ADVFN Newsdesk - Stocks Showing A Lack Of Direction In Early Trading

ADVFN III World Daily Markets Bulletin   Daily world financial news Supplied by advfn.com         Friday 27 Jan 2012 10:55:08     Santa Monica Wiz Kid Makes $87 Million Trading Stocks Using his same strategy you can get crazy rich – fast!  Click Here and Find Out How! US Market Report Stocks Showing A Lack Of Direction In Early Trading Stocks are turning in a lackluster performance in early trading on Friday as traders digest a report on U.S. economic growth in the final three months of last year. The major averages have turned mixed on the day after moving modestly lower at the open. Currently, the major averages remain on opposite sides of the unchanged line. While the Nasdaq is up 3.32 points or 0.1 percent at 2,808.60, the Dow is down 38.98 points or 0.3 percent at 12,695.65 and the S&P 500 is down 1.81 points or 0.1 percent at 1,316.62. The markets initially reacted negatively to a report from the Commerce Department showing somewhat weaker than expected fourth quarter GDP growth, although selling pressure waned not long after the start of trading. The report showed that GDP increased at an annual rate of 2.8 percent in the fourth quarter compared to the 1.8 percent growth seen in the third quarter. While GDP growth showed a notable acceleration compared to the previous quarter, economists had been expecting an increase of about 3.1 percent. Economists were also disappointed that much of the GDP growth in the fourth quarter was due to a positive contribution from private inventory investment Paul Ashworth, Chief U.S. Economist at Capital Economics, said, "The much bigger than expected positive contribution from inventories in Q4 leaves us even more convinced that growth will slow again to a sub-2% rate in Q1 of this year." Nonetheless, most of the major sectors are showing only modest moves in early trading, although significant weakness is visible among networking stocks. Juniper Networks (JNPR) is posting a substantial loss after providing disappointing first quarter guidance. On the other hand, oil service and chemical stocks have moved to the upside, with Eastman Chemical (EMN) leading the chemical sector higher after forecasting better than expected first quarter earnings. Eastman also announced an agreement to acquire Solutia (SOA) for about $3.4 billion. In overseas trading, stock markets across the Asia-Pacific region closed mostly higher on Friday, although Japan's Nikkei 225 Index bucked the uptrend and edged down by 0.1 percent. Hong Kong's Hang Seng Index rose by 0.3 percent, while Australia's All Ordinaries Index closed up by 0.5 percent. Meanwhile, the major European markets have moved to the downside on the day. While the German DAX Index has dipped by 0.3 percent, the U.K.'s FTSE 100 Index has fallen by 0.9 percent, and the French CAC 40 Index has slumped by 1.1 percent. In the bond market, treasuries have shown a lack of direction over the course of the morning. The yield on the benchmark ten-year note is down by less than a basis point at 1.93 percent. Trade Free for 60 Days at ETRADE Securities Click here Canadian Market Report CADUSD Oil Gold Allbanc Please click on the images to view our interactive charts TSX Poised For Mixed Open Canadian stocks may edge up at open Friday amid mixed commodities and varied cues from the global equity markets. While most Asian markets ended higher overnight, European shares were struggling to hold on to their recent gains even as Greece continuing its negotiations with its private creditors. On Thursday, the S&P/TSX Composite Index shed 74.89 points or 0.60 percent to 12,464.32. The price of crude oil was steady above $100, with crude for March adding $0.37 to $100.07 a barrel. The price of gold was ticking lower Friday morning after gaining nearly 4 percent in the past two sessions. Gold for February edged down $4.10 to $1,722.60 an ounce. In corporate news from Canada, electronics products company Celestica Inc.(CLS.TO) reported that its fourth quarter IFRS net earnings rose to $69.2 million or $0.32 per share, from $38.4 million or $0.17 per share last year. Adjusted net earnings were $71.1 million or $0.33 per share, compared to $61.3 million or $0.27 per share for the same period last year. Analysts were expecting the company to report earnings of $0.25 per share. For the first quarter, the company guides revenue to be in the range of $1.6 billion to $1.7 billion and adjusted net earnings per share to be in the range of $0.18 to $0.24. Analysts expect the company to report earnings of $0.23 per share for the next quarter.   