This is so big i felt it needed to be posted in full here again!
Stock Market Update - Monday, October 18, 2010 Cautious Upward Trend
Stock Market Update
Monday, October 18, 2010
Latest US Economic News Headlines:
USA EQUITY INDEXES: (OCT. 18, 4:00 PM EDT)
Dow Jones 11,143.76 +80.98 (0.73%)
S&P 500 1,184.69 +8.50 (0.72%)
Nasdaq 2,480.66 +11.89 (0.48%)
Dow Jones CLOSING Averages: DJIA 11,143.69 UP 80.91
30 INDUS 11,143.69 UP 80.91 OR 0.73%
20 TRANSP 4,713.00 UP 18.22 OR 0.39%
15 UTILS 410.37 UP 4.14 OR 1.02%
65 STOCKS 3,867.45 UP 26.12 OR 0.68%
US Stock Trading Activity 4:00 p.m. EDT
Advancing Declining
NYSE 722,157,654 264,888,942
AMEX 8,382,403 7,216,773
NASDAQ 924,033,807 785,765,615
US DOLLAR FUTURES INDEX DXY: OCT 18, 4:05PM EDT: 76.96 0.03 (0.04%)
US COMMODITY PRICES: (OCT. 18, 4:00 PM EDT)
Crude Oil 83.20 + 0.14%
Natural Gas 3.42 - 0.38%
Gasoline 2.15 -
Heating Oil 2.28 -
Gold 1374.47 + 0.36%
Silver 24.46 + 0.70%
Copper 3.85 + 0.42%
US Stocks Gain; Financials Climb While Energy and Materials Rise Against the Dollar's Movements
US stocks climbed Monday, boosted by earnings from Citigroup and a measure of home-builder confidence that topped expectations.
In early trading, U.S. stocks wavered between small gains and losses Monday morning as investors were disappointed by weaker-than-expected industrial production data, but a strong earnings report from Citigroup lifted the financial sector. The US Dollar surrendered most of its earlier gains against rivals on U.S. data.
The Dow Jones Industrial Average was up 59 points. The Nasdaq Composite gained 1 point., while the Standard & Poor's 500 index edged up 3.6% to 1179. The materials and energy sectors led to the downside while financials gained. Oil futures near $83 a barrel on improving hopes for the broader economy.
Precious metals also increased as the dollar relaxed during the days trades.The most actively traded gold contract, for December delivery, was recently down during morning trades 0.4%, or $5.90, at $1,366.10 per troy ounce on the Comex division of the New York Mercantile Exchange..
The National Association of Home Builders (NAHB), said its housing market index rose three points to 16 in October, the first improvement in the index in five months. The index measures builder confidence for sales prospects of new, single-family homes.
The measure's October increase shows "the new-homes market is finally moving past the lull that occurred when the home buyer tax credits expired and economic growth stalled this summer," NAHB chief economist David Crowe said in a statement.
The NAHB report boosted expectations for other key housing-market data due Tuesday on housing starts and building permits. The housing construction will be slow to recover after the end of a home buyers' tax credit and as foreclosures flood the resale market. However US homebuilder confidence rose to four-month high in the report this morning.
The U.S. industrial production slipped 0.2% in September, reflecting a slowdown in what was a primary driver of growth out of the recession. Capacity utilization also slipped, falling slightly to 74.7% in September from a revised 74.8% the previous month. The numbers missed expectations, with economists having forecast a 0.2% rise in output and capacity utilization level of 74.8%.
However, the financial sector was boosted by a 2.8% increase in Citigroup shares. The bank's third-quarter earnings soared, with per-share profit coming in just above analysts' estimates as the amount the company set aside for credit losses fell.
Monday marks the start of the first "peak" week of the third-quarter reporting season, with 11 of the 30 Dow Jones Industrial Average components and more than a fifth of S&P 500 companies reporting. Other bellwethers due to report Monday include Apple and International Business Machines, both scheduled for release after the close. Ahead of those reports, Apple edged up 1% and IBM eked out a gain of 0.6%.
The dollar strengthened overnight for a second-straight day as traders shied away from bets that further easing by the Federal Reserve would continue to punish the U.S. currency. The dollar has weakened in recent weeks while stocks have rallied on expectations for the Fed to move to prop up the economy, but investors are now growing doubtful over how much longer the dollar can slump and stocks can climb on that expectation.
The U.S. Dollar Index, tracking the U.S. currency against a basket of six others, rose 0.2% in early trading. Treasurys also climbed, pushing the yield on the 10-year note down to 2.52%. Crude-oil futures edged higher while gold futures slipped.
