Friday, December 31, 2010
Early trade in New York: Swiss franc soars to record highs
The Swiss franc hit record highs versus the euro and dollar on Thursday and looked set to extend gains as lower US bond yields and concern about the eurozone debt crisis prompted investors to seek safety in the Swiss currency. The dollar weakened broadly, hitting a seven-week low against the yen and a 28-year low against the Australian dollar after a surprisingly strong Treasury auction on Wednesday put pressure on government bond yields.
Dollar slides in New York
The dollar hit a seven-week low against the yen and dropped versus the euro on Wednesday, as US government bond yields tumbled following a solid debt auction, diminishing the appeal of the greenback. Rising global stock prices on expectations of stronger economic growth in 2011 also lifted investors' appetite for higher-yielding currencies and pressured the safe-haven US dollar, analysts said.
Dollar withers to new lows in Asia
The dollar weakened broadly on Thursday, hitting a seven-week low against the yen and a 28-year low against the Australian currency as traders took falls in US bond yields as a cue to sell it. US Treasury prices recovered on Wednesday, pushing yields sharply lower, after a $29 billion auction of seven-year notes drew surprisingly strong demand a day after a weak five-year sale.
Swissie climbs to record high
The Swiss franc hit record highs versus the euro and the dollar on Thursday, bolstered by its safe-haven status and lower US bond yields in thin year-end trade that exaggerated price swings. The dollar weakened broadly, hitting a seven-week low against the yen and a 28-year low against the Australian dollar as traders took the falls in US bond yields as a cue to sell.
Sterling falls against euro
Sterling fell to a seven-week low against the euro on Thursday, hitting a two-month trough on a trade-weighted basis, with traders citing year-end clearer selling while thin liquidity exaggerated price movements. A 1 percent drop against the euro in very low volume pushed the pound down across the board, taking it to a near two-year low versus the yen, an all-time low against the Swiss franc and a multi-year low against the New Zealand dollar.
Swiss franc hits fresh all-time high
The Swiss franc hit a fresh all-time high against the dollar on Thursday as traders took falls in US bond yields, which erode the return on US assets, as a cue to sell the greenback. The franc, which has attracted funds escaping eurozone debt problems, also traded within reach of a recent peak versus the euro as investors continue to prefer the solid Swiss economy to the potentially unstable eurozone.
IMF sees slow growth in 2011 for rich nations
A two-speed global recovery will extend into 2011, with developed countries growing slowly while emerging-market economies power ahead, the International Monetary Fund''s chief economist predicted on Thursday. In an interview with the lender''s online magazine, IMF Survey, Olivier Blanchard said the necessity for countries to rebalance their economies by letting exchange rates adjust more freely while taking steps to control debt remains vital.
Yuan hits fresh high
The yuan hit a record high against the dollar on Thursday after the People's Bank of China set a higher mid-point, sparking expectations of more appreciation in the first quarter of next year. Spot yuan hit an intraday high of 6.6000, the highest level since its revaluation and accompanying forex reforms in July 2005.
Taiwan dollar, won strengthen
The Taiwanese dollar and the South Korean won strengthened on Thursday, driven by exporters' demand for their own currencies and broad-based weakness in the US dollar. Asian currencies are expected to stay firm in 2011, thanks to sustained high economic growth and speculation that monetary authorities in the region will let their currencies strengthen more because of increasing inflation risks.
Thursday, December 30, 2010
China's factory inflation eases
Chinese inflation showed signs of cresting in a manufacturing survey on Thursday, an early indication that the government will be able to stick to its course of gradual rather than aggressive monetary tightening. An easing of price pressures could also cap this week's jump in the yuan to a record high against the dollar, which the central bank said had played an important role in taming inflation.
US jobless claims, factory data buoy recovery hopes
Upbeat US data on Thursday buttressed the view the economy gained momentum as the year ended, setting the stage for a stronger performance in 2011. New applications for unemployment benefits dropped 34,000 last week to 388,000, the lowest level since July 2008, while factory activity in the Midwest expanded in December at its fastest pace in more than 22 years.
Abu Dhabi to take over port management from Dubai
Abu Dhabi is taking over management of the city's port from neighbouring Dubai's port firm DP World, which runs similar facilities around the world. DP World and Abu Dhabi Terminals said Thursday that ADT will assume control of Mina Zayed in the new year, when an existing management services agreement expires. The move won't have a material effect on DP World's earnings, according to a regulatory filing.