CIBC reported fiscal 2011 net income of C$2.87 billion, or C$6.71 per share under IRFS standard. Adjusted earnings were restated as C$7.57 per share. In what could be a positive news for the ailing smart phone maker Research In Motion, V. Prem Watsa - who has been appointed to the board this week - raised his stake in the company to 5.12 percent from the earlier 2.25 percent to become the fourth-largest shareholder in the company. Watsa, who heads Fairfax Financial Holdings Ltd, is well known for his turnaround capabilities . In economic news from south of the border, the U.S. Commerce Department said the economy grew at 2.8 percent the final quarter of 2011, up from the 1.8 percent growth posted for the third quarter. But the growth fell short of the 3.1 percent projected by most economists in what may be a sign that economic recovery is still stagnant. From the euro zone, Germany's import price inflation eased sharply and for a third consecutive month in December, data from the Federal Statistical Office showed. Inflation eased to 3.9 percent in December from 6 percent in November and 6.8 percent in October. Economists expected the rate to be 3.8 percent. Trade Free for 60 Days at ETRADE Securities Click here European Market Report FTSE 100 Euronext Dax perf CAC 40 Please click on the images to view our interactive charts French Market Turns Positive The French market turned positive in afternoon trading Friday, as talks continue between Greece and its private bondholders, ahead of the key GDP data from the U.S. The major Asian markets closed mixed, while the U.S. index futures are higher. A deal on restructuring Greece's debt is a pre-condition for securing more aid from its international creditors ahead of March, when the country must repay 14.5 billion euros of maturing debt. The Euro Stoxx 50 index of eurozone bluechip stocks is falling 0.01 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is losing 0.06 percent. The CAC 40 is currently advancing 0.11 percent, recovering from early weakness. BNP Paribas and Credit Agricole are declining 2.8 percent each. Societe Generale is falling 1.9 percent. JPMorgan cut BNP Paribas to "Neutral" from "Overweight." Peugeot is losing 1 percent and Renault is falling 0.3 percent. GDF Suez is flat. UBS removed the stock from its "Most Preferred List." EADS is gaining 1.9 percent. Exane BNP raised the stock to "Outperform" from "Underperform." Barclays reduced Carrefour to "Underweight" from "Equalweight." According to media reports, the supermarket group is close to firing its Chief Executive Officer Lars Olofsson, and is in talks to replace him with Georges Plassat. The stock is up 2.2 percent. Elsewhere in Europe, the German DAX is adding 0.31 percent and Switzerland's SMI is gaining 0.02 percent.. The UK's FTSE 100 is falling 0.12 percent. In economic news, Germany's import price inflation eased sharply and for a third consecutive month in December. Data from the Federal Statistical Office showed that inflation eased to 3.9 percent in December from 6 percent in November and 6.8 percent in October. Economists expected the rate to be 3.8 percent. In the commodity space, crude for March delivery is adding $0.44 to $100.14 per barrel, while February gold is losing $3.1 to $1723.6 a troy ounce. Nobody analyzes Stocks like VectorVest. No Hunches.  No Guesswork.  No Opinions.   Analyze Any Stock Free! Click Here Asia Market Report Bull Run Continues; Sensex Up 0.9 Percent Asian stocks swung between gains and losses before ending mostly higher on Friday as the Fed's decision to provide some policy certainty outweighed concerns surrounding Greece's debt talks. The markets in China and Taiwan remain closed for the Lunar New Year holidays. Former U.S. Federal Reserve Governor Kevin Warsh said the dovish stance of the central bank and recent policy activism may adversely affect the U.S. economic expansion in the long run. The Fed's latest pledge to keep interest rates near zero through 2014 isn't seen as a "guarantee" that "reacquaints consumers with bad habits, " Warsh reportedly said in a speech in Stanford, California. Tokyo stocks erased initial gains as weak earnings results clouded the earnings outlook for Japanese companies. The benchmark Nikkei eased 0.1 percent while the broader Topix index shed half a percent. NEC Corp. plunged 7.1 percent after the electronics giant forecast its third annual loss in four years and unveiled plans to layoff nearly 10 percent of its workforce. Nintendo tumbled 4.1 percent after the videogame maker reported a sharp drop in quarterly earnings and more than tripled its full-year loss forecast. Nippon Steel fell 3.5 percent after the steelmaker said it swung to a loss in the third quarter, weighed