Stocks Drop As US Data Disappoints
Binary Options Strategy | May 10, 2012 07:45AM ET
On Thursday, Asian markets traded mixed following the strong gains in the prior session. The Nikkei declined .8% to 9588, the Kospi slipped .2% to 2000, and the Shanghai Composite eased .1% to 2379. The Hang Seng jumped 1%, lifted by China Life’s 3.9% advance, and the ASX 200 edged up .3% to 4363, its highest close in 8 months.
European markets closed lower, pressured by disappointing US data. The CAC40 tumbled 2.1%, the DAX fell .9%, and the FTSE closed down fractionally. Rumors of a potential credit rating cut for France hit the country’s stocks particularly hard.
US stocks dropped as well, with the Dow shedding 69 points to 12964, dropping below the 13000 mark. The Nasdaq fell .8% to 3008, and the S&P 500 declined .6% to 1377.
Dow Falls 69 Points
Gilead Sciences surged 12% after reporting positive clinical trials for a hepatitis C drug.
Apple shares slumped 3.4% amid fears the company will be unable to meet its sales targets for the iPhone, largely due to supply issues.
Currencies
The US dollar traded mixed against global currencies as weekly jobless claims disappointed. The euro and Swiss franc edged up .1%, and the pound rose .2% to 1.6054. The Canadian dollar and Japanese yen both fell .4%.
Economic Outlook
Weekly jobless claims clocked in at 386K, 18K worse than forecast. Existing home sales unexpectedly declined, dropping to 4.48M from last month’s 4.6M annualized rate. Continuing the trend of disappointment, the Philly Fed manufacturing index dropped to 8.5 from 12.5.
h3 European Markets Gain On Upbeat Data/h3 EquitiesAsian markets closed on a mixed note, following Thursday’s data from the US which fell short of expectations. The Nikkei slipped .3% to 9561, and the Kospi tumbled 1.3%. On the upside, the Shanghai Composite climbed 1.2% amid hopes for additional government easing, while the ASX 200 and Hang Seng inched up .1%.
European markets gained, led by the DAX’s 1.2% advance, fueled by upbeat German business sentiment data. The FTSE and CAC40 both rose .5%.
US stocks closed mixed, after gaining in the morning. The Dow closed up 65 points to 13029, th S&P 500 edged up 1 point, while the Nasdaq slipped .2%.
Nasdaq Surrenders Early Gains To Close Down .2%
Get The News You Want
Microsoft shares jumped 4.6% after beating analyst forecasts and garnering several analyst upgrades.
Currencies
The US dollar fell against global currencies on Friday. European currencies led the advance, as the Swiss franc rallied .7% to 1.1001, the euro climbed .6% to 1.3219, and the pound rose .4% to 1.6132. The Australian dollar advanced .5% to 1.0380, and the Canadian dollar edged up .3% to .9924. The yen inched up .1% to 81.53.
Economic Outlook
No major economic reports are scheduled for Monday. Earnings are due from Checkpoint, ConocoPhillips, DR Horton, Netflix, SunTrust Banks, Texas Instruments, and Xerox.
h3 European Political Uncertainty Sends Stocks Sharply Lower/h3 EquitiesAsian markets traded lower on Monday. The Nikkei slipped .2% to 9542, the Kospi eased .1%, and the ASX 200 declined .3%. The Shangha Composite dropped .8%, and the Hang Seng sank 1.8%, weighed down by China Mobile’s 3% drop, after the company reported disappointing subscriber data. PMI data from China showed factory output was still declining, although not as much as expected.
European markets tumbled, after the Dutch cabinet resigned as they failed to reach an agreement over austerity measures. The DAX plunged 3.4%, the CAC40 tanked 2.8%, and the FTSE slumped 1.9%. In France, socialist candidate, Francois Hollande won the first round of voting in the French presidential election, a significant setback to incumbent Nicolas Sarkozy. The second round of voting will take place in 2 weeks.