Foreign investment in South Korea jumps to 10-year high
Foreign direct investment in South Korea rose to a 10-year high this year, boosted by the country's fast economic recovery and confidence about growth prospects, a government report showed Wednesday. Investment pledged by foreigners this year reached 12.9 billion dollars, up 12.1 percent from a year earlier, the Ministry of Knowledge Economy said.
Brazil's primary budget surplus slumps
Brazil's primary budget surplus fell sharply in November from a year earlier, but topped economists' forecasts, data showed on Wednesday. The consolidated primary surplus slumped to 4.2 billion reais ($2.5 billion) from 12.3 billion reais a year earlier, the central bank said.
Philippines rates unchanged, inflation forecasts raised
The Philippine central bank left its key policy rate unchanged on Wednesday, as widely forecast, but expectations of a rate rise in the first half of 2011 firmed as it raised inflation forecasts for coming years. There were inflationary pressures from global oil and food prices as well as hikes in domestic road tolls, and momentum in demand growth could further add to the build-up, the Bangko Sentral ng Pilipinas (BSP) said at its six-weekly policy review.
China's rare earths export cut raises trade concerns
China has raised fresh international trade concerns after slashing export quotas on rare earths minerals, risking action from the United States at the World Trade organisation. China, which produces about 97 percent of the global supply of rare earth minerals, cut its export quotas by 35 percent for the first half of 2011 versus a year ago, saying it wanted to preserve ample reserves, but warned against basing its total 2011 export quota on the first half figures.
Swedish trade balance swells in November
Sweden posted a 10-billion-kronor (1.1-billion-euro, 1.4-billion-dollar) trade surplus in November, up from a 2.1-billion-kronor surplus in November 2009, data released Wednesday by Statistics Sweden showed. On a year-to-year basis, exports in November swelled 23 percent in value while imports were up 15 percent, the statistics agency said in a statement.
Beijing hikes minimum wage by 20 percent
Authorities in Beijing have hiked the minimum wage in the capital by about 20 percent for the second time in six months amid soaring food costs, rising property prices and China's widening wealth gap. The minimum monthly salary in the city will be increased to 1,160 yuan from 960 yuan on January 1, according to a statement posted on the government's website Tuesday.
Awarded newspaper printing by Paarl Coldset
The WAN-IFRA International Newspaper Color Quality Club celebrates a premiere: the South African newspaper Naweek Beeld is the first African member of this elite group of newspaper printers. Manroland AG shares the pleasure of the success gained by its longstanding partner Paarl Coldset.
FTSE ends lower, dragged by banks, defensives
Defensive stocks and banks pulled Britain's top shares slightly lower by close of trade on Wednesday, offsetting gains from miners and energy stocks pushed higher by buoyant commodity prices. The FTSE 100 ended down 12.56 points, or 0.2 percent, at 5,996.36, having closed at a fresh 30-month high on Friday and above 6,000 for the first time since June 3, 2008.
Turkish bond yield hits all-time low in thin trade
At 0830 GMT, the yield on the Aug 8, 2012 benchmark bond <0#TRTSYSUM=IS> stood at 7.10 percent, down from 7.16 percent on Wednesday.
Swiss franc hits record high vs dollar, euro
The Swiss franc, which has attracted funds escaping euro zone debt, hit a new high record against the euro. The euro was down 0.65 percent at 1.2424 francs EURCHF=, having fallen to 1.2404 francs--a record low.
Against the dollar, it rose to a high of 0.9377 francs. CHF=.
Against the dollar, it rose to a high of 0.9377 francs. CHF=.
EURO GOVT-Bunds up with Treasuries after solid U.S. auction
The Treasury sale followed a disappointing 5-year offering on Tuesday and had the highest participation of indirect bidders since June 2009 as investors extended duration and offset short positions ahead of year-end.
March Bund futures FGBLc1 rose 60 ticks to 125.37. Two-year bond yields DE2YT=TWEB fell 2.4 basis points to 0.864 percent, with 10-year yields DE10YT=TWEB almost 5 bps lower at 2.96 percent.