down by a hefty special loss related to stagnant stock market conditions and a marginal growth in revenue. Elpida Memory slumped 7.1 percent on a report that it will likely post an operating loss of 90 billion yen for the April to December period. Commodity-related stocks advanced, with Inpex, Itochu and Marubeni gaining around 3 percent each after commodities rallied overnight in the wake of Fed's pledge to keep interest rates near zero at least until the middle of 2013. Australian shares posted modest gains, as traders returning from a holiday the day before lapped up miners, encouraged by strong gains in commodity prices overnight. The benchmark S&P/ASX 200 closed 0.4 percent higher while the broader All Ordinaries index advanced half a percent. Among the major miners, BHP Billiton rose 0.6 percent, Rio Tinto gained 2.1 percent, Newcrest rallied 3.8 percent and Fortescue soared 4.1 percent. The big four banks closed mixed, with ANZ and Commonwealth rising around 0.3 percent each, while NAB shed half a percent and Westpac edged down marginally. Woodside Petroleum, the nation's biggest oil and gas producer, advanced 1.5 percent on reports it is considering selling part of it stake in the $40 billion Browse liquefied natural gas project in Western Australia. Retailers Wesfarmer and Woolworths ended down between 0.2 percent and 0.6 percent. Reliance Power also closed on a flat note after the company inked an agreement with RWE Power International of Germany to help double coal production at its captive mines of the Tilaiya ultra-mega power project. Ranbaxy slumped 6.6 percent on brokerage downgrades after the drug maker agreed to make significant changes in its manufacturing facilities in India and the U.S. as part of a settlement that ends wide-ranging investigations against the company by the U.S. regulatory authorities. Coal India eased 0.7 percent on reports that it will announce the new set of coal prices this month. Canara Bank tumbled 3.2 percent on posting disappointing Q3 results. NTPC shed half a percent. The state-run power major said it has received environmental clearance for its meta thermal power project at Kudgi in Bijapur district of Karnataka. On the global front, other Asian markets swung between gains and losses before ending mostly higher on Friday as the Fed's decision to provide some policy certainty outweighed concerns surrounding Greece's debt talks. The markets in China and Taiwan were closed for the Lunar New Year holidays. Trade Free for 60 Days at ETRADE Securities Click here Forex Top Story USDCAD USDEUR USDGBP USDJPY Please click on the images to view our interactive charts Dollar Slides As Greece Nears Sovereign Debt Deal The dollar was back on defense Friday morning, hurt by talk that Greece was close to a deal on a voluntary restructuring of its sovereign debt. Olli Rehn, the vice president of the European Commission, said that a deal should be announced today or over the weekend at the latest. The dollar dropped to $1.3150 versus the euro, edging back toward a monthly low near $1.32. It's been a rough week for the dollar, which was sitting at a 17-month high of $1.2623 only 11 days ago. The buck slid to $1.5712 versus the sterling, down fractionally from last night. Weakness was more pronounced versus the yen, with the dollar dropping to Y76.90 from Y77.50. Trading on Friday is likely to be impacted by the release of the Commerce Department's initial report on U.S. fourth quarter GDP. Economists expect GDP to increase by about 3.1 percent compared to the 1.8 percent growth seen in the third quarter. Richmond Federal Reserve Bank President Jeffrey Lacker on Friday explained his dissenting vote at this week's FOMC meeting. "I dissented because I do not believe economic conditions are likely to warrant an exceptionally low federal funds rate for so long," Lacker said. "I expect that as economic expansion continues, even if only at a moderate pace, the federal funds rate will need to rise in order to prevent the emergence of inflationary pressures. This increase in interest rates is likely to be necessary before late 2014," he added. Yesterday, a report from the Labor Department showed that initial jobless claims rebounded by a little more than anticipated in the week ended January 21st. The Labor Department said jobless claims rose to 377,000 from the previous week's revised figure of 356,000, while economists had expected jobless claims to increase to 370,000.     To unsubscribe from this news bulletin or edit your mailing list settings click here. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +44 (0) 207 0700 961. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49