Market Gazer Hong Kong - Japan - Germany - UK - North America
market review : europe & u.s.
Federal Open Market
Committee (FOMC)
meeting on Tuesday ended
with no changes in key
interest rate. Rate stayed at 0.25% and
would stay “exceptionally low” for an
extended period, according to the FOMC.
Additional accomodation would be
provided whenever needed. The decision
was not a surprise since it came in line
with market expectations. Post-FOMC, the
Dow Jones Industrial Average settled the
day up 0.07% or 7.41 points at 10,761.03.
S&P 500 index ended 2.93 points lower at
1,139.78, and Nasdaq Composite shed
0.28% to end at 2,349.35. Meanwhile,
gold futures has approached $1,300 an
ounce as it rose 0.9% on Tuesday to as
high as $1,292.40 an ounce, a new record
high.
German DAX fell 0.3% to 6,275.98 while
FTSE 100 index slipped 0.47% to 5,576.19
as investors chose to wait at the sideline
as the FOMC was set to deliver its policy
decision on Tuesday. Elsewhere, Ireland’s
successful bonds auction brought a sigh of
relief. About $2 billion worth of Irish
bonds had been sold, sending the yield to
381 basis points or down 21 basis points.
US Housing Starts came above
expectations in August. While July’s
reading was at 541K, and the consensus
was at 550K, August starts were reported
at 598K. The 10.5% jump beat both the
prior rise of 0.4% and the expected rise of
0.7%. Building permits also exceeded the
21 September 2010
consensus of 560K as it was reported at
569K in August, up from 559K in July. The
better-than-expected results from the
housing sector followed yesterday’s
stagnant NAHB’s Housing Market Index
which stood at 13 in September, below
the expected 14. The data somewhat
calmed the market’s notion that the
expiration of the homebuyer tax credit
was not followed by further deterioration
of the housing market, at least not at the
moment.
From UK, Confederation of
British Industry revised its
forecast on GDP to a growth of 2% in
2011, down from June’s forecast of 2.5%.
For 2010 however, the forecast was raised
to 1.6% from 1.3%. CBI also expected no
changes in interest rates until 2Q11. The
downward revision was based on the
government’s step to trim public spending
next year as it planned to tighten budget.
Interest rate is seen to reach 1.25% from
the current 0.50% by the end of next year.
Adobe Systems announced that its 3Q net
profit was at $230.1 million or $0.44 per
share, up from the same period last year
of $136 million or $0.26 per share.
Revenue was at $990.3 million compared
to prior $697.5 million reported last year.
The company also said that 3Q adjusted
EPS at $0.54, higher than the consensus
$0.49, while the 4Q adjusted EPS was
forecast between $0.48 to $0.54 against
the analysts’ forecast of $0.53. Despite
the good 3Q results, the 4Q sales fell
below the expected $1.03 billion in
between $950 million to $1 billion.
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Adobe, which settled at $32.94 or down
0.51%, plunged 15.39% to $27.87 after
the earnings report was announced.
Microsoft announced
late Tuesday that it
would raise its dividend
by 23% to $0.16 per
share from $0.13 per share. The quarterly
dividend is payable December 9th for
shareholders as of November 18th. In
addition, Microsoft also said that it has
authorized $6 billion extra debt capacity.
Microsoft fell 1.1% on Tuesday, settling at
$25.15.
Siemens AG’s CEO Peter Loescher said
that the company’s health-care
diagnostics unit failed to meet growth
targets although its cost targets were met.
As a result, the company will write down
the goodwill, to be included in the 4Q
report which going to end this month.
Siemens added 0.61% on Tuesday, to end
at €79.37.
Deutsche Bank’s purchase
of Postbank will lead to a
net loss in 3Q as the
investment will cost €2.3
billion, according to DB. The
announcement sent the DB reeling to
€44.75 or down 4.54%.
Prudential Plc. has been placed at
“UNDERPERFORM” by Exane BNP Paribas.
The insurer fell 1.12% to 619.00 pence.
Wells Fargo kept AT&T at “OUTPERFORM”
as the house said that the company would
21 September 2010
not be hurt badly by Verizon’s
iPhone in the first quarter next
year. The shares advanced
0.25% to $28.61.
Apple Inc. was initiated at “BUY” by
Canaccord. In addition, the company was
reported in a process of setting up game
Web site, according to VentureBeat.
Apple still soaring to new heights, gaining
0.19% to end at record $283.77.
Walt Disney was rated
“NEUTRAL” at UBS. Disney
ended a $34.50 or down 1.15%.
Motorola has been rated “HOLD” at
Canaccord with price target at $8. By the
end of the day, Motorola hovered at
$8.33, down 1.42%.
Disclaimer: This report is provided for information purposes
only. It is not an offer to sell or to buy any securities. This
report has been prepared based on sources believed to be
reliable, but there is no assurance or guarantee regarding its
completeness & and accuracy. The author accepts no
responsibility or liability arising from any use of the report.
E-mail: market.techspeak@gmail.com
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