Stock Market Update - Friday, November 19, 2010 - Cautious Option Expiration Trading Day Modest Gains Seen

Stock Market Update

Friday, November 19, 2010

Latest US Economic News Headlines:

USA EQUITY INDEXES: (NOV. 19, 4:05 PM EST)

Dow Jones 11,203.55 +22.32(+0.20%)
S&P 500    1,199.73 +3.04 (+0.25%)
Nasdaq     2,518.12 +3.72 (+0.15%) 


Dow Jones CLOSING Averages: DJIA 11,203.55 UP 22.32
  30 INDUS     11,203.55 UP   22.32 OR    0.20%
  20 TRANSP     4,873.44 UP   33.48 OR    0.69%
  15 UTILS        398.00 DN    1.37 OR    0.34%
  65 STOCKS     3,896.52 UP    9.89 OR    0.25%

Stocks      Advancing       Declining
NYSE        638,904,847     444,543,692
AMEX          9,431,857       3,799,185
NASDAQ    1,008,080,436     716,441,452

SECTOR SUMMARY:
Basic Materials +0.00%
Capital Goods     +0.14%
Conglomerates     +0.49%
Cons. Cyclical     +0.76%
Cons. Non-Cyclical+0.34%
Energy     +0.50%
Financial     -0.03%
Healthcare     -0.09%
Services     +0.35%
Technology     +0.32%
Transportation     +0.67%
Utilities     -0.05%

US COMMODITY PRICES: (NOV. 19, 4:05 PM EST)
Crude Oil     81.65     + 0.17%
Natural Gas     4.17     + 0.14%
Gasoline     2.19     -
Heating Oil     2.28     -
Gold     1353.47     - 0.02%
Silver     27.34     + 1.33%
Copper     3.82     - 0.21%

US DOLLAR FUTURES INDEX DXY: NOV. 19, 4:14PM EST: 78.43  Down 0.19 (0.24%)

U.S. Stocks Edge Up - Dollar Edges Down

US stocks closed up Friday, after spending most of the day in the red or flat ahead of Friday's close.

The Dow Jones Industrial Average closed up 22.3 points, or 0.2%, at 11204 on Friday.

The Nasdaq Composite added 3.72, or 0.2%, to 2518 on Friday and edged down 0.004% for the week. The Standard & Poor's 500-stock index rose 3.04, or 0.25% to 1200, led by its materials and consumer-discretionary stocks. The S&P 500 edged up 0.04% over the week.  

In early morning trades, the dollar edged up from Thursday's close putting pressure on equities and commodities. The euro climbed to $1.3668. The U.S. Dollar Index, tracking the U.S. currency against a basket of six others, shed 0.1%.

Also influencing today's market is that it is options expiration day.  China's push to contain its inflation also is having some influence.

Stocks show modest losses after another round of tightening from China raises investors' concerns over the potential impact on demand for commodities.

The Dow Jones Industrial Average shed 12 points, or 0.1%, to 11170. The Nasdaq Composite lost 0.1% to 2512. The Standard & Poor's 500 index dropped 0.2% to 1194.

U.S. BANK FAILURES:

The FDIC Closed Banks Friday After Hours
The U.S. Government FDIC regulators closed additional Banks late Friday and seized all assets.The Federal Deposit Insurance Corp announced it closed additional banks. Friday's announcement brings the total failures for 2010 to 149. 

First Banking Center, Burlington, WI., November 19, 2010
Gulf State Community Bank, Carrabelle, FL., November 19, 2010
Allegiance Bank of North America, Bala Cynwyd, PA., Nov. 19, 2010


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



EQUITIES:
Among stocks in focus, Dell climbed 1.7%. The computer giant's fiscal third-quarter earnings topped Wall Street expectations. Commodity-related companies weighed on the measure, with Alcoa off 1.5%, Chevron down 1% and Exxon Mobil off 0.9%. Walt Disney was also weak, off 1.7%, while Bank of America fell 1.3%, Alcoa are each off 2% to lead DJIA decliners, while Bank of America dips more than 1%. Walt Disney was one of the worst performers with a 1.9% drop. Verizon Communications was also weak, off 0.8%. General Electric climbed 1% while DuPont rose 0.8%.  Boston Scientific (BSX) targets a 2% to 3% sales growth after it announced that it is buying a valve company Sadra Medical Inc. BSX shares are up 2% to $6.95.