Italy will sell up to 6 billion euros of 2013 and 2021 bonds as well as up to 2.5 billion euros of floating-rate certificates [ID:nRMERNE6BX].
Barclays Capital notes that both Italian bonds have underperformed not only Bunds, but also their Spanish equivalents since mid-December. "Past auction concessions have tended to reverse post the supply and thus we see room for some tightening in the next few days against both other peripherals and versus the ...core, especially as liquidity conditions normalise," Barclays Capital strategists said.
The sale comes after gross yields at an auction of zero coupon bonds and six-month bills on Wednesday spiked higher in the current holiday-thinned market [ID:nLDE6BR127].
March Bund futures FGBLc1 rose 60 ticks to 125.37. Two-year bond yields DE2YT=TWEB fell 2.4 basis points to 0.864 percent, with 10-year yields DE10YT=TWEB almost 5 bps lower at 2.96 percent.
Italy will sell up to 6 billion euros of 2013 and 2021 bonds as well as up to 2.5 billion euros of floating-rate certificates [ID:nRMERNE6BX].
Barclays Capital notes that both Italian bonds have underperformed not only Bunds, but also their Spanish equivalents since mid-December. "Past auction concessions have tended to reverse post the supply and thus we see room for some tightening in the next few days against both other peripherals and versus the ...core, especially as liquidity conditions normalise," Barclays Capital strategists said.
The sale comes after gross yields at an auction of zero coupon bonds and six-month bills on Wednesday spiked higher in the current holiday-thinned market [ID:nLDE6BR127].
Announcement of change in the total number of shares and votes in ASSA ABLOY AB
The conversion of convertible bonds related to Incentive 2006 has now started. The conversion is handled by an external liquidity agent and can take place during a 180-day period between December 2010 and June 2011.
In December 259,160 new B-shares were issued. In case of full conversion 2,332,350 new B-shares will be created up until June 2011.
Incentive 2006 is an incentive program for senior managers in the Group and ASSA ABLOY has issued four convertible bonds of a total value of EUR 38.4 M to a company especially established for this purpose.
The share capital at 30 December, 2010 amounted to SEK 366,177,194, comprising 19,175,323 A-shares and 347,001,871 B-shares. The total number of voting rights amounts to 538,755,101.
In December 259,160 new B-shares were issued. In case of full conversion 2,332,350 new B-shares will be created up until June 2011.
Incentive 2006 is an incentive program for senior managers in the Group and ASSA ABLOY has issued four convertible bonds of a total value of EUR 38.4 M to a company especially established for this purpose.
The share capital at 30 December, 2010 amounted to SEK 366,177,194, comprising 19,175,323 A-shares and 347,001,871 B-shares. The total number of voting rights amounts to 538,755,101.
Rare Earths Rally On Chinese Quota Cut
This morning, rare earth stocks soared after news that China cut export quotas on rare earth materials, reducing global supply and forcing users to find alternate suppliers. The minerals are key components of high technology, clean energy and other products that rely on their properties for magnetism and strength.
A look at few stocks in the sector: shares of Molycorp gained 7%, Rare Element Resources shares gained 13%, Neo Material shares gained 6%, and Lynas Corporation shares surged 15%.
Meanwhile, the industry ETF, the Market Vectors Rare Earth/Strategic Metals ETF is higher by 6%.
Market News Video produces and distributes online videos about stocks and investing.
A look at few stocks in the sector: shares of Molycorp gained 7%, Rare Element Resources shares gained 13%, Neo Material shares gained 6%, and Lynas Corporation shares surged 15%.
Meanwhile, the industry ETF, the Market Vectors Rare Earth/Strategic Metals ETF is higher by 6%.
Market News Video produces and distributes online videos about stocks and investing.
Bigger year for commods in 2011? Not all agree
Copper, cotton and gold prices hit record highs in December and oil and various edible crops soared to multi-month peaks on both fundamentals and speculation. The Reuters-Jefferies CRB index, a global commodities benchmark, is up 17 percent for the year, extending last year's 23 percent growth.
While a number of investors and market watchers expect such bullish trends to continue into the new year, some think they will be overdone, forcing sharp price reversals.
"Investors may take stock of the 2011 landscape and may not necessarily like what they see," said Edward Meir, senior commodities analyst MF Global, one of the world's largest commodity brokers.
