Global stocks gain; doubts arise on end to Fed purchases

1 of 6. Traders work on the floor at the New York Stock Exchange, July 8, 2013.

Credit: Reuters/Brendan McDermid

NEW YORK | Fri Aug 23, 2013 9:23pm BST

NEW YORK (Reuters) - Benchmark stock indexes around the world edged higher on Friday, while the dollar fell after a U.S. government report on new single-family home sales raised doubts about the timing and extent of cuts to the Federal Reserve's stimulus program.

New home sales dropped 13.4 percent in July to an annual rate of 394,000 units, well below expectations, the Commerce Department said, dimming what has been a bright spot in the U.S. economic comeback.

Europe's main stock markets were steady to higher but attention remained firmly on Asia after a torrid week that has wiped billions of dollars from emerging markets for the second time in two months.

Yields on U.S. Treasuries traded lower but still near two-year highs, with investors reluctant to break out of recent ranges, given uncertainty around when the Fed might slow its massive bond-buying program. The benchmark 10-year U.S. Treasury note was up 18/32, its yield at 2.818 percent.

"This has been a very unique market situation, with the Fed stimulus being such an important component to the market rally. This is uncharted waters for us," said Gordon Charlop, managing director at Rosenblatt Securities in New York. "So regardless of what the move is, the fact you are someplace you haven't been before is cause for uncertainty."

The next Fed monetary policy meeting is set for September 17-18.

The Dow Jones industrial average rose 46.77 points or 0.31 percent, to 15,010.51, the S&P 500 gained 6.54 points or 0.39 percent, to 1,663.50 and the Nasdaq Composite added 19.085 points or 0.52 percent, to 3,657.792.

The biggest risk facing the U.S. economy is a premature policy tightening by the Federal Reserve, Stanford University economist Robert Hall told the Kansas City Federal Reserve Bank's annual conference in Jackson Hole, Wyoming.

MSCI's emerging share index had its first gain after six sessions in the red, while selling of India's rupee subsided after the currency's worst week against the dollar in decades.

"Hopefully the worst (of the emerging market selling) may now be over," said Hans Peterson, global head of asset allocation at SEB investment management. He added that his firm may soon start "bottom fishing" in Asia.

"It doesn't seem to be a repeat of the 1997 (Asian crisis) situation ... and it seems like people are not so keen on being extremely short anymore, so it might twist around a bit."

The dollar surrendered gains against a basket of currencies after earlier climbing to a three-week peak versus the yen, helped by the rise in U.S. bond yields on expectations the Fed will reduce its asset-buying program next month.

YIELDS BUILD

This week's market turbulence has been driven by growing evidence that the Fed is ready to start closing the taps on its huge stimulus program, a conviction that is being bolstered by strengthening global data.

Germany confirmed on Friday that its economy grew at a 0.7 percent rate in the second quarter, while Britain revised upward its growth numbers.

Purchasing managers' surveys this week showed better-than-expected growth in the euro zone, a Chinese manufacturing rebound and U.S. manufacturing activity at a five-month high.

Europe's FTSEurofirst 300, rose 0.4 percent on Friday. A rebound in Asia and Europe helped push MSCI's global share index up 0.8 percent, although it was not enough to prevent it heading for its third weekly fall.

EMERGING MARKET OUTFLOWS

U.S. Treasury yields tend to set the benchmark for borrowing costs across the globe, so their recent rise - expected to continue as the Fed winds down support - is making it more difficult for indebted countries and firms to pay their bills.

Data from Boston-based fund tracker EPFR Global on Thursday showed $1.3 billion fled emerging debt funds in the week ending August 21, the biggest outflow since mid-July.

Whereas May and June's sharp selloff in emerging markets calmed when the change in direction of U.S. market rates made shorting (betting against) those assets unprofitable, this time that did not happen, meaning the selling could run for longer.

Brent and U.S. crude found early support from disruptions to Libyan exports. Brent crude traded up 1 percent to $111.01 a barrel, and U.S. crude rose 1.3 percent to $106.43 a barrel.

(Reporting by Nick Olivari, editing by Dan Grebler and Nick Zieminski)

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Global stocks gain; doubts arise on end to Fed purchases

1 of 6. Traders work on the floor at the New York Stock Exchange, July 8, 2013.

Credit: Reuters/Brendan McDermid

NEW YORK | Fri Aug 23, 2013 9:23pm BST

NEW YORK (Reuters) - Benchmark stock indexes around the world edged higher on Friday, while the dollar fell after a U.S. government report on new single-family home sales raised doubts about the timing and extent of cuts to the Federal Reserve's stimulus program.

New home sales dropped 13.4 percent in July to an annual rate of 394,000 units, well below expectations, the Commerce Department said, dimming what has been a bright spot in the U.S. economic comeback.

Europe's main stock markets were steady to higher but attention remained firmly on Asia after a torrid week that has wiped billions of dollars from emerging markets for the second time in two months.

Yields on U.S. Treasuries traded lower but still near two-year highs, with investors reluctant to break out of recent ranges, given uncertainty around when the Fed might slow its massive bond-buying program. The benchmark 10-year U.S. Treasury note was up 18/32, its yield at 2.818 percent.

"This has been a very unique market situation, with the Fed stimulus being such an important component to the market rally. This is uncharted waters for us," said Gordon Charlop, managing director at Rosenblatt Securities in New York. "So regardless of what the move is, the fact you are someplace you haven't been before is cause for uncertainty."

The next Fed monetary policy meeting is set for September 17-18.