Del Monte Foods shares hit an all-time high after the Financial Times reports the food company is in advanced takeover talks with private-equity firm KKR. Shares are up 9%.

AnnTaylor Stores jumped 8%. The women's apparel retailer's fiscal third-quarter profit soared absent prior-year write-downs as better-than-expected same-store sales growth boosted its top line. The company also boosted its sales target for the year.

General Motors fell 1.5% to $33.83, giving back some of its gains made Thursday when the auto company returned to the public market and nearing its $33 IPO price.

HJ HEINZ 2Q NET RISES 9%
Maker of Heinz ketchup and Ore-Ida frozen potatoes posts fiscal 2Q profit of $251.4 million, or 78c a share, as stronger margins help profit come in a couple of cents above estimates. Revenue dips slightly to $2.6 billion. Shares edge lower.

CRUDE OIL:
U.S. Crude Oil: $ 81.30 per barrel

OIL FUTURES: Nymex Crude Closes Down 20c At $81.65/Bbl

This morning, the December crude contract on the New York Mercantile Exchange fell 51 cents to US$81.34 a barrel.

NATURAL GAS:
Natural Gas: $4.14
US GAS:Future Settle Up 3.92% At $4.164

PRECIOUS METALS:
Gold:  $1,353.
Silver:$ 27.52

The most actively traded contract, for December delivery, settled down 0.1%, or 70 cents, at $1,352.30 per troy ounce on the Comex division of the New York Mercantile Exchange.

Engelhard Corp's base price for industrial gold bullion was $1345.43 per troy ounce, down $7.77 from previous. It's selling price for gold in fabricated form was $1446.34, down $8.35.

Handy & Harman's base price for gold was $1342.50 per troy ounce, down $7.75. The fabricated form price was $1449.90, down $8.37.

The spot palladium market has rallied almost 12% higher over the past two days, spurred by fears that Russia, the world's largest producer, has exhausted state stockpiles of the precious metal.


U.S. TREASURYS/BONDS:
Treasurys were mixed, with the two-year note down, lifting its yield to 0.50%, while demand for the 10-year note rose, pushing its yield down to 2.89%. 

3 Month     0.11%     -0.01 (-8.33%)
6 Month     0.17%     -0.01 (-5.56%)
2 Year     0.51%     0.00 (0.00%)
5 Year     1.51%     -0.01 (-0.66%)
10 Year     2.87%     -0.03 (-1.03%)
30 Year     4.24%     -0.02 (-0.47%)

TRANS ASIAN PACIFIC TRADE PACK

The trade zone would bring together four countries that already have free-trade deals with the U.S.;Singapore, Chile, Australia and Peru--along with Malaysia, New Zealand, Brunei and Vietnam.

The nine countries working toward a free trade pact in the Asia-Pacific are preparing to start negotiations early next month, a senior U.S. trade official said Friday.

Negotiations on the Trans-Pacific Partnership, which recently expanded with the addition of Malaysia, has made "solid progress" going into the fourth round of discussions in New Zealand next month, said Barbara Weisel, assistant U.S. trade representative for Southeast Asia and the Pacific.

"We're looking to begin negotiating text in the next round in December," Weisel said during a public hearing on Malaysia's entry in the talks. She encouraged business and other groups speaking at hearing to move quickly to provide input due to the fast pace of negotiations.

New Zealand Prime Minister John Key said over the weekend he hopes to wrap up talks by the time the U.S. hosts the next Asia-Pacific Economic Cooperation summit in Honolulu a year from now.

"Malaysia's participation demonstrates that we can successfully integrate new countries into the negotiations and advances our goal of broadening the agreement to eventually include countries across the Asia Pacific," said Weisel.

Japan has also announced plans to start consultations on joining the talks, though it doesn't plan to make a decision until June.



