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 10, 2010, Wednesday)

European bourses opened unchanged and moving into the North American open are trading in minor positive territory. Basic materials has been the best performing sector due to strength in metals, especially Gold, followed by oil and gas sector as OPEC raising its 2010 world oil demand growth forecast provided strength to WTI crude futures. Fed’s extended period rate pledge has been criticised by some on the FOMC. Kansas City Fed President Thomas Hoenig voted against repeating the statement on January 27 because he wanted to keep “the broadest options possible”. Since then, Dallas Fed President Richard Fisher, James Bullard of St. Louis and the Philadelphia Fed’s Charles Plosser have also expressed reservations. (BBG)

US stock market daily report. (March 10, 2010, Wednesday)
OPEC or Organization of the Petroleum Exporting Countries announced today they were raising its 2010 forecast for global oil demand. In the report, the Organization said global oil demand rose to 85.24 million barrels per day, that's around 100,000 barrels per day higher than they forecasted in their February report. Also in today's report, the company said its suppliers will need to produce 28.9 million barrels of oil a day to meet this year's growing demand. In the February report they forecasted the demand would be around 190,000 barrels a day less than its current demand. OPEC said in the report that world oil demand is expected to grow by 900,000 barrels a day in 2010, they said its forecast is dependant on a prolonged global economic recovery. If the demand for oil continues to rise oil prices will also continue to rise. If both of these things happen higher gasoline prices are inevitable. Analysts predict seeing prices rise above the $3 a gallon mark moving into the summer months.In company news, J. Crew reported late Tuesday better than expected fourth-quarter profit of. $40.4 million, or 61 cents per share, a turnaround from last year's loss of 22 cents per share. Analysts had expected earnings of 46 cents per share. The report showed that sales rose 19% to $460.6 million, beating analysts forecasts of $443 million. Stocks were on the rise again today, trading volume was relatively low today but picked up slightly toward the end of the session. Commodity prices were mixed, gold fell $14.10 to $1,108.20 and crude oil rose $0.35 to $81.84. Bond prices fell, the yield on the benchmark 10-year note rose to 3.71 from 3.67 Tuesday.

US stock market opening report (March 09, 2010, Tuesday)

European bourses opened in minor positive territory, however soon lost strength following downbeat comments from Fitch on European sovereign ratings, which provided strength to the USD index due to the risk-averse trade that in turn weighed upon commodity-linked stocks. Comments from Fitch combined with those from Moody’s on possible downgrade of some British banks adversely affected the financial sector. Moving into the North American open, European equities are trading in negative territory with financials and basic materials being the worst performing sectors. Fitch said Greece bailout is too uncertain to factor into rating, and Portugal may be downgraded if consolidation is insufficient, however Greek contagion risk to Portugal and Spain is not as great as market believes. Fitch further said that among larger AAA sovereigns, urgency is greatest for UK, Spain and France, and it hasn’t seen credible exit strategies from most nations. Fitch also said that US is vulnerable to interest rate shocks, however there is no pressure on US credit rating in short-to-medium term. (BBG/RTRS)

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

On the cusp of job growth, 10 March 2010

Under the weather, 1 March 2010

Everything you wanted to know about the fed..., 23 February 2010

Further evidence of a recovery, 17 February 2010

The January jobs data, 9 February 2010

Stock Market News: All News | USA News | Indian News | China News

Stock Market Reports: All Stock Reports | USA Stock Market Reports | Indian Stock Market Reports | China Stock Market Reports | Russian Stock Market Reports

About Us | Privacy Policy | Contacts | Links