Jul 10, 2013
Bank of Japan ups economic view but trims forecast LOS ANGELES (MarketWatch) -- The Bank of Japan left it policy unchanged Thursday, while cutting its inflation and economic forecasts from its April projections but using slightly more upbeat language in its assessment of the economy. The central bank's median forecast for core inflation in the fiscal year ending in March 2014 eased to a 0.6% rise in prices from a 0.7% rise tipped in April, while the real economic growth estimate slipped to 2.8% from 2.9%. Likewise, for the 2014-15 fiscal year, the core consumer price index was expected to rise 3.3%, down from April's 3.4% forecast, with growth at 1.3% compared to 1.4% previously. However, the bank also said the economy was "starting to recover moderately" after saying in June that it was "picking up," and its description of exports went from having "started to pick up" to "have been picking up." The yen drove higher following the decision, as the dollar bought 98.60 yen, down from 99.09 yen ahead of the announcement. ago
Asia stocks rise after Bernanke’s remarks Asian stocks rally after Federal Reserve Chairman Ben Bernanke says U.S. interest rates will remain low to aid economic recovery, with oil producers and gold miners posting strong gains on an increase in commodity prices.
July 10, 2013
Compiled 20:45 GMT
Compiled 20:45 GMT
By ERIC SCHMITT
A drone base established in February to track militants in Mali is the latest indication of the priority Africa has become for the United States, but the strategy has limitations.
By BRIAN X. CHEN and JULIE BOSMAN
A judge in federal court Wednesday held that the company had violated antitrust law in helping set the retail price of electronic books, and said a trial for damages would follow.
By DAVID D. KIRKPATRICK and RICK GLADSTONE
Warrants for the top spiritual figure in the Muslim Brotherhood and nine others reflected a widened crackdown by the military-led interim government.
By VIVEK SINGH
A series of award-winning photographs chronicle the ethnic violence that broke out in the Kokrajhar district of Assam in the summer of 2012.
By ROBERT F. WORTH
Three of the Persian Gulf's richest monarchies have pledged $12 billion in cash and loans to Egypt, aiming to shore up a shaky government.
By ANDREW HIGGINS
Restrictions on the flow of capital have given some Cypriots the feeling that not all euros are created equal, raising a crucial question: Is the euro zone already starting to break up?
By NIKI KITSANTONIS
The country's two largest unions called a general strike for Tuesday to protest the latest round of austerity measures.
Wednesday, July 10, 2013
U.S. stocks end flat as jury out on Fed moves: Wall Street at Close Report by MarketWatch; July 10,2013.
By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) — U.S. stocks ended little changed on Wednesday after minutes from the Federal Reserve’s last meeting had multiple members looking for more improvement in the labor market before cutting the pace of central-bank bond purchases.
“It’s exactly in line with what the Fed has been telling us: we’re going to monitor the situation,” said JJ Kinahan, chief strategist at TD Ameritrade.
“Everyone was hoping they could read something into the minutes, but when the Fed board themselves are so divided on what the next plan should be, the market can’t read anything into it” with certainty, he said.
The official record showed about half of the Fed’s 19 senior officials said they would support ending the central bank’s monthly purchase of $85 billion in bonds by year-end. “Many” other members said asset purchases would likely be needed into 2014.
“You basically had a split ticket,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott.
“We’ve had so many positive days in a row without any real news, so the market seems vulnerable to some profit taking, or to rest,” said Luschini.
Snapping a four-session winning run, its longest in more than two months, the Dow Jones Industrial Average DJIA -0.06% fell 8.68 points, or less than 0.1%, to end at 15,291.66.
Hewlett-Packard Co. HPQ +1.81% paced blue-chip gains that included 13 of the Dow’s 30 components after Citigroup upgraded the PC maker.
The S&P 500 index SPX +0.02% gained less than half a point to 1,652.62, with financials the heaviest weight and health care the best performing of its 10 big sectors.
A day after closing at a more-than 12-year high, the Nasdaq Composite COMP +0.47% climbed 16.50 points, or 0.5%, to 3,520.76.