____________________________________________________________
Canadian Market:

TORONTO STOCKS MODEST GAIN

At noon. the S&P/TSX Composite Index was up 29.17 points, or 0.2%, at 12899.18. Declines led advances 693 to 685. Trading volume was 190.1 million shares.

In early morning trades, the Toronto stock market was slightly lower Friday as commodity prices backed away in the wake of moves by China to curb inflation. The S&P/TSX composite index dipped 6.9 points to 12,863.1 while the TSX Venture Exchange was off 0.79 of a point to 1,986.84.

Falling prices for oil and metals helped weaken the Canadian dollar against the greenback, losing 0.07 of a cent to 97.83 cents US.

The base metals sector lost one per cent as the December copper contract on the Nymex lost two cents to US$3.81 a pound. Quadra FNX mining declined 22 cents to $14.58.

Gold stocks were also lower as December gold lost $7.50 to US$1,345.50 an ounce. Eldorado Gold (TSX:ELD) faded 15 cents to $17.29. The utilities sector was the only positive group with Fortis Inc. (TSX:FTS) ahead 18 cents to $31.33.

Toronto Indexes, Volume; 4:00 PM EST Composite Up 86.32

 S&P/TSX Composite   12956.33  up   86.32  or 0.7%
 S&P/TSX 60 Index      743.22  up    5.63  or 0.8%
 Financials            182.76  up    1.53  or 0.8%
 Materials             419.55  up    1.65  or 0.4%
 Energy                301.64  up    3.08  or 1.0%
 Industrials           107.61  off   0.09  or 0.1%
 IT                     29.99  up    0.21  or 0.7%

   Volume          Friday    Thursday
   3-4:15             85.1M      88.6M
   9:30-4:15         429.5M     509.3M

____________________________________________________________
South American Markets:

BRAZIL:

Brazil Stocks Rise

Brazilian stocks closed slightly higher Friday after a volatile trading day marked by uncertainties over Chinese economic policy and who will form part of Brazil's economic team next year.

Brazil's benchmark Ibovespa index closed at 70897 points, just 0.16% higher than Thursday's close, after spending much of the day in negative territory. Volume was moderate at 5.04 billion Brazilian reais ($2.95 billion).

Trading was also subdued amid signs that an accord could be delayed on the European Union and International Monetary Fund's planned aid package, which could reach as much as 100 billion euros for debt-ridden Ireland. Reports indicate the Irish government hasn't yet decided if it should accept the bail-out and may even be resisting the offer.

"Concerns over euro-zone periphery funding issues and Chinese policy tightening increased risk-asset volatility this week, marginally giving the U.S. dollar a boost but largely leaving core equities and commodity prices flat," said RBC Capital Markets in a note to clients.

In Brazil, markets are getting nervous over the continuing lack of clarity on who will be the top players in the country's economic team once President-elect Dilma Rousseff takes office Jan. 1, said Jankiel Santos, an economist with Espirito Santo Investment Bank.

"Whether Guido Mantega will continue as finance minister is up in the air. Nobody's confirmed this, and there's lots of uncertainty on whether Henrique Meirelles will continue at Central Bank," Santos said.

"People are worried about who the players will be, and whether the Central Bank alone will dictate interest rates or if they'll be other players in these decisions too," the economist said.

  Major blue-chips were mostly lower at the end of the trading day.

Petroleo Brasileiro SA (PBR, PETR4.BR) closed 0.54% lower at BRL25.76. Miner Vale SA (VALE, VALE5.BR) shed 0.08% to close at BRL49.41. Steel maker Cia Siderurgica Nacional fell 0.14% to BRL28.56, while Gerdau SA shed 1.14% to BRL21.60.Telephone services company Telemar SA (TMAR5.BR) fell 0.49% to BRL48.79. Food company BRF Foods (BRFS3.BR) fell 0.68% to BRL24.75.