"Although the world macro picture is far improved from where we were two years ago, there are trouble spots looming ahead," Meir said in a commentary on energy and metals.
Meir said sharply rising food and other basic material costs had boosted inflation in emerging economies, prompting aggressive moves to rein in growth, particularly in China, a top metals buyer and major energy and grains consumer.
Beijing had resorted to various tightening measures this year, including raising interest rates twice in just over two months.
But Meir said China was still "behind the curve," in that nominal interest rates were barely above the "official" inflation reading and well below the food inflation index of nearly 12 percent.
Beijing's state media reported on Monday that minimum wages in China's capital will go up by 21 percent next year, potentially creating a greater cost burden for exporters of Chinese-made goods.
"This will only exacerbate the inflation picture down the road," Meir said.
"More broadly, the commodity spiral, if left unchecked, will trigger possible demand destruction, lead to commodity substitution where applicable, and generate a more aggressive supply-side response, factors that, admittedly thus far, do not seem to be registering with investors."
Demand destruction was the catalyst for the financial crisis that erupted in late 2008, after oil rose 50 percent that year alone to an all-time high of nearly $150 a barrel.
This year, oil is up 15 percent to above $91.
Aside from soaring prices of fuel and other commodities, China was also burdened by a looming property glut, and could be forced to get tougher on inflation.
"The world economy is resting on policymakers in China. If the interest rate rises don't reduce inflation there, eventually the population could become very difficult to govern," said Peter Cohan, a financial markets commentator in Malborough, Massachusetts.
"If the resulting instability leads to a decline in Chinese demand, those betting on a weak dollar and ever-rising commodities prices could be in for a world of hurt."
While a number of investors and market watchers expect such bullish trends to continue into the new year, some think they will be overdone, forcing sharp price reversals.
"Investors may take stock of the 2011 landscape and may not necessarily like what they see," said Edward Meir, senior commodities analyst MF Global, one of the world's largest commodity brokers.
"Although the world macro picture is far improved from where we were two years ago, there are trouble spots looming ahead," Meir said in a commentary on energy and metals.
Meir said sharply rising food and other basic material costs had boosted inflation in emerging economies, prompting aggressive moves to rein in growth, particularly in China, a top metals buyer and major energy and grains consumer.
Beijing had resorted to various tightening measures this year, including raising interest rates twice in just over two months.
But Meir said China was still "behind the curve," in that nominal interest rates were barely above the "official" inflation reading and well below the food inflation index of nearly 12 percent.
Beijing's state media reported on Monday that minimum wages in China's capital will go up by 21 percent next year, potentially creating a greater cost burden for exporters of Chinese-made goods.
"This will only exacerbate the inflation picture down the road," Meir said.
"More broadly, the commodity spiral, if left unchecked, will trigger possible demand destruction, lead to commodity substitution where applicable, and generate a more aggressive supply-side response, factors that, admittedly thus far, do not seem to be registering with investors."
Demand destruction was the catalyst for the financial crisis that erupted in late 2008, after oil rose 50 percent that year alone to an all-time high of nearly $150 a barrel.
This year, oil is up 15 percent to above $91.
Aside from soaring prices of fuel and other commodities, China was also burdened by a looming property glut, and could be forced to get tougher on inflation.
"The world economy is resting on policymakers in China. If the interest rate rises don't reduce inflation there, eventually the population could become very difficult to govern," said Peter Cohan, a financial markets commentator in Malborough, Massachusetts.
"If the resulting instability leads to a decline in Chinese demand, those betting on a weak dollar and ever-rising commodities prices could be in for a world of hurt."
BJ’s Wholesale, Molycorp, Sears, Ultralife
Advancers
BJ’s Wholesale Club Inc. /quotes/comstock/13*!bj/quotes/nls/bj (BJ 47.62, +3.15, +7.08%) shares rose 7% after the New York Post cited unnamed sources in reporting buyout firm Leonard Green & Partners LP might make a hostile bid for the warehouse-store operator.
GenVec Inc. /quotes/comstock/15*!gnvc/quotes/nls/gnvc (GNVC 0.58, +0.03, +5.45%) shares gained 5.5% after the biotechnology company said it would work with Merial, a producer of vaccine for foot-and-mouth disease, to develop and market its own technology for a vaccine.
