US & World Daily Markets Financial Briefing 25-04-2006

Start trading successfully today
Click here  to find out more

U.S. stocks open litte changed; oil strength offsets earnings

NEW YORK - U.S. stocks were little changed in early trading Tuesday as a raft of positive earnings reports led by AT&T and DuPont was tempered by renewed oil price strength and fresh dollar weakness.
   
The Dow Jones Industrial Average rose 5 points to 11,341.
   
The Nasdaq Composite Index put in a fractional gain, up 0.22 point at 2,333 while the S&P 500 Index rose 1 point to 1,309.

Data that could influence trading action are set for release at 10 a.m. Eastern time. Existing home sales in March are expected to have dipped to 6.68m from 6.91m in February, confirming a slowdown in the housing market. Investors also get a fresh snapshot on consumer confidence.
   
Stocks in focus
   
Sun Microsystems Inc. climbed 4.6% to $5.20 after the struggling computer hardware giant announced the resignation of Chief Executive Scott McNealy. The company promoted Jonathan Schwartz, its president and chief operating officer to replace Nealy, who held the CEO post for 22 years. The management shake-up came as the company reported a wider fiscal third-quarter loss.
   
Shares in AT&T Inc. rose 1.5% to $25.91 after the company, formerly known as SBC Communications, posted a 37% increase in first-quarter profit, helped by merger-related savings and strong growth in wireless and broadband services.
   
San Antonio-based SBC acquired the old Ma Bell, then called ATT&T Corp. on Nov. 18 and then adopted the famous brand name.
   
Also on the blue-chip index, shares in DuPont ticked up 21 cents to $44.75. The chemicals and materials maker's first-quarter net income fell 15% on higher raw materials costs and a stronger U.S. dollar, but the company raised its 2006 profit outlook.
   
Elsewhere on the earnings front, advertising agency Omincom , refrigerator maker Whirlpool Corp., printer maker Lexmark and apartment owner Archstone-Smith all surpassed first-quarter earnings expectations.
   
Netflix Inc. shares shot up 5.4% to $32.92 after the online DVD rental firm swung to a first-quarter profit on a 47% increase in subscriber revenue. The company lifted its 2006 revenue estimate and its year-end subscriber forecast.
   
Shares in Jetblue Airways Corp. climbed 3.3% to $9.71 after the discount airline posted a narrower-than-expected loss and a cost reduction plan to bring it back to profitability.
   
On the broker front, shares in Yum Brands Inc. , the operator of KFC, Pizza Hut and Taco Bell restaurants, rose 3.2% to $51.16 after brokers Piper Jaffray and CIBC World Markets upgraded the company, in part on signs of a recovery in Chinese sales.

VantagePoint's market forecasts are nearly 80% accurate. Take a look at actual forecasts, become eligible for a Complimentary VantagePoint Market ($750 value!) and see the difference they will make. Click here to see two recent forecasts now.

Dollar picks up strength after strong data

NEW YORK  - The dollar pared losses against the euro and rose against the yen Tuesday following better-than-expected readings on U.S. consumer confidence and existing home sales. U.S. consumer confidence continued higher in April, reaching its highest level in almost four years, the Conference Board said.

The consumer confidence index rose to 109.6 in April. Economists expected
the index to slip to 106.3. Separately, sales of existing homes rose unexpectedly in March by 0.3% to a seasonally adjusted annual rate of 6.92 million, the National Association of Realtors said. Economists expected sales to fall to 6.70 million.

The euro was last up 0.03% at $1.2378, while the dollar was up 0.2% at 114.87 yen.

Inflation picked up in September in Europe as both areas show fragile economic growth. Just as in the U.S., rising energy prices are to blame. Read free, daily market reports available only at CMS Forex and open your free demo trading account today. Click here

The European Markets at 12.00 BST

London - UK blue chips were higher at midday, pushing back above the 6,100 level, helped by good news on the German economy and with Wall Street expected to rally at the start today although more key US earnings reports are awaited, dealers said.
   
At 12.18 pm, the FTSE 100 index was 13.5 points firmer at 6,112.2, well off the midmorning low of 6.095.0 but unable to reach back to an opening peak of 6,128.8.

Frankfurt - Shares were slightly higher in midday trade after oil prices eased overnight and as solid numbers from Renault and Volvo boosted sentiment towards auto stocks and truckmaker MAN, while ThyssenKrupp jumped on an objective price hike, dealers said.
   
At 11.41 am, the DAX 30 index was 6.45 points or 0.11 pct higher at 6,085.54, having moved between 6,076.04 and 6,111.30 so far this session.

Paris - Shares were higher midday after yesterday's consolidation, as positive first quarter news, notably from Renault, helped investor confidence amid easing oil prices, dealers said.
   
At 12.55 pm, the CAC-40 index was up 22.29 eur or 0.43 pct at 5,243.96, on thin volume of 1.7 bln eur.

Amsterdam - Share prices were slightly higher in early afternoon trade, led by gains in TomTom after the car navigation systems maker reported strong first-quarter results and raised its full-year outlook, dealers said.
   
At 1.00 pm, the AEX was up 0.63 point or 0.13 pct at 476.27, after opening at its low of 475.79 and reaching a high of 478.44.