The Dow Jones industrial average rose 46.77 points or 0.31 percent, to 15,010.51, the S&P 500 gained 6.54 points or 0.39 percent, to 1,663.50 and the Nasdaq Composite added 19.085 points or 0.52 percent, to 3,657.792.

The biggest risk facing the U.S. economy is a premature policy tightening by the Federal Reserve, Stanford University economist Robert Hall told the Kansas City Federal Reserve Bank's annual conference in Jackson Hole, Wyoming.

MSCI's emerging share index had its first gain after six sessions in the red, while selling of India's rupee subsided after the currency's worst week against the dollar in decades.

"Hopefully the worst (of the emerging market selling) may now be over," said Hans Peterson, global head of asset allocation at SEB investment management. He added that his firm may soon start "bottom fishing" in Asia.

"It doesn't seem to be a repeat of the 1997 (Asian crisis) situation ... and it seems like people are not so keen on being extremely short anymore, so it might twist around a bit."

The dollar surrendered gains against a basket of currencies after earlier climbing to a three-week peak versus the yen, helped by the rise in U.S. bond yields on expectations the Fed will reduce its asset-buying program next month.

YIELDS BUILD

This week's market turbulence has been driven by growing evidence that the Fed is ready to start closing the taps on its huge stimulus program, a conviction that is being bolstered by strengthening global data.

Germany confirmed on Friday that its economy grew at a 0.7 percent rate in the second quarter, while Britain revised upward its growth numbers.

Purchasing managers' surveys this week showed better-than-expected growth in the euro zone, a Chinese manufacturing rebound and U.S. manufacturing activity at a five-month high.

Europe's FTSEurofirst 300, rose 0.4 percent on Friday. A rebound in Asia and Europe helped push MSCI's global share index up 0.8 percent, although it was not enough to prevent it heading for its third weekly fall.

EMERGING MARKET OUTFLOWS

U.S. Treasury yields tend to set the benchmark for borrowing costs across the globe, so their recent rise - expected to continue as the Fed winds down support - is making it more difficult for indebted countries and firms to pay their bills.

Data from Boston-based fund tracker EPFR Global on Thursday showed $1.3 billion fled emerging debt funds in the week ending August 21, the biggest outflow since mid-July.

Whereas May and June's sharp selloff in emerging markets calmed when the change in direction of U.S. market rates made shorting (betting against) those assets unprofitable, this time that did not happen, meaning the selling could run for longer.

Brent and U.S. crude found early support from disruptions to Libyan exports. Brent crude traded up 1 percent to $111.01 a barrel, and U.S. crude rose 1.3 percent to $106.43 a barrel.

(Reporting by Nick Olivari, editing by Dan Grebler and Nick Zieminski)

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Global stocks, emerging currencies hit as Fed minutes near

1 of 7. Traders work on the floor of the New York Stock Exchange August 21, 2013.

Credit: Reuters/Brendan McDermid

By Herbert Lash

NEW YORK | Wed Aug 21, 2013 1:10pm EDT

NEW YORK (Reuters) - Global equity markets slid for a fifth day on Wednesday and the dollar strengthened ahead of a report from the latest Federal Reserve policy-setting meeting that is expected to hint, at the least, of a pullback of economic stimulus in September.

Most U.S., European and emerging market stocks fell, as did U.S. Treasury and German bond prices, amid caution ahead of the release of the Fed's minutes from its July 30-31 meeting at 2 p.m. EDT.

The dollar edged higher from a six-month low against the euro and gained versus the yen as traders bet the minutes will reinforce expectations of a pullback in the Fed's bond-buying program aimed at spurring growth by keeping interest rates low.

Investors are looking for insight on how and when the Fed will begin to cut back on its bond buying, said Wilmer Stith, co-manager of the Wilmington Broad Market Bond Fund in Baltimore.

"Even if we don't really get anything out of the minutes that sheds new light on the question, at the end of the day people are getting set up for a tapering event in September," Stith said.

MSCI's all-country stock index .MIWD00000PUS was down 0.61 percent at 367.96, while the pan-European FTSEurofirst 300 index .FTEU3 of top regional shares closed down 0.6 percent at 1,207.71.

The Dow Jones industrial average .DJI was down 62.14 points, or 0.41 percent, at 14,940.85. The Standard & Poor's 500 Index .SPX was down 6.12 points, or 0.37 percent, at 1,646.23. The Nasdaq Composite Index .IXIC was down 10.44 points, or 0.29 percent, at 3,603.16.

"I believe tapering is going to begin in September because it has to. The market needs to adjust to the beginning of getting back to normal on rates," said Doug Cote, chief market strategist at ING U.S. Investment Management in New York.

Adding to the view that the Fed will begin to taper next month, U.S. home resales rose in July to the highest level in over three years, suggesting sharply rising borrowing costs are having only a limited impact on the housing market's recovery.

The National Association of Realtors said on Wednesday that existing home sales jumped 6.5 percent, well above analysts' expectations, to an annual rate of 5.39 million units.

Analysts said the August nonfarm payrolls data, due on September 6, will be closely watched by investors and policymakers to determine whether improvement in the U.S. labor market is enough to justify scaling back stimulus.

German 10-year bond yields rose as high as 1.892 percent, just below levels on Monday that were the highest since March 2012, and last yielded about 1.87 percent.

German Bund futures settled 47 ticks lower at 140.14.

The benchmark 10-year U.S. Treasury note was down 2/32 in price to yield 2.8253 percent.

Half the economists polled by Reuters expect the Federal Open Market Committee to begin slowing its asset purchases from September.