Molycorp Inc. /quotes/comstock/13*!mcp/quotes/nls/mcp (MCP 49.30, +3.12, +6.76%) shares gained almost 7% with the rare-earth mine operator rising after China cut export quotas of minerals used in making high-technology goods including electric cars and wireless phones. Other mineral-producers also rose, with Lynas Corp. /quotes/comstock/11i!lyscf (LYSCF 2.00, +0.27, +15.61%) up 15.6%, China Rare Earth Holdings Ltd. /quotes/comstock/11i!creqf (CREQF 0.51, +0.10, +22.89%) rising 23% and Arafura Resources Ltd. /quotes/comstock/11i!araff (ARAFF 1.48, +0.20, +15.63%) up more than 15%.
Pulse Electronics Corp. /quotes/comstock/13*!puls/quotes/nls/puls (PULS 5.45, +1.09, +25.00%) rose 25% after the electronics manufacturer said it received notice from Bel Fuse Inc. that it would nominate three candidates to its board, following up on its recent expression of interest about a possible combining of businesses.
RightNow Technologies Inc. /quotes/comstock/15*!rnow/quotes/nls/rnow (RNOW 23.51, +3.72, +18.80%) shares climbed almost 19% after Piper Jaffray upgraded its rating on the customer relations-management software provider from neutral to overweight.
Sears Holdings Corp. /quotes/comstock/15*!shld/quotes/nls/shld (SHLD 74.49, +4.47, +6.38%) shares were up 6.4% after Sonic Solutions /quotes/comstock/15*!snic/quotes/nls/snic (SNIC 15.02, +0.18, +1.21%) said the retailer had launched its online film service using its RoxioNow platform.
Decliners
Dara BioSciences Inc. /quotes/comstock/15*!dara/quotes/nls/dara (DARA 2.78, -0.33, -10.61%) fell 10.6% after the drug developer said it would sell up to $4 million in shares and warrants.
Ultralife Corp. /quotes/comstock/15*!ulbi/quotes/nls/ulbi (ULBI 6.09, -0.98, -13.86%) shares were down almost 14% after the seller of batteries and communication products reduced its full-year revenue outlook.
BJ’s Wholesale Club Inc. /quotes/comstock/13*!bj/quotes/nls/bj (BJ 47.62, +3.15, +7.08%) shares rose 7% after the New York Post cited unnamed sources in reporting buyout firm Leonard Green & Partners LP might make a hostile bid for the warehouse-store operator.
GenVec Inc. /quotes/comstock/15*!gnvc/quotes/nls/gnvc (GNVC 0.58, +0.03, +5.45%) shares gained 5.5% after the biotechnology company said it would work with Merial, a producer of vaccine for foot-and-mouth disease, to develop and market its own technology for a vaccine.
Molycorp Inc. /quotes/comstock/13*!mcp/quotes/nls/mcp (MCP 49.30, +3.12, +6.76%) shares gained almost 7% with the rare-earth mine operator rising after China cut export quotas of minerals used in making high-technology goods including electric cars and wireless phones. Other mineral-producers also rose, with Lynas Corp. /quotes/comstock/11i!lyscf (LYSCF 2.00, +0.27, +15.61%) up 15.6%, China Rare Earth Holdings Ltd. /quotes/comstock/11i!creqf (CREQF 0.51, +0.10, +22.89%) rising 23% and Arafura Resources Ltd. /quotes/comstock/11i!araff (ARAFF 1.48, +0.20, +15.63%) up more than 15%.
Pulse Electronics Corp. /quotes/comstock/13*!puls/quotes/nls/puls (PULS 5.45, +1.09, +25.00%) rose 25% after the electronics manufacturer said it received notice from Bel Fuse Inc. that it would nominate three candidates to its board, following up on its recent expression of interest about a possible combining of businesses.
RightNow Technologies Inc. /quotes/comstock/15*!rnow/quotes/nls/rnow (RNOW 23.51, +3.72, +18.80%) shares climbed almost 19% after Piper Jaffray upgraded its rating on the customer relations-management software provider from neutral to overweight.
Sears Holdings Corp. /quotes/comstock/15*!shld/quotes/nls/shld (SHLD 74.49, +4.47, +6.38%) shares were up 6.4% after Sonic Solutions /quotes/comstock/15*!snic/quotes/nls/snic (SNIC 15.02, +0.18, +1.21%) said the retailer had launched its online film service using its RoxioNow platform.