Madrid - Share prices were higher in thin midday trading with BBVA and Sabadell leading the gainers, while Telepizza saw some profit-taking after recent strong gains on M&A talk, dealers said.
   
At 12.24 pm, the IBEX-35 index was up 40.2 points at 11,941.4, after trading in a range of 11,889-11,975, on turnover 1.1 bln.

Milan - Shares were slightly higher in quiet midday trade, led by FastWeb on renewed interest for telecom stocks, dealers said.
 
Today is a public holiday in Italy. At 11.59 am, the Mibtel index was up 0.32 pct at 29,769, and the S&P/Mib rose 0.35 pct to 38,171.

Helsinki - Share prices were higher in midday trade led by Nokia tracking its stronger ADR price, and with first-quarter figures from Fortum and telecoms pleasing investors, dealers said.
   
At 11.56 am, the OMX Helsinki 25 was up 0.76 pct at 2,808.90. The OMX Helsinki was 0.68 pct higher at 9,862.05.

Brussels - Shares moved higher in midday trade, in line with other European bourses, with brewer InBev the biggest gainer on the back of comments made in an interview regarding first-quarter sales, dealers said.
   
At 12.55 pm, the Bel 20 index was up 34.52 points or 0.89 pct at 3,934.90.

How? By using a new trading system by a 15 year market veteran designed for swing trading and day trading.  Learn how to trade any market, even if you are a novice. Manuals and videos provide a step by step blue-print to make learning easy. ADVFN subscribers save $50.00 - Only $147. Click here

Asian shares close mixed, Tokyo edges up on bargain hunting

HONG KONG - Share prices across the Asia-Pacific region ended mixed with Tokyo slightly higher as investors chased bargains after the benchmark Nikkei index posted its biggest one-day points loss for the year yesterday, dealers said.
   
Despite today's clawback, dealers said the market lacked upside strength given that the yen's continued strength against the dollar was still weighing on exporters.
   
They added many players are also reluctant to take aggressive new positions while they wait for the results of leading corporates such as Sony later this week.
   
The Nikkei 225 Stock Average closed up 55.89 points or 0.3 pct at 16,970.29. Yesterday, the index fell 489.56 points to finish at 16,914.40, its weakest finish since ending at 16,690.24 last March 28.
   
The broader TOPIX index of all first-section issues rose 8.97 points or 0.5 pct to 1,719.73.
   
"Yesterday's (market) slump went too far so investors are targeting bargains," said Hideo Mizutani, a chief strategist at Sieg Securities.
   
Australia's stock market was closed for a national holiday.
   
In Hong Kong share prices were trading lower led by China stocks on expectations that mainland authorities will step up macroeconomic controls to rein in growth, dealers said.
   
They said fund managers also locked in profits in many blue chips after the market's gains last week.
   
At 3:30 pm, the Hang Seng Index was down 132.60 points or 0.79 pct at 16,573.07.
   
In mainland China, A-shares in Shanghai and Shenzhen closed mixed on profit-taking and renewed concerns over liquidity pressure with heavyweight oil refiners and steelmakers weighed down, dealers said.
   
The Shanghai A-share Index lost 10.45 points to 1,468.55 on turnover of 24.21 bln yuan and the Shenzhen A-share Index was up 1.09 points at 356.51 on turnover of 14.93 bln yuan.
   
Share prices in Seoul ended little changed in volatile trade, as massive foreign investor selling was offset by strong program buying, dealers said.
   
Institutional investor support sent the index above 1,440 points at one stage but the market soon lost momentum due to sell-offs by foreign investors.
   
Intensified program buying right before the market close, amounting to 348 bln won, helped the market recover its early losses to close virtually unchanged.
   
The KOSPI index closed up 0.21 point or 0.01 pct at 1,431.14.
   
Share prices in Taiwan finshed slightly lower, reversing early gains, as technology stocks came under pressure from worries that the strengthening Taiwan dollar would weaken their exports, dealers said.
   
At the same time, hopes that the local currency's strength will draw further foreign capital inflows and that more Chinese tourists will visit Taiwan, provided underlying support to the market, they said.
   
The weighted index closed down 36.10 points or 0.51 pct at 7,059.94.

Asian Bourse Round-Up

For a full list of closing figures, click here

HotSignals release a lite version of their highly successful US equity technical analysis package. We give YOU the edge! Did you sell Google at $444.91? We did and many more every trading day. Are you looking for something different in your trading armoury? Then look no further. Click here

Crude-oil futures rose as Iran returned to the forefront of trader concerns, after a senior official said the country will break all contacts with the United Nations nuclear watchdog if the Security Council opts to impose trade sanctions. Crude for June delivery was up 59 cents at $73.92 a barrel in electronic trading.

After declining almost $12 an ounce on Monday, gold futures rebounded in early trading. Gold for June delivery was up $9.90 at $633.80 an ounce.
   
On the bond market, long-term Treasury prices edged lower, sending yields higher. The benchmark 10-year note was off 4/32 at 96 4/32, with its yield at 5%.

Automated Forex Alerts to your email or Cell phone.  Finally a system that works! Come and see it live today.  Free Automated Trading, get your complimentary trial here