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Cisco Systems Inc. (CSCO:US) added 2.8 percent to $23.93, the biggest gain since Sept. 28. The largest maker of networking equipment reported profit that topped analysts’ estimates after the company curtailed hiring, shuttered offices and cut travel costs. Cisco also announced plans to expand its stock buyback program by $10 billion.
Childrens Place Retail Stores Inc. (PLCE:US) gained 7.4 percent, the most since July 30, to $34.79. The Secaucus, New Jersey-based chain of more than 900 shops said it will have third-quarter earnings between $1.35 and $1.39 a share, more than the average analyst estimate of 97 cents in a Bloomberg survey.
CareFusion Corp. (CFN:US) climbed 6.4 percent to $23.99, the highest price since it went public in August. The unit of Cardinal Health Inc. (CAH:US) spun off earlier this year reported adjusted first-quarter earnings of 39 cents a share, higher than the average analyst estimate of 26 cents in a Bloomberg survey. The company also raised its 2010 earnings forecast.
Bristow Group Inc. (BRS:US) surged 14 percent, the most since December, to $33.91. The provider of helicopter flights to offshore oil rigs reported earnings of 83 cents a share, 26 percent more than the average analyst estimate in a Bloomberg survey.
Ansys Inc. (ANSS:US) dropped 4.1 percent to $39.78, the lowest price since Oct. 7. The Canonsburg, Pennsylvania-based software developer projected fourth-quarter earnings between 47 and 49 cents per share, compared with the average analyst estimate of 49 cents in a Bloomberg survey.
American Eagle Outfitters Inc. (AEO:US) fell 12 percent, the most since June 2008, to $15.79. The Pittsburgh-based clothing retailer said it will have adjusted third-quarter earnings of no more than 21 cents per share, less than the average analyst estimate of 22 cents in a Bloomberg Survey.
Amdocs Ltd. (DOX:US) rose 9.3 percent, the most since April 2008, to $26.74. The world’s largest provider of billing and customer-service software reported earnings of 53 cents a share, 12 percent more than the average analyst estimate in a Bloomberg survey.
Ambac Financial Group Inc. (ABK:US) dropped 20 percent, the most since Aug. 7, to $1.20. The world’s second-largest bond insurer’s bond-insurance unit may be placed into receivership, leaving no value for company’s shareholders, as the minimum surplus it’s required to maintain dwindles, JPMorgan Chase & Co. said in a report today.
Aeropostale Inc. (ARO:US) tumbled 12 percent, the most since Dec. 1, to $33.47. The retailer with more than 900 locations said sales at U.S. stores open at least a year rose 3 percent in October, trailing the 14 percent average of analysts’ estimates compiled by Retail Metrics Inc.
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Dollar Bulls Must ‘Make Their Case,’ RBS’s Ruskin Says
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By Thomas R. Keene and Matt Townsend
Oct. 30 (Bloomberg) -- The dollar will extend its decline against its major counterparts next year until the Federal Reserve raises interest rates and reduces liquidity, according to Alan Ruskin, a currency strategist at RBS Securities Inc.
“The burden of proof is on the dollar bulls to make their case,” Ruskin, based in Stamford, Connecticut, said today in an interview on Bloomberg Radio. “Interest rates are so low in this country, and that’s propelling the U.S. toward this buildup of liquidity and using the dollar as the funding for much of the risk taking that’s taking place. That’s an ongoing story until the Federal Reserve starts withdrawing liquidity.”
The dollar declined to $1.5063 per euro on Oct. 26, the weakest level since August 2008, as evidence of a global economic recovery encouraged investors to sell the greenback to buy higher-yielding assets.
Ruskin said the dollar may strengthen through the end of the year and then weaken again beyond $1.50 per euro as investors focus on U.S. debt and the economy.
“There will be some risk position squaring before year- end,” Ruskin said. “In terms of longer-term fundamentals, most people are still on the short-dollar trade and believe the dollar has further to go.” A short position is a bet a currency will decline.
Fed policy makers repeated after their September meeting that they will keep the target rate for overnight lending in a range of zero to 0.25 percent for an “extended period.”
U.S. government borrowing will weigh on the dollar, according to Ruskin.
“The fiscal dynamics is a huge problem going forward,” he said. “You do need to grow your way out of the problem or make some hard choices on taxes or expenditures, none of which seems to be forthcoming from Washington.”
To contact the reporters on this story: Thomas R. Keene in New York tkeene@bloomberg.net; Matt Townsend in New York at mtownsend9@bloomberg.net
Last Updated: October 30, 2009 10:40 EDT
Dollar Rises Most Since April on Reduced Risk Demand Before Fed
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By Matt Townsend
Oct. 31 (Bloomberg) -- The dollar gained the most against the euro in six months on concern the global recovery may stall as economic stimulus winds down, reducing demand for higher- yielding assets funded by the greenback.