Brazilian miner Vale SA (VALE, VALE5.BR), the world's biggest iron ore producer, said Firday that storm damage to equipment at its Tubarao port in Espirito Santo state, southeast Brazil, isn't affecting iron ore shipments. Steelmaker Cia Siderurgica Nacional SA (CSNA3.BR, SID) fell 0.28% to BRL28.52.  Airline Tam SA (TAMM4.BR)slipped 0.33% to BRL42.05. Vivo SA (VIVO4.BR), Brazil's biggest mobile phone operator, fell 0.90% to BRL52.75.  Aircraft manufacturer Empresa Brasileira de Aeronautica SA (ERJ, EMBR3.BR) or Embraer, was one of few stocks to rise in early trading, increasing 0.98% to BRL12.42.

ARGENTINA:

Argentina Oct Trade Soars

Surplus Seen At $925M

Argentina likely posted a trade surplus nearing $1 billion in October, as both imports and exports surged due to strong domestic demand and soaring grain shipments.

The median of three economists surveyed predicted a trade surplus of $925 million in October, down from the $1.1 billion surplus reported in September. The median forecast from economists and analysts polled by the Central Bank points to an October trade surplus of $986 million.

The national statistics agency Indec is slated to release the report on Tuesday at 2:00 p.m. EST.

According to Moody's Analytics economist Juan Pablo Fuentes, imports in October surged 48% on the year to $5.4 billion as economic growth surged. The government expects gross domestic product to soar 9% this year.

That brisk growth is fueling a sharp rise in domestic demand, which is outstripping local production capacity and spurring the sharp rise in imports, Fuentes said. The strong demand for imports is likely to continue through the rest of the year, he said.

Fuentes estimated that October's exports also jumped a solid 32% on the year to $6.3 billion. That steep gain is due mainly to rising commodity prices and the windfall from surprisingly large crops grown last season.

Argentina is one of the world's top grain exporters and soybeans make up its largest single export product. Strong demand from top trading partner Brazil for vehicles and vehicle parts also helped lift October's exports.

The trade balance has narrowed somewhat from last year, when it reached almost $17 billion. Over the last 12 months, Argentina's trade balance totaled $14 billion, as imports grew at a faster clip than exports.

CHILE:

Chile Stocks End Higher

Chile's blue-chip Ipsa index ended higher Friday as banks and retailers shot higher a day after third-quarter gross domestic product surged 7% on the year and as Chile's flagship carrier LAN Airlines (LFL, LAN.SN) jumped after expanding its fleet.

The Ipsa ended 0.7% higher at 4965.17, while market volume fell to 65.5 billion Chilean pesos ($136.5 million), versus CLP117.8 billion the previous session.

Retail holding giant Cencosud (CENCOSUD.SN) rose 1.9% to CLP3,495.70 and department store Ripley (RIPLEY.SN) grew 2.3% to CLP700.

The nation's largest lender, Banco Santander Chile (SAN, BSANTANDE.SN), increased 1.5% to CLP44.03, while the country's second-biggest bank, Banco de Chile (BCH, CHILE.SN), expanded 2% to CLP70.37.

LAN Airlines jumped 1.6% to CLP15,056.00 as the company said after the market closed Thursday it will rent three Boeing Co. (BA) 767-300F planes and purchase two 777F aircraft for its cargo fleet to keep up with growing regional demand.

MINING STRIKE CONTINUES
Chilean copper mine Dona Ines de Collahuasi entered its 15th day Friday, management is hopeful that some workers will break away from the strike and return to work.


MEXICO:

Mexico Stocks Mark New Record

Mexican stocks charged to a new record high Friday, spurred on by technical gains and advances in key blue chips.

The IPC index of leading Mexican shares advanced 279 points, or 0.8%, to 36601, a fresh closing high. Trading activity was moderate, with volume at 141.5 million shares worth 4.61 billion pesos ($376 million).

The IPC broke through its top level resistance of 36000 points in the previous session and managed to dismiss the unease in world markets Friday over the Chinese and European economies to chart additional gains.

"The expectation is that the IPC will continue recovering until it hits its historic intraday high of 36800 points and later continue to the objective we project for the end of the year, of 38000 points," Mexican research firm MetAnalisis said in a note.

Market bellwether and wireless operator America Movil's L shares rose 0.3% to MXN35.61 Friday as investors absorbed projections through 2014 that the company provided Thursday. Company officials expect capital expenditures to exceed $8 billion next year, well above the $6 billion capex guidance previously provided, with similar capex levels in each of the following three years.

