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US STOCKS-Wall St climbs with Fannie and oil; Disney up late
Reuters: [2008-05-06 23:53:00]
(Updates close with volume and advance/decline figures)
By Ellis Mnyandu
NEW YORK, May 6 (Reuters) - U.S. stocks rose on Tuesday as Fannie Mae's <FNM.N> reassuring comments about the credit and housing markets buoyed financial shares, while record crude oil prices lifted shares of energy companies.
Speculation that Microsoft Corp <MSFT.O> could resume takeover talks with Yahoo Inc <YHOO.O> fed a rebound in technology shares. Yahoo gained 5.5 percent, while Microsoft rose 2.1 percent, leading the S&P 500's advance.
After an early retreat, the session turned positive when top executives of Fannie Mae, the largest U.S. home finance company, said the worst of the credit market turmoil erupting from the real estate slowdown may have passed. That mitigated earlier concern about its huge quarterly loss, and propelled a broad rally in financial stocks.
Fannie Mae climbed almost 9 percent, and smaller rival Freddie Mac <FRE.N> gained 7.1 percent.
Oil struck above $122 a barrel for the first time, carrying energy shares higher with it and outweighing a retreat in sectors sensitive to high fuel costs, such as airlines and retailers.
"When I came to work today, we thought Fannie Mae's stock will be trading south of $25, but somehow the investing public got news that they had a pretty positive conference call," said Angel Mata, managing director of listed equity trading at Stifel Nicolaus Capital Markets in Baltimore, Maryland.
"There's a lot of people that are eyeing the financials right now, so if you're going to play the financials, Fannie Mae and Freddie Mac have to be among them."
The Dow Jones industrial average <.DJI> finished up 51.29 points, or 0.40 percent, at 13,020.83. The Standard & Poor's 500 Index <.SPX> ended up 10.77 points, or 0.77 percent, at 1,418.26. The Nasdaq Composite Index <.IXIC> closed up 19.19 points, or 0.78 percent, at 2,483.31.
Immediately after the closing bell, there was more encouraging news that could help stocks extend their advance. Walt Disney Co <DIS.N> posted a stronger-than-expected quarterly profit, sending its shares up more than 3 percent in after-hours trade from their close at $33.73 on the New York Stock Exchange.
Disney, one of the world's largest media companies and owner of the ABC television network, ESPN all-sports cable TV network and Disney theme parks in Florida and southern California, is seen as a bellwether of consumer spending.
Cisco Systems Inc's <CSCO.O> shares jumped more than 2 percent after the bell from their Nasdaq close of $26.33 as the network equipment maker also posted a profit that topped estimates.
In the regular session, Fannie Mae shares finished at $30.81, while Freddie Mac shares closed at $27.33. Other financial standouts were insurer American International Group Inc <AIG.N>, which rose 2.1 percent to $48.40, and JPMorgan Chase & Co <JPM.N>, the No. 3 U.S. bank, whose stock added 0.4 percent to $48.20.
The optimism from Fannie Mae's comments also contributed to a rise in the shares of home builders, with the Dow Jones home construction index <.DJUSHB> up 2 percent for the day.
Shares of D.R. Horton Inc <DHI.N>, the largest U.S. home builder, jumped 5.5 percent to $16.85 even as the company posted a quarterly loss of $1.3 billion and halved its dividend. For details, see [ID:nN06454667]
Energy shares rose after U.S. crude oil hit a record above $122 a barrel. A stronger-than-expected profit from independent oil and gas company Anadarko Petroleum Corp <APC.N> also buoyed the energy sector.
Exxon Mobil shares rose 0.6 percent to $90.07, while ConocoPhillips <COP.N> climbed 1.8 percent to $88.74 and Chevron Corp's <CVX.N> shares gained 1.3 percent to $96.87, while Anadarko shares climbed 9.4 percent to $74.53.