The euro was down 0.31 percent at $1.3375. The dollar index, which measures the greenback versus a basket of six currencies, rose 0.34 percent to 81.179 .DXY.

Against the yen, the dollar rose 0.34 percent to 97.59.

Brent crude oil fell below $110 a barrel on reports some Libyan oil exports might soon resume and on news the Seaway crude oil pipeline had shut, halting shipments from the U.S. Midwest to the Gulf Coast.

Brent futures for October were down 36 cents at $109.79 a barrel. U.S. October oil was $1.40 lower at $103.71 a barrel.

(Additional reporting by Richard Hubbard in London; Editing by Bernadette Baum and Dan Grebler)

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Wall Street dips ahead of Fed, retail stocks slump

1 of 2. Traders work on the floor of the New York Stock Exchange August 21, 2013.

Credit: Reuters/Brendan McDermid

By Ryan Vlastelica

NEW YORK | Wed Aug 21, 2013 1:05pm EDT

NEW YORK (Reuters) - U.S. stocks dipped on Wednesday, with investors reluctant to make big bets before the Federal Reserve publishes the minutes of its July policy-setting meeting.

Retail stocks were among the weakest of the day, with several names falling sharply after results that pointed to continued consumer weakness.

Market participants have been cautious recently, with the S&P 500 dropping for five of the past six sessions amid uncertainty over how soon the Fed will begin to wind down its $85 billion a month stimulus program.

The central bank policymakers have said the policy, which has fueled Wall Street's steep gains this year, could be slowed as early as September, assuming economic growth meets its targets.

The Fed minutes, scheduled to be released at 2 p.m. EDT, may provide clues to the timing and scope of the potential easing.

"Everyone is searching for clarity. There's confusion over how much things will be tapered, if at all, and while there may not be any surprise, everyone is waiting to dissect what comes out," said Mike Gibbs, co-head of the equity advisory group at Raymond James in Memphis, Tennessee.

In the latest economic report, U.S. home resales rose in July to their highest level in over three years, suggesting that a surge in mortgage rates is having only a limited impact on the housing market recovery.

The Dow Jones industrial average .DJI was down 55.09 points, or 0.37 percent, at 14,947.90. The Standard & Poor's 500 Index .SPX was down 5.41 points, or 0.33 percent, at 1,646.94. The Nasdaq Composite Index .IXIC was down 9.06 points, or 0.25 percent, at 3,604.53.

The S&P 500 rose on Tuesday to halt a four-day losing streak but remained under technical pressure as it closed below its 50-day moving average for a third straight session. The level, near 1,658, is becoming technical resistance.

"I was hoping to see follow-up to (Tuesday's) rally, but so far, the sellers are back in control," said Gibbs, who helps oversee $450 billion in assets. "Keeping yesterday's momentum is important."

Retailers were in focus for a second day, with earnings reports from Lowe's, Target and others. The SPDR S&P Retail ETF (XRT.P) fell 1.5 percent.

Staples (SPLS.O) reported weaker-than-expected quarterly results on dismal sales in international markets and cut its outlook for the year. Shares slumped 13 percent to $14.60 as the S&P's biggest loser.

Target (TGT.N) warned its annual profit may be near the low end of its forecast as consumer spending remains cautious, sending shares down 3.5 percent to $65.51.

Petsmart (PETM.O) dropped 4.1 percent to $71.90 after its results, while American Eagle Outfitters (AEO.N) slumped 9.7 percent to $14.79 after giving a weak outlook.

American Eagle weighed on Abercrombie & Fitch (ANF.N), which sank 3.8 percent to $46.64.

On the upside, home improvement chain Lowe's (LOW.N) rose 4.9 percent to $46.27 after it reported a bigger-than-expected rise in profit and sales as the housing market's recovery encouraged people to spend more on their homes.

Financial shares .SPSY were among the weakest of the day, dropping 0.5 percent. Goldman Sachs (GS.N) was one of the biggest drags on the sector, down 1.2 percent at $157.59.

Market makers and traders waited to hear details on a flood of erroneous trades that hit U.S. equity options markets on Tuesday when Goldman Sachs (GS.N) sent orders accidentally because of a technical error.

Shares of Toll Brothers (TOL.N) rose 0.6 percent to $31.82 after the largest U.S. luxury homebuilder reported a jump in revenue as the recovery in the housing market gathered pace.

Incyte Corp (INCY.O) soared 29 percent to $34.88 after the company reported positive data from a mid-stage cancer drug trial.

(Editing by Bernadette Baum and Kenneth Barry)

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This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Global stocks, emerging currencies hit as Fed minutes near

1 of 7. Traders work on the floor of the New York Stock Exchange August 21, 2013.

Credit: Reuters/Brendan McDermid

By Herbert Lash

NEW YORK | Wed Aug 21, 2013 1:10pm EDT

NEW YORK (Reuters) - Global equity markets slid for a fifth day on Wednesday and the dollar strengthened ahead of a report from the latest Federal Reserve policy-setting meeting that is expected to hint, at the least, of a pullback of economic stimulus in September.

Most U.S., European and emerging market stocks fell, as did U.S. Treasury and German bond prices, amid caution ahead of the release of the Fed's minutes from its July 30-31 meeting at 2 p.m. EDT.

The dollar edged higher from a six-month low against the euro and gained versus the yen as traders bet the minutes will reinforce expectations of a pullback in the Fed's bond-buying program aimed at spurring growth by keeping interest rates low.

Investors are looking for insight on how and when the Fed will begin to cut back on its bond buying, said Wilmer Stith, co-manager of the Wilmington Broad Market Bond Fund in Baltimore.