Apple Earnings on Tap
Apple's shares stand at a record high after breaking through the $300 mark.
Analysts expect fourth-quarter earnings to showcase Apple's powerful one-two punch of the iPhone and the iPad, although some still question whether, with a plethora of rival products set to hit store shelves, Wall Street can justify Apple's stratospheric valuation.
The shares of the second largest corporation in the S&P 500 jumped more than 4 percent on Friday as anticipation mounted ahead of Monday's report.
In deal activity, St. Jude Medical agreed to acquire AGA Medical in a cash-and-stock deal valued at about $1.08 billion. St. Jude said the acquisition is "highly complementary" to the medical-device maker's heart and vascular business and will allow it to extend its product reach into new areas. The deal values AGA at a 41% premium to Friday's closing price and includes the assumption of about $225 million in AGA's debt. AGA shares surged 41% while St. Jude slipped 0.1%.
Northeast Utilities agreed to buy fellow New England utility company Nstar for $4.3 billion in stock, forming what the two companies said will be one of the country's biggest utilities. The terms value Nstar at a 1.9% premium to Friday's closing price. Northeast shed 0.1% while Nstar edged up 0.3%.
Among other stocks in focus, Halliburton fell 4.2%. The oilfield-services company's third-quarter profit doubled as its North American markets continued to rebound, but the earnings missed analysts' expectations.
COMPANIES READY BOND OFFERINGS AS RATES STAY LOW
J.P. Morgan Chase, Wal-Mart Stores, CSX and Great River Energy preparing bond offerings as financing costs remain close to historically low levels.
US INDUSTRIAL PRODUCTION DIPS 0.2%
U.S. industrial output slips in September, reflecting a slowdown in what was a primary driver of growth out of the recession. Capacity utilization falls slightly to 74.7%, Economists were looking for production to rise 0.2% with an operating rate of 74.8%.
CITIGROUP PROFIT SOARS AS CREDIT LOSSES DECLINE
Banking giant's 3Q profit jumps to $2.17 billion, or 7c a share, topping estimates by a penny, although revenue dips 10% to $20.74 billion. Credit-loss provisions fall to $5.92 billion from $9.1 billion a year ago and $6.67 billion in 2Q. Shares are up 1%.
HALLIBURTON PROFIT SOARS AS MARKET CONTINUES REBOUND
Halliburton's 3Q earnings doubles to $544 million, or 60c a share, as the oilfield-services saw its North American markets continue to rebound. However, the result missed analysts' expectations and shares are down 5%.
NORTHEAST UTILITIES TO BUY NSTAR FOR $4.3B IN STOCK
Northeast Utilities will buy fellow New England utility company Nstar, with Nstar shareholders getting 1.312 shares of Northeast for each share of Nstar. Deal values Nstar at $40.28 a share, a 1.9% premium to Friday's close.
CHINA NET BUYER $21.7B OF US TREASURYS
China remains a net buyer of U.S. Treasurys for a second straight month, rising by $21.7 billion to $868.4 billion in August, amid overall inflows into long-term U.S. assets, the Treasury Department says
RARE EARTH ELEMENTS MAKING THE NEWS - AGAIN
Emerging in Rare Earth Elements Race
The 17 elements that are classified as "rare earth" are becoming an increasingly important part of our daily lives. Rare earth metals are the life blood of modern computers, batteries and alternative energies.
For example, there are nearly ten pounds of the rare earth element, lanthanum, in every Toyota Prius engine. In addition, rare earth elements are vital to military technology.
Contrary to the name, rare earth metals aren't particularly rare and can be found in most any continent. In recent weeks the US government has made important steps to increase production of these metals, as they will play an important part in President Obama's overhaul of U.S. energy.
Bedford Report examines the emerging Rare Earth Elements Industry and provides research reports on Colorado-based Molycorp, Inc.(MCP 31.30, +3.05, +10.80%) and Rare Element Resources (REE 9.61, +1.96, +25.62%).
Access to the full company reports can be found at:
www.bedfordreport.com/2010-10-MCP
www.bedfordreport.com/2010-10-REE
Also, quietly preparing to build up into production phase on the Onterio exchange and the US BB-OTC exchange is Sarissa Resources, Inc. (SRSR 0.255, +0.0012, +05.37%) Sarissa is a junior mineral exploration company that has reported to have the 2nd largest deposit of high grade niobium in the world. With a preliminary ore body containing 20 million tons of 0.47% Nb2O5 material in northern Ontario.
Earlier this month, the US House of Representatives passed the Rare Earths and Critical Materials Revitalization Act of 2010, which supports the discovery and development of rare earth sites inside of the United States.
Somebody knows sumptin!!