US stocks closed lower, but fared better than their European peers. The Nasdaq dropped 1% to 2970, the S&P 500 fell .8% to 1367, and the Dow skidded 102 points to 12927.
Nasdaq Drops 1%
Netflix dropped 4% ahead of its earnings announcement, and plunged an additional 16.7% in after hours trading after warning of a slowdown in growth.
Currencies
The dollar traded mostly higher in Monday’s currency trading. The Swiss franc and Australian dollar both declined .6%, and the euro fell .5% to 1.3152. The pound traded flat, while the yen rose .4% to 81.18.
Economic Outlook
Tuesday’s reports will include the Case-Shiller Home Price Index, the FHFA Home Price Index, new home sales, and consumer confidence.
h3 US Stocks Trade Mixed Ahead Of Apple’s Earnings Report/h3 EquitiesAsian markets traded mixed on Tuesday. The Nikkei dropped .8% to 9468, and the Kospi declined .5% to 19163, a 3 month low. Inflation data from Australia came in far below expectations, pushing down the Australian dollar and lifting stocks. The ASX 200 rose .2% to 4360. China’s Shanghai Composite closed flat, while the Hang Seng edged up .3%, as the Bank of Beijing rallied nearly 4 on solid earnings.
European markets rallied, led by banks, which bounced 2% after Monday’s 3% slide. The CAC40 jumped 2.3%, the DAX climbed 1%, and the FTSE rose .8%.
US indexes closed mixed, as the Dow rose 74 points to 13002, the S&P 500 rose .4%, and the Nasdaq slipped .3%.
Apple shares dropped 2% to 560.28, ahead of its earnings report. After the close, the stock soared 7.8% to 603.81, following another set of impressive profit and revenue data.
Apple's Recent Slide Due To Earnings Concerns
Radio Shack tumbled 10.6% after reporting a loss, dropping to its lowest level in more than 30-years.
Currencies
The currency markets traded in relatively narrow ranges on Tuesday, and the dollar declined modestly. The pound edged up .1% to 1.6138, the euro gained .2% to 1.3189, and the Swiss franc rose .3% to 1.0977. The Australian dollar slipped .2% to 1.0299, largely recovering from an earlier drop down to 1.0249, while the Japanese yen declined .2% to 81.31.
Economic Outlook
New home sales fell to 328K from 353K, dropping less than expected. Home price data was conflicted, as the FHFA Home Price Index showed an increase of .3%, better than forecast, while the Case-Shiller Home Price Index showed an annual drop of 3.5% in prices.
h3 Apple’s Blowout Earnings Lift US Stocks/h3 EquitiesApple’s sterling earnings reports pushed up Asian markets at the open, but the indexes closed mixed. The Nikkei climbed 1% to 9561, and the Shanghai Composite gained .8% to 2507. On the losing side, the Hang Seng slipped .2% and the Kospi eased .1%.
Mainland European markets rallied on Wednesday, with the CAC40 up 2%, and the DAX up 1.8%, while the UK’s FTSE closed flat. Automakers rallied after Peugeot Citroen and Valeo reported solid profits, climbing 4.6%, and 8.7% respectively.
US stocks advanced, particularly tech shares, following Apple’s earnings report. The Nasdaq surged 2.3% to 3030, the S&PP 500 jumped 1.4%, and the Dow added 89 points to 13091.
Apple shares popped 8.9% to 610 after blowing past analyst estimates. 14 brokerages upgraded the stock.
Currencies
The dollar slipped on Wednesday as Fed chairman, Bernanke, reiterated his commitment to additional easing, if needed. The pound, Swiss franc, and euro each rose .2%. The Australian dollar gained .3% to 1.0353, and the Canadian dollar rallied .4% to .9836, while the yen closed little changed at 81.34.
Economic Outlook
Durable goods orders fell 4.2% , far more than forecast, while the less volatile core durable goods orders unexpectedly dropped 1.1%. The Fed raised its projection for economic growth to 2.4%-2.9% from January’s 2.2%-2.7% forecast.
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