The pound touched the strongest level against the euro this week since September after gains in consumer confidence and mortgage approvals added to signs an economic recovery is taking hold in the U.K. The advance in the dollar before next’s week Federal Reserve announcement pared a fourth consecutive monthly loss, part of the longest losing streak since 2004.
“There’s this increasing recognition that much of the recovery we’ve seen so far was due to the temporary boost from various government programs,” said Michael Hart, a currency strategist at Citigroup Global Markets in London. “The optimism is kind of guarded at this point.”
The dollar advanced 2 percent to $1.4719 per euro yesterday, from $1.5008 on Oct. 23. It was the biggest gain since a 2.3 percent rise in the five days ended April 10. The dollar rallied from a 14-month low of $1.5063 on Oct. 26.
New Zealand’s dollar was the biggest loser against the greenback this week as the Reserve Bank signaled the target rate will stay at a record low of 2.5 percent until the second half of 2010. The kiwi tumbled 4.8 percent to 71.81 U.S. cents, from 75.45 a week earlier, the largest five-day drop since January.
The greenback gained 4.5 percent to 7.815 South African rand and 2.5 percent to 1.7612 Brazilian reais on speculation investors reduced carry trades, in which they sell the currency of a nation with low borrowing costs and buy assets where returns are higher.
Borrowing Costs
The Fed’s target lending rate of zero to 0.25 percent in the U.S. makes the dollar a favored target for investors seeking to fund such trades. The benchmark rates are 7 percent in South Africa, 8.75 percent in Brazil.
The euro decreased 4.2 percent to 132.61 yen, from 138.15, in the biggest drop since May. The dollar fell 2.1 percent to 90.09 yen, from 89.64. It touched a level lower than 90 yesterday for the first time since Oct. 15.
The Bank of Japan decided this week to end purchases of commercial paper and corporate bonds from lenders as scheduled, while extending unlimited collateral-backed lending through March 31. Policy makers kept the benchmark interest rate unchanged at 0.1 percent.
European Central Bank council member Axel Weber said that policy makers may scale back the bank’s “very long-term” loans to banks. The ECB will leave benchmark lending rates at a record low of 1 percent at its meeting on Nov. 5, according to all 34 economists in a Bloomberg survey.
Norwegian Rate
Norway’s central bank lifted its target lending rate by a quarter-percentage point to 1.5 percent this week, becoming the first in Europe to increase borrowing costs this year.
“Central banks are slowly withdrawing emergency stimulus,” Toronto-based strategists Shaun Osborne and Jacqui Douglas at TD Securities Inc. wrote in a research note to clients yesterday. That “perhaps accounts for the modest risk- averse undertone.”
The Dollar Index, which IntercontinentalExchange Inc. uses to track the greenback against the currencies of six major U.S. trading partners, gained 1.2 percent to 76.39. It was the biggest increase since June.
Investors remained skeptical that the Federal Reserve will increase borrowing costs early next year. Fed funds futures indicated a 29 percent chance that the central bank will lift its target lending rate from a range of zero to 0.25 percent at its March meeting, compared with a 41 percent chance last week.
Fed’s Statement
The Fed completed its $300 billion Treasury purchase program, ending the seven-month buying spree that helped stabilize the housing market and capped increases in borrowing costs. It will release its monetary policy statement on Nov. 4.
Sterling rallied 2.8 percent to 89.44 pence per euro as reports showed U.K. mortgage approvals climbed in September to the highest level in 18 months and consumer confidence rose. The pound touched 89.12 on Oct. 29, the strongest level since Sept. 17. Britain’s currency gained 0.9 percent to $1.6452.
The Bank of England will probably decide next week to increase its bond-purchase program as the U.K. lags behind other industrialized countries in shaking off its longest recession on record.
Policy makers may expand the plan to 225 billion pounds ($372 billion) on Nov. 5 after this week reaching the current 175 billion pound limit for buying bonds with newly created money, the median estimate of 48 economists in a Bloomberg News survey showed.
Bank of England
The central bank will leave the benchmark rate at a record low of 0.5 percent, according to all 60 economists in a separate Bloomberg survey.
Employers in the U.S. cut fewer jobs this month than in September while the unemployment rate rose to 9.9 percent in October, according to the median forecast in a survey of economists. The Labor Department’s report is due Nov. 6.
The U.S. currency slid 0.5 percent versus the euro in October in its fourth monthly decline, the longest losing streak since December 2004, as investors piled onto carry trades. The yen weakened 0.4 percent this month versus the dollar. The yen slid 1 percent versus the euro in October.