"Even if we don't really get anything out of the minutes that sheds new light on the question, at the end of the day people are getting set up for a tapering event in September," Stith said.

MSCI's all-country stock index .MIWD00000PUS was down 0.61 percent at 367.96, while the pan-European FTSEurofirst 300 index .FTEU3 of top regional shares closed down 0.6 percent at 1,207.71.

The Dow Jones industrial average .DJI was down 62.14 points, or 0.41 percent, at 14,940.85. The Standard & Poor's 500 Index .SPX was down 6.12 points, or 0.37 percent, at 1,646.23. The Nasdaq Composite Index .IXIC was down 10.44 points, or 0.29 percent, at 3,603.16.

"I believe tapering is going to begin in September because it has to. The market needs to adjust to the beginning of getting back to normal on rates," said Doug Cote, chief market strategist at ING U.S. Investment Management in New York.

Adding to the view that the Fed will begin to taper next month, U.S. home resales rose in July to the highest level in over three years, suggesting sharply rising borrowing costs are having only a limited impact on the housing market's recovery.

The National Association of Realtors said on Wednesday that existing home sales jumped 6.5 percent, well above analysts' expectations, to an annual rate of 5.39 million units.

Analysts said the August nonfarm payrolls data, due on September 6, will be closely watched by investors and policymakers to determine whether improvement in the U.S. labor market is enough to justify scaling back stimulus.

German 10-year bond yields rose as high as 1.892 percent, just below levels on Monday that were the highest since March 2012, and last yielded about 1.87 percent.

German Bund futures settled 47 ticks lower at 140.14.

The benchmark 10-year U.S. Treasury note was down 2/32 in price to yield 2.8253 percent.

Half the economists polled by Reuters expect the Federal Open Market Committee to begin slowing its asset purchases from September.

The euro was down 0.31 percent at $1.3375. The dollar index, which measures the greenback versus a basket of six currencies, rose 0.34 percent to 81.179 .DXY.

Against the yen, the dollar rose 0.34 percent to 97.59.

Brent crude oil fell below $110 a barrel on reports some Libyan oil exports might soon resume and on news the Seaway crude oil pipeline had shut, halting shipments from the U.S. Midwest to the Gulf Coast.

Brent futures for October were down 36 cents at $109.79 a barrel. U.S. October oil was $1.40 lower at $103.71 a barrel.

(Additional reporting by Richard Hubbard in London; Editing by Bernadette Baum and Dan Grebler)

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This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Wall Street dips ahead of Fed, retail stocks slump

1 of 2. Traders work on the floor of the New York Stock Exchange August 21, 2013.

Credit: Reuters/Brendan McDermid

By Ryan Vlastelica

NEW YORK | Wed Aug 21, 2013 1:05pm EDT

NEW YORK (Reuters) - U.S. stocks dipped on Wednesday, with investors reluctant to make big bets before the Federal Reserve publishes the minutes of its July policy-setting meeting.

Retail stocks were among the weakest of the day, with several names falling sharply after results that pointed to continued consumer weakness.

Market participants have been cautious recently, with the S&P 500 dropping for five of the past six sessions amid uncertainty over how soon the Fed will begin to wind down its $85 billion a month stimulus program.

The central bank policymakers have said the policy, which has fueled Wall Street's steep gains this year, could be slowed as early as September, assuming economic growth meets its targets.

The Fed minutes, scheduled to be released at 2 p.m. EDT, may provide clues to the timing and scope of the potential easing.

"Everyone is searching for clarity. There's confusion over how much things will be tapered, if at all, and while there may not be any surprise, everyone is waiting to dissect what comes out," said Mike Gibbs, co-head of the equity advisory group at Raymond James in Memphis, Tennessee.

In the latest economic report, U.S. home resales rose in July to their highest level in over three years, suggesting that a surge in mortgage rates is having only a limited impact on the housing market recovery.

The Dow Jones industrial average .DJI was down 55.09 points, or 0.37 percent, at 14,947.90. The Standard & Poor's 500 Index .SPX was down 5.41 points, or 0.33 percent, at 1,646.94. The Nasdaq Composite Index .IXIC was down 9.06 points, or 0.25 percent, at 3,604.53.

The S&P 500 rose on Tuesday to halt a four-day losing streak but remained under technical pressure as it closed below its 50-day moving average for a third straight session. The level, near 1,658, is becoming technical resistance.

"I was hoping to see follow-up to (Tuesday's) rally, but so far, the sellers are back in control," said Gibbs, who helps oversee $450 billion in assets. "Keeping yesterday's momentum is important."

Retailers were in focus for a second day, with earnings reports from Lowe's, Target and others. The SPDR S&P Retail ETF (XRT.P) fell 1.5 percent.

Staples (SPLS.O) reported weaker-than-expected quarterly results on dismal sales in international markets and cut its outlook for the year. Shares slumped 13 percent to $14.60 as the S&P's biggest loser.

Target (TGT.N) warned its annual profit may be near the low end of its forecast as consumer spending remains cautious, sending shares down 3.5 percent to $65.51.

Petsmart (PETM.O) dropped 4.1 percent to $71.90 after its results, while American Eagle Outfitters (AEO.N) slumped 9.7 percent to $14.79 after giving a weak outlook.

American Eagle weighed on Abercrombie & Fitch (ANF.N), which sank 3.8 percent to $46.64.

On the upside, home improvement chain Lowe's (LOW.N) rose 4.9 percent to $46.27 after it reported a bigger-than-expected rise in profit and sales as the housing market's recovery encouraged people to spend more on their homes.