Shares of oil services company Schlumberger Ltd <SLB.N> jumped 2 percent to $103.58. The oil index <.OIX> shot up 3.3 percent.
Investment bank Goldman Sachs <GS.N> said in a research note that the price of oil could shoot up to $200 a barrel within the next two years as part of a "super-spike" driven by poor growth in oil supplies.
"Energy prices are going to stay high until -- a) we get some production on line, which there's none that I know of -- or b) until we have a serious recession," said Sasha Kostadinov, portfolio manager at Shaker Investments in Cleveland, Ohio.
Microsoft Corp <MSFT.O> and Yahoo Inc <YHOO.O> were both among the Nasdaq's top five advancers as speculation continued that pressure from Yahoo's shareholders would revive takeover talks. Shares of Microsoft, which abandoned its bid for Yahoo at the weekend, ended at $29.70, while Yahoo closed at $25.72.
But higher energy costs threatened to crimp consumer spending. Wal-Mart Stores Inc <WMT.N>, the world's biggest retailer, was the top drag on the Dow. Wal-Mart's stock fell1.1 percent to $56.35.
On the New York Mercantile Exchange, June crude <CLM8> settled at $121.84 a barrel, up $1.87, or a gain of 1.56 percent for the session. Earlier, NYMEX June crude climbed as high as a record $122.73 a barrel, which eclipsed Monday's intraday record of $120.36.
Compared with a year ago, U.S. crude oil futures prices are up $59.91 a barrel -- or almost 97 percent.
Volume on the New York Stock Exchange was modest, with about 1.23 billion shares changing hands, below last year's estimated daily average of 1.90 billion. On the Nasdaq, about 2.21 billion shares traded, above last year's daily average of 2.17 billion.
Advancers outnumbered decliners on the NYSE by a ratio of almost 2 to 1, while on the Nasdaq, about three stocks rose for every two that fell. (Editing by Jan Paschal) ((Ellis.Mnyandu@thomsonreuters.com; +1 646 223 6085; Reuters Messaging:ellis.mnyandu.reuters.com@reuters.net)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com)) Keywords: MARKETS STOCKS
Brazil currency falls, stocks steady despite TIM
Reuters: [2008-05-06 22:47:00]
(Updates to close)
SAO PAULO, May 6 (Reuters) - Brazilian stocks closed little changed on Tuesday, weighed down by banking shares and mobile phone company TIM Participacoes, but buoyed by Petrobras, while the national currency dipped on concerns the government may announce measures to ease a recent surge.
The Sao Paulo Stock Exchange's benchmark Bovespa index <.BVSP> finished just 0.03 percent higher at 70,195.27 points -- a new all-time high close -- after erasing modest losses.
Shares of TIM Participacoes <TCSL4.SA>, Brazil's second-largest mobile phone company, slumped 8.07 percent to 5.24 reais after it reported a wider first-quarter loss. Banks declined after Itau, Brazil's second-largest private sector bank, posted first-quarter results and a slowdown in loan growth.
The Brazilian real <BRBY> weakened for a second consecutive session, edging down 0.12 percent to 1.661 per U.S. dollar.
The government may soon announce measures to boost export industries with a fund to finance Brazilian companies doing business abroad, but the measures are not aimed directly at the strong real, Budget Minister Paulo Bernardo said on Tuesday.
"The government will announce a package (to stimulate exports). Before that package is announced, nothing really will happen in the currency market," said Mario Battistel, manager of currency trading at the Fair brokerage.
Interest-rate futures <0#DIJ:> on the BM&F commodities and futures exchange in Sao Paulo were mostly higher after data on Tuesday showed prices in Brazil's largest city quickened in April. Inflation in Sao Paulo rose 0.54 percent last month, faster than the 0.31 percent gain in March, the Fipe research institute said.