Advancers edged just ahead of decliners on the New York Stock Exchange, where nearly 671 million shares traded.
Composite volume neared 3 billion.
At a press conference following the June 18-19 meeting, Federal Reserve Chairman Ben Bernanke said the central bank could start reducing its $85 billion in monthly bond purchases later this year. See preview.
“I think Chairman Bernanke thought he was misunderstood; I don’t think they expected the selloff after the last announcement,” said Jack Ablin, chief investment officer at BMO Private Bank, referring to the near 5% drop in the S&P 500 SPX +0.02% that followed the Fed chief’s comments.
Bernanke will speak at a conference late Wednesday to discuss the Fed’s first 100 years, with a question-and-answer session to follow. The speech will begin shortly after Wall Street’s regular session closes.
The dollar index DXY -0.73% retrenched from a three-year high and the yen USDJPY -0.9430% climbed as the Bank of Japan began a two-day session, with the BOJ expected to leave its bond-purchasing program as is.
The yield on the 10-year Treasury note 10_YEAR +1.82% rose to 2.681% following the government auction of $21 billion of the securities.
On the New York Mercantile Exchange, crude-oil futures for August delivery CLQ3 +2.48% rose 2.9% to $106.52 a barrel, their highest level since March 2012. Government data on Wednesday had supplies falling far more than expected last week
Apple ruling explained in 90 seconds
A federal judge found that Apple colluded with five major U.S. publishers to artificially drive up the prices of e-books in the months ahead of its entering the market in 2010. WSJ law reporter Ashby Jones explains the ruling
Apple ruling explained in 90 seconds
A federal judge found that Apple colluded with five major U.S. publishers to artificially drive up the prices of e-books in the months ahead of its entering the market in 2010. WSJ law reporter Ashby Jones explains the ruling.
The government on Tuesday hiked its oil-price prediction for the year, estimating an average $94.65 a barrel, up from a June forecast of $93.25.
Gold futures for August delivery GCQ3 +0.44% rose for a third session to close at $1,247.40 an ounce on the Comex. The metal price has rebounded in recent sessions after hitting a near-three-year low at the end of June.
“We had a little reversal of fortune today; the positive drumbeat stopped,” said Ablin, referring to the four-session stretch of gains that had the S&P 500 index on Tuesday closing within 1% of its all-time record.
“I think investors are reacting to disappointing trade numbers from China,” said Ablin of the unexpected June contraction in China’s exports and imports. “At the same time, they just posted higher inflation, so it gives China’s central bank less flexibility to ease. Getting caught between lower-than-expected results and higher-than-expected inflation is not a great place to be if you’re a central banker,” Ablin added.
Family Dollar Stores Inc.’s FDO +7.11% shares gained 7.1% after the discount retailer reported quarterly earnings that beat estimates.
Fastenal Co. FAST -2.82% shares fell 2.8% after the maker of fasteners, bolts and other construction supplies reported quarterly revenue that fell short of estimates.
Kate Gibson is a reporter for MarketWatch, based in New York.
July 10, 2013
By JONATHAN WEISMAN
A bipartisan Senate coalition blocked a Democratic proposal to retroactively cut interest rates on higher education loans in half, leaving any student loan rescue in doubt.
By JEREMY W. PETERS
Three Republicans voted for the bill, which has been debated in one form or another for more than a decade in Congress but has never passed the Senate.
Stocks Close Narrowly Mixed, Dow Snaps 4-Day Win Streak: Wall Street at Close Report by CNBC; July 10, 2013.
Stocks finished largely unchanged in lackluster trading Wednesday as investors largely shrugged off the minutes from the Federal Reserve's latest meeting that showed policymakers wanted further evidence of a sustainable jobs recovery before scaling back its bond purchases.
|DJIA||Dow Jones Industrial Average||15291.66||-8.68||-0.06%|
|SaP 500||SaP 500 Index||1652.62||0.30||0.02%|
|NASDAQ||Nasdaq Composite Index||3520.76||16.50||0.47%|
The Dow Jones Industrial Average finished slightly lower, snapping a four-day win streak. American Express and Bank of America led the Dow laggards.
