Stock Market Update - Jan. 10, - Jan. 14 2011 Mixed Economic Data
Stock Market Update
Friday, January 14, 2011
Friday, January 14, 2011
Market Note Monday U.S. Holiday: The U.S. Stock and bond markets will be closed Monday, January 17, 2011 in observance of Martin Luther King, Jr. Day
USA EQUITY INDEXES: (FRIDAY, JAN. 14; 4:00 PM EST)
(Closing Index Numbers)
Dow Jones 11,787.30 +55.40
Nasdaq 2,755.30 +20.01
S&P 500 1,293.23 +9.48
Dow Jones CLOSING Averages Friday, Jan. 14, 2011: DJIA 11,787.38 UP 55.48
30 INDUS 11,787.38 UP 55.48 OR 0.47%
20 TRANSP 5,228.30 DN 1.17 OR 0.02%
15 UTILS 410.87 UP 1.53 OR 0.37%
65 STOCKS 4,110.90 UP 12.35 OR 0.30%
30 INDUS 11,787.38 UP 55.48 OR 0.47%
20 TRANSP 5,228.30 DN 1.17 OR 0.02%
15 UTILS 410.87 UP 1.53 OR 0.37%
65 STOCKS 4,110.90 UP 12.35 OR 0.30%
US COMMODITY PRICES: (FRIDAY, JAN. 14; 3:00 PM EST)
Crude Oil 91.54 + 0.15%Natural Gas 4.48 + 1.59%
Gasoline 2.49 +0.12%
Heating Oil 2.64 +0.12%
Gold 1359.77 - 1.00%
Silver 28.41 - 1.01%
Copper 4.42 + 1.33%
US DOLLAR FUTURES INDEX DXY; FRIDAY, JAN. 14, 2011:
3:08PM EST: 79.16 Down 0.03 (0.04%)
U.S. Dollar Lowers, Stocks Mixed Edge Higher, Commodities Mixed to Flat
FRIDAY: The U.S. equities market closed the week at a 30 month high, withe the Dow gaining more than 55 points to close at 11,787.38. The Nasdaq composite ended more than 20 points higher to close at 2755.30. The S&P 500 index gained 9.48 points to close out the week at 1293.24.
The financial sector led U.S. stocks to a 30-month high Friday following stronger-than-expected earnings from J.P. Morgan, while the materials sector declined. U.S. economic data came in with mixed results, with readings on the consumer coming in weaker than expected while measures of the business sector showed minor improvement. U.S. retail sales posted a smaller-than-expected increase of 0.6% in December, while the consumer sentiment index's reading for January unexpectedly fell. The Dow Jones Industrial Average rose 57 points, or 0.5%, to 11788, in recent trading. The Nasdaq Composite added 0.5% to 2750. The Standard & Poor's 500 index gained 0.6% to 1292. The U.S. Dollar Index, tracking the U.S. currency against a basket of six others, was flat. The euro rose to $1.3354, from $1.3351 late Thursday.
Before the bell, U.S. equities are lower as economic data, combined with material and energy issues are lower against the higher dollar. US stock futures remained lower Friday morning following a smaller-than-expected gain in US retail sales for December while another round of tightening from China also weighed. Dow Jones Industrial Average futures were recently down 46 points. U.S.consumer prices rose 0.5% in December, led by higher fuel and food prices. The U.S. Dollar Index, tracking the U.S. currency against a basket of six others, edged up 0.1%. The euro rose to $1.3363, from $1.3351 late Thursday.
MARKET NOTE: Martin Luther King, Jr. Day
In observance of Martin Luther King, Jr. Day, the equity market and bond market will be closed on Monday, Jan. 17.
U.S. BANK FAILURES:
The FDIC Closed Banks Friday After HoursThe U.S. Government FDIC regulators closed additional Banks late Friday and seized all assets.The Federal Deposit Insurance Corp announced it closed additional banks.
Oglethorpe Bank, Brunswick, GA., January 14, 2011
To see the complete list of failed banks and credit unions visit:
Online Consultancy Network™ Bank Failure List
http://ocnww.blogspot.com/2010/09/bank-failure-list-update-september-1.html
THURSDAY: U.S. stocks weakened Thursday in the wake of largely disappointing U.S. economic data. The Dow Jones Industrial Average fell 23 points, or 0.2%, to 11731.The Nasdaq Composite edged down 2 points to 2735. The Standard & Poor's 500-stock index shed 0.17% to 1283.76. The dollar weakened against both the euro and the yen. The euro hit a one-week high against the dollar, trading recently at $1.3338, up from $1.3133 late Wednesday in New York.
A set of bad U.S. economic data Thursday morning largely missed market expectations. The number of workers filing for initial jobless claims unexpectedly increased by 35,000 to 445,000 in the week ended Jan. 8, 2011.
Before the bell, we may see a mixed open Thursday morning. The dollar has declined from overnight trading against the Euro and a basket of currencies.The Euro is more than $1.31 in recent Trades. US stock-index futures fell, signaling the Standard & Poor's 500 Index may retreat from the highest level since September 2008, after first-time jobless claims climbed more than economists estimated. U.S. futures indicated a weak open ahead of the latest data on jobless insurance claims and the U.S. trade deficit. The Dow Jones futures declined 13 points to 11,695, the Nasdaq futures were down two points to 2,307 and the S&P 500 futures were off a point to 1,284.
WEDNESDAY: U.S. stocks followed European equities higher as the dollar relaxed its upward movement against the Euro's gain. The euro vaulted past the $1.31 mark against the dollar in Wednesday afternoon trading. Gold futures eased alongside the dollar Wednesday morning, but energy sector remained strong. The Dow closed 83.56 points higher at 11,755. The Nasdaq closed 0.75% percent higher gaining 20.50 points to finish at 2737.33. The S&P closed at 1,285.96 gaining +11.48 points, almost a full percent higher (0.90%).
At mid-day the Dow Jones Industrial Average gained 104 points, or 0.9%, at 11776 in mid-day trading, while the Standard & Poor's 500-stock index added 12 points, or 0.9%, to 1286 and the Nasdaq Composite gained 19 points to 2736.
The Dow Jones Industrial Average opened 55 points, or 0.5%, at 11728 in early trading, while the Standard & Poor's 500-stock index added six points, or 0.5%, to 1281 and the Nasdaq Composite gained eight points to 2725. European stocks rallied, and the euro rose 0.5% against the dollar. Commodities are leading the market higher today. The United States Oil Fund LP (NYSE: USO) is higher by 1.60%, trading at $38.78, +0.61. In addition, the SPDR Gold Trust (NYSE: GLD) finds itself higher on the day, trading at $134.57, +0.45 (+0.34%).
The New York Stock Exchange invoked "Rule 48" on Wednesday to smooth the opening of the markets today. The rule means that designated market makers will not have to disseminate price indications before the bell, making it easier and faster to open stocks.
TUESDAY: U.S. equity and commodity indexes closed higher Tuesday. After a shaky start to the earnings season, investors are hesitant to leave big bets in the market. But, as the dollar relaxed its lead against a basket of currencies in choppy trading, the market closed in a positive area for the week.The Dow closed 34.43 points higher to end at 11,671.88. The Nasdaq closed 9.03 points higher to end at 2716.83. The S&P 500 closed at 1274.48, 4.73 points higher.
The dollar relaxed its overnight gains. US stock index futures rose on Tuesday as fourth-quarter earnings season began with a profit from Alcoa that topped Wall Street targets and as concerns over European debt eased. The Dow Jones Industrial Average rose 51 points, or 0.4%, to 11688.The Nasdaq Composite climbed 0.5% to 2722. The Standard & Poor's 500 index added 0.5% to 1277, with its industrial and materials sectors leading the advance.The U.S. Dollar Index, tracking the U.S. currency against a basket of six others, was flat. Treasurys were mixed, with the two-year note flat while the 10-year note fell, lifting its yield to 3.30%. Crude-oil futures advanced above $90 a barrel while gold futures also rose.
MONDAY: U.S. stocks finished lower Monday in mixed choppy trading. The Dow closed lower by 37.31 points to end the day at 11, 637.45. NASDAQ closed slightly higher at 2707.8, gaining 4.63 points. The S&P 500 closed lower 1.75 points to finish at 1269.75.
U.S. stocks opened lower Monday. The Dow Jones Industrial Average sank 60 points, or 0.5%, to 11615. The Nasdaq Composite fell 0.6% to 2688. The Standard & Poor's 500-stock index shed 0.5% to 1265. The euro edged above $1.29 and was trading recently at $1.2912, up slightly from $1.2905 in New York late Friday, following reports that the European Central Bank was buying bonds issued by highly indebted euro-zone countries.
With no U.S. economic data Monday, stocks dipped in morning trading Monday ahead of the start of the latest round of quarterly earnings news. The market's focus turned toward Europe. The euro touched a four-month low against the dollar after German media reported over the weekend that France and Germany were pressuring Portugal to accept an Ireland-type bailout package from the International Monetary Fund and the European Union. Officials in Germany and France denied the report, but fears grew that Portugal and Spain could follow Greece and Ireland's steps in requesting financial aid from international lenders.
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CRUDE OIL:
FRIDAY: $ 91.54 PER BARREL
FRIDAY OIL FUTURES: Nymex Crude Settles Up 14c At $91.54/Barrel
Oil futures declined Friday after China's central bank raised its reserve requirements, spurring fears of declining demand in the world's No. 2 oil consumer.
Light, sweet crude for February delivery settled up 14 cents, or 0.2%, at $91.54 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange finished up 62 cents, or 0.6%, at $98.68 a barrel.
Front-month February reformulated gasoline blend-stock, or RBOB, gained 4.87 cents, or 2%, to settle at $2.4946 a gallon. February heating oil advanced 3.61 cents, or 1.4%, at $2.4946 a gallon.
Oil futures declined Friday after China's central bank raised its reserve requirements, spurring fears of declining demand in the world's No. 2 oil consumer.
Light, sweet crude for February delivery settled up 14 cents, or 0.2%, at $91.54 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange finished up 62 cents, or 0.6%, at $98.68 a barrel.
Front-month February reformulated gasoline blend-stock, or RBOB, gained 4.87 cents, or 2%, to settle at $2.4946 a gallon. February heating oil advanced 3.61 cents, or 1.4%, at $2.4946 a gallon.
FRIDAY MARKET NEWS:
The market braced for the weekend shutdown of the Trans-Alaska Pipeline. Pipeline operator Alyeska Pipeline Service Co. had temporarily restarted the pipeline, which had been shuttered after an oil leak was discovered in a pump station Saturday.
Alyeska said it would again shut down the pipeline from Friday night through the weekend as repair crews begin installing a new piece of pipe to replace the damaged section near Deadhorse, Alaska. The repairs would likely begin early Saturday, a spokeswoman said.
THURSDAY OIL FUTURES: Nymex Crude Settles 46c Lower At $91.40/Barrel
THURSDAY: Light, sweet crude for February delivery recently traded 38 cents, or 0.4%, higher at $92.24 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded 36 cents higher at $98.48 a barrel.
Gasoline futures also weighed on the rally. Front-month February reformulated gasoline blend-stock, or RBOB, recently traded nearly flat, up 0.02 cent at $2.4633 a gallon. U.S. stockpiles of the fuel rose by 5.1 million barrels last week, surprising analysts by the size of the increase.
February heating oil recently traded 0.28 cent higher at $2.6214 a gallon.
WEDNESDAY OIL FUTURES: Nymex Crude Settles Up 75c At $91.86/Barrel
D.O.E. REPORT:
US Crude Oil Stocks -2.154M Bbl In Wk; Seen -0.5M Bbl
US Crude Oil Stocks -2.154 Mln Bbl At 333.112 Mln Bbl
US Refineries Ran At 86.4%; Seen 88.00%
US Gasoline Stocks +5.081M Bbl In Wk; Seen +1.3M Bbl
US Distillate Stocks +2.652M Bbl In Wk; Seen +0.6M Bbl
Crude's Draw Drives Up Crude Above $92
U.S. crude inventories fell more sharply than analysts expected last week while petroleum products expanded, according to data released Wednesday by the U.S. Department of Energy.
Crude oil stockpiles fell by 2.2 million barrels to 333.1 million barrels for the week ended Jan. 7, versus an average survey estimate of a 500,000-barrel draw.
The EIA data widened early gains seen in oil on the futures market. Crude oil contracts for February rose by 1.1% to $92.15 a barrel on the New York Mercantile Exchange. February futures for gasoline were recently down 0.5% at $2.4671 a gallon and heating oil was up 0.4% at $2.6197.
Inventories for crude oil and petroleum products remain at unusually high levels, though tightening supplies have caused prices to rally in recent weeks. Gasoline stockpiles expanded by 5.1 million barrels to 223.2 million barrels, the department's Energy Information Administration said in its weekly report That compares with 1.3-million increase forecasted.
Distillate stocks, which include heating oil and diesel fuel, rose 2.7 million barrels to 164.8 million barrels. Analysts expected a 1.3-milliom barrel increase. Refining capacity utilization fell by 1.6 percentage points to 86.7%. Analysts expected it to remain unchanged at 88% of capacity.
API reported that gasoline stocks rose by 7 million barrels and distillates added 1.6 million barrels. Refinery runs fell by 1.1 percentage points, the industry group said.
ENERGY NEWS:
US regulators are set to issue draft proposals to curb speculative trading in commodities, over the objections of Wall Street groups who are demanding changes to the proposals, claiming they will harm commodities markets.
The Trans Alaska Pipeline will be shut for a day and a half so that a new pipe segment can be installed ahead of a full restart of the pipeline, the pipeline operator says.
