Stock Market News for September 25, 2012 - Market News
25 Setembro 2012 - 6:06AM
Zacks
The fifth-consecutive month of
declines in German business confidence coupled with Caterpillar’s
dismal earnings forecast dragged benchmarks into the red yesterday.
Both these developments reminded investors of the frail economic
scenario and offered little reason for the markets to rebound into
the green. Meanwhile, another drop in crude prices affected the
energy sector.
The Dow Jones Industrial Average
(DJI) declined 0.2% to close at 13,558.92. The Standard & Poor
500 (S&P 500) dropped 0.2% to finish yesterday’s trading
session at 1,459.89. The tech-laden Nasdaq Composite Index plunged
0.6% and ended at 3,160.78. The fear-gauge CBOE Volatility Index
(VIX) gained 1.2% and settled at 14.15. Consolidated volumes on the
New York Stock Exchange, the American Stock Exchange and Nasdaq was
roughly 5.54 billion shares, which fell short of the year-to-date
daily average of 6.54 billion shares. Declining stocks outpaced the
advancers on the NYSE; as for 58% stocks that dropped, 39% stocks
moved higher.
A larger-than-expected decline in
German business confidence in September reminded investors about
the slowdown in the global economy. Germany’s IFO Business Climate
Index was down to 101.4 in September from 102.3 in the prior month.
This was not only the fifth-straight decline, but the index reached
its lowest since early 2010. The European debt crisis remains far
from resolved, and dismal data from one of Euro-zone’s strongest
economies was a matter of concern.
Dismal data out of Germany follows
a bagful of discouraging economic readings from the U.S., Europe
and China released last week. Among them, initial claims for
unemployment benefits was near a two-month high, while
manufacturing suffered the weakest quarter in three years and
leading indicators declined in August in the U.S. Separately,
manufacturing activity declined in China as well as Europe.
Separately, Caterpillar Inc.
(NYSE:CAT), the world's largest maker of construction equipment
issued a warning that there could be a larger-than-expected decline
in the demand for its products in the upcoming years. The company
cited weaker commodity prices as the reason for the estimated fall
in demand. Eventually, the company had to revise its 2015 earnings
estimates to $12 to $18 per share, down from a prior range of $15
to $20 a share. Moreover, demand for mega trucks is expected to
fall along with lower equipment sales in Australia and China.
Caterpillar’s CEO Doug Oberhelman said: “We've seen a slowing in
economic growth more than we expected…We expect fairly anemic and
modest growth through 2015”. Shares of Caterpillar dropped 0.9%
following the announcement.
Meanwhile, shares of tech
bellwether Apple Inc. (NASDAQ:AAPL) plunged 1.3% as concerns arose
about whether the company can produce and supply sufficient
quantities of its iPhone 5 to meet the huge demand in time.
Coming to the energy sector, the
PHLX oil service sector index shaved off 1.4% and prices of crude
oil ended at $91.93. Concerns about global demand have pulled down
crude oil prices by over 6% since last week. The Energy Select
Sector SPDR (XLE) lost 0.5% and stocks such as Marathon Oil
Corporation (NYSE:MRO), Schlumberger Limited (NYSE:SLB),
Halliburton Company (NYSE:HAL), Occidental Petroleum Corporation
(NYSE:OXY) and Valero Energy Corporation (NYSE:VLO) plunged 1.4%,
1.0%, 1.0%, 0.7% and 0.7%, respectively.
Separately, the Utilities Select
Sector SPDR (XLU) added roughly 1% and stocks including Exelon
Corporation (NYSE:EXC), The Southern Company (NYSE:SO), NextEra
Energy, Inc. (NYSE:NEE), Duke Energy Corp (NYSE:DUK) and Dominion
Resources, Inc. (NYSE:D) surged 1.4%, 1.2%, 1.2%, 0.9%, 0.8%,
respectively.
APPLE INC (AAPL): Free Stock Analysis Report
CATERPILLAR INC (CAT): Free Stock Analysis Report
DOMINION RES VA (D): Free Stock Analysis Report
DUKE ENERGY CP (DUK): Free Stock Analysis Report
EXELON CORP (EXC): Free Stock Analysis Report
HALLIBURTON CO (HAL): Free Stock Analysis Report
MARATHON OIL CP (MRO): Free Stock Analysis Report
NEXTERA ENERGY (NEE): Free Stock Analysis Report
OCCIDENTAL PET (OXY): Free Stock Analysis Report
SCHLUMBERGER LT (SLB): Free Stock Analysis Report
SOUTHN COMPANY (SO): Free Stock Analysis Report
VALERO ENERGY (VLO): Free Stock Analysis Report
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