On the stock exchange, Itau <ITAU4.SA>, Brazil's second-largest private sector bank, fell 4.3 percent to 47.61 reais. The bank said on Tuesday its first-quarter profit rose 7.5 percent to 2.04 billion reais from a year earlier and was up 0.7 percent from the fourth quarter. Loan growth slowed to 7.9 percent quarter-on-quarter after expanding 11.9 percent in the fourth quarter. For details, see [ID:nN06364869]
Other banks also fell on concerns growth in lending, one of the main sources of profits for the financial sector in past quarters, may slow further because of an increase in domestic interest rates.
Bradesco <BBDC4.SA> fell 3 percent to 39.09 reais, while Banco do Brasil <BBAS3.SA> dropped 3.67 percent to 28.9 reais.
But state-controlled oil company Petrobras <PETR4.SA> -- Bovespa's bellwether listing -- rose 2.62 percent to 45 reais as crude prices rose nearly 2 percent in London and New York amid concerns over tight supplies.
Mining company Vale <VALE5.SA>, the second most heavily weighted stock in the Bovespa index, gained 1.47 percent to 55.2 reais, buoyed by firmer prices of copper and other industrial metals. (Reporting by Elzio Barreto and Silvio Cascione; editing by Gary Crosse)
((elzio.barreto@thomsonreuters.com; +55-11-5644-7725; Reuters Messaging: elzio.barreto.reuters.com@reuters.net)) Keywords: MARKETS BRAZIL/
US STOCKS-Wall St jumps on Fannie, oil; Disney up late
Reuters: [2008-05-06 22:37:00]
(Updates to close)
By Ellis Mnyandu
NEW YORK, May 6 (Reuters) - U.S. stocks rose on Tuesday as Fannie Mae's <FNM.N> reassuring comments about the credit and housing markets buoyed financial shares, while record crude oil prices lifted shares of energy companies.
Speculation that Microsoft Corp <MSFT.O> could resume takeover talks with Yahoo Inc <YHOO.O> fed a rebound in technology shares. Yahoo gained 5.5 percent, while Microsoft rose 2.1 percent, leading the S&P 500's advance.
After an early retreat, the session turned positive when top executives of Fannie Mae, the largest U.S. home finance company, said the worst of the credit market turmoil erupting from the real estate slowdown may have passed. That mitigated earlier concern about its huge quarterly loss, and propelled a broad rally in financial stocks.
Fannie Mae climbed almost 9 percent, and smaller rival Freddie Mac <FRE.N> gained 7.1 percent.
Oil struck above $122 a barrel for the first time, carrying energy shares higher with it and outweighing a retreat in sectors sensitive to high fuel costs, such as airlines and retailers.
"When I came to work today, we thought Fannie Mae's stock will be trading south of $25, but somehow the investing public got news that they had a pretty positive conference call," said Angel Mata, managing director of listed equity trading at Stifel Nicolaus Capital Markets in Baltimore, Maryland.
"There's a lot of people that are eyeing the financials right now, so if you're going to play the financials, Fannie Mae and Freddie Mac have to be among them."
The Dow Jones industrial average <.DJI> finished up 51.29 points, or 0.40 percent, at 13,020.83. The Standard & Poor's 500 Index <.SPX> ended up 10.77 points, or 0.77 percent, at 1,418.26. The Nasdaq Composite Index <.IXIC> closed up 19.19 points, or 0.78 percent, at 2,483.31.
Immediately after the closing bell, there was more encouraging news that could help stocks extend their advance. Walt Disney Co <DIS.N> posted a stronger-than-expected quarterly profit, sending its shares up more than 3 percent in after-hours trade from their close at $33.73 on the New York Stock Exchange.
Disney, one of the world's largest media companies and owner of the ABC television network, ESPN all-sports cable TV network and Disney theme parks in Florida and southern California, is seen as a bellwether of consumer spending.
Cisco Systems Inc's <CSCO.O> shares jumped more than 2 percent after the bell from their Nasdaq close of $26.33 as the network equipment maker also posted a profit that topped estimates.