Russia will review a proposal to raise oil pipeline tariffs by 2% to 3% in April and May, the head of the country's oil pipeline operator OAO Transneft says. Last year, Russia raised transportation tariffs to finance large pipeline projects.
Cnooc, China's largest offshore oil and gas producer by capacity, plans to issue international bonds to institutional investors, becoming the latest Chinese company to tap the offshore bond market amid tightening liquidity at home.
India's Essar Oil is seeking to buy a stake of at least 5% in Spanish oil company Repsol YPF, which at current market prices is worth more than €1.3 billion, reports Expansion.
Marathon Oil Corp.'s (MRO) board said it has approved advancing plans to spin off the company's refining and sales operations.
Libya won't call for an emergency OPEC meeting, even if oil hits $110 a barrel, Libya's top oil official says. The remarks are the latest to suggest many members of OPEC would favor a hands-off approach should oil prices spike.
Crude's Draw Drives Up Crude Above $92
U.S. crude inventories fell more sharply than analysts expected last week while petroleum products expanded, according to data released Wednesday by the U.S. Department of Energy.
Crude oil stockpiles fell by 2.2 million barrels to 333.1 million barrels for the week ended Jan. 7, versus an average survey estimate of a 500,000-barrel draw.
The EIA data widened early gains seen in oil on the futures market. Crude oil contracts for February rose by 1.1% to $92.15 a barrel on the New York Mercantile Exchange. February futures for gasoline were recently down 0.5% at $2.4671 a gallon and heating oil was up 0.4% at $2.6197.
Inventories for crude oil and petroleum products remain at unusually high levels, though tightening supplies have caused prices to rally in recent weeks. Gasoline stockpiles expanded by 5.1 million barrels to 223.2 million barrels, the department's Energy Information Administration said in its weekly report That compares with 1.3-million increase forecasted.
Distillate stocks, which include heating oil and diesel fuel, rose 2.7 million barrels to 164.8 million barrels. Analysts expected a 1.3-milliom barrel increase. Refining capacity utilization fell by 1.6 percentage points to 86.7%. Analysts expected it to remain unchanged at 88% of capacity.
API reported that gasoline stocks rose by 7 million barrels and distillates added 1.6 million barrels. Refinery runs fell by 1.1 percentage points, the industry group said.
ENERGY NEWS:
US regulators are set to issue draft proposals to curb speculative trading in commodities, over the objections of Wall Street groups who are demanding changes to the proposals, claiming they will harm commodities markets.
The Trans Alaska Pipeline will be shut for a day and a half so that a new pipe segment can be installed ahead of a full restart of the pipeline, the pipeline operator says.
Russia will review a proposal to raise oil pipeline tariffs by 2% to 3% in April and May, the head of the country's oil pipeline operator OAO Transneft says. Last year, Russia raised transportation tariffs to finance large pipeline projects.
Cnooc, China's largest offshore oil and gas producer by capacity, plans to issue international bonds to institutional investors, becoming the latest Chinese company to tap the offshore bond market amid tightening liquidity at home.
India's Essar Oil is seeking to buy a stake of at least 5% in Spanish oil company Repsol YPF, which at current market prices is worth more than €1.3 billion, reports Expansion.
Marathon Oil Corp.'s (MRO) board said it has approved advancing plans to spin off the company's refining and sales operations.
Libya won't call for an emergency OPEC meeting, even if oil hits $110 a barrel, Libya's top oil official says. The remarks are the latest to suggest many members of OPEC would favor a hands-off approach should oil prices spike.
Royal Dutch Shell says it is continuing negotiations with several potential buyers of the lubricant manufacturing plant at its refinery in Hamburg, Germany, but has decided to close fuel-processing facilities at the plant.
Chevron expects fourth-quarter earnings to rise from the prior quarter, driven by higher crude oil prices and gains from the sale of its interest in a U.S. pipeline operator.
PIPELINE REOPENS
Oil futures move higher following the reopening of the Trans-Alaska Pipeline, albeit on a temporary basis. Traders are awaiting a government reports on U.S. oil supplies.
TUESDAY OIL FUTURES: Nymex Crude Settles $1.86 Higher At $91.11/Barrel
Crude futures aimed higher Tuesday, pushing above $91 a barrel with traders still concerned about potential supply disruptions from the closure of a major Alaskan pipeline.
Light, sweet crude for February delivery recently traded $1.62, or 1.8% higher at $90.87 a barrel on the New York Mercantile Exchange. February crude oil rose as high as $91.33. Brent crude on the ICE futures exchange traded $1.93 higher at $97.63 a barrel.
Heating oil moved higher, as investors bet that colder-than-normal temperatures in the U.S. would eat into high supplies. Front-month February heating oil recently traded 4.45 cents, or 1.7%, higher at $2.6006 a gallon after hitting a fresh two-year high earlier in the session. February reformulated gasoline blend-stock, or RBOB, recently traded 2.61 cents higher at $2.4804 a gallon after hitting the highest price since October 2008.
EIA OIL AND FUEL FORECAST
The price of crude oil is expected to rise to an average of $93 a barrel in 2011, the U.S. Energy Information Administration said Tuesday. With demand improving, U.S. consumers will likely be paying more for gasoline. The EIA expects retail gasoline prices will average $3.17 a gallon in 2011, up from an earlier forecast of $3 a gallon.
The Energy Information Administration said it sees oil demand in the U.S., the world's largest consumer, averaging 19.29 million barrels a day this year, a gain of 160,000 barrels a day from the 2010 level.
In an early look at 2012, the Energy Information Administration said it expects demand to rise by a further 170,000 barrels a day, to 19.46 million barrels a day. That level would still lag 2008 demand.
Demand in the current quarter is expected to average 19.32 million barrels a day, up 2.7%, or 500,000 barrels a day from a year ago, the EIA said in its monthly Short-Term Energy Outlook. Last month, the EIA projected first-quarter growth of 2.2%.
Gasoline demand grew by 0.7% in 2010, to 9.06 million barrels a day and is expected to rise by a similar level in 2011, to 9.12 million barrels a day. Demand for distillate fuel (diesel/heating oil) rose by 3.6%, or 130,000 barrels a day, last year to 3.76 million barrels a day. A further gain of 2.4%, to 3.85 million barrels a day, is forecast this year.
Demand for the fuels is expected to "account for much of the growth in consumption in the next two years," the EIA said. In 2012, gasoline use is expected to rise by 70,000 barrels a day, to 9.19 million barrels a day, still below the 2007 average. Distillate use is expected to gain 90,000 barrels a day next year, to an average of 3.94 million barrels a day, just below the 2008 average.
MONDAY OIL FUTURES: Nymex Crude Settles $1.22 Higher At $89.25/Barrel
Light, sweet crude for February delivery settled $1.22, or 1.4%, higher at $89.25 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded $2.38 higher at $95.71 a barrel. Front-month February reformulated gasoline blendstock, or RBOB, settled 4.12 cents, or 1.7%, higher at $2.4543 a gallon. February heating oil settled 6.98 cents, or 2.8%, higher at $2.5561 a gallon.
On Saturday, Alyeska Pipeline Co., which operates the 800-mile pipeline network, turned off the pipeline after workers discovered a leak. The closure forced BP PLC (BP.LN), Exxon Mobil Corp. (XOM) and others to shut down nearly all of their oil production on Alaska's North Slope, an area that produces 630,000 barrels a day -- about 9% of total domestic U.S. output-- and is relied upon by U.S. West Coast refineries.
The shutdown initially sent futures up nearly $2 to $89.98 a barrel. West Coast refiners, who rely on Alaskan crude for about one-quarter of their supply, said they could rely on inventories and other suppliers to bridge a short-term gap. Millions of barrels of oil are also available in storage at Valdez, the pipeline's terminus on Alaska's southern coast, said Chevron Corp. (CVX)
"This outage was enough to stampede some players back to the long side of the market, but it's not a lasting or material change to the global supply-demand balance," said Tim Evans, an oil analyst with Citi Futures Perspective.
Major oil producers, particularly Saudi Arabia and other members of the Organization of Petroleum Exporting Countries, could increase production if supplies were pressured. Analysts say the group is still holding back as much as five to six million barrels of daily production.
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NATURAL GAS:
FRIDAY: Natural Gas: $4.48
FRIDAY US GAS: Futures Settle 1.7% Higher At $4.480/MMBtu Natural gas futures rose Friday as weather forecasts for the next two weeks turned colder across some major gas-heating markets, lifting demand expectations for the heating fuel.
Natural gas for February delivery settled 7.3 cents, or 1.7% higher, at $4.48 a million British thermal units on the New York Mercantile Exchange. The benchmark contract rose 1.3% on the week.
THURSDAY US GAS: Futures Close 3.1% Lower At $4.391/MMBtu
Natural gas futures fell Thursday. Lower Than Expected Draw
Natural gas for February delivery recently traded 11.7 cents, or 2.6% lower, at $4.414 a million British thermal units on the New York Mercantile Exchange. The benchmark contract had traded at about $4.48/MMBtu before the report's release.
The U.S. Energy Information Administration reported that natural gas inventories fell by 138 billion cubic feet last week, less than consensus estimates.
Natural gas in U.S. storage during the week ended Jan. 7 stood at 2.959 trillion cubic feet. The storage draw was larger than the five-year average withdrawal of 108 bcf, but less than last year's decline of about 250 bcf.
WEDNESDAY: Natural gas futures ended higher Wednesday on expectations for late-January cold and an above-average weekly draw from U.S. gas supplies.
Natural gas for February delivery settled up 5 cents, or 1.1%, at $4.531 a million British thermal units on the New York Mercantile Exchange.
Natural gas futures edged higher Wednesday as forecasts for colder-than-normal temperatures in some major gas-consuming markets lifted the demand outlook for the heating fuel.
Natural gas for February delivery recently traded up 1.7 cents, or 0.4%, at $4.498 a million British thermal units on the New York Mercantile Exchange. The benchmark contract ended higher Tuesday for the first time in five sessions, as forecasting models predicted an arctic blast across the central and eastern U.S. in late January.
Traders are looking ahead to Thursday's gas storage data, which is widely expected to show a larger-than-average withdrawal from U.S. stockpiles as recent cold led to high demand. U.S. stockpiles hit a record high in November, but colder-than-normal weather since has eased the supply burden. The EIA's weekly report is scheduled for release at 10:30 a.m. EST.
NATURAL GAS ENERGY NEWS:
Azerbaijan commits to supply natural gas to the European Union, the first written pledge paving the way for Europe's bid to tap the huge Caspian energy reserves, as the bloc seeks to diversify its supply sources.
Iran signs a deal to buy 1 billion cubic meters of natural gas from Azerbaijan this year with the possibility of increasing volumes in the future, Azerbaijan's state energy company Socar says.
Oil & Natural Gas expects further delays in signing a deal with Iran's state-run Petropars to develop phase 12 of the South Pars gas field as U.S. sanctions on Iran are making it hard to secure funding, a senior company official says.
US Natural Gas Corp (UNGS) Announces Share Repurchase Program .
PAA Natural Gas: Fire Occurred At Bluewater Natural Gas Facility In Michigan. Their gas handling facility is currently shut down .
Exxon Mobil Corp. (XOM) said Wednesday that it is shopping its stake in four North Sea oil and gas fields.
The U.K. unit of ExxonMobil's recently acquired XTO Energy owns the properties, according to a document announcing the sale released by IndigoPool, Schlumberger Ltd.'s (SLB) mergers and acquisitions business. ExxonMobil, the largest U.S. oil company by market value, did not provide an estimated value of the assets.
ExxonMobil will consider a cash sale, swap of assets or a combination of both for its entire interest in the production blocks, according to the IndigoPool document.
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PRECIOUS METALS:
FRIDAY: Gold: $1,361
FRIDAY: Silver: $28.42 The most-actively traded gold contract, for February delivery, declined $26.50, or 1.9%, to settle at $1,360.50 a troy ounce on the Comex division of the New York Mercantile Exchange. Thinly traded nearby January gold also lost $26.50, to $1,360.40. Comex March silver declined 0.9%, Nymex April platinum fell 0.3% and Nymex March palladium dipped 2.8%..
Engelhard Corp's base price for industrial gold bullion was $1369.97 per troy ounce, down $14.53 from previous. It's selling price for gold in fabricated form was $1472.72, down $15.62.
Handy & Harman's base price for gold was $1367.00 per troy ounce, down $14.50. The fabricated form price was $1476.36, down $15.66.
Friday Settlements (range includes floor and electronic trading):
London PM Gold Fix: $1,367.00; previous PM $1,381.50
Feb gold $1,360.50, down $26.50; Range $1,354.60-$1,377.80
Mar silver $28.320, down 94.3 cents; Range $28.100-$28.965
Apr platinum $1,816.00, down $5.20; Range $1,804.00-$1,826.50
Mar palladium $790.50, down $22.95; Range $787.35-$811.50
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THURSDAY: The most actively traded gold contract, for February delivery, rose $1.20 to settle at $1,387 a troy ounce on the Comex division of the New York Mercantile Exchange. Thinly traded nearby January futures also rose $1.20, to $1,386.90. Comex March silver lost 1%, Nymex April platinum rose 1%, and Nymex palladium gained 0.8%.
Engelhard Corp's base price for industrial gold bullion was $1384.50 per troy ounce, up $2.76 from previous. It's selling price for gold in fabricated form was $1488.34, up $2.97.
Handy & Harman's base price for gold was $1381.50 per troy ounce, up $2.75. The fabricated form price was $1492.02, up $2.97.