Decliners
Dara BioSciences Inc. /quotes/comstock/15*!dara/quotes/nls/dara (DARA 2.78, -0.33, -10.61%) fell 10.6% after the drug developer said it would sell up to $4 million in shares and warrants.
Ultralife Corp. /quotes/comstock/15*!ulbi/quotes/nls/ulbi (ULBI 6.09, -0.98, -13.86%) shares were down almost 14% after the seller of batteries and communication products reduced its full-year revenue outlook.
US STOCKS-S&P 500 eyes best December since 1991
U.S. stocks advanced in a thinly traded session on Wednesday with the S&P 500 eyeing its best December in nearly two decades as investors remained optimistic about the prospects for equities next year.
The S&P 500 has gained 6.7 percent so far this month and has risen in 17 of the last 20 sessions. However, with volume around the holidays registering some of the lowest levels of the year, some investors are waiting for January to see if the trend holds.
"People are hoping that the consumer is back and that will help fuel the engine and grow some earnings so that companies will start hiring," said Frank Ingarra, a portfolio manager at Hennessy Funds in Stamford, Connecticut. "The next quarter will be the interesting quarter. Does the euphoria from Christmas and the holidays carry forward or not."
The Dow Jones industrial average .DJI gained 23.42 points, or 0.20 percent, to 11,598.96. The Standard & Poor's 500 Index .SPX rose 2.31 points, or 0.18 percent, to 1,260.82. The Nasdaq Composite Index .IXIC added 4.70 points, or 0.18 percent, to 2,667.58.
The S&P 500 has risen above levels reached on Sept. 12, 2008, the last trading day before Lehman Brothers collapsed, and is on course for its biggest December gains since 1991 when it rose 11.2 percent.
Retailers rose, with BJ's Wholesale Club Inc (BJ.N) jumping 6.5 percent to $47.36 after the New York Post reported buyout firm Leonard Green & Partners remained interested in buying the warehouse club operator and may launch a hostile bid. For details, see [ID:nSGE6BS065]
The Morgan Stanley Retail index .MVR climbed 0.8 percent, and the S&P Retail index .RLX gained 0.4 percent.
Sears Holdings Corp (SHLD.O) rose 6.1 percent to $74.30 after it said it launched an on-demand video service to compete with companies like Netflix Inc (NFLX.O). Netflix fell 1 percent to $181.84 but are up 230 percent this year.
Molycorp Inc (MCP.N), which owns a rare-earth mine in Mountain Pass, California, was up 6.5 percent to $49.18 after China cut export quotas on the minerals, threatening to reduce already-tight global supplies and risking U.S. action. [ID:nL3E6NT08N]
Private equity company Blackstone Group LP (BX.N) made a preliminary offer for Centro Properties Group's (CNP.AX) 600 U.S. shopping center properties, the Wall Street Journal reported. Blackstone added 1.6 percent to $14.36. [ID:nL3E6NT050]
Noble Energy Inc (NBL.N) and its Israeli exploration partners confirmed earlier estimates that the offshore Leviathan prospect was Israel's largest natural gas find. Noble shares rose 2.8 percent to $87.35. [ID:nLDE6BS10F] (Reporting by Edward Krudy; editing by Jeffrey Benkoe)
The S&P 500 has gained 6.7 percent so far this month and has risen in 17 of the last 20 sessions. However, with volume around the holidays registering some of the lowest levels of the year, some investors are waiting for January to see if the trend holds.
"People are hoping that the consumer is back and that will help fuel the engine and grow some earnings so that companies will start hiring," said Frank Ingarra, a portfolio manager at Hennessy Funds in Stamford, Connecticut. "The next quarter will be the interesting quarter. Does the euphoria from Christmas and the holidays carry forward or not."
The Dow Jones industrial average .DJI gained 23.42 points, or 0.20 percent, to 11,598.96. The Standard & Poor's 500 Index .SPX rose 2.31 points, or 0.18 percent, to 1,260.82. The Nasdaq Composite Index .IXIC added 4.70 points, or 0.18 percent, to 2,667.58.
