US stock market opening report (February 05, 2010, Friday)

Date: 5 February 2010
Contributed by Paddy Power Trader

By Paddy Power Trader

The Federal Reserve would consider reopening its program to support the mortgage market if interest rates spiked or the economy showed new weakness, Federal Reserve Bank of New York President William C. Dudley said in two new interviews. The Fed is buying USD 1.25 trillion in mortgage-backed securities in its effort to prop up the economy but has said it will end those purchases March 31. (Washington Post)

Indices And Company News

European bourses opened lower following continuing debt concerns regarding European countries including Greece, Portugal and Spain. The debt concerns promoted risk-averse trade and also led 5-year CDS for the affected countries to widen, and these financial concerns adversely affected the financial sector. Investors went for the safe-haven route resulting in strength in the USD index, which in turn weighed on commodities. Moving into the North American open, equities are trading into the negative territory, though sideways, ahead of economic figures from the US later in the session.

Forex

EUR remained under pressure across the board for most of the session due to ongoing uncertainty regarding the economic situation in the Eurozone countries such as Greece, Portugal and Spain. The worse than expected German Industrial Production data exerted further pressure on the EUR. Amid risk-averse trade, the USD index traded in the positive territory for the entire session so far. In other news, EUR/CHF registered strength following news of apparent intervention by the SNB selling CHF for EUR.

ECB’s Nowotny said that EUR/USD exchange rate is not worrying and the current EUR/USD rate is within normal range. (BBG) In other news, the Swiss National Bank was seen selling CHF for EUR in Asian trading time, three people who saw the action said. EUR/CHF was trading at 1.4727 (+0.83) at 0608 GMT. (RTRS) However, SNB spokesman Haymoz declined to comment on currency moves. (BBG)

Elsewhere, the CAD received a short term boost after much better than anticipated jobs data with the Canadian Net Change in Employment (Jan) coming in M/M at 43.0K vs. Exp. 15.0K (Prev. -2.6K), with the unemployment (Jan) rate M/M at 8.3% vs. Exp. 8.5% (Prev. 8.5%) (BBG)

Commodities

Heading into the North American open, despite volatile price action during opening hours, WTI crude futures are trading little changed as market participants await the release of the monthly jobs data out of the US.

Other oil related news:

- Bad weather cuts oil exports from Iraq’s Basra to 840,000 bpd on Friday, down from 1.57mln bpd. North Sea Brent crude oil loading set at 140,000 bpd in March.

- Norway central bank deputy governor says bank will cut forecasts for oil investments in monetary policy report.

In gas related news:

- BG Group says expects weak demand for gas in 2010 across the globe.

In geopolitical news:

- Russian foreign minister calls for Iran to engage “constructively” on nuclear program.

Latest USA Stock Market Reports

US stock market opening report (March 17, 2010, Wednesday)

European bourses opened higher and have continued their strength moving into the North American open, with industrials and basic materials being the best performing sectors. The weakness in the USD index provided strength to commodities that in turn has helped basic materials. Bund futures opened lower on the back of strength in equities and supply coming from Germany, however after good demand bund futures retraced losses and moving into the North American open they are trading unchanged.

US stock market daily report. (March 17, 2010, Wednesday)

U.S. and Japanese central banks announced Wednesday that they plan on keeping interest rates low, pushing the Dow to new highs for 2010. Dow Jones industrial average rose as high as 10,731.10 this morning, passing its previous high of 10,725.43 on January 19. Today marks the seventh straight day the Dow has risen and its longest stretch since December 28, 2009. After Tuesday's gains, trading at its highest level since October 2008, the Standard & Poor's 500 index almost reached 18-month highs and the Nasdaq Composite index hit 18-month highs. Another announcement today came from the Organization of Petroleum Exporting Countries this morning, the Organization agreed to keep its output levels unchanged, after the news was released stocks rose higher. Labor Department reported this morning that wholesale prices fell 0.6% in February; analysts expected a 0.3% drop. This month's decline was the largest fall since July 2009. Core Producer Price Index, excluding volatile food and energy prices, rose 0.1% last month. Analysts expected a 0.1% fall; over the past year PPI rose 4.4%. News came from the government that the Senate passed a $17.6 billion jobs bill Wednesday, it was then sent to President Obama who will then sign it. The bill includes tax breaks and funding for highway projects, it is seen as being the first in a series of bills designed to help lower the unemployment level. As of current, the unemployment rate is at 9.7%. At the end of the trading session, stocks finished with gains. Commodity prices saw mostly gains, gold rose $1.80 to $1,124.00 and crude oil rose $1.23 to $82.93.

US stock market opening report (March 16, 2010, Tuesday)

European bourses opened in positive territory and have maintained the strength moving into the North American open, with financials and basic materials as the best performing sectors. Increasing signs of a possible financial aid package for Greece from the Eurozone countries have provided strength to financials, whereas the weakness in the USD index has boosted commodities, which in turn has lifted basic materials. German government 10-year bund futures traded lower this morning due to supply coming from Ireland, light trading volumes, and strength in equities. Spreads on the 10yr Greek/Bund bond yields also continued to tighten another 6-7bps today below 300 post the Euro Group meeting.

USA Stocks Recommendations

Intel Corp. (Nasdaq:INTC) is poised to top estimates over the next two quarters, 8 September 2009
Intel Corp. (Nasdaq: INTC) is a cyclical company. That is, its stock does extremely well when the economy is ready to accelerate, and does poorly when the economy decelerates. So it’s no wonder that last year the stock fell more than 50% from the record-high of $27.78 a share it reached December 2007. However, the company has rallied more than 50% from its Feb. 23 low of $12.08 a share. It closed Friday at $19.64.

Verint Systems price target reduced, 7 December 2007
RBC Capital Markets reduced its price target on Verint Systems from $34 to $25.

Thomas Weisel upgraded Intel to "overweight", 6 December 2007
Thomas Weisel Partners analyst Kevin Cassidy lifted price target on Intel shares from $28 to $33 per share, citing an expected jump in computer demand during 2008.

USA News

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