Thursday Settlements (range includes floor and electronic trading):
London PM Gold Fix: $1,381.50; previous PM $1,378.75
Feb gold $1,387.00, up $1.20; Range $1,377.20-$1,392.90
Mar silver $29.263, down 28.2 cents; Range $28.900-$29.810
Apr platinum $1,821.20, up $20.10; Range $1,794.50-$1,833.00
Mar palladium $813.45, up $6.70; Range $805.00-$825.10
WEDNESDAY: The most actively traded contract, for February delivery, ended up $1.50, or 0.1%, at $1385.80 per troy ounce. The thinly traded January-delivery contract settled up $1.70, or 0.1%, at $1385.70 per troy ounce on the Comex division of the New York Mercantile Exchange.
Physical gold held by exchange-traded funds fell by 1.1 metric tons Tuesday to a total of 2,134 metric tons, according to Barclays Capital, which tracks 24 listed physical gold ETFs.
The price of palladium is nearing its highest level in a decade, spurred by fund buying and strong demand for exchange-traded products.
Platinum producer Lonmin PLC (LMI.LN) has agreed to increase South African mineworkers' wages by 8%, and pay a one-off bonus, although their labor union said Wednesday other mining companies should be prepared to pay higher increases this year.
Engelhard Corp's base price for industrial gold bullion was $1381.74 per troy ounce, up $4.75 from previous. It's selling price for gold in fabricated form was $1485.37, up $5.11.
Handy & Harman's base price for gold was $1378.75 per troy ounce, up $4.75. The fabricated form price was $1489.05, up $5.13.
Wednesday Settlements (range includes Floor and electronic trading):
London PM Gold Fix: $1,378.75; previous PM $1,374.00
Feb gold $1,385.80, up $1.50; Range $1,376.30-$1,389.00
Mar silver $29.545, up 0.46 cents; Range $29.395-$29.845
Apr platinum $1,801.10, up $30.80; Range $1,764.60-$1,809.90
Mar palladium $806.75, up $23; Range $781.30-$813.90
TUESDAY: Gold futures logged their second consecutive gain Tuesday.
The most actively traded contract, for February delivery, settled up 0.7%, or $10.20, at $1,384.30 per troy ounce. The thinly traded January delivery contract settled up 0.8%, or $10.30, at $1,384.00 per troy ounce on the Comex division of the New York Mercantile Exchange.
Engelhard Corp's base price for industrial gold bullion was $1376.99 per troy ounce, up $5.76 from previous. It's selling price for gold in fabricated form was $1480.26, up $6.19.
Handy & Harman's base price for gold was $1374.00 per troy ounce, up $5.75. The fabricated form price was $1483.92, up $6.21.
Tuesday Settlements (range includes floor and electronic trading):
London PM Gold Fix: $1,374.00; previous PM $1,368.25
Feb gold $1,384.30, up $10.20; Range $1,372.40-$1,386.80
Mar silver $29.499, up 63.8 cents; Range $29.060-$29.710
Apr platinum $1,770.30, up $25.20; Range $1,740.00-$1,774.30
Mar palladium $783.75, up $34.10; Range $753.00-$785.00
MONDAY: The slight gains in gold Monday were primarily coming from a weakening U.S. dollar. That makes dollar-denominated gold less expensive for foreign buyers, helping demand. Silver futures also gained, with March metal rising 19 cents, or 0.7%, to settle at $28.861. Meanwhile, Nymex April platinum rose 0.4% and March palladium on the exchange fell 0.8%.
Engelhard Corp's base price for industrial gold bullion was $1371.23 per troy ounce, up $1.26 from previous. It's selling price for gold in fabricated form was $1474.07, up $1.35.
Handy & Harman's base price for gold was $1368.25 per troy ounce, up $1.25. The fabricated form price was $1477.71, up $1.35.
Monday Settlements (range includes floor and electronic trading):
London PM Gold Fix: $1,368.25; previous PM $1,367.00
Feb gold $1,374.10, up $5.20; Range $1,365.00-$1,376.40
Mar silver $28.861, up 19.0 cents; Range $28.650-$29.140
Apr platinum $1,745.10, up $6.80; Range $1,735.60-$1,753.40
Mar palladium $749.65, down $6.30; Range $746.20-$764.35
____________________________________________________________
BASE METALS:
FRIDAY: Copper $ 4.40 Per Pound
Base metals are down on the London Metal Exchange in European trading Thursday as the market eases after Wednesday's rally, though heightened risk sentiment on the back of better-than-expected European bond auctions spurred the market to pare some of its earlier losses.
Base metals on the Shanghai Futures Exchange were mixed Thursday, with copper and zinc rising modestly in response to an improving economic outlook for the euro-zone economies.
A slightly weaker dollar buoyed copper prices Monday. Copper prices held near steady Monday amid a weaker dollar and easing Chinese trade data. China's imports of copper and copper products fell 6.7% to 344,558 tons in December.
The most actively traded contract, for March delivery, settled down 0.4%, or 1.8 cents, at $4.2645 per pound on the Comex division of the New York Mercantile Exchange. The thinly traded January-delivery contract settled down 0.4%, or 1.8 cents, at $4.2545 per pound.
BASE METAL NEWS:
Canadian copper miners Inmet and Lundin agree on a merger worth about $9 billion in stock. Each Inmet holder will receive 3.5 shares of Symterra, the merged firm, while each Lundin shareholder will receive a 0.3 share.
Several of Chile's largest private mining companies have opted for the new copper royalty structure, Mining Minister Laurence Golborne said Wednesday.
Zambia's state power utility, Zambia Electricity Supply Corp., also known as Zesco, warned that it will step up power rationing following the closure of a 165-megawatt generation unit at the Kafue Gorge hydropower station for annual maintenance.
Talison Lithium Ltd. (TLH.TX), the world's biggest miner of the metal, Wednesday reported record sales and production from its Greenbushes mine in Western Australia.
Extract Resources Ltd. (EXT.AU) said Wednesday "further outstanding assay results" reinforce the high-grade nature of its Husab uranium prospect in Namibia, and that its definitive feasibility study remains on track to be completed in the first quarter.
Base metals are up on the London Metal Exchange in European trading Wednesday as a weaker dollar and increasing confidence over the future of the euro zone boost risk sentiment and drive investors back into the market.
Base metals on the Shanghai Futures Exchange gained Wednesday in response to higher local shares and a mild recovery by the euro against the dollar, but investors remained hesitant to take any big new positions.
Monday Settlements (range includes floort and electronic trading):
Jan copper $4.2545, down 1.8 cents; Range $4.2540-$4.3275
Mar copper $4.2645, down 1.8 cents; Range $4.2525-$4.2700
____________________________________________________________
U.S. TREASURYS/BONDS:
FRIDAY: Treasurys fell, lifting the yield on the 10-year note up to 3.32%. In late afternoon trading, the benchmark 10-year note was 6/32 lower to yield 3.327%. The 30-year bond was 13/32 lower to yield 4.528%. Bond yields move inversely to their prices. The 10-year note's yield was little changed compared to 3.324% at the end of last week.
The Fed bought $7.306 billion in Treasurys with maturities between February 2015 and June 2016 Friday, as part of the Treasury bond-buying program.
THURSDAY: Treasurys rose Thursday. The seven-year Treasurys, the focus of the buying, were the best performer. The Fed's $8.412 billion purchases in the medium-term sector were near the top of the $7 billion to $9 billion range the central bank intended to buy for this operation. In late afternoon trading, the benchmark 10-year note was 16/32 higher to yield 3.305%. The seven-year note was 15/32 higher to yield 2.630%. The 30-year bond was 18/32 higher to yield 4.496%. Bond prices move inversely to their yields.
The 30-year bond pared some gains after a sale of $13 billion in the maturity, whose demand trailed expectations from some market participants.
The Treasury Department sold the 30-year bonds at a yield of 4.515%, compared with 4.492% traded right before the auction.
TUESDAY: Treasurys declined Tuesday, ending a three-session winning streak, as the market was weighed down by the first round of this year's new government note and bond supply.investors are bracing for $21 billion in 10-year notes Wednesday and $13 billion in 30-year bonds Thursday.
In late-afternoon trading, the benchmark 10-year note was 13/32 lower in price to yield 3.338%. The three-year note was 2/32 lower to yield 0.976%.
Tuesday, the Federal Reserve purchased $7.802 billion in Treasurys with maturities between July 2016 and December 2017. It is part of the Fed's $600 billion Treasury bond-buying plan launched in earlier November as the second round of monetary stimulus to foster an economic recovery.
MONDAY: Demand for U.S. Treasurys climbed, sending yield on the 10-year note down to 3.30%. Treasurys also rallied broadly Friday on a disappointing U.S. jobs report.
FRIDAY, JAN. 14, 2011; 4:00 PM EST:
3 Month 0.12% 0.00 (0.00%)
6 Month 0.16% -0.01 (-5.88%)
2 Year 0.57% -0.01 (-1.72%)
5 Year 1.92% +0.02 (1.05%)
10 Year 3.32% +0.03 (0.91%)
30 Year 4.53% +0.04 (0.89%)
____________________________________________________________
U.S. ECONOMIC NEWS:
FRIDAY:
TREASURY ISSUES SMALL BUSINESS GROWTH FUNDS TO TWO STATES
The Treasury Department awards Small-Business Funds to two States Friday. Michigan on Friday received $79 million and North Carolina got $46 million under the $1.5 billion initiative designed to create jobs.
The U.S. Treasury Department says it has given funding to the first two states awarded under a program that is intended to spur small-business growth. All states can apply for federal funds that would support private lending for small firms.
"Small businesses depend on access to credit in order to hire and expand, and this funding will better position main street entrepreneurs to create new jobs and invest in their local communities," Treasury Secretary Timothy Geithner said.
U.S. FARMERS IN SERIOUS DEBT
The farm and ranching sector has seen the largest surge in debt since the 1970s, growing just short of 5% a year from 2003 to 2009. Fueling the rise was a 40% increase in farmland values over the same period, the report said.
Debt carried by U.S. farmers increased significantly in recent years as prices for farmland surged, leaving young farmers and livestock producers most exposed to possible financial strain, according to a Federal Reserve Bank of Kansas City report.
The article by reserve bank economist Brian Briggeman finds that farmers with sales of more than $1 million drove the rise in debt, but also are positioned to handle a hike in interest rates or drop in income. Farmers younger than 35 years old and livestock producers are in a more vulnerable position because of limited incomes. The whole farm sector would come under financial stress if a sharp combination of rising interest rates and falling income occur.
"A surge in financial stress among livestock producers, who hold half of all farm debt, would be of particular concern to agricultural lenders," Briggeman wrote.
.
BUSINESS INVENTORIES FLAT
The inventories of U.S. businesses rose in November less than expected after strong holiday sales drew down their supplies. Inventories increased 0.2% from the prior month to a seasonally adjusted $1.422 trillion, the Commerce Department said Friday.
U.S. business sales also rose in November, rising 1.2% to $1.133 trillion after a revised 1.5% gain in October. November's sales figure was the highest since September 2008, when investment bank Lehman Brothers went bankrupt and agitated financial markets in the middle of the deep U.S. recession.
Retail inventories were flat in November as sales rose during the holiday shopping season, while merchant wholesale inventories fell 0.2%. Manufacturers inventories rose 0.8%. Friday's inventories report said that at the current sales pace, businesses had enough goods on hand in November to last 1.25 months, down from 1.27 months in October.
U.S. companies slashed inventories during the recession. They increased stockpiles earlier in the recovery and are now trying to keep their supplies of goods in line with demand. Wholesalers make up about 30% of all business stockpiles. Factories account for about 37%. Retailers make up the rest.
Inventories of car dealers fell 0.8%. Excluding cars, other retail inventories rose 0.2% General merchandise store inventories, the next biggest component to the retail stockpile figures, rose 0.1%, while building materials rose 0.4% and clothing stores fell 0.3%.
The Commerce Department data on business inventories can be found at:
http://www.census.gov/mtis/www/data/pdf/mtis_current.pdfU.S. business sales also rose in November, rising 1.2% to $1.133 trillion after a revised 1.5% gain in October. November's sales figure was the highest since September 2008, when investment bank Lehman Brothers went bankrupt and agitated financial markets in the middle of the deep U.S. recession.
Retail inventories were flat in November as sales rose during the holiday shopping season, while merchant wholesale inventories fell 0.2%. Manufacturers inventories rose 0.8%. Friday's inventories report said that at the current sales pace, businesses had enough goods on hand in November to last 1.25 months, down from 1.27 months in October.
U.S. companies slashed inventories during the recession. They increased stockpiles earlier in the recovery and are now trying to keep their supplies of goods in line with demand. Wholesalers make up about 30% of all business stockpiles. Factories account for about 37%. Retailers make up the rest.
Inventories of car dealers fell 0.8%. Excluding cars, other retail inventories rose 0.2% General merchandise store inventories, the next biggest component to the retail stockpile figures, rose 0.1%, while building materials rose 0.4% and clothing stores fell 0.3%.
The Commerce Department data on business inventories can be found at:
JAN REUTERS/UNIVERSITY
OF MICHIGAN SENTIMENT
FALLS BELOW EXPECTATIONS
The Reuters/University of Michigan consumer sentiment index's preliminary reading for January falls to 72.7, down from 74.5 at the end of December and last month's preliminary 74.2.
.
BASEL COMMITTEE REQUIRES
HIGHER CAPITAL RESERVES
Federal Reserve Bank Governor Dan Tarullo Friday said members of the Basel Committee are ready to designate which financial institutions will be on the panel's list of systemically important institutions -- a designation which could require them to have higher capital levels, CNBC reported. Tarullo, who just returned from a meeting with Basel members, made the comments in an interview with CNBC.