Financial shares .SPSY were among the weakest of the day, dropping 0.5 percent. Goldman Sachs (GS.N) was one of the biggest drags on the sector, down 1.2 percent at $157.59.

Market makers and traders waited to hear details on a flood of erroneous trades that hit U.S. equity options markets on Tuesday when Goldman Sachs (GS.N) sent orders accidentally because of a technical error.

Shares of Toll Brothers (TOL.N) rose 0.6 percent to $31.82 after the largest U.S. luxury homebuilder reported a jump in revenue as the recovery in the housing market gathered pace.

Incyte Corp (INCY.O) soared 29 percent to $34.88 after the company reported positive data from a mid-stage cancer drug trial.

(Editing by Bernadette Baum and Kenneth Barry)

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Global stocks, emerging currencies hit as Fed minutes near

1 of 7. Traders work on the floor of the New York Stock Exchange August 21, 2013.

Credit: Reuters/Brendan McDermid

By Herbert Lash

NEW YORK | Wed Aug 21, 2013 1:10pm EDT

NEW YORK (Reuters) - Global equity markets slid for a fifth day on Wednesday and the dollar strengthened ahead of a report from the latest Federal Reserve policy-setting meeting that is expected to hint, at the least, of a pullback of economic stimulus in September.

Most U.S., European and emerging market stocks fell, as did U.S. Treasury and German bond prices, amid caution ahead of the release of the Fed's minutes from its July 30-31 meeting at 2 p.m. EDT.

The dollar edged higher from a six-month low against the euro and gained versus the yen as traders bet the minutes will reinforce expectations of a pullback in the Fed's bond-buying program aimed at spurring growth by keeping interest rates low.

Investors are looking for insight on how and when the Fed will begin to cut back on its bond buying, said Wilmer Stith, co-manager of the Wilmington Broad Market Bond Fund in Baltimore.

"Even if we don't really get anything out of the minutes that sheds new light on the question, at the end of the day people are getting set up for a tapering event in September," Stith said.

MSCI's all-country stock index .MIWD00000PUS was down 0.61 percent at 367.96, while the pan-European FTSEurofirst 300 index .FTEU3 of top regional shares closed down 0.6 percent at 1,207.71.

The Dow Jones industrial average .DJI was down 62.14 points, or 0.41 percent, at 14,940.85. The Standard & Poor's 500 Index .SPX was down 6.12 points, or 0.37 percent, at 1,646.23. The Nasdaq Composite Index .IXIC was down 10.44 points, or 0.29 percent, at 3,603.16.

"I believe tapering is going to begin in September because it has to. The market needs to adjust to the beginning of getting back to normal on rates," said Doug Cote, chief market strategist at ING U.S. Investment Management in New York.

Adding to the view that the Fed will begin to taper next month, U.S. home resales rose in July to the highest level in over three years, suggesting sharply rising borrowing costs are having only a limited impact on the housing market's recovery.

The National Association of Realtors said on Wednesday that existing home sales jumped 6.5 percent, well above analysts' expectations, to an annual rate of 5.39 million units.

Analysts said the August nonfarm payrolls data, due on September 6, will be closely watched by investors and policymakers to determine whether improvement in the U.S. labor market is enough to justify scaling back stimulus.

German 10-year bond yields rose as high as 1.892 percent, just below levels on Monday that were the highest since March 2012, and last yielded about 1.87 percent.

German Bund futures settled 47 ticks lower at 140.14.

The benchmark 10-year U.S. Treasury note was down 2/32 in price to yield 2.8253 percent.

Half the economists polled by Reuters expect the Federal Open Market Committee to begin slowing its asset purchases from September.

The euro was down 0.31 percent at $1.3375. The dollar index, which measures the greenback versus a basket of six currencies, rose 0.34 percent to 81.179 .DXY.

Against the yen, the dollar rose 0.34 percent to 97.59.

Brent crude oil fell below $110 a barrel on reports some Libyan oil exports might soon resume and on news the Seaway crude oil pipeline had shut, halting shipments from the U.S. Midwest to the Gulf Coast.

Brent futures for October were down 36 cents at $109.79 a barrel. U.S. October oil was $1.40 lower at $103.71 a barrel.

(Additional reporting by Richard Hubbard in London; Editing by Bernadette Baum and Dan Grebler)

View the original article here

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Wall Street dips ahead of Fed, retail stocks slump

1 of 2. Traders work on the floor of the New York Stock Exchange August 21, 2013.

Credit: Reuters/Brendan McDermid

By Ryan Vlastelica

NEW YORK | Wed Aug 21, 2013 1:05pm EDT

NEW YORK (Reuters) - U.S. stocks dipped on Wednesday, with investors reluctant to make big bets before the Federal Reserve publishes the minutes of its July policy-setting meeting.

Retail stocks were among the weakest of the day, with several names falling sharply after results that pointed to continued consumer weakness.

Market participants have been cautious recently, with the S&P 500 dropping for five of the past six sessions amid uncertainty over how soon the Fed will begin to wind down its $85 billion a month stimulus program.

The central bank policymakers have said the policy, which has fueled Wall Street's steep gains this year, could be slowed as early as September, assuming economic growth meets its targets.

The Fed minutes, scheduled to be released at 2 p.m. EDT, may provide clues to the timing and scope of the potential easing.

"Everyone is searching for clarity. There's confusion over how much things will be tapered, if at all, and while there may not be any surprise, everyone is waiting to dissect what comes out," said Mike Gibbs, co-head of the equity advisory group at Raymond James in Memphis, Tennessee.

In the latest economic report, U.S. home resales rose in July to their highest level in over three years, suggesting that a surge in mortgage rates is having only a limited impact on the housing market recovery.

The Dow Jones industrial average .DJI was down 55.09 points, or 0.37 percent, at 14,947.90. The Standard & Poor's 500 Index .SPX was down 5.41 points, or 0.33 percent, at 1,646.94. The Nasdaq Composite Index .IXIC was down 9.06 points, or 0.25 percent, at 3,604.53.

The S&P 500 rose on Tuesday to halt a four-day losing streak but remained under technical pressure as it closed below its 50-day moving average for a third straight session. The level, near 1,658, is becoming technical resistance.

"I was hoping to see follow-up to (Tuesday's) rally, but so far, the sellers are back in control," said Gibbs, who helps oversee $450 billion in assets. "Keeping yesterday's momentum is important."

Retailers were in focus for a second day, with earnings reports from Lowe's, Target and others. The SPDR S&P Retail ETF (XRT.P) fell 1.5 percent.

Staples (SPLS.O) reported weaker-than-expected quarterly results on dismal sales in international markets and cut its outlook for the year. Shares slumped 13 percent to $14.60 as the S&P's biggest loser.

Target (TGT.N) warned its annual profit may be near the low end of its forecast as consumer spending remains cautious, sending shares down 3.5 percent to $65.51.

Petsmart (PETM.O) dropped 4.1 percent to $71.90 after its results, while American Eagle Outfitters (AEO.N) slumped 9.7 percent to $14.79 after giving a weak outlook.

American Eagle weighed on Abercrombie & Fitch (ANF.N), which sank 3.8 percent to $46.64.

On the upside, home improvement chain Lowe's (LOW.N) rose 4.9 percent to $46.27 after it reported a bigger-than-expected rise in profit and sales as the housing market's recovery encouraged people to spend more on their homes.

Financial shares .SPSY were among the weakest of the day, dropping 0.5 percent. Goldman Sachs (GS.N) was one of the biggest drags on the sector, down 1.2 percent at $157.59.

Market makers and traders waited to hear details on a flood of erroneous trades that hit U.S. equity options markets on Tuesday when Goldman Sachs (GS.N) sent orders accidentally because of a technical error.

Shares of Toll Brothers (TOL.N) rose 0.6 percent to $31.82 after the largest U.S. luxury homebuilder reported a jump in revenue as the recovery in the housing market gathered pace.

Incyte Corp (INCY.O) soared 29 percent to $34.88 after the company reported positive data from a mid-stage cancer drug trial.

(Editing by Bernadette Baum and Kenneth Barry)

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Global stocks, emerging currencies hit as Fed minutes near

1 of 7. Traders work on the floor of the New York Stock Exchange August 21, 2013.

Credit: Reuters/Brendan McDermid

By Herbert Lash

NEW YORK | Wed Aug 21, 2013 1:10pm EDT

NEW YORK (Reuters) - Global equity markets slid for a fifth day on Wednesday and the dollar strengthened ahead of a report from the latest Federal Reserve policy-setting meeting that is expected to hint, at the least, of a pullback of economic stimulus in September.

Most U.S., European and emerging market stocks fell, as did U.S. Treasury and German bond prices, amid caution ahead of the release of the Fed's minutes from its July 30-31 meeting at 2 p.m. EDT.

The dollar edged higher from a six-month low against the euro and gained versus the yen as traders bet the minutes will reinforce expectations of a pullback in the Fed's bond-buying program aimed at spurring growth by keeping interest rates low.

Investors are looking for insight on how and when the Fed will begin to cut back on its bond buying, said Wilmer Stith, co-manager of the Wilmington Broad Market Bond Fund in Baltimore.

"Even if we don't really get anything out of the minutes that sheds new light on the question, at the end of the day people are getting set up for a tapering event in September," Stith said.

MSCI's all-country stock index .MIWD00000PUS was down 0.61 percent at 367.96, while the pan-European FTSEurofirst 300 index .FTEU3 of top regional shares closed down 0.6 percent at 1,207.71.

The Dow Jones industrial average .DJI was down 62.14 points, or 0.41 percent, at 14,940.85. The Standard & Poor's 500 Index .SPX was down 6.12 points, or 0.37 percent, at 1,646.23. The Nasdaq Composite Index .IXIC was down 10.44 points, or 0.29 percent, at 3,603.16.

"I believe tapering is going to begin in September because it has to. The market needs to adjust to the beginning of getting back to normal on rates," said Doug Cote, chief market strategist at ING U.S. Investment Management in New York.

Adding to the view that the Fed will begin to taper next month, U.S. home resales rose in July to the highest level in over three years, suggesting sharply rising borrowing costs are having only a limited impact on the housing market's recovery.

The National Association of Realtors said on Wednesday that existing home sales jumped 6.5 percent, well above analysts' expectations, to an annual rate of 5.39 million units.

Analysts said the August nonfarm payrolls data, due on September 6, will be closely watched by investors and policymakers to determine whether improvement in the U.S. labor market is enough to justify scaling back stimulus.

German 10-year bond yields rose as high as 1.892 percent, just below levels on Monday that were the highest since March 2012, and last yielded about 1.87 percent.

German Bund futures settled 47 ticks lower at 140.14.

The benchmark 10-year U.S. Treasury note was down 2/32 in price to yield 2.8253 percent.

Half the economists polled by Reuters expect the Federal Open Market Committee to begin slowing its asset purchases from September.

The euro was down 0.31 percent at $1.3375. The dollar index, which measures the greenback versus a basket of six currencies, rose 0.34 percent to 81.179 .DXY.

Against the yen, the dollar rose 0.34 percent to 97.59.

Brent crude oil fell below $110 a barrel on reports some Libyan oil exports might soon resume and on news the Seaway crude oil pipeline had shut, halting shipments from the U.S. Midwest to the Gulf Coast.

Brent futures for October were down 36 cents at $109.79 a barrel. U.S. October oil was $1.40 lower at $103.71 a barrel.

(Additional reporting by Richard Hubbard in London; Editing by Bernadette Baum and Dan Grebler)

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Wall Street dips ahead of Fed, retail stocks slump

1 of 2. Traders work on the floor of the New York Stock Exchange August 21, 2013.

Credit: Reuters/Brendan McDermid

By Ryan Vlastelica

NEW YORK | Wed Aug 21, 2013 1:05pm EDT

NEW YORK (Reuters) - U.S. stocks dipped on Wednesday, with investors reluctant to make big bets before the Federal Reserve publishes the minutes of its July policy-setting meeting.

Retail stocks were among the weakest of the day, with several names falling sharply after results that pointed to continued consumer weakness.

Market participants have been cautious recently, with the S&P 500 dropping for five of the past six sessions amid uncertainty over how soon the Fed will begin to wind down its $85 billion a month stimulus program.

The central bank policymakers have said the policy, which has fueled Wall Street's steep gains this year, could be slowed as early as September, assuming economic growth meets its targets.

The Fed minutes, scheduled to be released at 2 p.m. EDT, may provide clues to the timing and scope of the potential easing.

"Everyone is searching for clarity. There's confusion over how much things will be tapered, if at all, and while there may not be any surprise, everyone is waiting to dissect what comes out," said Mike Gibbs, co-head of the equity advisory group at Raymond James in Memphis, Tennessee.

In the latest economic report, U.S. home resales rose in July to their highest level in over three years, suggesting that a surge in mortgage rates is having only a limited impact on the housing market recovery.

The Dow Jones industrial average .DJI was down 55.09 points, or 0.37 percent, at 14,947.90. The Standard & Poor's 500 Index .SPX was down 5.41 points, or 0.33 percent, at 1,646.94. The Nasdaq Composite Index .IXIC was down 9.06 points, or 0.25 percent, at 3,604.53.

The S&P 500 rose on Tuesday to halt a four-day losing streak but remained under technical pressure as it closed below its 50-day moving average for a third straight session. The level, near 1,658, is becoming technical resistance.

"I was hoping to see follow-up to (Tuesday's) rally, but so far, the sellers are back in control," said Gibbs, who helps oversee $450 billion in assets. "Keeping yesterday's momentum is important."

Retailers were in focus for a second day, with earnings reports from Lowe's, Target and others. The SPDR S&P Retail ETF (XRT.P) fell 1.5 percent.

Staples (SPLS.O) reported weaker-than-expected quarterly results on dismal sales in international markets and cut its outlook for the year. Shares slumped 13 percent to $14.60 as the S&P's biggest loser.

Target (TGT.N) warned its annual profit may be near the low end of its forecast as consumer spending remains cautious, sending shares down 3.5 percent to $65.51.

Petsmart (PETM.O) dropped 4.1 percent to $71.90 after its results, while American Eagle Outfitters (AEO.N) slumped 9.7 percent to $14.79 after giving a weak outlook.

American Eagle weighed on Abercrombie & Fitch (ANF.N), which sank 3.8 percent to $46.64.

On the upside, home improvement chain Lowe's (LOW.N) rose 4.9 percent to $46.27 after it reported a bigger-than-expected rise in profit and sales as the housing market's recovery encouraged people to spend more on their homes.

Financial shares .SPSY were among the weakest of the day, dropping 0.5 percent. Goldman Sachs (GS.N) was one of the biggest drags on the sector, down 1.2 percent at $157.59.

Market makers and traders waited to hear details on a flood of erroneous trades that hit U.S. equity options markets on Tuesday when Goldman Sachs (GS.N) sent orders accidentally because of a technical error.

Shares of Toll Brothers (TOL.N) rose 0.6 percent to $31.82 after the largest U.S. luxury homebuilder reported a jump in revenue as the recovery in the housing market gathered pace.

Incyte Corp (INCY.O) soared 29 percent to $34.88 after the company reported positive data from a mid-stage cancer drug trial.

(Editing by Bernadette Baum and Kenneth Barry)

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Materials companies help stocks to a slight gain

NEW YORK (AP) — Gains in energy and chemical companies helped nudge the stock market higher Thursday.

The modest move extends a pattern seen this week: Even with plenty of earnings news from big companies, the broader market has shuffled between minor gains and minor losses.

Cabot Oil & Gas and Range Resources reported revenue and earnings that trumped estimates, sending their stocks up 7 percent. Cabot climbed $4.85 to $76.56. Range Resources rose $5.34 to $81.39.

Facebook soared 30 percent after reporting earnings late Wednesday that easily beat analysts' forecasts thanks to higher revenue from ads on mobile devices. Facebook's stock gained $7.85 to $34.36.

Nearly halfway through the second-quarter earnings season, the overall trend looks good, but not great, said Tyler Vernon, chief investment officer of Biltmore Capital in Princeton, N.J. "There have been some big disappointments, like Caterpillar yesterday, but we're seeing better and better numbers coming out."

The Standard & Poor's 500 index gained 4.31 points, or 0.3 percent, to close at 1,690.25.