“Everyone is thinking about the exit strategy,” said Hidetoshi Yanagihara, senior currency trader at Mizuho Corporate Bank in New York. “Once they stop these stimulus measures, we are not going to see excessive money awash in the market. Carry trade may be arrested in the near future.”
To contact the reporter on this story: Matt Townsend in New York at mtownsend9@bloomberg.net
Last Updated: October 31, 2009 00:00 EDT
Goldcorp Founder Sees Gold at $2,000 by End of 2010 (Update1)
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By Doug Alexander and Rob Delaney
Oct. 30 (Bloomberg) -- Rob McEwen, founder of Goldcorp Inc., said the recent decline in gold’s price is temporary and that the metal will reach $2,000 an ounce by the end of 2010.
“There is a seasonal low in this part of the year; I wouldn’t be disturbed by it,” McEwen said. “I think by the end of 2010 we will be at $2,000; by the end of this cycle it will be at $5,000.” He gave no timeframe for the end of the cycle.
Gold has dropped about 1.9 percent this week as the U.S. Dollar Index, which values the currency against six major counterparts, has climbed about 1.2 percent. Gold futures for December delivery fell $10.40, or 1 percent, to $1,036.70 an ounce at 12:55 p.m. on the Comex division of the New York Mercantile Exchange.
McEwen, who founded what is now the world’s second-largest gold producer by market value, is chief executive officer of precious metal explorers U.S. Gold Corp., Minera Andes Inc. and Lexam Explorations Inc. McEwen owns $44 million of U.S. Gold shares and C$56 million ($51.8 million) of Minera Andes, according to Bloomberg data.
Barrick Gold Corp. is the world’s largest producer by market value.
To contact the reporters on this story: Doug Alexander in Toronto at dalexander3@bloomberg.net; Robert Delaney in Toronto at robdelaney@bloomberg.net
Last Updated: October 30, 2009 12:57 EDT
Copper Futures Post Weekly Drop on Concern Demand May Stall
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By Millie Munshi and Chanyaporn Chanjaroen
Oct. 30 (Bloomberg) -- Copper prices fell, dropping 2.6 percent for the week, on concern that the economic recovery may slow, damping demand for the metal.
Spending by U.S. consumers slid in September from August, the first decline in five months, the Commerce Department said today. New-home sales dropped last month and consumer confidence slipped in October, reports showed this week. Yesterday, BHP Billiton Ltd., the world’s biggest mining company, said raw- material use is easing in China, the largest copper user.
“There is no real improvement in the demand situation,” said Gijsbert Groenewegen, a partner at New York-based hedge fund Gold Arrow Capital Management. “We’ve seen no recovery in construction in the U.S., and now China looks like it will be slowing down its buying. Even BHP is asking, ‘How sustainable is this?’”
Copper futures for December delivery dropped 7.4 cents, or 2.4 percent, to $2.9555 a pound on the New York Mercantile Exchange’s Comex division. The weekly decline halted three straight gains.
“China has been the major, and sometimes only, source of demand for commodities in the second half of 2009,” said Marius Kloppers, BHP’s chief executive officer. “Restocking in China is now essentially complete, and we are seeing signs of a pullback in demand.”
Shanghai Stockpiles
Copper prices have doubled this year as imports surged in China, the world’s biggest metal user. Stockpiles in warehouses monitored by the Shanghai Futures Exchange have climbed from a 2009 low in April, signaling consumption may be slowing. In the week through yesterday, inventories rose 7.1 percent to 102,835 metric tons, within 2 percent of last month’s a five-year high.
In New York, the most-active copper contract gained 4.8 percent this month, the ninth increase since December.
“Copper around this level is still high,” said David Wilson, an analyst at Societe Generale SA in London.
The dollar’s rally eroded the appeal of most commodities as alternative investments, helping to push the metal lower today. The Reuters/Jefferies CRB Index of 19 raw materials slid as much as 2.2 percent, heading for the steepest drop in almost six weeks, with declines in all the components except cotton.
The greenback surged toward its biggest weekly gain since June against a basket of six major currencies.
Copper climbed this month on speculation that reviving economic growth will boost industrial and construction demand.
Asian economies are “rebounding fast” from the global recession, the International Monetary Fund said yesterday. The U.S. economy, the world’s biggest, expanded in the third quarter for the first time since June 2008, government data showed yesterday. The U.S. is the world’s second-largest copper user.
On the London Metal Exchange, copper for delivery in three months dropped $184.50, or 2.8 percent, to $6,480 a ton ($2.94 a pound). Nickel, aluminum, lead, zinc and tin prices also declined in LME trading.
To contact the reporter on this story: Chanyaporn Chanjaroen in London at cchanjroen@bloomberg.netMillie Munshi in New York at mmunshi@bloomberg.net.