Banks will be required to hold more and better quality capital, including countercyclical capital buffers, taking the minimum core Tier 1 ratio to 7%. They also must meet tough new liquidity ratios and will be subject to a leverage ratio. The greater challenge is likely to lie in the new liquidity rules. The Basel Committee found that 67% of large banks had a stable funding ratio above 85% at the end of 2009, well below the new minimum of 100%, and that these banks had a combined shortfall in liquid assets of EUR2.3 trillion.
US RETAIL SALES RISE LESS THAN 0.07%
The Commerce Department said retail sales rose less than expected in December, stoking worries that the U.S. recovery remains sluggish. U.S. retail sales post a mere 0.6% gain in December, but the increase is smaller than expected as high unemployment weighs on the minds of holiday shoppers.
U.S. INFLATION RAISED
Consumer Prices Rose 0.5% in December; Core Up 0.1%
U.S. consumer prices in December surged to the fastest pace since June 2009. Consumer prices rose last month as the cost of gas increased by the largest amount since June 2009.
The Labor Department said Friday the Consumer Price Index rose 0.5 per cent in December, the largest increase in 18 months. About 80 per cent of the increase was due to an 8.5 per cent rise in the gasoline index, also the sharpest increase in 18 months. Food prices ticked up 0.1 per cent in December.
High unemployment and a weak economy are keeping prices in check. Retailers and manufacturers are reluctant, for now, to pass on the rising costs of raw materials to consumers, for fear of scaring them away.
Last year, the consumer price index rose by only 1.5 per cent, down from 2.7 per cent in 2009.
Excluding the volatile food and energy categories, the so-called core index moved up 0.1 per cent in December for the second straight month. In the past year, the core index rose by only 0.8 per cent.
That's near a record low of 0.6 per cent set earlier in 2010 and the smallest December-to-December increase in the history of the index, which dates to 1958.
Inflation could tick up this year as prices for commodities such as oil, grains and cotton have risen sharply in recent months. Grain prices hit a 2 1/2 year high earlier this week after the government said corn, wheat and soybean harvests would come in below previous estimates. Oil prices have risen due to strong demand in large, fast-growing developing countries.
Companies could be forced to pass on some of the higher raw material costs to consumers. So far, there is only limited evidence that that is occurring.
The Fed said in a survey released Wednesday that "competitive pressures" had limited the ability of companies to pass on higher prices.
Fed chairman Ben Bernanke told Congress last week he expected inflation in the United States will "likely to be subdued for some time."
The Federal Reserve would like to see prices rise a bit faster than they are now. Its preferred range for the core consumer index is roughly 1.5 per cent to two per cent. Figures below that carry the threat of deflation, a widespread and prolonged downturn in prices, wages and home values.
Food prices have been hit by inflation, and that’s going to change even more, according to BMO Nesbitt Burns. Worldwide, prices are at a record high, according to the Food and Agriculture Organization, and there are fears that floods in Australia, a key region for some crops, will push them up even more.
A look at commodity prices and the lag effect suggests costs will rise, according to an analysis by BMO’s deputy chief economist Douglas Porter, who projects an impact on the consumer price index later this year.
http://www.theglobeandmail.com/report-on-business/food-prices-in-canada-tame-for-now-but-will-head-higher/article1861057/?cmpid=rss1
Average Food Inflation Chart:
http://www.bloomberg.com/news/2010-10-21/general-mills-signals-faster-u-s-food-inflation-chart-of-the-day.html
Average Fuel Price Chart Jan 2009-Dec 2010:
http://news.bbcimg.co.uk/media/images/50375000/gif/_50375050_fuel_prices_466gr.gif
Food prices have been hit by inflation, and that’s going to change even more, according to BMO Nesbitt Burns. Worldwide, prices are at a record high, according to the Food and Agriculture Organization, and there are fears that floods in Australia, a key region for some crops, will push them up even more.
A look at commodity prices and the lag effect suggests costs will rise, according to an analysis by BMO’s deputy chief economist Douglas Porter, who projects an impact on the consumer price index later this year.
http://www.theglobeandmail.com/report-on-business/food-prices-in-canada-tame-for-now-but-will-head-higher/article1861057/?cmpid=rss1
Average Food Inflation Chart:
http://www.bloomberg.com/news/2010-10-21/general-mills-signals-faster-u-s-food-inflation-chart-of-the-day.html
Average Fuel Price Chart Jan 2009-Dec 2010:
http://news.bbcimg.co.uk/media/images/50375000/gif/_50375050_fuel_prices_466gr.gif
U.S. STATE BOND SALES FALL
NEW HIT TO CASH STRAPPED STATESContinued flows out of money market mutual funds, as well as additional negative headlines, send the $2.9 trillion municipal bond market skidding again. With the market for municipal bonds tumbling, cities, hospitals, schools and other public borrowers are scrambling to refinance tens of billions of dollars of debt this year, another sign that the once-safe market is under duress.
PIMCO CUTS US HOLDINGS
The U.S. government-related holdings for Pimco's flagship Total Return Fund, the world's biggest bond fund with $240.7B in assets, fell to 22% in December, the lowest level for 2010, from 30% in November.
.
CHINA TO RAISE RESERVE
REQUIREMENT RATIO AGAIN
China's central bank says it will raise banks' reserve requirement ratio by 50 basis points, following six hikes last year. The increase will take effect Jan. 20, and is the latest move by China to curb inflation.
EURO-ZONE INFLATION
HITS 26-MONTH HIGH
The euro zone's annual rate of inflation rises above the European Central Bank's medium-term target for the first time for more than two years in December, driven by fuel, food, alcohol, and tobacco.
THURSDAY:
CFTC SET TO ISSUE COMMODITY TRADING CURBS
US regulators are set to issue draft proposals to curb speculative trading in commodities, over the objections of Wall Street groups who are demanding changes to the proposals, claiming they will harm commodities markets.
445,000 MORE AMERICAN'S
LOST THEIR JOBS LAST WEEK
Jobless Claims in US Rose 35,000 Last Week to 445,000. Initial jobless claims rose by 35,000 to 445,000, according to Labor Department data released today.
FACTORY DATA REVISED LOWER
Philadelphia manufacturing sector grew at a slightly less rapid pace at the end of 2010 than was first reported, according to Federal Reserve Bank of Philadelphia. Despite the downward revision, data shows the factory sector expanding at a solid pace.
US COMMERCIAL PAPER FALLS
The U.S. commercial paper market, used by companies to fund payrolls, rent and other daily needs, falls again on both a seasonally adjusted and unadjusted basis in the week ended January 12.
HOME FORECLOSURES NEAR 4 MILLION
Foreclosure Filings Neared 4 Million in 2010. The housing crisis is getting worse.
Foreclosure filings for December alone were reported at 257,747 for U.S. properties. More than 1 million American family's lost their homes.
Real estate research firm RealtyTrac has reported that 2010 was particularly bad. The company's Year-End 2010 U.S. Foreclosure Market Report shows "a total of 3,825,637 foreclosure filings -- default notices, scheduled auctions and bank repossessions -- were reported on a record 2,871,891 U.S. properties in 2010, an increase of nearly 2% from 2009 and an increase of 23% from 2008."
James J. Saccacio, chief executive officer of RealtyTrac, offered little hope for the beginning of 2011. He said "many of the foreclosure proceedings that were stopped in late 2010 -- which we estimate may be as high as a quarter million -- will likely be re-started and add to the numbers in early 2011."
The report also indicates that "2.23% of all U.S. housing units (one in 45) received at least one foreclosure filing during the year, up from 2.21% in 2009, 1.84% in 2008, 1.03% in 2007 and 0.58% in 2006."
Tax credits, offered early in the year, boosted buying activity, but those benefits expired in April. The Home Affordable Modification Program (HAMP), meant to refinance mortgages to keep people in their homes, was simply a failure.
Most analysts believe that housing cannot recover in markets where unemployment is above 10%. Low interest rates on mortgages have not aided home sales. Government's attempt to rectify the situations have had mixed success.
Visit RealtyTrac®, the leading online marketplace for foreclosure properties. Read its Year-End 2010 U.S. Foreclosure Market Report™
See full research article from RealtyTrac:
http://www.realtytrac.com/content/press-releases/2010-year-end-foreclosure-report-6309
US TRADE DEFICIT NARROWS
The U.S. trade deficit unexpectedly narrows for the third straight month, decreasing 0.3% to $38.31 billion in November. Economists were expecting the deficit to widen to $40.7 billion.
US PRODUCER PRICES JUMP HIGHER
U.S. producer prices jump 1.1% higher in December on the back of higher energy and food costs, but underlying wholesale inflation remained tame in 2010. It marks biggest monthly gain since January and the sixth monthly increase in a row.
TREASURY PROGRAM REFUNDS
TAXES ON DEBIT CARDS
The U.S. Treasury begins a program that lets low- and moderate-income Americans receive tax refunds on a debit card, allowing about 600,000 individuals to avoid check-cashing operations or refund-anticipation loans that charge high fees.
WEDNESDAY:
CFTC SET TO ISSUE COMMODITY TRADING CURBS
US regulators are set to issue draft proposals to curb speculative trading in commodities, over the objections of Wall Street groups who are demanding changes to the proposals, claiming they will harm commodities markets.
445,000 MORE AMERICAN'S
LOST THEIR JOBS LAST WEEK
Jobless Claims in US Rose 35,000 Last Week to 445,000. Initial jobless claims rose by 35,000 to 445,000, according to Labor Department data released today.
FACTORY DATA REVISED LOWER
Philadelphia manufacturing sector grew at a slightly less rapid pace at the end of 2010 than was first reported, according to Federal Reserve Bank of Philadelphia. Despite the downward revision, data shows the factory sector expanding at a solid pace.
US COMMERCIAL PAPER FALLS
The U.S. commercial paper market, used by companies to fund payrolls, rent and other daily needs, falls again on both a seasonally adjusted and unadjusted basis in the week ended January 12.
HOME FORECLOSURES NEAR 4 MILLION
Foreclosure Filings Neared 4 Million in 2010. The housing crisis is getting worse.
Foreclosure filings for December alone were reported at 257,747 for U.S. properties. More than 1 million American family's lost their homes.
Real estate research firm RealtyTrac has reported that 2010 was particularly bad. The company's Year-End 2010 U.S. Foreclosure Market Report shows "a total of 3,825,637 foreclosure filings -- default notices, scheduled auctions and bank repossessions -- were reported on a record 2,871,891 U.S. properties in 2010, an increase of nearly 2% from 2009 and an increase of 23% from 2008."
James J. Saccacio, chief executive officer of RealtyTrac, offered little hope for the beginning of 2011. He said "many of the foreclosure proceedings that were stopped in late 2010 -- which we estimate may be as high as a quarter million -- will likely be re-started and add to the numbers in early 2011."
The report also indicates that "2.23% of all U.S. housing units (one in 45) received at least one foreclosure filing during the year, up from 2.21% in 2009, 1.84% in 2008, 1.03% in 2007 and 0.58% in 2006."
Tax credits, offered early in the year, boosted buying activity, but those benefits expired in April. The Home Affordable Modification Program (HAMP), meant to refinance mortgages to keep people in their homes, was simply a failure.
Most analysts believe that housing cannot recover in markets where unemployment is above 10%. Low interest rates on mortgages have not aided home sales. Government's attempt to rectify the situations have had mixed success.
Visit RealtyTrac®, the leading online marketplace for foreclosure properties. Read its Year-End 2010 U.S. Foreclosure Market Report™
See full research article from RealtyTrac:
http://www.realtytrac.com/content/press-releases/2010-year-end-foreclosure-report-6309
US TRADE DEFICIT NARROWS
The U.S. trade deficit unexpectedly narrows for the third straight month, decreasing 0.3% to $38.31 billion in November. Economists were expecting the deficit to widen to $40.7 billion.
US PRODUCER PRICES JUMP HIGHER
U.S. producer prices jump 1.1% higher in December on the back of higher energy and food costs, but underlying wholesale inflation remained tame in 2010. It marks biggest monthly gain since January and the sixth monthly increase in a row.
TREASURY PROGRAM REFUNDS
TAXES ON DEBIT CARDS
The U.S. Treasury begins a program that lets low- and moderate-income Americans receive tax refunds on a debit card, allowing about 600,000 individuals to avoid check-cashing operations or refund-anticipation loans that charge high fees.
WEDNESDAY:
Beige Book Report:
The U.S. economy gained muscle at the end of 2010 but remains so weak that inflation pressures are muted and the jobs market still soft, a Federal Reserve survey of regional economies showed Wednesday.
In its latest beige book, the Fed said all of its 12 districts reported some form of strengthening in economic activity in November and December. However, the expansion was "moderate" as strength in the manufacturing and retail sectors were offset by weakness in real estate and financial services.
The beige book is a summary of economic activity prepared for use at the U.S. central bank's next policy-setting meeting January 25-26. The latest report, prepared by the Boston Fed, examined economic conditions across the Fed's 12 regions based on information collected on or before Jan. 3. With unemployment high and inflation low, Fed officials are expected to keep in place their easy-money policies later this month.
Economic conditions were defined as "improving" in the Boston, New York, Philadelphia, and Richmond Fed districts. The economy in the Cleveland, Atlanta, Chicago, St. Louis, Kansas City, and Dallas Fed areas increased "modestly to moderately." The Minneapolis Fed region "continued its moderate recovery," while that of the San Francisco District "firmed further."
Consumer spending, accounting for about two-thirds of demand in the U.S. economy, appears to be strengthening since the last Fed beige book was released Dec. 1. Retailers in all the 12 districts indicated that sales were higher in the 2010 holiday season than in 2009. In some areas, they even beat expectations.