America Movil predicted annual revenue growth through 2014 of 6% to 8% coupled with an expansion in operating cash flow of 7% to 9% a year. Those projections were in line with market expectations.

Among other active shares, cement group Cemex's CPOs rose 0.8% to MXN11.44, retailer Walmex's V shares jumped 2% to MXN34.64 and copper miner Grupo Mexico's B shares advanced 0.9% to MXN43.10.

Pharmaceuticals maker Genomma Lab said Friday it has agreed to pay MXN20 million for the license to make cold remedy brand XL-3, which had sales of MXN170 million in 2009. Genomma Lab B shares surged 3.6% to MXN27.84.

Infrastructure company Pinfra, meanwhile, said Friday it will pay MXN350 million for the right to operate the Tlaxcala-San Martin Texmelucan federal highway for 30 years. Pinfra shares rose 0.9% in thin trade to close at MXN44.46.

The Mexican peso also gained Friday, strengthening to 12.2625 per dollar compared with MXN12.2950 at the close Thursday.

____________________________________________________________
European Markets:

European Markets were mostly down Friday. Spot gold was trading higher in Europe Friday as the euro continued to gain against the U.S. dollar.  

LONDON:
FTSE 100                      5732.83  -35.88    -0.62%
FTSE 250                     10827.11  -17.31    -0.16%
DJ UK Smaller Companies        912.33   +0.38    +0.04%


London's FTSE 100 index lost 1.12 per cent in early trading.  FTSE 100 ends off lows but still firmly in the red as uncertainty about Ireland persists. Banks are under pressure, with Standard Chartered -2.7% and Lloyds Banking Group -1.6%. Pressure on the sector is exacerbated by news that Allied Irish Banks will likely need to raise EUR6.6B in capital.

U.K. Prime Minister David Cameron's enterprise adviser resigned Friday after making comments playing down the impact of the recession, Cameron's spokesman confirmed. Economists expect U.K. third quarter growth figures due in the week ahead to be unrevised from the preliminary estimate of 0.8% on a quarterly basis and 2.8% on the year.

BP PLC's (BP) Russian joint venture TNK-BP Ltd. plans to double shipments of the new ESPO crude to the Asia-Pacific region next year and hopes to send more crude to U.S. refiners, company executives said in an interview.

WPP PLC (WPP.LN), the advertising giant, said Friday its Young & Rubicam Brands unit has acquired all the assets of TAXI Canada, Inc. in Canada, together with all the share capital of TAXI's wholly-owned subsidiaries in the United States and the Netherlands.


AstraZeneca PLC (AZN) Friday confirmed it has hired JPMorgan Chase & Co. (JPM) to help it asses strategic options for Astra Tech, the drug maker's  Swedish unit that makes dental implants and medical devices.

Cable-television and Internet provider Virgin Media Inc. (VMED) hasn't seen any impact from BT Group PLC's (BT.A.LN) new fiber-based BT Infinity broadband service, Chief Financial Officer Eamonn O'Hare said Friday.


U.K. specialty pharmaceuticals company BTG PLC (BGC.LN) Friday said it has agreed to buy medical technology company Biocompatibles International PLC (BII.LN) in a GBP177.2 million cash and share deal it says will boost earnings and drive growth for the firm.

GERMANY:
Frankfurt's DAX was down 0.24 per cent
The merger of German auto makers Volkswagen and Porsche moves a step closer after Porsche says it will make disputed tax and interest payments on stock option transactions.

IRELAND:
Dublin Stocks: ISEQ Ends +0.8% At 2,797; Bank Of Ireland +12%

FRANCE:
The Paris CAC 40 declined 0.68 per cent.
European aircraft maker Airbus said Thursday it will seek compensation from Rolls-Royce PLC (RR.LN) after one of the British manufacturer's engines failed on an Airbus A380 superjumbo operated by Australian airline Qantas (QAN.AU).