In the regular session, Fannie Mae shares finished at $30.81, while Freddie Mac shares closed at $27.33. Other financial standouts were insurer American International Group Inc <AIG.N>, which rose 2.1 percent to $48.40, and JPMorgan Chase & Co <JPM.N>, the No. 3 U.S. bank, whose stock added 0.4 percent to $48.20.
The optimism from Fannie Mae's comments also contributed to a rise in the shares of home builders, with the Dow Jones home construction index <.DJUSHB> up 2 percent for the day.
Shares of D.R. Horton Inc <DHI.N>, the largest U.S. home builder, jumped 5.5 percent to $16.85 even as the company posted a quarterly loss of $1.3 billion and halved its dividend. For details, see [ID:nN06454667]
Energy shares rose after U.S. crude oil hit a record above $122 a barrel. A stronger-than-expected profit from independent oil and gas company Anadarko Petroleum Corp <APC.N> also buoyed the energy sector.
Exxon Mobil shares rose 0.6 percent to $90.07, while ConocoPhillips <COP.N> climbed 1.8 percent to $88.74 and Chevron Corp's <CVX.N> shares gained 1.3 percent to $96.87, while Anadarko shares climbed 9.4 percent to $74.53.
Shares of oil services company Schlumberger Ltd <SLB.N> jumped 2 percent to $103.58. The oil index <.OIX> shot up 3.3 percent.
Investment bank Goldman Sachs <GS.N> said in a research note that the price of oil could shoot up to $200 a barrel within the next two years as part of a "super-spike" driven by poor growth in oil supplies.
"Energy prices are going to stay high until -- a) we get some production on line, which there's none that I know of -- or b) until we have a serious recession," said Sasha Kostadinov, portfolio manager at Shaker Investments in Cleveland, Ohio.
Microsoft Corp <MSFT.O> and Yahoo Inc <YHOO.O> were both among the Nasdaq's top five advancers as speculation continued that pressure from Yahoo's shareholders would revive takeover talks. Shares of Microsoft, which abandoned its bid for Yahoo at the weekend, ended at $29.70, while Yahoo closed at $25.72.
But higher energy costs threatened to crimp consumer spending. Wal-Mart Stores Inc <WMT.N>, the world's biggest retailer, was the top drag on the Dow. Wal-Mart's stock fell1.1 percent to $56.35.
On the New York Mercantile Exchange, June crude <CLM8> settled at $121.84 a barrel, up $1.87, or a gain of 1.56 percent for the session. Earlier, NYMEX June crude climbed as high as a record $122.73 a barrel, which eclipsed Monday's intraday record of $120.36.
Compared with a year ago, U.S. crude oil futures prices are up $59.91 a barrel -- or almost 97 percent. (Editing by Jan Paschal) ((Ellis.Mnyandu@thomsonreuters.com; +1 646 223 6085; Reuters Messaging:ellis.mnyandu.reuters.com@reuters.net)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com)) Keywords: MARKETS STOCKS
PRESS DIGEST-Australian Business News - May 7
Reuters: [2008-05-06 22:26:00]
Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy.
THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)
Gavin O'Reilly has taken over as the new chairman of media group APN News & Media <APN.AX>. Mr O'Reilly is chief operating officer of Irish media group Independent News & Media <INWS.I> which is 26.7 percent owned by his father, Sir Anthony O'Reilly. Independent News has a 40.7 percent stake in APN. 'We are long-term, strategic shareholders [in APN],' Mr OReilly said yesterday at APN's annual meeting, where he formally took the reins from outgoing chairman James Parkinson. Page 60.
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Wine and beer group Foster's <FGL.AX> saw profit at its North American business drop 32 percent to A$98 million in the first half of 2007-08, according to data compiled by marketing information firm ACNielsen. Among the company's worst-performing brands in the United States were Rosemount and the California-made Beringer. Foster's blamed slackening consumer spending in the US, which caused a 1.1 percent fall in broader wine market growth in that country in the four weeks ended April 19. Page 61.
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Fine paper merchant PaperlinX <PPX.AX> yesterday shut down a key pulp mill in Victoria for six weeks for maintenance and development work. The Maryvale mill is due for a planned A$310 million upgrade early next year. According to a PaperlinX spokesman, the outcome of the shutdown will determine if the upgrade will be completed on time, and whether projected savings will be achieved. Broker JPMorgan says successful completion of the Maryvale project will 'create a powerful step change in earnings for PaperlinX.' Page 61.
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Diversified industrial group Futuris Corp <FCL.AX> has abandoned its plans to offload its 43 percent stake in Australian Agricultural Company (AACo) <AAC.AX>. 'None of the proposals arising from the sale process have certainty of execution or timing,' said Futuris chief executive Les Wozniczka. It is understood that potential private buyers of AACo were held back by the rising cost of debt in the wake of the global credit crunch. Futuris shares fell 5 cents to A$2.11 yesterday, while AACo shares dropped 6 cents to A$3.13. Page 61.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Banking and insurance group Suncorp Metway <SUN.AX> has announced a A$400 million raising in a convertible preference share (CPS) offer. Suncorp chairman John Story said yesterday the raising would help finance asset growth and reduce existing debt. The CPS securities, priced at A$100 each, will pay investors floating rate, quarterly, non-cumulative dividends. Suncorp expects the securities to receive investment-grade credit ratings of A- from Standard & Poors and A2 from Moodys. Page 37.
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IBM Australia <IBM.N> yesterday announced a 222 percent rise in profit for calendar 2007 to A$196.7 million on revenue of A$3.96 billion. IBM said a new executive team and strong performances by its services and software divisions helped pull the company out of a lacklustre patch in the previous two years. 'With the [new] leadership team in 2006, we came together and said if we represent ourselves to clients as one IBM, all the internal stuff will work itself out,' managing director Glenn Boreham said. Page 37.
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The ACP Magazines division of PBL Media will launch an Australian version of the successful British title Good Food in partnership with BBC Magazines. 'This will be a unique addition to the Australian food magazine market, fusing the strength of an internationally respected UK brand with Australian flair, expertise and individuality,' said ACP senior publishing executive Phil Scott said yesterday. The magazine will be launched next month at the Sydney Good Food Show. Page 37.
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Former Formula One Minardi team owner Paul Stoddart has sold his stake in charter airline OzJet to airfreight operator HeavyLift Cargo Airlines. OzJet chief executive Willie ONeill said the 'multimillion-dollar deal' would help improve the carrier's financial situation and enable it to boost investment. OzJet operates services to Norfolk Island, between Perth and Derby and between Perth and Bali in Indonesia. Page 37.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
Troubled shopping centre group Centro Properties <CNP.AX> is today expected to seek what could be the last extension to its A$4.2 billion debt deadline. Chief executive Glenn Rufrano was last night understood to be in talks with bankers to secure a deal. One of the lenders, St George Bank <SGB.AX>, said it was confident Centro would get an extension despite the reluctance of problem-hit German bank WestLB to give Centro more time. Centro's main lenders include ANZ Bank <ANZ.AX>, Commonwealth Bank <CBA.AX>, National Australia Bank <NAB.AX> and JPMorgan <JPM.N>. Page 22.
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Insurer QBE <QBE.AX> extended for the second time its A$8 billion takeover offer for troubled rival Insurance Australia Group (IAG). The new deadline was set at 5 pm on May 19. QBE is offering IAG shareholders 0.142 of its shares in addition to 70 cents cash for every IAG share. 'The proposal has been extended to allow stakeholders more time to consider the impact of IAG's profit downgrade last week and the value of [QBE's] shares,' said QBE chief executive Frank O'Halloran. Page 23.