"Boston, Richmond, Atlanta, Chicago, and Kansas City observed consumers positively reacting to promotions and discounting, although Philadelphia and San Francisco reported that retailers relied less heavily on discounting," the Fed report showed.
Recent strong gains in U.S. retail sales, including car sales, and industrial production suggest the pace of economic expansion accelerated in the final three months of 2010 compared to the previous quarter. Fed Chairman Ben Bernanke last week told Congress the economy should improve in 2011, but cautioned the 2007-2009 recession was so severe that unemployment is expected to remain high and inflation low for a long time.
In most regions, retailers and manufacturers reported that costs were rising, the Fed report showed. But the pass-through to final prices has been modest due to intense competition.
Import prices rose for the second year in a row in 2010, increasing 4.8% on the back of higher energy and other raw material prices, a government report showed Wednesday. But that hasn't fed into broader price pressures in the U.S. economy, which remain at a low level close to 1.0%.
The beige book showed the jobs market was firming in most part of the country, with some companies expanding their workforce. At the same time, however, the persistently high unemployment is helping to keep upward pressure on wages "very limited."
The housing sector, meantime, remained in the doldrums at the end of last year. Residential real estate and new home construction were slow across the country.
"Most Districts indicated that business contacts were positive about the outlook, although still generally cautious," the beige book said.
The U.S. economy gained muscle at the end of 2010 but remains so weak that inflation pressures are muted and the jobs market still soft, a Federal Reserve survey of regional economies showed Wednesday.
In its latest beige book, the Fed said all of its 12 districts reported some form of strengthening in economic activity in November and December. However, the expansion was "moderate" as strength in the manufacturing and retail sectors were offset by weakness in real estate and financial services.
The beige book is a summary of economic activity prepared for use at the U.S. central bank's next policy-setting meeting January 25-26. The latest report, prepared by the Boston Fed, examined economic conditions across the Fed's 12 regions based on information collected on or before Jan. 3. With unemployment high and inflation low, Fed officials are expected to keep in place their easy-money policies later this month.
Economic conditions were defined as "improving" in the Boston, New York, Philadelphia, and Richmond Fed districts. The economy in the Cleveland, Atlanta, Chicago, St. Louis, Kansas City, and Dallas Fed areas increased "modestly to moderately." The Minneapolis Fed region "continued its moderate recovery," while that of the San Francisco District "firmed further."
Consumer spending, accounting for about two-thirds of demand in the U.S. economy, appears to be strengthening since the last Fed beige book was released Dec. 1. Retailers in all the 12 districts indicated that sales were higher in the 2010 holiday season than in 2009. In some areas, they even beat expectations.
"Boston, Richmond, Atlanta, Chicago, and Kansas City observed consumers positively reacting to promotions and discounting, although Philadelphia and San Francisco reported that retailers relied less heavily on discounting," the Fed report showed.
Recent strong gains in U.S. retail sales, including car sales, and industrial production suggest the pace of economic expansion accelerated in the final three months of 2010 compared to the previous quarter. Fed Chairman Ben Bernanke last week told Congress the economy should improve in 2011, but cautioned the 2007-2009 recession was so severe that unemployment is expected to remain high and inflation low for a long time.
In most regions, retailers and manufacturers reported that costs were rising, the Fed report showed. But the pass-through to final prices has been modest due to intense competition.
Import prices rose for the second year in a row in 2010, increasing 4.8% on the back of higher energy and other raw material prices, a government report showed Wednesday. But that hasn't fed into broader price pressures in the U.S. economy, which remain at a low level close to 1.0%.
The beige book showed the jobs market was firming in most part of the country, with some companies expanding their workforce. At the same time, however, the persistently high unemployment is helping to keep upward pressure on wages "very limited."
The housing sector, meantime, remained in the doldrums at the end of last year. Residential real estate and new home construction were slow across the country.
"Most Districts indicated that business contacts were positive about the outlook, although still generally cautious," the beige book said.
U.S. IMPORT PRICES RISE 1.1% IN DECEMBER
Fuel and Food Lead Import Price RiseThe Labor Department reported that U.S. import prices rose 1.1% in December, on higher prices for fuel and non-fuel imports, in line with consensus estimates. Prices for fuel imports rose 4.1% in December, while prices for non-fuel imports gained 0.3%.
ILLINOIS HOUSE PASSES
BIG INCOME-TAX INCREASE
The Illinois House passes a massive income-tax increase to help the state dig out of a $13 billion deficit, despite opposition from Republicans and business groups.
The Illinois House passes a massive income-tax increase to help the state dig out of a $13 billion deficit, despite opposition from Republicans and business groups.
INCREASED 2011 STARTS
Builders expect to start construction on 575,000 single-family homes this year, up 21% from last year, according to the National Association of Home Builders, but the market remains fragile as housing's recovery struggles to take hold.
US BUDGET DEFICIT $80.0 BILLION
DOLLARS FOR DECEMBER
The U.S. budget deficit contracted in December, but the government still spent $80.0 billion more than it collected, adding to the country's already high level of debt.
The bloated Government could reach its debt limit of nearly $14.3 trillion as early as March 31, 2011. With the continued widening deficits, the government could reach its debt limit of nearly $14.3 trillion as early as March 31. Lawmakers have lifted the ceiling 10 times over the past 10 years, and Treasury Secretary Timothy Geithner is pushing for another raising of the debt limit. But, in exchange, Republicans in Congress want spending cuts.
December marked the government's 27th deficit shortfall in a row.
In the first three months of fiscal 2011, which began Oct. 1, federal spending totaled $902.62 billion, including $56.78 billion in interest payments on the government's debt. Revenue was $531.80 billion, which are higher than the same period last year as a stronger economy pulls in more taxes.
The Treasury Department's regular monthly statement on spending and revenue Wednesday showed an $80.00 billion shortfall during last month.
The December deficit met expectations and was smaller than the $91.41 billion shortfall in the same month a year prior. Also, the gap wasn't as wide as October 2010's deficit of $140.43 billion or November's $150.39 billion.
The deficit for the first three months of fiscal year 2011 topped $370 billion. And when fiscal 2011 ends Sept. 30, the deficit for the year might be the biggest ever.
Washington ran a $1.294-trillion deficit in fiscal 2010 and a record $1.416 trillion in fiscal 2009 as the U.S. trudged through a deep recession. Yet even though the economy is healing, recovery is slow because of high joblessness. Some private analysts think this year's deficit might set an all-time high because of the recent extension of income-tax cuts.
The tax cuts are another government tool designed to spur the economy. The extension drew criticism amid a push to bring down future deficits. Concerns about a burgeoning national debt abound as the U.S. population ages and strains entitlement programs such as Social Security and Medicare that make up a big chunk of government spending.
TUESDAY:
CBOT/USDA GRAIN REPORT
DUE WEDNESDAY
Traders Await Government Crop Data
U.S. corn futures face a risk of falling if highly anticipated government crop reports fail to shock the market by tightening supplies more than expected, analysts said.
The U.S. Department of Agriculture will issue fresh estimates on U.S. and global grain production, supplies and demand at 8:30 a.m. EST Wednesday. Market participants widely expect the government to tighten its supply outlook because of poor weather and solid demand.
However, recent rallies to 29-month highs have priced in the potential for reductions, analysts said. Futures prices could come under pressure Wednesday in a "buy the rumor, sell the fact" scenario if the government's adjustments don't surprise market participants, they said.
"A neutral corn report is going to be a bearish corn report," said John Kleist, broker and analyst at Allendale, an Illinois-based brokerage firm.
Corn for March delivery, the most-active contract, on Tuesday closed unchanged at $6.07 a bushel at the Chicago Board of Trade as traders waited for the government to release the reports. The contract trimmed gains after reaching an intraday high of $6.15 1/2.
There is a "fair amount" of risk for a "buy the rumor, sell the fact" scenario Wednesday, said Jeff Hainline, director of Advance Trading, a commodity brokerage firm. Hainline, who started working in the commodities business in 1977, said it was "the most bullishly anticipated report in my lifetime."
Traders began looking ahead to USDA's January crop reports in November after the USDA cut its corn-harvest estimate for the third consecutive month. The government traditionally doesn't adjust production estimates in its December reports and didn't do so this year.
Analysts, on average, expect USDA to project corn supplies at the end of the crops' marketing year on Aug. 31 at 778 million bushels, down from the government's December estimate of 832 million bushels, a 15-year low. The range of their estimates is 681 million to 884 million bushels.
The U.S. Department of Agriculture will issue fresh estimates on U.S. and global grain production, supplies and demand at 8:30 a.m. EST Wednesday. Market participants widely expect the government to tighten its supply outlook because of poor weather and solid demand.
However, recent rallies to 29-month highs have priced in the potential for reductions, analysts said. Futures prices could come under pressure Wednesday in a "buy the rumor, sell the fact" scenario if the government's adjustments don't surprise market participants, they said.
"A neutral corn report is going to be a bearish corn report," said John Kleist, broker and analyst at Allendale, an Illinois-based brokerage firm.
Corn for March delivery, the most-active contract, on Tuesday closed unchanged at $6.07 a bushel at the Chicago Board of Trade as traders waited for the government to release the reports. The contract trimmed gains after reaching an intraday high of $6.15 1/2.
There is a "fair amount" of risk for a "buy the rumor, sell the fact" scenario Wednesday, said Jeff Hainline, director of Advance Trading, a commodity brokerage firm. Hainline, who started working in the commodities business in 1977, said it was "the most bullishly anticipated report in my lifetime."
Traders began looking ahead to USDA's January crop reports in November after the USDA cut its corn-harvest estimate for the third consecutive month. The government traditionally doesn't adjust production estimates in its December reports and didn't do so this year.
Analysts, on average, expect USDA to project corn supplies at the end of the crops' marketing year on Aug. 31 at 778 million bushels, down from the government's December estimate of 832 million bushels, a 15-year low. The range of their estimates is 681 million to 884 million bushels.
Ethanol futures traded mixed as traders waited for federal forecasters to release the crop reports. Ethanol for March delivery edged up 0.3 cent, or 0.1%, to $2.26 per gallon at the CBOT.
Oat futures edged higher in light trading. Oats for March delivery settled up 2 1/2 cents, or 0.7%, at $3.82 a bushel.
CONSUMER CONFIDENCE DROPS
ABC News Consumer Confidence Idx -40 In Jan 9 Week
Confidence drops sharply, erasing a positive trend as job losses mount.
Confidence drops sharply, erasing a positive trend as job losses mount.
JOB OPENINGS FALL
U.S. job openings fall in November for the third time in four months, a Labor Department report says.
BANK OF CHINA OPENS YUAN
TRADING TO US CUSTOMERS
Bank of China has opened trading in the Chinese currency to customers in the U.S., representing a symbolic endorsement by Beijing of foreign trading in the yuan. The move is the first by a state-owned bank into yuan trading in the U.S.U.S. CHAIN STORE SALES DOWN 3.2%
International Council of Shopping Centers and Goldman Sachs Retail Chain Store Sales Index slides 3.2% in the week ended Saturday on a seasonally adjusted, comparable-store basis, ending four consecutive weeks of growth.
US CHAMBER - POSITIVE NOTE
ON ECONOMY
U.S. Chamber of Commerce is forecasting economic growth of 3.2% in 2011 and is "cautiously optimistic" that the economic recovery will continue in the coming year, with the creation of 2.4 million to 2.6 million net new jobs.
US WHOLESALE INVENTORIES DECLINE
Inventories of wholesalers unexpectedly dips 0.2% in November to an adjusted $425.54 billion, as their sales surge going into the holiday shopping season. Economists had been expecting a 0.9% rise in goods stockpiled by distributors.
HOME BUILDERS CAUTIOUS
Despite the economy showing signs of growth, home-builders' confidence remained low in December, Amy Hoak writes, but recent data is giving builders reason to be a bit more optimistic.
US SMALL-BUSINESS OPTIMISM
INDEX DECLINED IN DECEMBER
After four consecutive gains, the National Federation of Independent Business index of small-business optimism slips by 0.6 point to 92.6 in December. Even so, small-business owners expect an improvement in demand.
US Consumer-Credit Delinquencies
Higher In Third Quarter
Consumer-credit-delinquency rates in the U.S. ticked higher in the third quarter of 2010 as the labor market "hit the pause button," according to a report released Tuesday by the American Bankers Association. The ABA's composite ratio, which tracks delinquencies in eight loan categories, gained one basis point to 3.01% in the third quarter from 3% in the second quarter, according to the ABA. A delinquency is a late payment that is at least 30 days overdue.
"The economy just skipped a beat in the third quarter," said James Chessen, ABA's chief economist, in a statement. "It doesn't move in a straight line, and neither do consumer-credit delinquencies."
The ABA reported that delinquencies for bank cards, which are credit cards provided by a bank, "were stable," rising two basis points to 3.64%, compared with the 15-year average of 3.92%.
Chessen said he thinks delinquencies will improve in coming months, depending on the strength of the labor market.
"There's less uncertainty about the economy now, and consumers and businesses feel more confident," Chessen said. "We are also encouraged by lower consumer-debt levels and higher personal-savings rates. This will help rebuild a sense of financial stability."