The Dow Jones industrial average rose 13.37 points, or 0.1 percent, to 15,555.61. The Dow was held back by Home Depot and Caterpillar, which warned Wednesday that its sales could sag.

The Nasdaq composite index gained 25.59 points, or 0.7 percent, to 3,605.19.

Analysts forecast that companies in the S&P 500 index will report earnings growth of 4.3 percent over the same period last year, according to S&P Capital IQ. At the start of July, the forecast was for growth of 2.8 percent. More than six out of every 10 companies have cleared analysts' earnings targets so far.

Improving profits should help push the S&P 500 index above 1,700 in the coming weeks, Vernon said.

D.R. Horton, the country's largest builder, and PulteGroup said orders for new houses jumped in the second quarter, but their results still fell short of what analysts had expected. PulteGroup also posted a 14 percent decline in profits

D.R. Horton dropped $1.82, or 9 percent, to $19.38. PulteGroup lost $1.90, or 10 percent, to $16.55, the biggest drop of any stock in the S&P 500.

"I think what you're seeing a bit of today is people questioning what higher mortgage rates mean for housing," said JJ Kinahan, chief strategist at TD Ameritrade in Chicago.

In the market for U.S. government bonds, the yield on the 10-year Treasury note was unchanged from late Wednesday at 2.59 percent. Late last week, it was trading at 2.48 percent.

The 10-year yield acts as a benchmark rate for most mortgage loans. A sharp increase in the rate drives up mortgage costs and could slow down sales in the housing market.

It's still very low by historical standards, thanks in large part to the Federal Reserve's massive bond-buying program. The 10-year Treasury yield hit a recent low of 1.63 percent on May 3. By contrast, it was trading around 4 percent in the summer of 2008, shortly before the worst days of the financial crisis.

The Russell 2000 index of small-company stocks set another record high, gaining 10.35 points, or 1 percent, to 1,054.18. The Russell has trounced other indexes this year, gaining 24 percent versus 19 percent for the S&P 500 and the Dow.

Among other stocks making big moves:

— Las Vegas Sands, a major casino operator, fell 55 cents, or 1 percent, to $54.40 after it posted lower revenue and income than financial analysts had expected.

— Visa rose $7.86, or 4 percent, to $194.61. Visa returned to profitability in its third fiscal quarter and reported strong revenue growth as the company processed more transactions worldwide.

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US stocks head for first weekly loss in July

NEW YORK (AP) — Weak results from several U.S. companies helped drag the stock market lower Friday, putting major indexes on course for their first weekly loss this month.

Many traders are also looking ahead to a packed schedule of events next week, including a Federal Reserve meeting and the government's monthly employment report.

"There's just a deluge of market-moving events next week," said Jeffrey Kleintop, the chief market strategist for LPL Financial. "Traders seem to be erring on the side of caution today."

Expedia plunged 25 percent, the worst fall in the Standard & Poor's 500 index. The online travel agency reported earnings late Thursday that badly missed analysts' expectations. Higher costs were the main culprit. Expedia lost $16.07 to $48.93.

Shortly after noon, the Standard & Poor's 500 index was down seven points, or 0.4 percent, to 1,683. All 10 industry groups in the S&P 500 fell.

The Dow Jones industrial average dropped 95 points, or 0.6 percent, to 15,461. The Nasdaq composite fell six points, or 0.2 percent, to 3,598.

Before the market opened, Newmont Mining turned in a quarterly loss, largely a result of slumping prices for copper and gold. Analysts had predicted a slight profit. Newmont's stock fell 77 cents, or 2 percent, to $29.25.

Starbucks posted results late Thursday that beat analysts' estimates. Lower costs for coffee beans and better sales of salads and sandwiches helped. Starbucks jumped $4.44, or 7 percent, to $72.61.

It's nearly halftime in the second-quarter earnings season, and corporate profits are shaping up better than some had feared.

Analysts forecast that earnings for companies in the S&P 500 increased 4.5 percent over the same period in 2012, according to S&P Capital IQ. At the start of July, they predicted earnings would rise 2.8 percent. Nearly seven out of every 10 companies have surpassed Wall Street's profit targets.

The stock market hasn't ended the week with a loss since June 21, when speculation that the Federal Reserve would start easing off its support for the economy rattled financial markets.

Kleintop cautioned against reading too much into the drop on Friday or the weekly loss. The S&P 500 is still up 5 percent for the month and 18 percent for the year.

"It's just one week down after four up," he said. "If the market just goes higher and higher week after week, you would see a major swoon when it runs into some disappointing news."

In the market for U.S. government bonds, the yield on the 10-year Treasury note rose to 2.57 percent from 2.48 percent late Thursday.

Long-term interest rates have moved in a wide range since early May as traders tried to anticipate the Fed's next move. The yield hit a recent low of 1.63 percent on May 1, and went as high as 2.74 percent July 5.

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US stocks open lower, dragged down by tech

NEW YORK (AP) — Stocks are getting off to a weak start on Wall Street after more weakness in technology companies.

The early decline Friday is putting the market on track for its first weekly loss this month.

The Dow Jones industrial average fell 75 points, or 0.5 percent, to 15,481 in the first few minutes of trading.

The Standard & Poor's 500 index fell six points, or 0.4 percent, to 1,683. The Nasdaq composite fell 13 points, or 0.4 percent, to 3,592.

Amazon fell 1 percent to $300.60 after reporting a surprise loss late Thursday.

Expedia plunged 27 percent to $47.62 after the online travel agency reported that second-quarter profit fell by one-third and badly missed Wall Street expectations.

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