Morning News 3/16/12: European Markets Rise for Fourth Day

 Morning News 3/16/12: European Markets Rise for Fourth Day

Every morning ValueWalk puts out a news report with the latest news in global stock markets, company news, and global economic news.

Market Action 

David Einhorn Buys Three New Stocks: These Are The Names And Theses (Q3 Letter)

david einhorn, reading, valuewalk, internet, investment research, Greenlight Capital, hedge funds, Greenlight Masters, famous hedge fund owners, big value investors, websites, books, reading financials, investment analysis, shortselling, investment conferences, shorting, short biasDavid Einhorn's Greenlight Capital funds returned 5.9% in the third quarter of 2020, compared to a gain of 8.9% for the S&P 500 in the same period. This year has been particularly challenging for value investors. Growth stocks have surged as value has struggled. For Greenlight, one of Wall Street's most established value-focused investment funds, Read More

  • US:  Dow: 13258.81 (0.05%), S&P 500: 1403.29 (0.06%), NASDAQ: 3053.53 (-1.10%)
  • Europe: CAC: 3590.23 (0.28%), DAX: 7164.44 (0.28%), FTSE: 5961.41 (0.34%).
  • Asia-Pacific: Australia: 4276.20 (-0.04%), China: 2404.74 (1.29%), Hong Kong: 21317.85 (-0.17%), India: 5317.90 (-1.16%), Japan: 10129.83 (0.06%).
  • Metals: Gold: 1647.90 (-0.70%), Silver: 32.60 (-0.37%), Copper: 3.93 (0.74%)
  • Energy: Crude Oil: 105.72 (0.58%), Natural Gas: 2.30 (1.14%)
  • Commodities: Corn: 6.68 (0.98%), Soya Bean: 13.67 (1.15%), Wheat: 6.62 (3.11%)
  • Currency: EUR/USD: 1.3162 (0.6212%), GBP/USD: 1.5853 (0.9029%), USD/JPY: 83.3110 (-0.3135%)
  • 10 year US Treasury: 2.339% (0.060)

Market News Update

U.S. markets see-saw: The markets are mixed in Friday morning trading as traders awaited a report on consumer sentiment. Data showed inflation remained in check as the domestic economy continues to improve. As of 9:32 a.m. ET, the Dow Jones Industrial Average (.DJI) rose 0.21%, to 13281, the S&P 500 (.INX) gained 0.16%, to 1405 and the NASDAQ Composite (.IXIC) climbed 0.1%, to 3059.

U.S. consumer prices rise: U.S. consumer prices rose by the most in 10 months in February reflecting a jump in gasoline that did not spread to other goods and services. The Labor Department said its Consumer Price Index climbed 0.4 percent in February, after increasing 0.2 percent the prior month.

U.S. industrial production flat: The Federal Reserve said Friday that industrial production was unchanged in February as factory output gained for the third straight month. Mining activity declined sharply and utilities were flat. Higher energy costs and a slump in demand from Europe for U.S. goods might have prompted some manufacturers to cut production.

European markets rise for the fourth day: European stocks gained for a fourth day as positive economic data from the U.S. helped offset worries in Europe. The blue-chip Euro STOXX 50 index climbed to 2,605.80, its highest since August. The DAX added 0.6 percent.

Asian markets mixed: Asian markets were mixed on Friday as investors booked profits before the weekend. After two days of losses, Chinese shares rebounded on bargain-buying. Japan’s Nikkei average ended up for the fourth straight day, as technology firms advanced. Australian shares were subdued by worries about high domestic interest rates and a slowdown in China.

Oil rebounds: Oil  rebounded in New York from one-week lows as investors anticipated that an economic recovery in the U.S. should increase the demand for the fuel in the world’s biggest crude consumer. Crude for April delivery rose as much as 66 cents to $105.77 a barrel in electronic trading on the New York Mercantile Exchange.

Company News Update

  • Bank of America Corp (BAC), Alcoa Inc. (AA) and American Express Company (AXP) were the early gainers on the Dow.
  • Apple (AAPL) slipped slightly in morning trade after hitting $600 in yesterday’s intraday trading for the first time.
  • After enjoying a big rally in the last few sessions, homebuilders DR D.R. Horton, Inc. (DHI), Lennar Corporation (LEN) and Pulte Group, Inc (PHM) were the biggest losers on the S&P 500.
  • BCE Inc. (BCE), Canada’s largest telephone company, with a view to expand in Quebec’s French-speaking media market, will buy Quebec broadcaster Astral Media Inc. (ACM/A) for C$3 billion ($3 billion) in cash and stock.
  • Volvo AB (VOLVB) jumped 1.3 percent after the company reported a 65 percent increase in North American truck deliveries in February.
  • UBS AG raised Royal Bank of Scotland Group Plc (RBS) to “buy” from “neutral”. The stock rose 5.3 percent.
  • Sports-car maker Porsche SE (PAH3) fell 3.3 percent after Sanford C. Bernstein & Co. lowered the company to underperform from market perform.
  • Italy’s second- biggest insurer, Fondiaria-Sai SpA (FSA), reported its full-year loss widened after the company wrote down the value of so-called non-strategic assets by 373 million euros. The stock fell as much as 4 percent.
  • Tullow Oil Plc (TLW) increased 4.4 percent after announcing that it found oil off the coast of Ghana.
  • According to a statement posted on the website of China’s State Food and Drug Administration today, the regulator has asked McDonald’s China unit to inspect the quality of food in all its restaurants in China, after state-owned media reported that McDonald’s Corp. (MCD) sold chicken wings which were past their sell-by period and Carrefour SA (CA) mislabeled chicken at Chinese outlets.
  • Despite fourth quarter profits being close to expectations, the world’s second-largest life insurer by market value, Ping An Insurance was down 1.8 percent in Hong Kong trading after concerns grew about its investment returns.
  • Moody’s Investors Service has downgraded Nomura Holdings Inc. (8604)’s debt rating to the lowest investment grade on concerns that increased global competition will effect the profitability of Japan’s biggest securities firm.
  • Japanese real estate investment company, Kenedix Inc. (4321), plans to raise approximately 40 billion yen ($480 million) in an initial public offering of its residential assets.
  • Honda Motor Co., Japan’s second-largest carmaker by market value, declined 0.6 percent in Tokyo as the Japanese currency rebounded from near an 11-month low against the dollar
  • Auto-parts maker, Hyundai Wia, slumped 5.1 percent after major shareholders, Hyundai Motor and Kia Motors, sold about 340 billion won of shares via a block deal.


Economic Calendar for Friday, March 16, 2012:


08:30 A.M. ET:    CPI-0.4%

09:15 A.M. ET:    Capacity Utilization/ Industrial production-

09:55 A.M. ET:    Consumer Sentiment sinks

03:00 P.M. ET:     Chicago Federal Reserve Bank President Charles Evans speaks