Among eight types of closed-end loans, there were increased delinquencies in four categories, decreased delinquencies in three categories, and one category with unchanged delinquencies:
--Delinquencies for direct auto loans rose to 1.74% in the third quarter from 1.67% in the second quarter
--Delinquencies for indirect auto loans rose to 3.02% from 3.01%
--Delinquencies for home-equity loans rose to 4.05% from 3.97%
--Delinquencies for personal loans rose to 3.68% from 3.55%
--Delinquencies for marine loans fell to 2.04% from 2.2%
--Delinquencies for property-improvement loans fell to 1.23% from 1.35%
--Delinquencies for RV loans fell to 1.53% from 1.63%
--Delinquencies for mobile-home loans remained at 4.01%
Among three types of open-end loans, there were two categories with decreased delinquencies and one with increased delinquencies:
--Delinquencies for home-equity lines of credit fell to 1.74% from 1.81%
--Delinquencies for non-card revolving loans fell to 1.09% from 1.21%
--Delinquencies for bank cards rose to 3.64% from 3.62%
EUROPE, CHINA AND JAPAN
TACKLE EURO DEBT
The European Central Bank stepped in to buy under-pressure euro-area government bonds for the second consecutive day. The Japanese Finance Minister Yoshihiko Noda said Tokyo may buy more than 20% of the securities issued by the European Financial Stability Facility in its initial round. The announcement follows reports that China is ready to buy EUR4 billion to EUR5 billion of Portuguese debt.
"Between China and Japan, that's a lot of buying power that at least buys time and gives them a chance to attempt to restructure without having a crisis in the short term," said John Apruzzese, partner and equity portfolio manager at Evercore Wealth Management. "That's definitely a help."
"Between China and Japan, that's a lot of buying power that at least buys time and gives them a chance to attempt to restructure without having a crisis in the short term," said John Apruzzese, partner and equity portfolio manager at Evercore Wealth Management. "That's definitely a help."
Japan plans to buy a major portion of the European bonds being auctioned this month to finance emergency loans to Ireland, the Japanese government said Tuesday.
Finance Minister Yoshihiko Noda said his government may buy one-fifth of the bonds being issued this month by the European Financial Stability Facility, a last-resort fund for countries that use the euro common currency.
The European Union created the Luxembourg-based fund in May as it scrambled to save Greece from national bankruptcy. In November, Ireland became the second euro member to require an international bailout amid crippling debts at Dublin banks.
The Luxembourg fund, which is backed by the European Investment Bank and Germany's debt management agency, is expected to auction about euro5 billion (US$6.5 billion) of bonds this month to fund the first stage of its planned euro22.5 billion (US$29.2 billion) contribution to the emergency loan for Ireland.
A wider European Union fund and the Washington-based International Monetary Fund are drumming up identical amounts, taking Ireland's global credit line to a potential euro67.5 billion (US$87.6 billion) — about euro15,000 (US$19,500) for every man, woman and child in Ireland.
European Union governments are discussing proposals to increase the EUR440 billion ($569.98 billion) bailout fund for indebted euro-zone countries, a recognition that the fund might prove too small if the region's debt crisis spreads to Spain, according to European officials. The European Union created the Luxembourg-based fund in May as it scrambled to save Greece from national bankruptcy. In November, Ireland became the second euro member to require an international bailout amid crippling debts at Dublin banks.
The Luxembourg fund, which is backed by the European Investment Bank and Germany's debt management agency, is expected to auction about euro5 billion (US$6.5 billion) of bonds this month to fund the first stage of its planned euro22.5 billion (US$29.2 billion) contribution to the emergency loan for Ireland.
A wider European Union fund and the Washington-based International Monetary Fund are drumming up identical amounts, taking Ireland's global credit line to a potential euro67.5 billion (US$87.6 billion) — about euro15,000 (US$19,500) for every man, woman and child in Ireland.
Public broadcaster NHK reported that the government plans to invest around 100 billion yen (euro935 million, US$1.2 billion) using its foreign reserves. This would represent 18.7 per cent of the expected euro5 billion auction foreseen by European analysts.
Tokyo already has invested about euro1.2 billion (US$1.55 billion) into the International Monetary Fund's portion of the Irish bailout, according to Japan's largest newspaper, Yomiuri. It said Japan appeared determined to help bolster the euro and keep the yen from rising further versus the currency, which makes Japanese imports more expensive in the 17-nation eurozone.
Noda's pledge helped to lift European markets, which have been rattled in recent weeks by rising fears that Portugal soon could be forced to join Ireland and Greece in seeking an international bailout.
Tuesday Portugal resisted pressure to seek a bailout. The debt-laden euro-zone member is due to seek between EUR750 million and EUR1.25 billion at a sovereign-bond auction scheduled for Wednesday, and recent trading of its existing bonds saw interest rates brush past the 7% level.
"Portugal won't ask for any financial help because it's not necessary," Prime Minister Jose Socrates told reporters Tuesday, after announcing the country cut its budget deficit by more than expected.
However, the country's slow pace of recovery and high debt costs leave many market participants questioning its ability to repay loans.
"The European debt situation will remain a concern," said Frank Lesh, broker at FuturePath Trading. "Their economies are in trouble, you're not going to have one auction and fix Europe. We'll be watching European debt auctions and activity for months to come."
Portugal's troubles are just the latest chapter in Europe's ongoing sovereign-debt crisis. The growing line-up of euro-zone members struggling with higher financing costs and rising credit obligations has left many investors dissatisfied with the risks of holding paper currencies. Investors were particularly shaken last year when the euro's future came under threat from Greece and Ireland, as each country sought rescue financing to cover sprawling sovereign debts.
Krishna Memani, director of fixed income at OppenheimerFunds, says he would snap up Spanish government debt if pressures in the euro zone escalate even more and make it cheaper to buy. Spain will sell debt on Thursday.
"Portugal won't ask for any financial help because it's not necessary," Prime Minister Jose Socrates told reporters Tuesday, after announcing the country cut its budget deficit by more than expected.
However, the country's slow pace of recovery and high debt costs leave many market participants questioning its ability to repay loans.
"The European debt situation will remain a concern," said Frank Lesh, broker at FuturePath Trading. "Their economies are in trouble, you're not going to have one auction and fix Europe. We'll be watching European debt auctions and activity for months to come."
Portugal's troubles are just the latest chapter in Europe's ongoing sovereign-debt crisis. The growing line-up of euro-zone members struggling with higher financing costs and rising credit obligations has left many investors dissatisfied with the risks of holding paper currencies. Investors were particularly shaken last year when the euro's future came under threat from Greece and Ireland, as each country sought rescue financing to cover sprawling sovereign debts.
Krishna Memani, director of fixed income at OppenheimerFunds, says he would snap up Spanish government debt if pressures in the euro zone escalate even more and make it cheaper to buy. Spain will sell debt on Thursday.
MONDAY:
CHICAGO BUSINESS BAROMETER
REVISED DOWNWARD
The U.S. economy continued to grow in December but a slower pace than previously estimated, according to the Institute for Supply Management-Chicago, which revises its December business barometer to 66.8 from 68.6.
FISHER SEES FED BOND
BUYING TO BE COMPLETED
Dallas Fed President Richard Fisher says the Federal Reserve's bond buying program is likely to run its planned course and stop, and it would take a lot to drive the central bank to go beyond what it has said it will do.
US Fed Estimates 2010 Net Income At $80.9 Billion
The U.S. Federal Reserve's 2010 net income grew to $80.9 billion largely due to a boost in earnings from securities it acquired during the financial crisis, according to preliminary unaudited results the central bank announced Monday.
The income surge--a significant jump from its record-breaking $53.4 billion in earnings in 2009--makes way for the Fed to transfer about $78.4 billion to the Treasury Department.
The $78.4 billion in payments represents a 65% increase over the 47.4 billion the Fed paid the Treasury in 2009. Fed officials said the bulk of the payments have already been distributed to Treasury.
Providing a preliminary overview of its 2010 finances, the Fed said the estimated 2010 net income was derived primarily from $76.2 billion in income on federal agency and government-sponsored enterprise, or GSE, mortgage-backed securities, U.S. Treasury securities, and GSE debt securities. In contrast, 2009 income from those securities totaled $48.8 billion, Federal Reserve officials said on a conference call with reporters Monday morning.
The Fed said $7.1 billion in net income came from consolidated limited liability companies that were created in response to the financial crisis; $2.1 billion in interest income from credit extended to American International Group, Inc.; $1.3 billion of dividends on preferred interests in AIA Aurora LLC and ALICO Holdings LLC; and $0.8 billion in interest income on loans extended under the Term Asset-Backed Securities Loan Facility (TALF) and loans to depository institutions.
Fed officials said they expect to release final financial results this spring.
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New York City Comptroller John C. Liu added to the pressure Sunday, as he led seven public pension systems, which hold $430 billion combined in investments, in demanding the banks start more independent examinations of their processes. Bank of America slipped 0.7%, J.P. Morgan Chase declined 1.2%, Wells Fargo fell 1.4% and Citigroup slid 1.1%.
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Responding to a growing wave of foreclosures, the Federal Deposit Insurance Corporation is considering whether to impose new disclosure requirements on big banks seeking to package and sell mortgage securities to investors.
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U.S. Treasury Secretary Timothy Geithner and French finance minister Christine Lagarde met Monday morning to discuss Europe's economic woes and plans to rebalance the global economy.
Geithner's top concerns are encouraging European officials to take quick and assertive action to contain the sovereign-debt crisis, and developing a strategy within the Group of 20 major nations to rein in widening global economic imbalances.
Lagarde is seeking to cajole the U.S. into supporting France's agenda of reforming the international monetary system. French President Nicolas Sarkozy, visiting with President Barack Obama Monday, has said he plans to use his country's chairmanship of the G-20 to champion restrucuturing of the world's reserve currency system.
French officials complain that reliance on the U.S. dollar during the global financial crisis has been a major factor in exacerbating volatile capital flows as investment flows from low-interest-rate, rich countries to high-yield emerging nations.
The Obama administration says far more vital to the global economy right now is getting the European sovereign-debt crisis under control. Greece and Ireland have already needed emergency bailouts and markets are speculating that Portugal may need external assistance as well.
While International Monetary Fund and Treasury officials say they don't believe Spain will need a rescue package, some economists and analysts paint a more pessimistic picture. Spain's economy eclipses those of Portugal, Ireland and Greece, and, as one of the major drivers of the European economy, fiscal failure could trigger another global recession.
Although European officials are debating a new package of programs that could help to cordon off contagion, the U.S. is concerned that the markets will sell off sovereign debt before Brussels acts. Washington is also fearful that Europe's actions may be retroactive--loaning cash after a financial disaster--rather than proactive--stemming the problem before it occurs.
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Thousands Protest at Bangladesh Stock Exchange
Bangladesh suspended trading at its main stock exchange Monday after a market plunge ignited protests by thousands of investors.
____________________________________________________________
U.S. EQUITY NEWS:
FRIDAY:
JP MORGAN PROFIT JUMPS
Bank's 4Q profit climbs 47% to $4.83 billion, or $1.12 a share, beating analysts' expectations, as asset quality improves and revenue increases, while it continues to set aside less to cover potential credit losses.J.P. Morgan Chase led the Dow's climb with a 3.2% jump.
PNC Financial Services Group climbed 4.5%, Morgan Stanley added 2.5% and Wells Fargo rose 2.4%.
Coinstar tumbled 25%. The company, which operates coin-counting stations and redbox DVD-rental kiosks, slashed its financial outlook for the fourth quarter and current year. The company has been hurt by weak holiday rentals and a delay it has had to put on some new DVD releases.
Sterling Bancshares climbed 2.8%. The bank has put itself on the auction block, The Wall Street Journal reported, citing people familiar with the situation.
INTEL PROFITS UP
Intel Corp.’s fourth quarter net income jumped 48 per cent to US$3.39 billion or 59 cents a share, beating expectations of 53 cents a share. However, the results were based mainly on strong demand from corporations. The rise of smaller and sleeker gadgets such as the iPad have hurt consumers’ appetite for new PCs. Intel's shares dipped 18 cents to US$21.11..
WEDNESDAY:
AIG SHARES DECLINE
American International Group slipped 0.2% after the giant insurer decided to sell its Taiwan unit, Nan Shan Life Insurance, to Taiwan's Ruen Chen Investment Holdings for $2.16 billion, another step forward in the U.S. insurer's efforts to repay U.S. government bailout funds.
LULUEMON GAINS
Yoga-wear retailer Lululemon climbed 8.9% as it significantly boosted its fourth-quarter outlook on stronger-than-expected revenue.
ZALES SURGES
Jewelry retailer Zale surged 33% after posting a 8.5% increase in same-store sales for the last two months of the year, which the company said represented progress in its efforts to stabilize its business.
CAMPBELL-SWIRE TO MARKET SOUPS IN CHINA
Campbell Soup is forming a joint venture with Swire Pacific to sell soup and broths in the world's second-largest economy. Profits and losses will be shared, say the companies although Campbell will control 60% of the joint venture.
ITT TO SPLIT INTO 3 PUBLICLY TRADED COMPANIES
ITT plans to split into three publicly traded companies, spinning off its water-related businesses and its defense and information segment, a shift from the piecemeal restructuring efforts the manufacturing conglomerate had made. Shares rise 20%.
CARGILL PROFIT TRIPLES ON PROCESSING SEGMENT
Global meatpacking, grain processing and food business reports a fiscal 2Q profit of $1.49 billion, helped by strong returns from its Mosaic stake. Cargill's revenue climbs 16% to $31.1 billion.
DECEMBER ONLINE SALES SURGE 12%
Online sales climb 12% in December year-over-year as consumers' average order value climbs 11%, according to a survey by IBM. Smart phones and other mobile devices continue to claim a bigger slice of the online market.
TUESDAY:
VERIZON WIRELESS UNVEILS
ITS VERSION OF APPLE IPHONE
Verizon Wireless unwraps its highly anticipated version of the Apple iPhone, ending AT&T's exclusive hold over the blockbuster smartphone. The phone will be available Feb. 10 and sell in $199.99 and $299.99 versions.