The S&P 500 has risen above levels reached on Sept. 12, 2008, the last trading day before Lehman Brothers collapsed, and is on course for its biggest December gains since 1991 when it rose 11.2 percent.
Retailers rose, with BJ's Wholesale Club Inc (BJ.N) jumping 6.5 percent to $47.36 after the New York Post reported buyout firm Leonard Green & Partners remained interested in buying the warehouse club operator and may launch a hostile bid. For details, see [ID:nSGE6BS065]
The Morgan Stanley Retail index .MVR climbed 0.8 percent, and the S&P Retail index .RLX gained 0.4 percent.
Sears Holdings Corp (SHLD.O) rose 6.1 percent to $74.30 after it said it launched an on-demand video service to compete with companies like Netflix Inc (NFLX.O). Netflix fell 1 percent to $181.84 but are up 230 percent this year.
Molycorp Inc (MCP.N), which owns a rare-earth mine in Mountain Pass, California, was up 6.5 percent to $49.18 after China cut export quotas on the minerals, threatening to reduce already-tight global supplies and risking U.S. action. [ID:nL3E6NT08N]
Private equity company Blackstone Group LP (BX.N) made a preliminary offer for Centro Properties Group's (CNP.AX) 600 U.S. shopping center properties, the Wall Street Journal reported. Blackstone added 1.6 percent to $14.36. [ID:nL3E6NT050]
Noble Energy Inc (NBL.N) and its Israeli exploration partners confirmed earlier estimates that the offshore Leviathan prospect was Israel's largest natural gas find. Noble shares rose 2.8 percent to $87.35. [ID:nLDE6BS10F] (Reporting by Edward Krudy; editing by Jeffrey Benkoe)
Wall Street jockeying for 2010 finish
“Funds are positioned as they would like to be for the end-of-the-year photo,” said Marc Pado, U.S. market strategist at Cantor Fitzgerald, of the light volume and narrow volatility range that have marked recent sessions.
“It would take a major bit of news to derail their plan,” he added.
After closing Tuesday at its highest level since Aug. 28, 2008, the Dow Jones Industrial Average /quotes/comstock/10w!i:dji/delayed (DJIA 11,585, +9.84, +0.09%) ended up 9.84 points, or 0.09%, at 11585.38.
Seventeen of the Dow’s 30 components gained, with fast-food giant McDonald’s Corp. /quotes/comstock/13*!mcd/quotes/nls/mcd (MCD 76.99, +0.56, +0.73%) leading the gainers.
Up for a third straight session and by 13% for the year, the S&P 500 Index /quotes/comstock/21z!i1:in\x (SPX 1,260, +1.27, +0.10%) gained 1.27 points, or 0.1%, to 1,259.78, with energy companies gaining the most and financials ranking as the biggest laggard among the 10 S&P industry groups.
The Nasdaq Composite Index /quotes/comstock/10y!i:comp (COMP 2,667, +4.05, +0.15%) rose 4.05 points, or 0.15%, at 2,666.93.
Advancers outran decliners 19 to 11 on the New York Stock Exchange, where volume hit 520 million shares, just over half of the 30-day average.
“It would take a major bit of news to derail their plan,” he added.
After closing Tuesday at its highest level since Aug. 28, 2008, the Dow Jones Industrial Average /quotes/comstock/10w!i:dji/delayed (DJIA 11,585, +9.84, +0.09%) ended up 9.84 points, or 0.09%, at 11585.38.
Seventeen of the Dow’s 30 components gained, with fast-food giant McDonald’s Corp. /quotes/comstock/13*!mcd/quotes/nls/mcd (MCD 76.99, +0.56, +0.73%) leading the gainers.
Up for a third straight session and by 13% for the year, the S&P 500 Index /quotes/comstock/21z!i1:in\x (SPX 1,260, +1.27, +0.10%) gained 1.27 points, or 0.1%, to 1,259.78, with energy companies gaining the most and financials ranking as the biggest laggard among the 10 S&P industry groups.
The Nasdaq Composite Index /quotes/comstock/10y!i:comp (COMP 2,667, +4.05, +0.15%) rose 4.05 points, or 0.15%, at 2,666.93.
Advancers outran decliners 19 to 11 on the New York Stock Exchange, where volume hit 520 million shares, just over half of the 30-day average.
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