The S&P 500 and the Nasdaq closed narrowly mixed. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 14.
Among key S&P sectors, health care held modest gains, while financials dragged.
Best Stocks Under $10
Paul Hickey, Bespoke Investment Group, discusses his firm's new list of the top Russell 3000 stocks trading under $10 a share.
The meeting minutes from the Fed's latest policy meeting showed that even as consensus built within the central bank about the likely need to begin pulling back on economic stimulus measures soon, many policymakers wanted more reassurance the employment recovery was on solid ground before a policy retreat. "Several members judged that a reduction in asset purchases would likely soon be warranted," the minutes said. But they added that "many members indicated that further improvement in the outlook for the labor market would be required before it would be appropriate to slow the pace of asset purchases." Fed Chairman Ben Bernanke is scheduled to speak shortly after the market close from the National Bureau of Economic Research conference. His topic will be "The First 100 Years: A Century of U.S. Central Banking: Goals, Frameworks, Accountability." (Read More: Is Small-Cap Stock Rally Signaling It's Time to Buy?) "There's no reason to think Bernanke is going to be showing his hand right now," said Brian Edmonds, head of interest rates at Cantor Fitzgerald. In earnings news, Family Dollar soared after the retailer edged past earnings expectations and raised its outlook for the year. Rivals Dollar General and Dollar Tree also rallied. On the downside, Nabors Industries tumbled to lead the S&P 500 laggards after the oil services provider said its second-quarter profit would fall short of Wall Street estimates, pointing to tougher competition and fewer rentals of its rigs. At least three brokerages slashed their price target on the company. Yum Brands is slated to post earnings, while Chevron is expected to give an interim update on its results after the closing bell. Analysts expect S&P 500 earnings to grow 2.6 percent in the second quarter from a year ago, while revenue is forecast to increase 1.5 percent from a year ago, according to the latest data from Thomson Reuters. (Read More: Amid Mediocre Earnings, Invest Here: Bob Doll) Hewlett-Packard rallied after Citigroup upgraded its rating on the tech giant to "buy" from "sell," pointing to increasing benefits from cost savings in the second half of the year, as well as increasing momentum from HP's services segment. Best Buy declined after Cleveland Research said the consumer electronics chain's domestic comparable store sales appear to be slowing and that fundamentals remain challenging. Apple edged lower after a federal judge ruled that the iPhone maker conspired to raise the retail prices of e-books, and said a trial for damages will follow.
On the economic front, wholesale inventories declined 0.5 percent in May, falling by the most in over a year and a half, according to the Commerce Department. Economists in a Reuters survey forecast inventories to rise 0.3 percent versus an increase of 0.2 percent in April. However, sales were stronger than expected, rising 1.6 percent. And weekly mortgage applications dropped last week as the surge in interest rates pushed borrowing costs to their highest level in two years, according to the Mortgage Bankers Association. "The housing market's improving, consumer balance sheets are being repaired and corporate balance sheets are strong," noted Goldman. "But there are still negative overhangs—Europe's still not fixed, there's been bad news from China and there are geopolitical risks everywhere. We think while the market's had a nice run, we'll see increased volatility for the rest of the year." Treasury prices held their losses after the government auctioned $21 billion in 10-year notes at a high yield of 2.670 percent. The bid-to-cover, an indicator of demand, was 2.57, versus the recent average of 2.84. Meanwhile in China, the Shanghai Composite rallied after dismal exports data for June piqued hopes that the People's Bank of China could ease monetary policy in order to boost growth. "My base line is that there is no export growth in China this year, at least until we see a pick from the G-3 economies begin to materialize," said Tim Condon, head of research for Asia with ING Financial Markets. In Europe, the euro recovered after tumbling to a three-month low against the dollar following Italy's downgrade by credit ratings agency S&P on Tuesday. Italy's government debt is now rated two notches above "junk" status, at BBB.—By CNBC's JeeYeon Park (Follow JeeYeon on Twitter: