Adobe Systems Inc’s net quarterly income fell to $156.4M, or 30 cents a share, from $219.4M, or 39 cents a share, in the same period a year earlier. Revenue fell to $786.4M from $890.5M.
Bank Of America Corporation said that that since May 8 it has issued 1.25B shares at an average price of $10.77 as part of its now-concluded at-the-market plan, raising roughly $13.47B in capital.
Deere & Co’s second-quarter earnings fell 38% to $472M, or $1.11 a share in the quarter, compared to $764M, or $1.74 a share, a year earlier, but exceeded analysts’ expectations.
Hewlett-Packard Co’s earnings fell 17% in the second fiscal quarter to $1.7B or 70 cents a share. It also disclosed plans to lay off another 6,000 workers on top of previously announced job cuts.
Deutsche Bank upgraded McDonald''s Corp to “buy” from “hold”.
Target Corp’s first-quarter profit fell to $522M, or 69 cents a share, from $602M, or 74 cents a share, a year earlier, but beat analysts’ forecasts. Revenue rose 0.2% to $14.8B.
Toll Brothers Inc’s revenue fell 51% from the year-earlier quarter to $388.3M while units sold fell 47% to 648.
20.05 20:14
RBC points out that the bottom line from the FOMC is that the economy remains weak.
NYMEX June light sweet crude stands up $1.87
at $61.97 per barrel after trading in a $59.86 to $62.15 range. The
$60.10 close seen Tuesday was the first $60-plus close seen since Nov
10 2008 ($62.41 settlement)
EUR/USD refreshed earlier highs near $1.3830. Traders say there is not much in the way of topside resistance until the Jan 5 breakdown highs near $1.3963
Apr 28-29 FOMC Minutes show members considered econ improvement "tentative" and "subject to revision," continued to fear "significant downside risks." Bank stress tests might trigger mkt volatility. Econ may be restrained in medium term. Staff said econ pace of decline slowed and mkt conditions improved, but the central tendency of ests was lowered: -2% to -1.3% in 2009 (in Jan was -1.3 to -0.5%), then +2-3% in 2010 (Jan was +2.5 to 3.5%).
Economists at Goldman say Geithner's testimony had "an optimistic tone on progress in the financial system" but was "mostly a summary of actions taken to date."
After briefly slipping into negative territory, the Dow and S&P 500 are trading with modest gains. The S&P 400 Mid-Cap Index and the Russell 2000 Small-Cap Index have also made a sharp pullback, but haven't slipped so far as to trade with a loss. They are up 0.4% and up 0.2%, respectively.
The dollar declined to the lowest level
versus the euro since January as falling currency and stock volatility
spurred speculation investors will seek higher- yielding assets. The
U.S. currency’s decline accelerated after weakening beyond the level
where it traded in March after the Federal Reserve announced its plan
to buy up to $300 billion in Treasuries. New Zealand’s and Canada’s
dollars gained versus the U.S. currency as crude oil prices rose above
$60 a barrel, encouraging demand for currencies of commodity producers. “Things
are normalizing,” said Richard Franulovich, a senior currency
strategist at Westpac Banking Corp. in New York. “The broad dollar
weakness is at play.” The U.S. currency extended its decline today
after taking out “stops” at $1.3739, a level last reached on March 19,
said Alan Ruskin, head of international currency strategy in North
America at RBS Securities Inc. in Greenwich, Connecticut. Sterling advanced as much as 1.2 percent to $1.5656, the highest level since Dec. 17, as lower Libor rates signaled credit markets are thawing.
Selling
pressure has intensified to undercut the stock market's early gains.
Sellers are focusing their efforts on the financial sector, which is
now trading with a loss of 1.0% after sporting a 2.9% gain at its
session high. As for the broader market, the S&P 500 had been up
nearly 1.9% at its session high, but has since seen that gain more than
halved.
Shares of energy producers rose as oil prices
held steady above $61 a barrel ahead of weekly inventory data.
ConocoPhillips (COP), Chevron (CVX) and Exxon Mobil (XOM) all posted
early gains. Bank stocks also advanced following Bank of America's $13.47 billion stock sale. BofA gained nearly 6%. After
the close Tuesday, Bank of America (BAC) said it has raised $13.47
billion through a sale of stocks. The bank has issued 1.25 billion
shares since Friday at an average price of $10.77. BofA needs to raise
$33.9 billion to meet the government's stress test requirements. Retailer
Target (TGT) reported that first-quarter profit fell to 69 cents per
share, a 7% decline from 75 cents a year earlier. The results topped
analyst expectations of 60 cents per share, according to a consensus
from Thomson Reuters. Crude prices rose to a six-month high, up
$1.21 to $61.28 a barrel. Later in the day, the Energy Department is
due to release its weekly report on fuel inventories.
Financials
have come under pressure, dropping to the unchanged mark as Treasury
Secretary Geithner participates in a question and answer session with
the Senate Banking Panel. A substantial decline has been seen in the
thrift & mortgage (-2.0%) and investment banks & brokerages
(-1.8%) industry groups. Bank of America (BAC 11.78, +0.53) pulled
back in conjunction with the financial sector, though it is still
sporting a solid gain of 4.7%. The bank announced that it concluded
its previously announced common stock offering, issuing 1.25 bln shares
at an average price of $10.77, representing a total of $13.5 billion. Meanwhile, members of President Obama's economic recovery advisory board are participating in a press conference.
Energy
stocks have strengthened in later trade, helped by higher crude prices
and increased confidence in the market - with Royal Dutch Shell (RDSA)
and Total SA (FP) leading gains. Mining stocks have also benefited form
strength seen in other commodity markets, adding further support to the
blue-chip indices. Financials on the other hand have stayed weak
throughout the day, with BNP Paribas (BNP) and HSBC (HSBA) weighing
heaviest. Gains in the auto sector have eased further, although Daimler
AG (DAI) is still outperforming in Frankfurt, after news this morning
they will be buying a 10% stake in Telsa Motors, an electric vehicle
start-up. The FTSE-100 is down 11pts (-0.3%), CAC-40 up 32pts (+1.0%),
and Xetra-DAX up 79pts (+1.6%).
20.05 16:28
US TSY: Geithner continues testifying, repeating that the US economy is fragile and it's too early to unwind govt bank support.
The
S&P 500 has pulled back a bit since coming within close contact of
the 925 level. Still, gains remain strong and broad-based.
Retailers
have found particular favor among participants, thanks to leadership
from Target (TGT 44.23, +2.29), which reported better-than-expected
earnings this morning. In turn, shares of TGT are making their best
single-session advance by percent since a 6% spike in early April.
Target's strength has helped push retailers, as a group, up 1.5%. Retailers are now up more than 6.5% week-to-date.
Economists at Nomura preview FOMC minutes, saying we
will get updated economic forecasts, "which should help quantify the
Also, "any discussion of these (asset buy) programs is likely to
receive intense scrutiny" as will the Fed's assessment of the overall
Financial Stability Plan.
Sliding lower as the greenback comes
under pressure across the board, with this month's low giving way and
Fibonacci support atChf1.0983 (61.8% Chf1.0375-Chf1.1967) also eroded.
rate now trading at lowest levels since early January, with light
demand noted into Chf1.0900, said to be of more substance at
Chf1.0880/75.
20.05 15:44
Dow +93.74 at 8568.59, Nasdaq +27.63 at 1762.17, S&P +14.05 at 922.18
A
strong advance by financial stocks (+2.1%) in the first few minutes of
trading is helping drive the broader market higher. While gains within
the financial sector are widespread, life and health insurrers (+4.2%),
diversified financial services companies (+3.2%), and diversified banks
(+2.2%) are putting together some of the most impressive moves. Energy
stocks (+1.8%) are also making impressive gains, helped by a 2% jump in
crude oil futures prices. With crude oil futures trading at a six-month
high of $61.30 per barrel, oil and gas equipment companies (+3.5%) like
Baker Hughes (BHI 37.98, +1.09) and Schlumberger (SLB 55.70, +1.69) and
oil and gas drillers (+3.2%) like Diamond Offshore (DO 78.93, +1.75)
are garnering particular support.
Breaks through the 200 day moving average level at
$1.5553, with triggered stops through $1.5555 and $1.5570 providing the
added upside momentum to take rate on to $1.5590. Offers/resistance now
seen placed toward $1.5600 a break above to open a move on toward
$1.5630. Above the rate can move on toward $1.5650 ahead of $1.5680 and $1.5700/10.
New issuance has started to revive and spreads have fallen, but full
progress will take time. He reviews all the Administration's new
programs and says "we will continue to explore additional ways to help
the hsg mkt." Will extend deadline for small banks to apply for BHC
status. Tsy SBA loan buys to "begin shortly"; PPIP programs to begin
operating over next 6 wks. System stability in future requires
comprehensive regulatory reform.
Treasury Secretary Tim Geithner is due to testify before the Senate
Banking Committee about the government's bank bailout program at 13:30GMT. At
18:00GMT, the Federal Reserve issues the minutes from its last policy
meeting. Investors will be looking for clues about the economic outlook. The
House takes up a bill Wednesday that imposes greater restrictions on
the credit card industry for raising fees and interest rates. Companies: Retailer Target (TGT) is due to post its quarterly earnings before the opening bell. Late Tuesday, PC maker Hewlett-Packard
(HPQ) reported quarterly results that were in line with Wall Street's
estimates. The company also said it would cut 6,400 jobs, or 2% of its
workforce. The price of oil was up 44 cents to $60.54 a
barrel. Later in the day, the Energy Department is due to release its
weekly report on fuel inventories.
Earlier break above stg0.8830 saw rate extend
recovery to stg0.8838. Rate currently holds back around stg0.8825
meeting support ahead of broken resistance at stg0.8820. Offers now
seen placed to stg0.8840 more toward stg0.8860,. Below stg0.8820 to
allow for a deeper pullback toward stg0.8800 ahead of stronger area
toward stg0.8780.
Data: 06:00 Germany Producer Price Index (YoY) (Apr) -2.7% 06:00 Germany Producer Price Index (MoM) (Apr) -1.4% 08:30 UK Bank of England Minutes 11:00 Canada Bank of Canada Consumer Price Index Core (YoY) (Apr) 1.8% 11:00 Canada Bank of Canada Consumer Price Index Core (MoM) (Apr 0.1% 11:00 Canada Consumer Price Index (YoY) (Apr) 0.4% 1,2% 11:00 Canada Consumer Price Index (MoM) (Apr) -0.1%
The dollar declined against the euro and the pound as a rebound by European stocks stoked demand for higher-yielding assets. The
U.S. currency fell the most against the South African rand, the New
Zealand dollar and the pound as the Dow Jones Stoxx 600 Index climbed
for the fifth day. “The markets are thinking the first quarter was
the worst part of the whole downturn, the depth of the recession,”
David Bloom, global head of currency strategy at HSBC Treasury &
Capital Markets in London, said in a Bloomberg Television interview.
“Now April, May, we’ve seen confidence indicators all picking up and
that’s the idea of green shoots.” Тhe pound rose to the highest
level this year against the dollar as oil traded above $60 a barrel and
stocks gained on speculation the worst of the global recession is over. “Sterling
is benefiting from the return of risk appetite which has seen stocks
outperform,” said Daragh Maher, deputy head of global foreign-exchange
strategy in London at Calyon, the investment-banking unit of Credit
Agricole SA. “A lot of bad news has already been priced into the pound,
making it one of the most undervalued currencies.” The pound pared
its advance and two-year gilts reversed declines after the minutes of
the Bank of England’s last rate- setting meeting showed policy makers
voted unanimously to extend their money-printing plan to 125 billion
pounds ($193 billion). They discussed increasing the program to 150
billion pounds.
EUR/USD the pair remained within the
limits of $1,3580-$ 1,3660. In the beginning of the American session
the rate could overcome a mark $1,3660 and become stronger in area
$1,3700
GBP/USD movement of pair limited by frameworks $1,5450-$ 1,5530
USD/JPY the pair tried to block morning losses, however could will become stronger only in area Y96,10 then decreased in area Y98,70
US
data starts at 1100GMT with the weekly MBA Mortgage Application Index,
while at 1330GMT, Treasury Secretary Timothy Geithner testifies before
the Senate Banking Committee on TARP, in Washington. The weekly crude
oil stocks data is due at 1430GMT, while later on, at 1800GMT, theFederal Reserve is due to release the minutes of the April 28-29 FOMC meeting.
They cite weak Apr retail sales "signaling a modest fall in consumption this quarter" and say China Apr data "show strong growth in domestic demand, but only a flattening in export volumes."
20.05 12:15
FTSE -31.13 (-0.69%) at 4,451.12, CAC +0.53 (+0.02%) at 3,275.49, Dax +17.99 (+0.36%) at 4,977.61
Bank of Canada Consumer Price Index Core (YoY) (Apr) 1.8% Bank of Canada Consumer Price Index Core (MoM) (Apr 0.1% Consumer Price Index (YoY) (Apr) 0.4% Consumer Price Index (MoM) (Apr) -0.1%
The dollar declined against the euro and the pound as a rebound by European stocks stoked demand for higher-yielding assets. The
U.S. currency fell the most against the South African rand, the New
Zealand dollar and the pound as the Dow Jones Stoxx 600 Index climbed
for the fifth day. “The markets are thinking the first quarter was
the worst part of the whole downturn, the depth of the recession,”
David Bloom, global head of currency strategy at HSBC Treasury &
Capital Markets in London, said in a Bloomberg Television interview.
“Now April, May, we’ve seen confidence indicators all picking up and
that’s the idea of green shoots.” Тhe pound rose to the highest
level this year against the dollar as oil traded above $60 a barrel and
stocks gained on speculation the worst of the global recession is over. “Sterling
is benefiting from the return of risk appetite which has seen stocks
outperform,” said Daragh Maher, deputy head of global foreign-exchange
strategy in London at Calyon, the investment-banking unit of Credit
Agricole SA. “A lot of bad news has already been priced into the pound,
making it one of the most undervalued currencies.” The pound pared
its advance and two-year gilts reversed declines after the minutes of
the Bank of England’s last rate- setting meeting showed policy makers
voted unanimously to extend their money-printing plan to 125 billion
pounds ($193 billion). They discussed increasing the program to 150
billion pounds.
Mizuho Chief Economist Steven
Ricchiuto says Apr FOMC minutes (due Wed) are likely to show "members
had become more confident in the eventual success of the extraordinary
steps they have taken" due to better high frequency econ statistics,
rebounding stocks, and reopening of junk bond mkt.
Resistance 3:Y97.10 Resistance 2: Y96.50 Resistance 1: Y96.20 Current price: Y95.82 Support 1: Y94.70 Support 2: Y93.50 Support 3: Y92.50 COMMENTS: The yen receded from the reached high against dollar. Nearest
resistance Y96.20 (session high).Clean break above
will target the next Fibo level atY96.50 (38.2% of Y99.70 - Y94.60
decline) and Y97.10 (50% Y99.70 - Y94.60 respectively). Support is near Y94.60/70 (May 18 low
and channel line
from Jan 21).Stronger level is near Y93.50 level (Mar lows). Break
under will point the Y92.50 ( 61.8% fibo Y87.06 - Y101.44).
Resistance 3:Chf1.1600
Resistance 2:Chf1.1410 Resistance 1:Chf1.1230
Current price: Chf 1.1083
Support 1:Chf1.1030
Support 2:Chf1.0980 Support 3: Chf1.0860
СOMMENTS:
Tech hasn't changed. Dollar bargains in a narrow range with minor support comes at Chf1.1030,
then – at Chf1.0980. Stronger support is near channel line from Apr 22
on Chf1.0860. Stronger resistance comes at Chf1.1230 (channel line).
Above the rise may extend to Chf1.1410, then – to Chf1.1600 (Apr 27-28
highs).
Resistance 3:$1.5720 Resistance 2:$1.5660
Resistance 1:$1.5520
Current price: $1.5503
Support 1: $1.5450
Support 2: $1.5370 Support 3: $1.5290
COMMENTS: The sterling tested the nearest resistance on $1.5520 and
returned to a former corridor. More important level is the channel line
of resistance from Apr 28 on $1.5660 and further $1.5720 (high
17.12.08). Support is marked in the field of a session low on $1,5450.
Below on $1.5370 (Jan 08 high). The important level also is $1.5290
(area of a yesterday's low and May 15 high).
Resistance 3: $1.3800 Resistance 2: $1.3720
Resistance 1: $1.3660
Current price: $1.3642
Support 1: $1.3520 Support 2: $1.3460 Support 3: $1.3400
COMMENTS: The euro bargains slightly below May 14 high on $1.3660 (nearest resistance).
Stronger resistance comes at $1.3720/30 (May 12 and Mar 19 highs).
Above the target is on Jan 08 highs at $1.3790/00. Minor support is
around $1.3520/30 (23.6% Fibo of $1.2890 - $1.3720
rise). Stronger level is at $1.3460 (channel support line from Apr 28).
Below support is near $1.3400 (38.2%).
WTI Nymex crude is higher in Europe Wednesday, with bids seen pushing it through the $60 mark overnight, allowing for a $59.86 - $60.64 range during the session. Traders are now looking to today's more extensive EIA inventory data due at 1430 GMT, for confirmation of the API levels. WTI Nymex crude is up 33 cents at $60.47.
Data: 00:30 Australia Westpac Consumer Confidence (May) -4.3% 8,3% 06:00 Germany Producer Price Index (MoM) (Apr) -1.4% -0,7% 06:00 Germany Producer Price Index (YoY) (Apr) -2.7% -0,5%
The yen and the dollar advanced against
higher-yielding currencies after economic reports showing the global
recession may be prolonged spurred demand for the relative safety of
the two currencies. The yen rose versus all 16 of the most-traded currencies after
Japan reported that the world’s second-largest economy shrank at a
record pace and Australian data showed consumer confidence fell. The
euro slid against the dollar after a German report showed producer
prices fell at the fastest rate in almost 22 years. Indonesia’s rupiah
fell the most in a month as the global slump damped appetite for
emerging-market assets. “There’s no doubt that Japan’s GDP figures are
the worst ever, so it’s too early to say the economy has bottomed out,”
said Toshihiko Sakai, head of trading for foreign exchange and financial products in Tokyo at Mitsubishi UFJ Trust & Banking Corp., a unit of Japan’s largest bank. “The yen and the dollar are likely to be bought.” The euro ended two days of gains versus the dollar
after the German government said prices fell 2.7 percent in April from
a year earlier after dropping by an annual 0.5 percent in March. That
was the biggest drop since June 1987 and exceeded economists’ forecast
for a 1.3 percent decline. “The ECB is under ongoing pressure to do
more to support the economy,” said Sean Callow, a senior currency strategist at Westpac Banking Corp.
in Sydney. “That’ll keep a lid on the euro and therefore euro-yen.
Euro-yen is one that we’ve been rather gloomy on recently.” Investors
maintained bets the European Central Bank will cut its 1 percent
benchmark at its June 4 meeting. The implied yield on the three-month
Euribor futures contract for June delivery was 1.155 percent, from 1.17
percent a week ago. The Euro remains trading in a range
from 1.3585 support to 1.3660; after having tested the lower boundary
of the range ahead of the European session opening, the Euro has
bounced to reach levels around 1.3630 at the time of writing.
The Sterling has picked up from intra-day support level at
1.5445 and the pair advanced higher at the European session opening
reaching levels above 1.5500 and approaching 5-month high at 1.5523.
The
Dollar has bounced up from 95.45 intra-day low reaching levels right
above 96.00. at the moment , the Dollar is struggling with the hourly
20 SMA at 95.95.
The BOE's Monetary Policy Committee voted unanimously for the extra stg50 billion of quantitative easing at its May meeting, taking total QE to stg125 bln. The minutes give no clear steer on whether more QE will be needed in future, as uncertainty abounds.
20.05 09:17
FTSE +9.95 (+0.22%) at 4,492.20, CAC +19.73 (+0.60%) at 3,294.69, Dax +45.49 (+0.92%) at 5,005.11
Japan's benchmark stock indices ended Wednesday's session higher,
although shy of the session best levels, rising despite data showing
the economy contracted at a record rate in the first quarter of the
year. The Nikkei 225 was higher by 54.35 points, or 0.59%, to stand at
9344.64. The broader-based TOPIX was 6.54 points higher at 886.30.
Volume for the Nikkei constituents totalled a preliminary 1.281 bln
shares, with 123 issues trading higher, 86 lower and 16 unchanged.
- Cabinet To Debate 2nd Supplementary Budget May 27
- Labor Market Increasingly Hit By Recession
- German Price Climate To Remain Calm In Next Mos
- German Exports To Remain Weak, But Decline Slowing Down
- Sees Crude Oil Prices Remaining At Low Levels
- Sees No Deflationary Trends In Germany
- Leading Indicators Hint German Econ Weakness To Continue
Major European bourses are initially seen trading lower Weds.
UK spreadbetters Cantor Index are calling the FTSE down 21, the DAX down 30, the CAC down 15 and the Eurostoxx 50 down 11.
--Results below MNI forecast median (0.0%/-1.3%) --Biggest yearly fall since June 1987 --Basic goods -0.6%/-5.3% --Energy -4.0%/-4.4% --Capital goods 0.0%/+1.4%
Resistance 3:Y97.10 Resistance 2: Y96.50
Resistance 1: Y95.80
Current price: Y95.60 Support 1: Y94.70
Support 2: Y93.50 Support 3: Y92.50
COMMENTS:
The
yen continues to become stronger. Support is near Y94.60/70 (May 18 low
and channel line
from Jan 21).Stronger level is near Y93.50 level (Mar lows). Break
under will point the Y92.50 ( 61.8% fibo Y87.06 - Y101.44). Nearest
resistance at Y95.80 (23.6% Fibo Y99.70 - Y94.60).Clean break above
will target the next Fibo level atY96.50 (38.2% of Y99.70 - Y94.60
decline) and Y97.10 (50% Y99.70 - Y94.60 respectively).
Crude futures are holding gains above the $60 level. The front-month Nymex WTI Jul 09 contract was last 35 cents higher at $60.45, just shy of the high at $60.60.
Resistance 3:Chf1.1600
Resistance 2:Chf1.1410 Resistance 1:Chf1.1230
Current price: Chf 1.1101
Support 1:Chf1.1030
Support 2:Chf1.0980 Support 3: Chf1.0860
СOMMENTS:
Dollar bargains in a narrow range with minor support comes at Chf1.1030,
then – at Chf1.0980. Stronger support is near channel line from Apr 22
on Chf1.0860. Stronger resistance comes at Chf1.1230 (channel line).
Above the rise may extend to Chf1.1410, then – to Chf1.1600 (Apr 27-28
highs).
Resistance 3:$1.5720 Resistance 2:$1.5660
Resistance 1:$1.5520
Current price: $1.5490 Support 1: $1.5370
Support 2: $1.5290 Support 3: $1.5180
COMMENTS: Sterling bargains in a narrow range. The nearest resistance is on $1.5520.
More important level is the channel line of resistance from April, 28th
on $1.5660 and further $1.5720 (a maximum 17.12.08). Support is marked
in the field of maxima on January, 08th on $1.5370. More important
level is marked at $1.5290 (low 19.05.09) and
further $1.5180 (a channel line).
Resistance 3: $1.3800 Resistance 2: $1.3720
Resistance 1: $1.3660
Current price: $1.3617
Support 1: $1.3520 Support 2: $1.3460 Support 3: $1.3400
COMMENTS: Euro continues to rebound, heading for the May 14 highs on $1.3660.
Stronger resistance comes at $1.3720/30 (May 12 and Mar 19 highs).
Above the target is on Jan 08 highs at $1.3790/00. Minor support is
around $1.3520/30 (23.6% Fibo of $1.2890 - $1.3720
rise). Stronger level is at $1.3460 (channel support line from Apr 28).
Below support is near $1.3400 (38.2%).
00:30 Australia Westpac Consumer Confidence (May) 8,3% 06:00 Germany Producer Price Index (MoM) (Apr) -0,7% 06:00 Germany Producer Price Index (YoY) (Apr) -0,5% 08:30 UK Bank of England Minutes 11:00 Canada Consumer Price Index (MoM) (Apr) 0,2% 11:00 Canada Consumer Price Index (YoY) (Apr) 1,2% 11:00 Canada Bank of Canada Consumer Price Index Core (MoM) (Apr 0,3% 11:00 Canada Bank of Canada Consumer Price Index Core (YoY) (Apr) 1,4% 12:30 Canada Leading Indicators (MoM) (Apr) -1,3% 14:30 USA EIA Crude Oil Stocks change 0,6 м 18:00 USA FOMC Minutes 23:50 Japan Tertiary Industry Index (MoM) (Apr) -0,8%
