shale-rock formations. 

Gas in storage rose by 3 billion cubic feet in the week ended Nov. 12, according to government data. That was less than the 8 bcf addition expected in a Dow Jones survey, but still enough to raise inventories to a record high of 3.843 trillion cubic feet.
. 

PRECIOUS METALS:

Gold:  $1,355

Silver:$26.96

Comex gold futures settled in positive territory Thursday as a weaker dollar and a more certain outlook for Ireland's debt woes drew investors back into the precious metals market.

The most actively traded contract, for December delivery, settled up 1.2%, or $16.10, at $1,353 per troy ounce on the Comex division of the New York Mercantile Exchange.

Settlements (Range Include Floor and Electronic Trading):

London PM Gold Fix: $1,350.25; previous PM $1,337.50
Dec gold $1,353.00, up 16.10; Range $1,334.00-$1,359.00
Dec silver $26.834, up $1.323; Range $25.590-$27.040
Jan platinum $1,663.90, up $23; Range $1,634.50-$1,671.90
Dec palladium $655.50, up $40.65; Range $661.70-$698.55

U.S. TREASURYS/BONDS:

The benchmark 10-year Treasury note was 5/32 lower to yield 2.901%. Bond prices move inversely to their yields. The 10-year yield pushed up to near a 3% yield. The Fed bought $7.228 billion Thursday in short-dated Treasurys. It is part of the Fed's $600 billion bond-buying program. 

3 Month     0.12%     0.00 (0.00%)
6 Month     0.17%     0.00 (0.00%)
2 Year     0.50%     +0.01 (2.04%)
5 Year     1.53%     +0.03 (2.00%)
10 Year     2.93%     +0.03 (1.03%)
30 Year     4.30%     +0.02 (0.47%)

NEW YORK TO LAYOFF 10,000

New York City agencies will be taking a $585 million budget hit this fiscal year and another $1 billion in the year starting July 1 as Mayor Michael Bloomberg's office released a plan that calls for the layoffs of some 10,000 workers.

Bloomberg's office issued an updated four-year financial plan that still leaves a $2.4 billion deficit to be addressed for the coming fiscal year, down from $3.3 billion in the previous forecast. The city's latest actions will result in 2,102 layoffs this fiscal year and 8,264 in the next one.

TRADEWEB LAUNCHES

Tradeweb Unveils First Fully Electronic, Cleared US Rate Swap

Tradeweb, an online derivatives marketplace, has become the first trading venue in the U.S. to facilitate execution of a fully electronic interest-rate swap that was then processed by a central clearinghouse.

The trade signifies how over-the-counter derivatives could be traded once new financial regulations under the Dodd-Frank Act become effective next year. The Act will force standardized OTC derivatives to be traded on exchanges or alternative venues called "swap execution facilities" to promote price transparency.

This week's U.S. dollar-denominated rate swap involved an unidentified U.S. asset manager and Deutsche Bank acting as both the dealer and the executing broker giving up the trade to the clearinghouse, CME Group.

Tradeweb supports electronic trading for a range of markets including interest rate derivatives and credit derivatives index products, global government bonds, U.S. agency mortgages, U.S. agency debentures, and money market products such as commercial paper.

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Canadian Market:

Toronto Stocks Higher
The stock market was higher at midday Thursday, led by commodity producers, as the prospect of a bailout for Ireland and a declining dollar's drive in commodities activity lifted overall sentiment.

The S&P/TSX Composite Index was up 205.74 points, or 1.6%, at 12863.57. Advances led declines 1030 to 376. Trading volume was 254.9 million shares. The S&P/TSX 60 Index was up 11.38 points, or 1.6%, to 737.03.

Toronto Indexes, Volume; 4:05 PM EST Composite Up 212.18

 S&P/TSX Composite   12870.01  up  212.18  or 1.7%
 S&P/TSX 60 Index      737.59  up   11.94  or 1.6%
 Financials            181.23  up    3.04  or 1.7%
 Materials             417.90  up    9.22  or 2.3%
 Energy                298.56  up    6.49  or 2.2%
 Industrials           107.52  up    1.09  or 1.0%
 IT                     29.78  up    0.20  or 0.7%

   Volume      Thursday    Wednesday
   3-4:15              88.6M       78.3M
   9:30-4:15          509.3M      424.7M

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South American Markets:

BRAZIL:

Brazil Stocks Close Higher

Brazil's benchmark Ibovespa stock index closed 1.54% higher at 70781 points. Volume was moderate at 6.53 billion Brazilian reais ($3.8 billion).