Verizon Wireless unwraps its highly anticipated version of the Apple iPhone, ending AT&T's exclusive hold over the blockbuster smartphone. The phone will be available Feb. 10 and sell in $199.99 and $299.99 versions.
Retailer predicts fiscal 4Q earnings above analysts' expectations, although domestic same-store sales dip 6% and overall same-store sales fall 1.7% in December. Sears shares jump 7%.
LENNAR PROFIT TOPS VIEWS
Homebuilder's fiscal 4Q profit drops 10% following prior-year earnings that were buoyed by a hefty tax gain, but results beat expectations as margins soared on a reduction in incentives and other cost cutting. Shares up 6%.
Homebuilder's fiscal 4Q profit drops 10% following prior-year earnings that were buoyed by a hefty tax gain, but results beat expectations as margins soared on a reduction in incentives and other cost cutting. Shares up 6%.
TALBOTS SLASHES FISCAL 4Q ESTIMATES
Women's apparel retailer now expects to post a loss from continuing operations in the fiscal fourth quarter of 15c-19c a share, owing to a dropoff in sales that began in the second half of December. Shares drop 20%.
Women's apparel retailer now expects to post a loss from continuing operations in the fiscal fourth quarter of 15c-19c a share, owing to a dropoff in sales that began in the second half of December. Shares drop 20%.
GOLDMAN SPLITS INCOME UNITS
Goldman Sachs announced today that the Investment bank breaks its trading and principal investments business segment into two separate categories, one of several changes made to its quarterly reports after an eight-month review of its business practices.
Goldman Sachs announced today that the Investment bank breaks its trading and principal investments business segment into two separate categories, one of several changes made to its quarterly reports after an eight-month review of its business practices.
AMGEN ESTIMATES 2010 EARNINGS
Amgen expects to report 2010 earnings slightly below Wall Street expectations, but roughly in line with the company's previous projections. It expects 2010 adjusted earnings in the middle of a range of $5.05 to $5.10 per share.
Amgen expects to report 2010 earnings slightly below Wall Street expectations, but roughly in line with the company's previous projections. It expects 2010 adjusted earnings in the middle of a range of $5.05 to $5.10 per share.
ARM MAKES DEALS AT CES
ARM Holdings, the nearly 21-year-old British chip-design firm, finally gets its day in the sun, revealing two new partner at the Consumer Electronics Show with deals that are likely to reverberate throughout the tech world.
ARM Holdings, the nearly 21-year-old British chip-design firm, finally gets its day in the sun, revealing two new partner at the Consumer Electronics Show with deals that are likely to reverberate throughout the tech world.
COMVERSE EXPECTED TO SELL VERINT
Software maker is likely to pursue a sale of its subsidiary Verint Systems after the parent company files the last of its outstanding financial reports with regulators, and a deal could fetch $2 billion, people familiar with the matter say.
APOLLO IN TALKS TO BUY ZALE UNIT
Apollo Management has emerged as the leading contender to purchase Zale's s Piercing Pagoda, a chain of mall-based jewelry kiosks, The Wall Street Journal reports, citing people with knowledge of the negotiations.
MONDAY:
Alcoa Inc. (AA) swung to a fourth-quarter profit as the economic recovery boosted aluminum prices, and the aluminum maker said it expected demand would stay strong. The bottom line topped analysts' expectations, although sales growth wasn't as strong as Wall Street had expected. Shares slid 1.5% to $16.27 in after-hours trading. Alcoa rose 0.43% ahead of its fourth-quarter earnings report. Analysts surveyed by Thomson Reuters expected a profit of 19 cents on revenue of $5.71 billion.
Standard Microsystems Corp. (SMSC, $26.84, -$2.90, -9.75%) swung to a fiscal third-quarter loss as charges masked rising revenue and margins. The semiconductor-equipment and circuits maker also agreed to acquire Conexant Systems Inc. (CNXT, $2.16, +$0.27, +14.29%) for about $185 million.
Edison International's (EIX, $38.13, -$0.61, -1.57%) southern California utility made a major solar-power deal with SunPower Corp. (SPWRA, $14.62, +$1.18, +8.78%) (SPWRB, $14.00, +$1.10, +8.53%) and Spain's Fotowatio Renewable Ventures Inc., it said Monday.
Bank of America Merrill Lynch cut its rating on security-software and storage vendor Symantec Corp. (SYMC, $17.05, -$0.50, -2.85%) to underperform from neutral saying it believes the stock has appreciated mainly on break-up chatter which it assigns a low probability.
Telular Corp. (WRLS, $7.03, +$0.26, +3.84%), a provider of wireless technology, boosted its earnings forecast for the year as it said it is acquiring a third-party operation that sells its tank monitoring offerings.
Bank of America Merrill Lynch raised its rating on Taleo Corp. (TLEO, $30.98, +$0.86, +2.86%), a human-resources software maker, to buy from neutral, noting the Street may be underestimating bookings and revenue acceleration potential. The firm said Taleo is getting an increased portion of bookings from adjacent segments like performance management, signaling higher structural growth.
Jefferies downgraded Texas Industries (TXI, $40.48, -$1.67, -3.96%) to hold from buy, citing better-than-expected second-quarter results. The firm said it also anticipates higher production costs in the third quarter, as well as selling prices for both cement and aggregates to be broadly flat in the third and fourth quarter.
Union Pacific Corp. (UNP, $97.36, +$2.18, +2.29%) shares gained after the nation's largest railroad was mentioned in Barron's. The article said that with oil prices up, trucks are proving increasingly weak competition. With demand for commodities booming, there's plenty for Union Pacific to haul across its 33,000 miles of track. Additionally, the company has been cutting costs and preparing to raise prices.
Uroplasty Inc. (UPI, $5.04, +$0.48, +10.53%) said its fiscal third-quarter revenue rose 13% to about $3.5 million, driven by U.S. sales growth, particularly for the medical-device company's overactive bladder treatment Urgent PC.
Verizon Wireless will officially announce Tuesday that it will carry Apple's iPhone, which initially had only been available on the AT&T network. Sprint Nextel sank 3.4% and AT&T shed 2%, while shares of Verizon Communications edged up 0.2%.
Playboy Enterprises soared 17% after agreeing to be taken private by an entity controlled by its founder and controlling shareholder Hugh Hefner in a deal valued at about $207.3 million, ending a month's long wrangling over the future of the media and entertainment company.
DuPont fell 3.2% after agreeing to acquire Denmark's Danisco, an enzyme and specialty-food-ingredients company, in a $6.3 billion deal. DuPont will pay $5.8 billion in cash and assume $500 million of Danisco net debt.
Duke Energy shed 0.9% after agreeing to acquire Progress Energy in an all-stock deal valued at about $13.7 billion, creating the country's largest utility. Shares of Progress Energy weakened 0.8%.
Strayer Education plunged 25% as the for-profit education company slashed its 2011 forecast after reporting that new-student enrollment for its winter term fell 20% from the prior year. Sterne Agee cut the company's stock-investment rating to sell from neutral.
Denmark's Danisco urges its shareholders to accept a 665 Danish kroner ($115.2) per share takeover offer from DuPont that values the food ingredients and enzymes maker at DKK36.1 billion ($6.3 billion).
Alcoa will restart production lines in three locations during the first half of the year, boosting production by 137,000 metric tons over the course of 2011.
Shares in BP fall after the U.K.-listed oil giant and other oil producers are forced to shut down some 600,000 barrels a day of output on Alaska's North Slope, following a leak that closing the Trans Alaska pipeline.
Myspace is expected to lay off 550 to 600 of its staff of just over 1,000 tomorrow, according to several sources. After the layoffs, the News Corp.-owned Myspace will turn its sights to sale options.
Canadian Market:
FRIDAY:
Toronto Stocks Mixed to Higher
The banking sector propelled Toronto stocks to their highest level since August 2008 on Friday, after J.P. Morgan posted better-than-expected results and gains in industrial production and business sales cheered investors. However, lower gold prices provided a counterbalance.
The S&P/TSX Composite Index rose 62.58 points, or 0.47%, to 13464.06. Advancers outpaced decliners 946 to 756. Trading volume was 589.7 million shares, down from Thursday's total of 621.7 million shares. The S&P/TSX 60 Index closed up 4.74 points, or 0.6%, to 771.68.
The stock market's key index was little changed in mixed trading at midday Friday as a sharp drop in spot gold prices hurt the miners, but the banking sector pushed higher on expectations of good corporate earnings.
At 11:45 a.m. EST (1645 GMT), the S&P/TSX Composite Index was up 1.91 points, or 0.01%, at 13403.39. However, decliners outweighed advancers 753 to 683. Trading volume was 243.0 million shares. The S&P/TSX 60 Index was up 1.45 points, or 0.2%, to 768.39 points.
The resource-heavy S&P/TSX composite index slipped 6.3 points to 13,395.18 while the TSX Venture Exchange lost 18.22 points to 2,270.78. Falling prices for oil and gold helped push the Canadian lower against the American currency, down 0.28 of a cent to 100.81 cents US.
The S&P/TSX Composite Index rose 62.58 points, or 0.47%, to 13464.06. Advancers outpaced decliners 946 to 756. Trading volume was 589.7 million shares, down from Thursday's total of 621.7 million shares. The S&P/TSX 60 Index closed up 4.74 points, or 0.6%, to 771.68.
The stock market's key index was little changed in mixed trading at midday Friday as a sharp drop in spot gold prices hurt the miners, but the banking sector pushed higher on expectations of good corporate earnings.
At 11:45 a.m. EST (1645 GMT), the S&P/TSX Composite Index was up 1.91 points, or 0.01%, at 13403.39. However, decliners outweighed advancers 753 to 683. Trading volume was 243.0 million shares. The S&P/TSX 60 Index was up 1.45 points, or 0.2%, to 768.39 points.
The resource-heavy S&P/TSX composite index slipped 6.3 points to 13,395.18 while the TSX Venture Exchange lost 18.22 points to 2,270.78. Falling prices for oil and gold helped push the Canadian lower against the American currency, down 0.28 of a cent to 100.81 cents US.
Toronto Indexes, Friday Volume; 4 PM EST Composite Up 25.21
S&P/TSX Composite 13464.06 up 62.58 or 0.5%
S&P/TSX 60 Index 771.68 up 4.74 or 0.6%
Financials 186.97 up 3.24 or 1.8%
Materials 425.33 off 5.35 or 1.2%
Energy 325.14 up 2.00 or 0.6%
Industrials 114.04 up 0.80 or 0.7%
IT 32.02 up 0.40 or 1.3%
Volume Friday Thursday
3-4:15 109.5M 118.2MS&P/TSX Composite 13464.06 up 62.58 or 0.5%
S&P/TSX 60 Index 771.68 up 4.74 or 0.6%
Financials 186.97 up 3.24 or 1.8%
Materials 425.33 off 5.35 or 1.2%
Energy 325.14 up 2.00 or 0.6%
Industrials 114.04 up 0.80 or 0.7%
IT 32.02 up 0.40 or 1.3%
Volume Friday Thursday
9:30-4:15 589.70 622.5M
ECONOMIC NEWS:
HOUSING ACTIVITY INCREASED
Canadian housing sales activity higher than expected in fourth quarter.The Canadian Real Estate Association says housing resale activity was higher than anticipated last year due to a strong fourth quarter but sill below 2009.
About 447,000 homes traded over CREA's Multiple Listing Service last year, down 3.9 per cent from 2009. Actual sales last month were down 14.4 per cent compared to the record-setting December 2009, but still slightly ahead of the 10-year average.
Canadians rushed into the market in late 2009 and early 2010 to take advantage of historic interest and mortgage rates, then plunged to a trough in last summer. CREA says December sales were up 18.3 per cent from that low reached in July. It also says the national average price for homes sold last month was $344,551 — stable with October and November and up two per cent from December 2009.
TRUCK SALES INCREASED
New vehicle sales increased in seven provinces in November.
StatsCan announced Trucks on the move as new vehicle sales rise in November. The number of new vehicles sold in November was up 0.3 per cent to 135,823 on the strength of rising truck sales.
Statistics Canada reports preliminary industry data indicate the number of new vehicles sold in December fell five per cent.
Sales of trucks (which include minivans, sport-utility vehicles, light and heavy trucks, vans and buses) increased 1.2 per cent to 75,916 in November, partially offsetting October's decline.
Truck sales have been consistently higher than sales of passenger cars since late 2009.
Sales of passenger cars declined 0.8 per cent to 59,907 after two straight months of increases.
The agency says a two per cent decrease in sales of North American-built passenger cars was partially offset by a 0.8 per cent increase in sales of overseas-built passenger cars.
Sales numbers for both North American and overseas-built passenger cars remains below those in 2009.
COMPANY NEWS:
Canadian Miners Inmet, Lundin To Create Copper Giant
Inmet Mining Corp.'s (IMN.T, IEMMF) planned merger with Lundin Mining Corp. (LUN.T, LUNMF) will catapult the combined C$9 billion miner among the world's biggest copper producers as demand for the widely used industrial metal shows no signs of easing.
Kinross Gold Corp. (TSX:K) shares were down five cents to $17 after it said Friday it produced between 2.3 million and 2.35 million gold equivalent ounces for 2010, in line with its earlier guidance. The company’s forecast average cost was between $505 and $520 per gold equivalent ounce.
Baytex Energy Corp. (TSX:BTE) has agreed to purchase heavy oil assets in northern Alberta and western Saskatchewan. The assets, worth $156.5 million, are being acquired through the a corporate acquisition of a private company and an asset acquisition.
CanElson Drilling Inc. (TSXV:CDI) will acquire eight rigs in the Bakken area of southeast Saskatchewan under a proposed agreement to buy Eagle Drilling Services Ltd. The deal is valued at $78 million, including $17.1 million of assumed debt. Eagle Drilling shareholders will receive $20 million in cash and $41 million of CanElson shares at a deemed price of $4.15 per share.