____________________________________________________________
Asian Pacific Markets:

CHINA:

The Chinese government told banks they must hold more reserves after inflation in China shot up to a more than two-year high last month. Beijing and Hong Kong have unveiled a raft of measures to curb rising prices as both governments struggle to curb inflationary pressures in their economies.

China's central bank announced Friday that it will raise reserve requirements for local banks by 50 basis points from Nov. 29, to strengthen liquidity management and better control credit growth and inflationary pressures. 

There is also growing expectation China will raise key interest rates soon as part of the inflation fight and that raises concerns such moves could also slow China’s strong economic growth. There have been strong hopes pinned on China and other emerging countries to help pull Western countries out of recession.

Wuhan Iron & Steel Group, China's third-largest steel maker by output, is in discussions with Canada-listed Adriana Resources Inc. (ADI.V) on a stake in an iron-ore project in Quebec, the state-run China Daily reported Friday.

SOUTH KOREA:

Posco (005490.SE), the world's No. 3 steelmaker by output, is expanding its steel making capacity at home and abroad, saying Friday that it is building a hot-rolled coil plant in Korea to feed a cold-rolled coil plant in India.

South Korea's Public Procurement Service, a state agency that stockpiles strategic commodities, has purchased 200 metric tons of nickel at a $925/ton premium to the prevailing London Metal Exchange price, the agency said on its website Friday.

____________________________________________________________
WORLD FOREX CURRENCIES SNAPSHOT:
(FRIDAY, NOV 19, 2010 3:15 PM EST)

EUR/USD     1.3672     +0.0031 (0.23%)
USD/JPY     83.5000 -0.0100 (-0.01%)
GBP/USD     1.5974     -0.0072 (-0.45%)
CAD/USD     0.9821     +0.0013 (0.14%)
USD/HKD     7.7538     -0.0009 (-0.01%)
USD/CNY     6.6398     +0.0068 (0.10%)
AUD/USD     0.9856     -0.0045 (-0.45%)


WORLD MARKETS SNAPSHOT:
(FRIDAY, NOV 19, 2010 3:15 PM EST)
Shanghai     2,888.57     +23.11 (0.81%)
Nikkei 225     10,022.39     +8.76 (0.09%)
Hang Seng Index     23,605.71     -31.68 (-0.13%)
TSEC     8,306.12     +22.67 (0.27%)
FTSE 100     5,732.83     -35.88 (-0.62%)
DJ EURO STOXX 50     2,845.75     -9.48 (-0.33%)
CAC 40     3,860.16     -7.81 (-0.20%)
S&P TSX     12,941.11     +71.10 (0.55%)
S&P/ASX 200     4,629.20     -11.00 (-0.24%)
BSE Sensex     19,585.44     -345.20 (-1.73%)


____________________________________________________________
FRIDAY'S U.S. ECONOMIC CALENDAR:

5:15 a.m.
Fed Chmn Bernanke speaks about global rebalancing and participates in a panel discussion in Frankfurt, Germany

Market Note:

This Friday, is options expiration day. No significant economic indicators scheduled. 

____________________________________________________________
US STOCK MARKET SUMMARY, THUR., NOV. 18, 2010:

Stocks:
U.S. stocks soared as worries about Ireland's debt situation eased and General Motors made its long-awaited return to the Big Board. "The market's getting back what it lost over the last few days," said Steve Sosnick, equity risk manager at Timber Hill LLC/Interactive Brokers Group LLC. 

Treasurys:
Treasurys fell as an upbeat U.S. manufacturing report and hopes of a bailout for debt-ridden Ireland cut demand for relatively safe assets. The Treasury market also faces new government debt supply next week. The Treasury Department said Thursday it will sell $99 billion next week in notes maturing in two-, five- and seven-years.  

Forex:
The euro rose against the dollar Thursday as a rescue plan for fiscally impaired Ireland was thought to be imminent. But a much better-than-expected reading of business conditions in a key U.S. region helped the dollar recover some of its earlier losses against the euro. The data also sent the greenback higher against the yen, with the dollar rising above Y83.60 to levels not seen since Oct. 5.



© Copyright 1999-2010, Online Consultancy Network™. All Rights Reserved.