Brazil's economy is booming, with gross domestic product expected to expand 7.5% this year. Duarte said the Ibovespa index could top 73000 points before the end of 2010.

Brazilian shares also advanced Thursday because of rising global commodities prices, traders said. High commodities prices boost export revenue for major Brazilian companies.

Blue chips were mostly higher at the close Thursday.

State oil company Petrobras rose 1.77% to close at BRL25.90 on higher international oil prices.  Mining major Vale saw its shares advance 2.36% to BRL49.45 as global metals prices rose.  Telecom leader Tele Norte Leste Participacoes, or Oi, gained 0.36% to close at BRL25.04. Steelmaker Usiminas gained 1.31% to BRL21.62. Steel rival CSN rose 1.38% to BRL28.60. Aircraft manufacturer Embraer rose 0.41% to BRL12.30.

BRAZIL INVESTORS PUSH FOR CANADA MINES

The announcements of two high-profile mining investments by Brazilian companies in Canada show that some resource investors are undeterred by the Canadian government's recent rebuff of Anglo-Australian miner BHP Billiton's bid for Potash Corp. of Saskatchewan.



ARGENTINA:

Argentina's Consumer Confidence Up 10.6%

Argentina's consumer confidence rose in November, reaching its highest level since President Cristina Fernandez assumed office in 2007, Torcuato di Tella University (UTDT), said in a report Thursday.

The UTDT consumer confidence index surged 10.6% from the previous month and was up 36.7% from a year earlier. Wealthy consumers saw their confidence rise 11.4% on the month in November, while the poorest consumers saw their confidence rise 10.1% on the month.

The survey also pointed to increasing optimism over economic prospects. The index of macroeconomic expectations jumped 18.9% on the month, while the index measuring prospects for people's personal situation rose 8.9% and the real estate expectations index rose 3.6% on the month.

Despite the positive expectations, consumers continue to be worried about inflation, which is surging amid the strong growth and heavy government spending.

According to a separate UTDT survey, Argentines are expecting prices to rise by 30% over the next 12 months, in line with inflation expectations from a month earlier.



CHILE:

Chile Stocks Close HigherChile's blue-chip Ipsa index ended higher Thursday as gross domestic product surged and global equity markets shot higher on improved sentiment.

The Ipsa ended 0.6% higher at 4931.35, while market volume grew to 117.8 billion Chilean pesos ($245.3 million), versus CLP109.8 billion the previous session.

Among retailers, which have pushed the Ipsa to its record run this year on the back of surging domestic demand, holding giant Cencosud (CENCOSUD.SN) rose 0.5% to CLP3,435.00, department store La Polar (LAPOLAR.SN) jumped 1.6% to CLP3,600.00 and retailer Ripley (RIPLEY.SN) increased 0.6% to CLP684.00.

Pulp and paper producer CMPC (CMPC.SN) grew 1.1% to CLP26,902.00, integrated steel and iron ore producer Cap (CAP.SN) gained 1.5% to CLP25,242.00, specialty chemical and fertilizer producer SQM's (SQM) more liquid B-series shares rose 0.7% to CLP24,358.00, and fuel and forestry conglomerate Copec (COPEC.SN), the Ipsa's heaviest-weighted share, increased 0.5% to CLP9,476.00.

The peso ended stronger against the dollar as GDP surged. The peso ended at CLP480.20 to the dollar, compared with Wednesday's close of CLP483.40, while trading in a range of CLP479.60 to CLP482.00.

Chile 3Q GDP Grows 7.0%

GDP in the first and second quarters grew 1.6% and 6.6%, respectively, the bank said, revising previously reported gains of 1.5% and 6.5% for the same quarters.

The central bank said July-September 2010 had one fewer business day than the same period last year, which cut growth by 0.2 percentage points.

Domestic demand, which has fueled the recovery along with surging investments, grew 18.2% year-on-year in the third quarter. On a seasonally adjusted basis, GDP grew 2.0% from the previous quarter, the central bank reported.

Investments, meanwhile, as measured by gross fixed capital formation, grew 18.5% on the year in the third quarter, with investment in machinery and equipment surging 35.4% as the country continues to rebuild following the 8.8-magnitude earthquake in late February.

The monetary authority also reported that for the third quarter, the country posted a current account deficit of $416 million, equivalent to 0.9% of GDP.

Chile's trade balance surplus reached $3.75 billion in the quarter, with exports and imports gaining 29.5% and 40.4%, respectively, on the year.


MEXICO:

Mexico's Stocks Close Higher

Mexico's IPC index of leading shares rose 1.3% to 36322 on volume of 5.43 billion pesos ($442 million), putting it within a few hundred points of its last record-high finish, 36543, reached on Nov. 8. Technical analysts say that a close above 36000 points puts the IPC back on an upward trajectory for the near term.

Among active Mexican shares, wireless communications firm and market bellwether America Movil's (AMX) L shares advanced 1.3% to MXN35.52, cement group Cemex's (CX) CPOs finished up 2.2% to MXN11.35 and copper miner Grupo Mexico's (GMEXICO.MX) B shares gained 2.7% to MXN42.71, aided by a rise in copper prices.

Mexico Unlikely To Try To Depreciate Currency

Bank of Mexico Deputy Governor Manuel Sanchez Thursday said the central bank was unlikely to take steps to weaken the peso because the benefits of a floating exchange rate outweigh any short-term gain the move could bring.

Mexico has been less worried about currency gains than many of its emerging market peers, which have seen their currencies strengthen due to big investment flows after the U.S. Federal Reserve's decision to ease policy.

To halt their currencies' rise, some emerging countries like Brazil have introduced capital controls. Others, like China, have continued to intervene in foreign exchange markets to fix the level of their currency. China and Brazil worry a strong currency could hurt exports and their economies.

Bank of Mexico Governor Agustin Carstens said this month that Mexico could consider measures if flows are sustained with a strengthening effect on the peso, but was generally supportive of the Fed actions aimed at shoring up the U.S. economic recovery, which would benefit Mexico. Finance Minister Ernesto Cordero said the government is comfortable with the current exchange rate level set by the market.

Mexican officials have come out strongly against capital or exchange controls, and measures that may be considered are an increase in reserves accumulation through an existing mechanism of put options, or eventual monetary easing.

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European Markets:

European Stocks Close Higher

The Stoxx Europe 600 index closed up 1.4% at 271.15. The U.K.'s FTSE 100 index rose 1.3% to 5768.71, France's CAC-40 index ended up 2% at 3867.97 and Germany's DAX added 2% to 6832.11.



IRELAND:
Dublin Stocks: ISEQ Ending +2.7% At 2,764; Bank Of Ireland +7.5%
IRISH BANK SHARES SHARPLY HIGHER ON ANTICIPATED BAILOUT
Shares of Irish banks are sharply higher as discussions between European and Irish officials on a possible bailout intensify. Banks could end up directly receiving a large loan from the European Union and the International Monetary Fund.

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Asian Pacific Markets:

Asian Stocks Rebound

The dollar fell against the euro on Thursday after subdued U.S. inflation supported the Federal Reserve's case for quantitative easing, while Asian shares rebounded after an eight-day sell-off.

CHINA:

Shanghai shares rose 0.9 percent (SSEC) and Hong Kong equities gained 1.7 percent (HKSE) as investors picked up beaten down shares, although sentiment remained fragile as worries persisted that China may adopt steps to curb inflation including more aggressive hikes in key interest rates.

Chinese rail companies learned their trade from the likes of Kawasaki and Siemens are now vying against their former partners in the burgeoning global market for super-fast train systems

JAPAN:

Japanese equities outperformed their Asian peers, with the Nikkei (Osaka:N225) up 2.1 percent to a five-month high of 10,013.63.The yen's recent dip against the dollar also helped boost Japan's benchmark index. The dollar held steady at 83.21 yen, near a six-week high of 83.60 yen hit on Tuesday.

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AUSTRALIA:

Australian shares rose 0.3 percent (ASX:AXJO) as major miners BHP Billiton (ASX:BHP.AX) and Rio Tinto (ASX:RIO.AX) rebounded with a recovery in copper prices and Chinese stock markets.