Baytex Energy Corp. (TSX:BTE) has agreed to purchase heavy oil assets in northern Alberta and western Saskatchewan. The assets, worth $156.5 million, are being acquired through a corporate acquisition of a private company and an asset acquisition. Its shares rose 10 cents to $47.
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THURSDAY:
Toronto Stocks Mixed to Lower
Energy and Industrials are the only two sectors advancing Thursday. The TSX main index is off 3.85 points in afternoon trades.The Toronto stock market appeared set for a flat open Thursday amid major merger activity in the Canadian mining sector and little movement in commodity prices. The Canadian dollar was down 0.15 of a cent to 101.18 cents US. The loonie was down 0.18 of a cent to 101.15 cents US.
ECONOMIC NEWS:
Canada PM Says Low Taxes
Keep Economy Growing
Canadian Prime Minister Stephen Harper said Thursday that his government is committed to keeping taxes low.
"I think it is very obvious to everybody who is looking at the relative success of the Canadian economy in a challenged global environment that the way to keep this economy growing is to keep taxes down for businesses and consumers. That's what this government is committed to doing," Harper said in a televised news conference in Mississauga, Ont.
The main opposition Liberal party wants the government to stop cutting corporate taxes until the budget deficit is eliminated. Harper said he's willing to listen to ideas from the opposition for the 2011 Budget. But he said the opposition seems to change its position.
"I'm always willing to listen to the opposition parties, but some days, it's kind of a moving target," he said. Harper also said his Conservative Party opposes direct public subsidies to political parties, but his minority government cannot eliminate the payments on its own.
"Obviously, in a minority parliament we can't change that because we're the only party that has that position," he said. "A subsidy where parties make no effort whatsoever to raise money is not acceptable."
He said taxpayers also oppose the subsidies and suggested that his Conservative party will campaign to end them at the next election campaign.
Earlier, Harper announced the creation of a commission to reduce red tape for small businesses. He said Canadian businesses spend "billions of dollars each year adhering to regulations."
"Small and medium-sized businesses are a critical driver of the Canadian economy," Harper said in a statement." "This initiative will help ensure that they can grow, prosper and create jobs without being impeded by unnecessary government regulations."
The commission will hold consultations with Canadians and Canadian businesses in a series of round tables this month, and online, to identify red tape that deter growth, competitiveness and innovation. It will issue recommendations to the government in the fall.
Trade deficit shrinks in November
Canada's trade deficit with countries other than the United States declined to $3.1 billion in November from $3.2 billion in October. Merchandise exports rose while imports dropped in November, and as a result Canada's trade deficit shrunk precipitously.
Statistics Canada reports the trade deficit narrowed to $81 million in November from $1.5 billion in October. Merchandise imports declined 3.2 per cent to $34.4 billion in November, led by a 15.1 per cent drop in volumes of energy products.
Overall, import volumes fell 2.4 per cent and prices, down 0.8 per cent, decreased for a fourth straight month. Energy products and machinery and equipment were the main factors behind the decrease in the value of imports, while imports of industrial goods and materials rose.
Export volumes fell two per cent but the value of exports increased 0.8 to $34.3 billion, as prices, up 2.8 per cent overall, rose in most sectors. Exports to the United States increased 0.6 per cent while imports fell 5.1, reflecting a drop in imports of automotive products.
Consequently, Canada's trade surplus with the United States rose to $3 billion in November from $1.7 billion in October. Exports to countries other than the United States grew 1.1 per cent, a fifth straight month of increases, while imports remained virtually unchanged.
As a result, Canada's trade deficit with countries other than the United States declined to $3.1 billion in November from $3.2 billion in October.
WEDNESDAY:
Toronto Stocks Closed Higher Wednesday
The market opened higher Wednesday led by energy and material issues. At 11:45 a.m. EST (1645 GMT), the S&P/TSX Composite Index was up 54.10 points, or 0.40%, at 13455.15. Advancers outweighed decliners 844 to 595. Trading volume was 269.8 million shares. The S&P/TSX 60 Index was up 3.03 points, or 0.4%, to 769.64 points.
TUESDAY:
Toronto Stocks Higher Tuesday
The stock market was higher Tuesday.Toronto stocks closed higher Tuesday for the first time since the start of 2011, as worries about European debt problems ebbed and the first wave of fourth-quarter earnings were reasonably positive. Higher oil prices also provided support. The Canadian dollar closed at 101.04 cents US on Tuesday, up 0.36 of a cent.
The S&P/TSX Composite Index rose 155.93 points, or 1.2%, to 13401.05. Advances nearly doubled declines 1108 to 581. Trading volume was 601.2 million shares, up significantly from Monday's anemic total of 472.2 million shares. The S&P/TSX 60 Index closed up 9.00 points, or 1.2%, to 766.61.
At 11:45 a.m. EST (1645 GMT), the S&P/TSX Composite Index was up 151.98 points, or 1.15%, at 13397.1. Advancers about doubled decliners 949 to 483. Trading volume was 257.8 million shares. The S&P/TSX 60 Index was up 9.21 points, or 1.2%, to 766.82 points.
The loonie was up 0.1 of a cent to 100.78 cents US. The loonie benefited from higher commodity prices as the February crude contract on the New York Mercantile Exchange rose 40 cents to US$89.65 a barrel.
MONDAY:
Toronto Stocks Finished Lower Monday
Toronto stocks closed slightly lower in mixed trading Monday, extending their decline for a fifth consecutive session. The S&P/TSX Composite Index fell 27.18 points, or 0.20%, to 13245.12. But trading was mixed, with 869 advances topping 804 declines. Trading volume was 472.2 million shares, well down from Friday's total of 513.1 million. The S&P/TSX 60 Index closed down 2.26 points, or 0.3%, to 757.61. Canadian dollar closed at 100.68 cents US on Monday, down 0.15 of a cent.
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Toronto stocks opened lower Monday, with materials, energy and financials capping the lower end of the index in morning trades. The Canadian dollar declined Monday as traders bought into the safe-haven status of the American currency. The loonie was 0.21 of a cent lower to 100.62 cents US.Handy and Harman fine silver quotations in Canadian dollars:
Handy and Harman fine silver quotations in Canadian dollars:
Monday $30.232 oz., $971.96 kg.; Friday $30.048 oz., $966.04 kg.
COMPANY NEWS:
RSA Canada has received final regulatory approval to acquire GCAN Insurance for $420 million, a strategic move that could mark the early stages of a consolidation in the Canadian property and casualty industry. The GCAN purchase will make RSA Canada the country's fourth-largest general insurance company after Intact Financial Corp. (TSX:IFC), the Canadian arm of Aviva PLC (LSE:AV) and Co-operators Group of Guelph, Ont.
Canadian Natural Resources Ltd. said Monday its fire-damaged oilsands upgrader may soon be able to run at half capacity while it undergoes repair work. The major Calgary-based oil and gas producer (TSX:CNQ) said it expects to get a better idea of the extent of the damage in the next few days, as provincial authorities allow personnel onto the site. Canadian Natural says the blaze broke out in the top portion of one of four coke drums in its upgrader, in which molasses-thick oilsands bitumen is converted into refinery-ready crude. It appears damage to at least two of the drums is "minimal," the company said.
Pensioners of insolvent forestry company Fraser Papers Inc. voted Monday to strike down the company's restructuring proposal, saying they could not accept a clause that would absolve the company from any legal wrongdoing.
The Communications, Energy and Paperworkers Union, which represents about 1,900 active and retired employees, says it and other major creditors, including the pension branch of New Brunswick, voted to reject the plan Monday.
Fraser Papers filed for creditor protection last year in both Canada and the United States as it struggled with weak markets and heavy debt.
Nunavut Iron Ore Acquisition Inc. has tweaked its offer for a controlling stake in Baffinland Iron Mines Corp. (TSX:BIM), whose board is supporting a rival bid from global steel producer ArcelorMittal.
Bruce Walter, chairman of Nunavut Iron, said Monday his revised offer gives Baffinland shareholders cash up front and the chance to benefit as the company develops its massive Mary River iron ore project in the Canadian Arctic.
"The Arcelor offer is what it is, it has no upside whatsoever and frankly it has baffled us that the Baffinland board has continued to support it," Walter said.
Pensioners of insolvent forestry company Fraser Papers Inc. voted Monday to strike down the company's restructuring proposal, saying they could not accept a clause that would absolve the company from any legal wrongdoing.
The Communications, Energy and Paperworkers Union, which represents about 1,900 active and retired employees, says it and other major creditors, including the pension branch of New Brunswick, voted to reject the plan Monday.
Fraser Papers filed for creditor protection last year in both Canada and the United States as it struggled with weak markets and heavy debt.
Nunavut Iron Ore Acquisition Inc. has tweaked its offer for a controlling stake in Baffinland Iron Mines Corp. (TSX:BIM), whose board is supporting a rival bid from global steel producer ArcelorMittal.
Bruce Walter, chairman of Nunavut Iron, said Monday his revised offer gives Baffinland shareholders cash up front and the chance to benefit as the company develops its massive Mary River iron ore project in the Canadian Arctic.
"The Arcelor offer is what it is, it has no upside whatsoever and frankly it has baffled us that the Baffinland board has continued to support it," Walter said.
Building Permits Fall 11.2% in November
Contractors took out $5.5-billion worth of building permits in November. That's down 11.2 per cent from October and their second straight monthly decline. Statistics Canada reports lower construction intentions, particularly for multifamily dwellings in British Columbia and commercial buildings in Ontario, were behind the decline.
After two straight monthly gains, permits in the non-residential sector fell 16.1 per cent to $2.3-billion in November, mainly due to drops in the commercial and institutional components.
The value of residential permits fell 7.2 per cent to $3.2-billion, with most of the decrease coming from British Columbia.
The total value of permits fell in seven provinces, led by British Columbia, Ontario and Newfoundland and Labrador, while Quebec experienced the largest increase by far.
The total value of permits fell in 19 of 34 cities, led by Vancouver, Toronto and St. John's, N.L.
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____________________________________________________________
WORLD FOREX CURRENCIES SNAPSHOT:
(FRIDAY, JAN 14, 2011 4:00 PM EST)
EUR/USD 1.3358 +0.0009 (0.07%)
USD/JPY 83.0000 +0.1700 (0.21%)
GBP/USD 1.5880 +0.0049 (0.31%)
USD/CAD 0.9892 -0.0006 (-0.06%)
USD/HKD 7.7742 +0.0005 (0.01%)
USD/CNY 6.5876 -0.0168 (-0.25%)
AUD/USD 0.9895 -0.0092 (-0.92%)
____________________________________________________________
WORLD MARKETS SNAPSHOT:
(FRIDAY, JAN. 14, 2011: 3:50 PM EST)
Shanghai 2,790.68 -37.03 (-1.31%)
Nikkei 225 10,499.04 -90.72 (-0.86%)
Hang Seng Index 24,283.23 +44.25 (0.18%)
TSEC 8,972.51 -3.07 (-0.03%)
FTSE 100 6,002.07 -21.81 (-0.36%)
DJ EURO STOXX 50 2,920.40 +4.78 (0.16%)
CAC 40 3,983.28 +8.45 (0.21%)
S&P TSX 13,450.10 +48.62 (0.36%)
S&P/ASX 200 4,801.50 +6.30 (0.13%)
BSE Sensex 18,860.44 -322.38 (-1.68%)
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____________________________________________________________
FRIDAY'S U.S. ECONOMIC CALENDAR:
8:30 a.m.
Dec Retail & Food Services Sales Overall Sales (expected +0.9%), Sales, Ex-Auto (expected +0.7%)
8:30 a.m.
Dec Real Earnings
8:30 a.m.
Dec CPI (expected +0.5%), CPI Core (expected +0.1%), CPI Core, Unrounded (previous +0.1%), CPI Energy Index (previous +0.2%), CPI Food Index (previous +0.2%), CPI Real Average Weekly Earnings (previous -0.1%), CPI, Unrounded (previous +0.12%)
9:15 a.m.
Dec Industrial Production (expected +0.6%), Capacity Utilization (previous 0.3), Current Capacity Utilization (expected 75.6%)
9:55 a.m.
Jan Thomson Reuters / University of Michigan Survey of Consumers - preliminary Sentiment Index Mid Month (expected 76), Expectations Index Mid Month (expected 66.8), Value (Current Period) Mid Month (previous 85.7)
10:00 a.m.
Nov Manufacturing & Trade: Inventories & Sales Total Inventories (expected +0.8%)
12:45 p.m.
Richmond Fed President Jeffrey Lacker speech on economic outlook
1:15 p.m.
Boston Fed Pres Rosengren speaks in Mashantucket, Conn.
MONDAY MARKET NOTE: Martin Luther King, Jr. Day
In observance of Martin Luther King, Jr. Day, the equity market and bond market will be closed on Monday, Jan. 17.
FINANCIAL CONFERENCES:
Among the significant conferences next week are the Biotech Showcase 2011 in San Francisco Monday through Wednesday; Cowen & Co. Consumer Conference in New York Monday and Tuesday; J.P. Morgan Healthcare Conference in San Francisco Monday through Friday; Sidoti & Co. Micro-Cap Conference in New York Monday; Deutsche Bank Securities Inc. Global Auto Industry Conference in Detroit Tuesday and Wednesday; Needham & Co. Growth Conference in New York Tuesday through Thursday; and the ICR Inc. XChange in Dana Point, Calif., Tuesday through Thursday.
...
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posted by Benjamin Train @ 9:17 AM
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