Last Updated: October 30, 2009 16:09 EDT
Gold May Fall as Stronger Dollar Curbs Demand, Survey Shows
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By Nicholas Larkin
Oct. 30 (Bloomberg) -- Gold may decline as a stronger dollar curbs demand for the metal as an alternative investment, a survey showed.
Thirteen of 23 traders, investors and analysts surveyed by Bloomberg, or 57 percent, said bullion would fall next week. Seven forecast higher prices and three were neutral. Gold for delivery in December was down 0.8 percent this week at $1,047.50 an ounce by 12:55 p.m. yesterday in New York, heading for the first weekly decline in five weeks.
The U.S. Dollar Index, a six-currency gauge of the greenback’s value, has gained 1.3 percent from a 14-month low on Oct. 21. Gold typically moves inversely to the U.S. currency. The metal rose to a record $1,072 on Oct. 14.
“High-yielding currencies are still struggling,” said Walter de Wet, a London-based Standard Bank Ltd. analyst. “This indicates a struggle for commodity prices. Therefore, we foresee downside in precious metals prices.”
The weekly gold survey has forecast prices accurately in 165 of 285 weeks, or 58 percent of the time.
This week’s survey results: Bullish: 7, Bearish: 13, Neutral: 3
To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net
Last Updated: October 29, 2009 20:01 EDT
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Delta Lloyd $1.6 Billion IPO Said to Draw Orders for Double Stock on Offer Delta Lloyd NV, Aviva Plc’s Dutch insurance unit, attracted orders for about twice the shares on sale in its 1.1 billion-euro ($1.6 billion) initial public offering, three people familiar with the transaction said.
U.K. Stocks Post Largest Weekly Decline Since March; Fresnillo Retreats U.K. stocks declined, posting the worst week since a rally started in March, as concern mounted that gains may have outpaced prospects for earnings growth.
European Stocks Post Biggest Weekly Drop Since July; ING Groep Leads Slump European stocks fell the most since July amid concern the European Union may impose restrictions on financial companies in return for state aid and speculation a near eight-month rally has outpaced economic-growth prospects.
Saudi Arabian Shares Drop Most in Four Months on Oil, U.S. Consumer Data Saudi shares dropped the most in four months, led by Saudi Basic Industries Corp. and Al Rajhi Bank, after oil declined yesterday and U.S. consumer data raised concern the global recovery may be protracted.
Vanguard Doubles Emerging-Market Fund Fee After Brazil Imposes Foreign Tax Vanguard Group Inc., the largest U.S. manager of stock and bond funds, doubled the purchase fee on an emerging-market stock mutual fund after Brazil imposed a 2 percent tax on equity purchases.
NYSE Euronext Shares Slide After Profit Drops 28% on Decline in Trading NYSE Euronext, the world’s largest owner of stock exchanges, slid the most in four months in New York after reporting a 28 percent decline in third-quarter profit as revenue from equity trading dropped.
AEI Postpones Equity Offering After Record Low Returns for IPO Investors The market for initial public offerings, hurt by the worst returns in at least 14 years, suffered another setback after AEI pulled its sale.
Brazil Stocks Drop, Cap Worst Week in Eight Months, on Oil Slump, Embraer Brazilian stocks fell, capping the biggest weekly drop in eight months, as commodities declined and Empresa Brasileira de Aeronautica SA and Tim Participacoes SA reported third-quarter results that disappointed investors.
Canada Stocks Fall, Led by Oil Producers, as Economy Unexpectedly Shrinks Canadian stocks fell and completed their first monthly decline since February, led by commodities companies, as U.S. consumer spending and confidence weakened and Canada’s gross domestic product unexpectedly shrank.
Bank of America, CIT Group, Citigroup, Wright Medical: U.S. Equity Movers Shares of the following companies had unusual moves in U.S. trading. Stock symbols are in parentheses and prices are as of 4 p.m. in New York.
U.S. Stocks Post Biggest Weekly Drop Since May on Concern Recovery Falters U.S. stocks fell the most since May this week as new home sales that missed forecasts and a drop in consumer spending added to speculation that the seven-month rally outpaced prospects for an economic recovery.
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I got this one on radar....The RSI is in the power zone..Looking forward to Monday here..:)
I gotta several that needs that...lol.
SMVI...looking for an EOD push here..imo..Let's see.
SMVI...looking for an EOD push here..imo..Let's see.
lol...gettin close to Halloween and the markets are going crazy.
SMVI video for today...down over 50% thus far today on 17.9 million volume.
Days like this you gotta have some humor..lol.
SMVI video for today...down over 50% thus far today on 17.9 million volume.
Days like this you gotta have some humor..lol.
SMVI..needs some love...lol...
SMVI..needs some love...lol...
SMVI...down 58.6% here...which way will it go ...lol..
SMVI...is moooooving....UP here....