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WORLD FOREX CURRENCIES SNAPSHOT:

(THURSDAY, NOV 18, 2010 1:30 PM EST)

EUR/USD     1.3617     +0.0088 (0.65%)
USD/JPY     83.6500 +0.4200 (0.50%)
GBP/USD     1.6009     +0.0101 (0.63%)
CAD/USD     0.9831     +0.0065 (0.67%)
USD/HKD     7.7532     -0.0030 (-0.04%)
USD/CNY     6.6330     -0.0085 (-0.13%)
AUD/USD     0.9888     +0.0081 (0.83%)

WORLD MARKETS SNAPSHOT:

(THURSDAY, NOV 18, 2010 1:30 PM EST)

Shanghai     2,865.45     +26.59 (0.94%)
Nikkei 225     10,013.63     +201.97 (2.06%)
Hang Seng Index     23,637.39     +422.93 (1.82%)
TSEC     8,283.45     +27.91 (0.34%)
FTSE 100     5,768.71     +76.15 (1.34%)
DJ EURO STOXX 50     2,855.23     +52.53 (1.87%)
CAC 40     3,867.97     +75.62 (1.99%)
S&P TSX     12,865.67     +207.84 (1.64%)
S&P/ASX 200     4,640.20     +15.90 (0.34%)
BSE Sensex     19,930.64     +65.50 (0.33%)

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THURSDAY'S U.S. ECONOMIC CALENDAR:

8:30 a.m.

Nov 13 Unemployment Insurance Claims Report - Initial Claims Weekly Jobless Claims (expected 443K), Net Change (expected +8K), Cont Jobless Claims (prior week) (previous 4301000), Net Chg (prior week) (previous -86K)

10:00 a.m.

Nov Philadelphia Fed Business Outlook Survey Business Activity (expected 4.5), Prices Paid (previous 31.5), Employment (previous 2.4), New Orders (previous -5), Prices Received (previous -9), Delivery Times (previous -0.3), Inventories (previous -18.6), Shipments (previous 1.4)

10:00 a.m.

Oct Leading Indicators Leading Index (expected +0.6%), Coincident Index (previous 0%), Lagging Index (previous +0.4%)

10:00 a.m.

Nov 6 DJ-BTMU Business Barometer (previous -0.1%), (52 Wk) (previous +4.3%)

10:30 a.m.

Nov 12 EIA Natural Gas Storage Report Total Working Gas in Storage (previous 3840B), (Net Change) (previous +19B)

1:00 p.m.

Fed Gov Warsh speaks in Chicago

1:30 p.m.

Minneapolis Fed Pres Kocherlakota speaks in Chicago.

1:30 p.m.

Cleveland Fed Pres Pianalto speaks in Cleveland, Ohio.

4:30 p.m.

Nov 17 Foreign Central Bank Holdings Foreign US Debt Holdings (previous 3.33T), US Foreign Agency Holdings (previous 729.42B), Foreign Treasury Holdings (previous 2.6T)

4:30 p.m.

Philadelphia Fed Pres Plosser speaks in Washington.

4:30 p.m.

Nov 17 Foreign Central Bank Holdings

4:30 p.m.

Nov 17 Federal Discount Window Borrowings Primary Credit Borrowings (previous 10M), W/E Daily Avg (previous 13M), Discount Window Borrowings (previous 46.68B), W/E Daily Avg (previous 46.7B)

4:30 p.m.

Nov 8 Money Stock Measures

Financial Conferences:

Among the significant conferences this week are  Bank of America Merrill Lynch Credit Conference on Wednesday and Thursday in New York; and Deutsche Bank Securities Media and Telecommunications Conference on Wednesday and Thursday in Miami.

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US STOCK MARKET SUMMARY, WED., NOV. 17, 2010:

Stocks:

Stocks were mixed, with the Dow falling and the Nasdaq Composite rising as gains among retailers offset sinking financials. Consumer-discretionary stocks were strong after a second-consecutive day of encouraging results from big-box retailers.

Treasurys:

Longer-dated Treasurys fell as investors cashed out of the rally ahead of new government debt supply. "Treasury positions accumulated over the past few months in anticipation of [Fed bond-buying program] are now being reduced. That selling is overwhelming the actual buying by the Fed," said Alan De Rose at Oppenheimer.

Forex:

The euro bounced back after surprisingly weak U.S. economic data bolstered the Federal Reserve's recent arguments for quantitative easing. The dollar's losses helped stem a recent tide of negative momentum for the euro based on the sovereign-debt crisis in Ireland and deflected further moves to the safe-harbor dollar. But even with the disappointing data, the euro continues to trade near seven-week lows against the dollar, while the U.S. currency is trading against the yen at highs last seen in early October.

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