The New York equities markets were mixed at midday on Thursday on new concerns that the housing market in the United States is continuing to slow. The Dow Jones Industrial Average had dropped 0.1 percent to 12,120.19 and the S&P 500 was 0.02 percent lower to 1,381.98. The Nasdaq Composite was 0.03 percent higher to 2,375.4.
Pulte Homes reflected the slowdown in its report of a significant drop in earnings and a warning that fourth-quarter earnings will be much lower than current estimates. Pulte’s shares were 0.7 percent lower to $31.98 in the wake of new data from the Commerce Department that shows the median price of a new home down 9.7 percent in September.
Stock exchanges were also lower on the session so far. Nasdaq dropped 0.5 percent to $36.80. Meanwhile, the Chicago Mercantile Exchange, which has agreed to take over the Chicago Board of Trade, dropped nearly 1 percent to $492.10. The Chicago Board of Trade itself dropped even more, by 1.6 percent to $145.08. The NYSE Group, which owns the New York Stock Exchange, fell 1.7 percent to $74.10 despite reporting third-quarter profits had tripled.
In the oil sector, ExxonMobil added 0.2 percent to $71.15 on operating profits that were at $10.5 billion in the quarter, the second highest quarterly profit ever reported by a US company.
Dow Chemical gained 0.9 percent to $40.52 on higher earnings and a share buyback scheme worth $2 billion.
Among retailers, Wal-Mart also added 0.9 percent to $51.30 on the announcement that it is expanding the $4 generic prescription price it introduced in Florida to 12 more states, bringing the total number of states now included in the program to twenty-seven.
Government bond prices were up and yields fell on Thursday in response to a decision by the US Federal Reserve to keep interest rates steady for the time being as well as its comments following the decision that did not sound too strong a warning on inflation. Also helping prices higher was new data on durable goods orders showing that, excluding transportation goods, orders were up just 0.1 percent in September. The ten-year US Treasury bond dropped 3.8 basis points to a yield of 4.73 percent.
In Europe, meanwhile, ten-year yields also fell in response to the Fed decision. The ten-year Bund dropped 1 basis point to 3.85 percent, while the ten-year gilt was 4 basis points lower to a yield of 4.66 percent. The price gains came as the president of the European Central Bank said that inflation would be an issue for the rest of this year and into next year.
In Japan, government bonds were helped by the US bond market, with the ten-year JGB falling 5 basis points to 1.750 percent. Shorter-dated bonds also saw prices go up and yields drop after an auction of two-year issues saw demand quadruple supply. Yields on two-year bonds were 0.3 basis points lower to 0.755 percent.
The New York equities markets were mixed in early afternoon trade on Tuesday. The Dow Jones Industrial Average was 0.02 percent higher to 12,118.91, while the Nasdaq Composite had dropped 0.4 percent to 2,342.22 and the S&P 500 was 0.1 percent lower to 1,375.57. The activity was a result of several factors, including a lack of new economic data, earnings reports that were not up to par, and unwillingness to commit ahead of the Federal Reserve’s newest interest rate decision, due Wednesday.
Texas Instruments dropped 2.9 percent to $30.97 on a quarterly report that did not meet expectations and on a disappointing prediction for fourth quarter results. Kraft Foods likewise issued a quarterly report that did not satisfy, and was in consequence 3.8 percent lower to $34.91. Even though Whirlpool’s earnings were a bit better than had been anticipated, it cut its prediction for unit shipment growth in North America. The appliance maker saw shares fall 3.9 percent to $85.86.
Not all the quarterly reports were disappointing. DuPont produced a good quarterly report and added 1.8 percent to $46.28. Lucent, which is being purchased by French telecommunications equipment maker Alcatel, added 7.7 percent to $2.52 on better than expected earnings.
Qualcomm was 3.1 percent lower to $36.91 on rumors that the patent case it filed against Nokia could be in for another look by the courts. Meanwhile, Intel added 1.1 percent to $21.69.
Amazon.com added 1.8 percent to $33.46 ahead of its quarterly report, due after the close of trade.
The New York equities markets were higher at midday on Monday as earnings reports continue to come in. Over 150 companies listed on the S&P 500 alone are expected to report this week. At mid-session the Dow Jones Industrial Average was 0.9 percent higher to 12,114.11, a new high, while the Nasdaq Composite was up 0.7 percent to 2,359.53 and the S&P had added 0.6 percent to 1,377.17.
Internet search engine Google was still benefiting form its earnings report, issued last week, adding 3.8 percent to $477.15, its highest level ever. Meanwhile in other computer-related news, Apple Computer was 2.1 percent higher to $81.65. In the semiconductors sector, Texas Instruments is expected to report after the end of today’s session.
Wal-Mart gained 3.2 percent to $50.95 after its chief financial officer said that it was planning on slowing capital spending to 2 to 4 percent in fiscal 2008, from 15 to 20 percent this year.
Chewing-gum maker Wrigley gained 14.2 percent to $53.48 on a report that earnings per share in the quarter were above predictions and that its new chief executive will be the first in the company’s history from outside the Wrigley family.
Construction machinery manufacturer Caterpillar added 2.2 percent to $60.30 after having lost 14 percent in Friday’s session on a disappointing quarterly report.
Ford Motor dropped 1.5 percent to $7.89 after it reported that it has lost 62 cents per share in the third quarter, about what had been expected by analysts.
Prices were up and yields lower on US Treasury bonds during the week as investors remained wary ahead of the next meeting of the Federal Reserve, scheduled for next week. Data releases during the week did not help determine the economy’s direction, although most analysts expect the Fed to hold interest rates at 5.25 percent again this month. At midday on Friday the ten-year Treasury bond was 0.4 basis points lower for the day to a yield of 4.786 percent. The ten-year issue had begun the week at 4.796 percent.
In the Eurozone, ten-year Bund yields were 0.2 basis points higher to 3.827 percent late in the session. European bonds were affected by the move on Thursday by two ratings agencies to downgrade Italy’s debt.
The yields on UK gilts were also higher on the day, on the expectation that the Bank of England will raise interest rates at their meeting next month. The two-year gilt was 3.8 basis points higher to a yield of 5.064 percent, while the ten-year gilt gained 2.8 basis points on the session to 4.693 percent. At the beginning of the week the two-year gilt was yielding 5.019 percent, while the ten-year gilt was at 4.642 percent. Friday’s two-year yield was its highest level since July 2002.
The New York equities markets were mixed at midday on Thursday on news from corporate earnings reports and new data from the Philadelphia Fed that showed its manufacturing index down 0.7 percent in October when an advance had been predicted. The Dow Jones Industrial Average was 0.15 percent higher to 12,011, while the Nasdaq Composite was down 0.1 percent to 2,339.57 and the S&P 500 was just 0.01 percent lower to 1,365.
Among gainers on the day were Apple Computer, which added 6.35 percent to $79.26 on higher net income on sales of both Macintosh computers and iPod music players. Also up were Yahoo, 1.1 percent higher to $23.24 and UPS, which added 4.23 percent to $75.54 on higher earnings. AT&T was up 2.9 percent to $33.89 on an upgrade from Lehman Brothers.
The semiconductors sector was significantly lower. Cypress Semiconductor was 9.1 percent lower to $17.24 on the announcement that is no longer thinking of selling. Advanced Micro Devices dropped 10.4 percent to $21.72 after it said Wednesday that its gross margins were down. AMD added, however, that it expects higher demand and sales in the fourth quarter. Intel declined a lesser 1.1 percent to $20.88 on quarterly earnings that were lower.
Other losers on the session included McDonalds, down 1.4 percent to $40.90 despite meeting its revised guidance. Citigroup dropped 0.8 percent to $49.79 on lower net income in its third quarter. In addition, General Electric was down 0.9 percent to $35.56 on the news that its NBC Universal entertainment unit will make cost-cutting moves.
There was good news and bad news on Wall Street on Wednesday. The good news was that the Dow Jones Industrial Average went above 12,000 for the first time in history, early in the session, before dropping back to end the day 0.36 percent higher to 11,992.68. The bad news was that it could not hold above 12,000 due to unfavorable earnings reports from the Apollo Group and Motorola. Meanwhile, the Nasdaq Composite ended the session 0.3 percent lower to 2,337.15, while the S&P 500 closed at 1,365.96, a gain of 0.1 percent.
Motorola dropped 4.9 percent to $23.64 after it reported that its third quarter revenues were 17 percent higher to $10.6 billion. The decline was attributed revenues not reaching levels anticipated by analysts and in-company estimates.
Apollo Group reported that quarterly earnings were down and said that an investigation into how it grants stock options had found problems. The news sent the for-profit education company’s shares 22.9 percent lower to $37.55.
The semiconductors sector saw declines, as well. The exception was Intel, which added 1 percent to $21.11 even though it reported that quarterly earnings were down. Despite the decline, earnings did better than had been anticipated. Elsewhere in the sector, Analog Devices was 3.6 percent lower to $29.68, while EMC dropped 4.1 percent to $12.18 on a decline in quarterly profits and Applied Materials was 4.6 percent lower to $17.82.
IBM did better, adding 3.3 percent to $89.82 on better earnings than had been predicted. Also helping the computer maker higher was an upgrade from “neutral” to “buy” from Goldman Sachs.
Yahoo was instrumental in the day’s decline for the Nasdaq, dropping 4.8 percent to $22.99 on a quarterly report that did not meet expectations and which brought a downgrade from “outperform” to “market perform” from Piper Jaffray.
Higher than expected core wholesale price inflation and bigger declines in industrial production in September weighed more than bids rumors and earnings reports in New York on Tuesday, sending equities markets lower at midday. The Dow Jones Industrial Average was 0.57 percent lower to 11,912.08, while the Nasdaq Composite dropped 1.2 percent to 2,336.02 and the S&P 500 fell 0.7 percent to 1,359.91.
Both the Chicago Mercantile Exchange and the Chicago Board of Trade saw gains on news of the planned merger of the two exchanges, which will create the biggest futures and options exchange in the world. CME added 2.21 percent to $514.35, while CBOT jumped 12.82 percent to $151.76 as shareholders learned that the merger would net them $8 billion worth of CME stock.
In financial sectors, Merrill Lynch dropped 0.08 percent to $84.04 even though its third-quarter earnings were up from $1.4 billion to $1.9 billion, even without what it gained in the sale of its asset management unit. Financial services group State Street was a decline of 2.2 percent to $62.94 despite of an increase of 93 percent in the third quarter over the same period last year.
Semiconductors declined as well. Intel was 3.4 percent lower to $20.88 ahead of its earnings report, due later in the day, on a downgrade from Goldman Sachs. Meanwhile Broadcom dropped 4.83 percent to $29.33.
Prices on US Treasury bonds were down and yields rose on Friday on strong new sales data and figures showing consumer sentiment up more than had been expected in the US in October. Meanwhile, comments from Federal Reserve officials signaled worries about inflation and growth that seemed to indicate that there would be no interest rate cuts coming anytime soon.
By mid-morning in New York on Friday, the two-year Treasury bond was up 3 basis points to 4.87 percent, while ten-year issues had also gained 3 basis points to a yield of 4.81 percent. The two-year bond had started the week yielding 4.75 percent, while ten-year bonds began the week at a yield of 4.71 percent.
In the Eurozone, the October bulletin from the European Central Bank indicated that it could be near the end of its series of interest rate hikes, even though it also said that more hikes could be needed if the region’s economy continued to grow as it is now expected to do.
The two-year Schatz was up by 1.3 basis points to 3.67 percent after starting the week yielding 3.60 percent. The ten-year Bund added 1.5 basis points to a yield of 3.83 percent, from a starting yield of 3.77 percent on Monday.
Meanwhile, in the UK, longer-dated gilts saw prices decline as most analysts said they expect interest rates there to rise again in November.
The New York equities markets were mixed at midday on Wednesday after the release of some mixed earnings reports. The Dow Jones Industrial Average and the S&P 500 were each 0.2 percent lower, to 11,842.04 and 1,351.44, while the Nasdaq Composite was 0.1 percent higher to 2,316.78.
Alcoa dropped 5.7 percent to $26.69 after it said Tuesday evening that profits were up 86 percent in the third quarter, a significant gain but much less than had been expected. The results were put to lower prices for aluminium and declines in automobile manufacturing and homebuilding.
Fund manager Legg Mason was 17.3 percent lower on a warning that earnings in its second quarter would be substantially lower than has been estimated. Merrill Lynch cut its recommendation on Legg from “buy” to “sell”. The news, coupled with an offer from Bank of America that gives 30 free trades per month to customers with $25,000 in bank deposits with BofA, sent other brokerages lower. Charles Schwab dropped 5 percent to $17.16, while E*trade declined 10 percent to $22.05 and TD Ameritrade was 10.6 percent lower to $17.07.
Ag biotech and fertilizer group Monsanto was 5.1 percent lower to $44.05 on the news that its losses in the third quarter were greater than had been expected. It also said that next year’s earnings would be lower than earlier estimated.
Among gainers, drug retailer CVS added 4.2 percent to $30.97 on a preliminary third-quarter earnings report that was better than had been forecast. Insurance provider Progressive, meanwhile, was 2.8 percent higher to $25.40 on a third quarter report that showed earnings up by 34 percent in the quarter.
Prices for US Treasury bonds were up a bit on Wednesday, and yields were lower, as investors looked for safe places to put their money in the wake of the North Korean nuclear test earlier this week and comments following that Pyongyang will treat any increased pressure from the US as a declaration of war. In addition, trade was muted ahead of the release of minutes from the most recent Federal Reserve meeting and a speech from Richmond Fed President, who was the only board member who voted for an increase in interest rates at the meeting.
In morning trade in New York, the two-year Treasury bond dropped 3.8 basis points to 4.79 percent, while the ten-year issue fell 1.8 percent to a yield of 4.74 percent.
Most government bonds in Europe, meanwhile, held steady after a successful Schatz auction and economic growth forecasts for the last half of this year and the first half of next year that were lowered by the European Commission. Yields on the ten-year Bund dropped 0.9 percent to 3.811 percent, but the two-year Schatz was steady at a yield of 3.669 percent. In the UK, gilts held firm as well, with the two-year gilt at 5.011 percent and the ten-year gilt yielding 4.614 percent.
In Japan, meanwhile, yields were up as prices fell as the ten-year Japanese government bond added 2 basis points to 1.745 percent.
The New York equities markets were mixed but close to unchanged at midday on Tuesday as investors waited for the earnings season to get serious. The Dow Jones Industrial Average was 0.1 percent lower to 11,851.89, while the Nasdaq Compsite was nearly flat - up only 0.52 of a point - to 2,312.29 and the S&P 500 had added just 0.1 percent to 1,351.50.
Homebuilders were up as JP Morgan issued upgrades on DR Horton and Toll Brothers. Horton added 5 percent to $25.04 even though it said that new home orders were down by 25 percent in its fourth quarter after JP Morgan raised its recommendation from “neutral” to “overweight”. The broker upgraded Toll Brothers from “underweight” to “neutral”, sending the homebuilder 5.5 percent higher to $30.40. The upgrades also helped KB Home, which gained 3.7 percent to $46.44 despite warning that profits in the third quarter would likely drop by 32 percent.
Supermarkets were higher as well. Safeway added 2.9 percent to $29.59, while Supervalu was 4.6 percent higher to $32.42 on better than expected third-quarters earnings and an upgraded full-year earnings forecast.
With oil prices dropping again, ethanol manufacturer Archer Daniels Midland dropped 2.3 percent to $37.60. On the other hand, Nabors Industries, the oil services group, added 5.4 percent to $29.59 on rumors that it was a buyout target.
In the semiconductors sector, Qualcomm dropped 2.8 percent to $37.27 on a ruling from a judge at the International Trade Commission that it had violated Broadcom patents on a chip and a phone. The judge did not, however, ban import of the phone as Broadcom had requested.
The New York markets were quiet on Monday due to the Columbus Day holiday, and results were mixed. The Dow Jones Industrial Average was 0.1 percent lower at midday to 11,843.72, while the Nasdaq Composite had added 0.4 percent to 2,308.90 and the S&P 500 was virtually flat, up just half a point to 1,350.08. Besides the effect of the holiday, many investors were waiting for new earnings data to come in before committing themselves.
Chicago exchanges were mixed on the day. While the Chicago Mercantile Exchange added 4.5 percent to $513.05 on reports that it was looking at a possible deal with Deutsche Borse, the Chicago Board of Trade dropped 2.7 percent to $134.03 after the London Metal Exchange denied that the two are in discussions about a takeover of the LME.
Commodities stocks were higher. With crude oil prices up, Noble was 2.1 percent higher to $63.17 and Occidental Petroleum gained 1.5 percent to $46.25. Among companies dealing in metals, Alcoa added 2.1 percent to $28.31, while Freeport McMoran was up 2.8 percent to $54.28.
In a related sector, steel makers were up enough to take the S&P Steel Index to its highest level in three months. Nucor added 6 percent to $54.16, while US Steel gained 6.6 percent to $64.52.
In computer-related sectors, internet search engine Google was 1.9 percent higher to $428.64 on an agreement with Sony BMG and Warner Music to stream music videos. Meanwhile, chipmaker Nvidia added 5 percent to $32.48 to take its gains since July to 80 percent.
Wall Street was mixed on Thursday at mid-session as commodity prices began to rise once again. The Dow Jones Industrial Average was 10.81 points below Wednesday’s record high close to 11,839,80, while the S&P 500 was just 0.17 of a point lower to 1,350.05. On the other hand, the Nasdaq Composite had added 0.2 percent to 2,296.14 by midday.
There were gains in the oil and mining sectors on the rising commodity prices. ConocoPhillips added 1.9 percent to $57.87, while oil services company Noble was 3.2 percent higher as OPEC considered cutting production. As industrial metals prices gained ground, Freeport McMoran advanced 4.1 percent to $51.04 and Phelps Dodge gained 4.2 percent to $81.94.
The steel sector was also up, on the news that Tata Steel of India is thinking about bidding for Anglo-Dutch steelmaker Corus. Nucor added 5 percent to $51.20, while US Steel gained 5.7 percent to $59.16.
In the hotel sector, Starwood Hotels gained 3.3 percent to $59.90, mostly on the strength of Marriott International’s 4 percent gain to $39.88 on its announcement that although its third-quarter profits were down by 5 percent, they were still higher than analysts had predicted.
Things were not as positive in the retail sector. Wal-Mart was 2.2 percent lower to $48.46, while supermarket chain Safeway dropped 3.3 percent to $28.60 and department store Dillard’s dropped 10 percent to $30.26 on flat same-store sales last month.
The New York equities markets were up at mid-session on Wednesday, with the Dow Jones Industrial Average reaching a new intra-day high of 11,786.49. By midday the Dow had settled to 11,779.29, a gain of 0.4 percent. The Nasdaq Composite was 1.1 percent higher to 2,267.39, while the S&P 500 had added 0.5 percent to 1,340.96.
Dropping commodities prices sent miners and oil-related stocks lower. Anadarko Petroleum was 2.1 percent lower to $40.24 after a downgrade from “buy” to “neutral” issued by Bank of America. Phelps Dodge dropped 3.1 percent to $77.57.
Among retailers, Wal-Mart declined 1.5 percent to $48.73 on same-store sales in September that were up 1.3 percent, against a predicted gain of 1.8 percent.
Technology related stocks were higher on the day, however. Nvidia, helped by rumors that Intel was considering a bid, added 6.5 percent to $30.13. Sandisk was up 3.6 percent to $55.23 after it said it will begin distributing its flash-memory products in India, starting with 2,000 outlets in the next few weeks and increasing that to 14,000 outlets by the end of next year. Software giant Microsoft gained 1.4 percent to $27.76, while internet auctioneer Ebay was 5.2 percent higher to $29.65.
The pharmaceuticals sector was mixed on the session. While ImClone was up 6 percent to $28.80 after it reported that it had received a bid last month, which it had rejected, from a major pharma group. On the other hand, Genentech dropped 1.6 percent to $82.50 after an analyst said that cancer-drug sales in the third quarter might have been below expectations.
October 3, 2006
New York gains on lower commodities prices
Permalink: New York gains on lower commodities prices
Wall Street was higher at midday on Tuesday as commodity prices declined, which sent miners and oil stocks lower but helped the retail sector. The Dow Jones Industrial Average was up 0.64 percent to 11,745.27, while the Nasdaq Composite and the S&P 500 were each 0.3 percent higher, to 2,243.50 and 1,335.12 respectively.
With gold and copper prices down, miners declined significantly. Newmont Mining dropped 3.4 percent to $41.74, while Freeport McMoran fell 5.1 percent to $50.73.
Oil services companies were lower on dropping crude oil prices. Ensco International declined 3 percent to $40.42 on a downgrade from “overweight” to “neutral” by JPMorgan. Diamond Offshore ell 4.3 percent to $65.58.
The retail sector, however, liked the drop in oil prices on the possibility that lower gasoline and heating oil prices would free up more consumer dollars for other purchases. Limited Brands was 2.8 percent higher to $27.51, while office-supply retailer Staples gained 5.1 percent to $25.50
Semiconductors were lower on the session. Marvell Technology dropped 14.1 percent to $16.40 after saying that it would restate its financial results and after reducing its 2007 revenues outlook. Broadcom declined 3.8 percent to $29.68.
The New York equities markets were up slightly at midday on Monday, with the Dow Jones Industrial Average approaching its record closing high. The Dow added 0.3 percent to 11,717.01, just five points lower than its highest closing level. Meanwhile, the Nasdaq Composite and the S&P 500 were each 0.1 percent higher to 2,260.45 and 1,337.36 respectively.
In the retail sector, Wal-Mart was 1.3 percent lower to $48.67 even though same store sales were up 1.8 percent in September, at the lower end of its expectations. Wal-Mart also announced that it will convert more positions to part-time and put a cap on salaries. Family Dollar was lower as well, dropping 1.6 percent to $28.77.
The telecommunications sector was mixed as Qualcomm and Broadcom were scheduled to enter negotiations with a San Diego judge on Wednesday over their patent dispute. Qualcom fell 3.5 percent to $35.09, while Broadcom was 3.9 percent higher to $31.53.
Harrah’s Entertainment gained 14.9 percent to $76.35 after the casino operator said that private equity groups Apollo Management and Texas Pacific had offered $15.1 billion to buy it out. The offer and the gain translated into gains elsewhere in the sector, with Wynn 3.7 percent higher to $70.94 and MGM Mirage up 4.5 percent to $41.09.
Apple Computer declined 2.6 percent to $75.02 on a downgrade from “buy” to “hold” from Citigroup, which said that Apple’s new larger-screen video iPods would probably not be available for the Christmas buying season.
Japanese government bond yields up on Tankan figures
The Bank of Japan’s latest Tankan Survey of business sentiment sent most Japanese government bond yields higher on Monday. The ten-year bond saw yields 6.5 basis points higher to 1.740 percent. The two-year bond yields were also higher, but some issues that mature in less than a year saw yields decline.
Bond yields were lower in the United States, where the September figures from the Supply Management Institute were lower, showing manufacturing down more than had been expected. At late morning in New York, two-year Treasury bonds were down 4.1 basis points to a yield of 4.65 percent, while ten-year issues were yielding 4.60 percent, a decline of 3 basis points.
In Europe, Eurozone bond yields were lower as well after a more positive purchasing managers’ index report, which seemed to be trumped by higher prices in US bond markets. The two-year Schatz was 2.4 basis points lower to 3.553. The ten-year Bund, meanwhile, was down 2.6 basis points to a yield of 3.680 percent.
The latest purchasing managers’ index in the UK was also stronger than had been expected, sending yields on gilts higher. The two-year gilt gained 1.5 basis points to a yield of 4.939 percent, while the ten-year gilt added 0.5 basis points to 4.529 percent.
Wall Street was mixed at midday on Friday after strong gains early in the week. Mid-session found the Dow Jones Industrial Average even for the day but 1.9 percent higher on the week at 11,723.10. The Nasdaq Composite was 0.1 percent higher on the day and 2.4 percent higher for the week at 2,272.52, while the S&P 500 was essentially flat on the day, down by only 0.4 points, but 1.8 percent higher on the week to 1,338.74.
With Friday’s session marking the end of the quarter, the Dow was up 5.1 percent for the third quarter and 9.4 percent since the beginning of the year, while the Nasdaq saw a quarterly gain of 4.6 percent but was only 3 percent higher for the year to date, and the S&P added 5.4 percent over the quarter and 7.2 percent so far this year.
The semiconductors sector was mixed on the week, with big gains and big losses. Intel was 9.2 percent higher on the week to $20.82 after a court victor over Advanced Micro Devices and the announcement that it will start shipping microprocessors with four cores in November. Broadcom added 9.8 percent to $30.57 even though it is in the middle of a patent dispute with Qualcomm. On the other hand, PMC-Sierra dropped 6.6 percent to $6.04 on weak demand that spurred a decreased revenues forecast.
Among internet companies, Ebay was 9.9 percent higher to $28.69 on rumors that Microsoft was set to purchase the online auction site and on an increased third-quarter revenues estimate from Goldman Sachs.
General Motors was 8.6 percent higher this week to $33.24 on speculation that Kirk Kerkorian’s investment group might add to its 10 percent stake in the carmaker and on talks between GM, Nissan and Renault concerning possible cooperation.
The New York equities markets were lower at midday on Thursday as the recent rally seemed to have run out of steam. The Dow Jones Industrial Average was 0.2 percent lower to 11,667.06 after reaching 11,724.86 earlier in the session. The Nasdaq Composite had also dropped 0.2 percent to 2,255.72, while the S&P 500 had fallen 0.1 percent to 1,334.80.
In the semiconductors sector, Advanced Micro Devices and Nvidia were both lower as ThinkEquity lowered its recommendation on both from “buy” to “sell”. AMD was 2.1 percent lower to $24.80, while Nvidia declined 2.9 percent to $29.27.
Automakers were higher. General Motors gained 1.4 percent to $32.73 when Kirk Kerkorian said he was interested in purchasing 12 million more shares in GM. His Tracinda investment group already owns 10 percent of GM. Ford Motor added 2.3 percent to $32.73 on the announcement that its European division will likely see profits this year.
Discount retailers Family Dollar dropped 3.2 percent to $28.03 even though its earnings in the fourth-quarter were higher than had been expected. The declines came when the company said September sales will probably be lower than estimated.
Time Warner declined 2.5 percent to $25.15 on a downgrade from “overweight” to “neutral” by JPMorgan.