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One of the Commonwealth Banks listed office and retail trusts, Commonwealth Property Office Fund <CPA.AX>, announced a 4.6 percent rise in overall asset values for the three months to March 31. 'Although we expect to see a softening in demand, supply generally remains well in check to at least 2010,' said fund manager Charles Moore. He said the rising cost of debt finance and stricter lending policies being adopted by lenders may cause several development projects to be postponed. Page 23.
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A veteran Singapore Airlines executive, Chin Sak Hin, has been appointed chief financial officer of Singapore-based Tiger Airways, which launched domestic services in Australia in November. Tiger rejected speculation that the appointment signals greater control by Singapore Airlines <SIAL.SI>, which has a 49 percent stake in the low-cost carrier. '[Mr Chin] will no longer have a position with Singapore Airlines Group,' said a Tiger spokesman. Mr Chin is considered a close confidant of Singapore Airlines chief executive Chew Choon Seng. Page 23.
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THE AGE (www.theage.com.au)
Monash University management expert Peter Gahan warned that the skills shortage meant Australian companies could lose their competitive edge if they failed to invest in staff training. Professor Gahan said yesterday that some companies 'see the skills shortage as endemic and at a critical point [but] if it is so important why is it so costly for them to invest in this kind of thing?' His comments came in the wake of an Australian Industry Group report, which showed 60 percent of chief executives thought the skills shortage was serious. Page B2.
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Australias trade deficit narrowed in March with a 4 percent rise in exports to A$19.2 billion, Australian Bureau of Statistics figures show. The trade gap shrank to A$2.91 billion from a record A$3.46 billion in February as more iron ore, coal and wheat was shipped overseas. Exports make up about 20 percent of the nations gross domestic product. Page B2.
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The National Australia Bank May farm outlook report has predicted a 69 percent jump in Victoria's wheat production in 2008-09 to 3.1 million tonnes, despite continuing water shortages in some regions. NAB agribusiness economist Frank Drum forecast a 72 percent increase in winter crop output to 38.8 million tonnes, with wheat output expected to touch 25 million tonnes. Page B3.
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BHP Billiton <BHP.AX><BLT.L> said yesterday that structural problems at its A$1.16 billion Neptune oil project in the Gulf of Mexico would cause further delays and cost increases. The company has a 35 percent stake in the project, which it operates for a consortium including Woodside Petroleum <WPL.AX> and Marathon Oil Company <MRO.N>. BHP said it hoped to bring Neptune on-stream by the second quarter of the year, but the platform would require 'remediation to reinforce certain structural components in the hull's pontoons.' Page B7. -- ((Sydney Newsroom +61-2 9373 1800; sydney.newsroom@reuters.com)) Keywords: DIGEST AUSTRALIA BUSINESS
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US STOCKS-Market ends higher with financials, energy
Reuters: [2008-05-06 22:08:00]
(Updates to 4 p.m.)
NEW YORK, May 6 (Reuters) - U.S. stocks ended higher on Tuesday as Fannie Mae's <FNM.N> reassuring comments about the credit and housing markets buoyed financial shares, while record crude oil prices lifted shares of energy companies.
Based on the latest available data, the Dow Jones industrial average <.DJI> gained 51.29 points, or 0.40 percent, to end unofficially at 13,020.83. The Standard & Poor's 500 Index <.SPX> gained 10.77 points, or 0.77 percent, to finish unofficially at 1,418.26. The Nasdaq Composite Index <.IXIC> advanced 19.19 points, or 0.78 percent, to close unofficially at 2,483.31. (Reporting by Caroline Valetkevitch; Editing by Jan Paschal) ((caroline.valetkevitch@thomsonreuters.com; +1 646 223 6393; Reuters Messaging:caroline.valetkevitch.reuters.com@reuters.net)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com))
Keywords: MARKETS STOCKS
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