Oct 28, 2013
NYT | ALERT FGC BOLSA FGC FINANCIAL MARKETS OCTOBER 28, 2013: Reports on Manufacturing and Housing Point to a Stumbling Economy .
|| MY ALERTS|
FGC BOLSA- FGC FIN
Compiled: October 28, 2013 06:08:56 PM
Manufacturing production edged up 0.1 percent in September, while contracts to buy existing homes fell 5.6 percent.
Monday, October 28, 2013
Data Suggests Push to Spy on Merkel Dates to '02
By ALISON SMALE, MELISSA EDDY and DAVID E. SANGER
The administration has seemed uncertain about how to handle the reports concerning the German chancellor, who has enjoyed a close rapport with President Obama.
By RAPHAEL MINDER
Two Spanish newspapers reported that the National Security Agency collected data on 60 million phone calls in the country.
Sinosphere Blog5 People Killed After Vehicle Crashes at Tiananmen Square
By AUSTIN RAMZY
There was no immediate indication of whether the episode, which also injured 38 people, was an accident or a deliberate attack.
For more sports news, go to INYT.com/Sports
DealBook P.M. Edition October 28, 2013: White Collar Watch: Goldman, Feeling Robbed, Still Has to Pay for Accused's Defense
Wall Street at Close Report by MarketWatch October 28, 2013: S&P Up For 8th Day in 9; Dow, Nasdaq Flat.
By Victor Reklaitis, MarketWatch
NEW YORK (MarketWatch) — U.S. stock indexes posted a narrowly mixed finish in choppy trading Monday, with the S&P 500 setting a record high for a second straight session after an industrial-production reading beat expectations but a pending-home-sales gauge missed forecasts.
Investors also are focused on after-the-bell results from Apple Inc. and a Federal Reserve meeting later this week.
The S&P 500 SPX +0.13% rose 2.34 points, or 0.1%, to 1,762.11. Consumer staples and health care were among the best-performing S&P 500 sectors, while utilities and materials lagged. The benchmark slightly extended its record run by topping Friday’s all-time high.
The Dow Jones Industrial Average DJIA -0.01% slipped in late action, giving back 1.35 points, or less than 0.1%, to 15,569.93. Procter & Gamble Co. PG +0.00% and Coca-Cola Co. KO -0.23% led among blue chips, while Merck & Co. MRK -0.13% and United Technologies Corp. UTX +0.18% were laggards.
The Nasdaq Composite COMP -0.08% edged 3.23 points lower, or 0.1%, to 3,940.13. The tech-heavy index got a modest boost from Apple AAPL -2.24% , which rose 0.7%.
Bruce Bittles, chief investment strategist at Robert. W. Baird & Co., said stocks have been supported somewhat by better-than-expected third-quarter earnings, but the primary driver is still the Federal Reserve’s bond-buying program that he predicted “is going to be with us at least through March.”
“I think temporarily the economic data is going to be irrelevant,” Bittles told MarketWatch on Monday, noting the U.S. government shutdown has led to many delayed economic reports. Such issues with the economic data, along with a weak September jobs report, will contribute to the Fed deciding to stay the course with its bond buys during its two-day meeting that ends Wednesday, Bittles added. That fits with the overwhelming consensus among Fed watchers.
“I don’t expect anything of substance or any market-moving rhetoric to come out of the Fed,” Bittles said. He also pointed out that Fed Chairman Ben Bernanke is near the end of his term and therefore unlikely to “rock the boat.”
In addition, the investment strategist sees seasonal patterns helping stocks. Historically, stocks in general have performed well in November and December and rarely have reversed to the downside during those two months, according to a Baird research note out Monday.
“The seasonal patters or cyclicals are certainly in favor of a continuation of this rally into January,” Bittles said.
Meanwhile, analysts at Monex Capital said they see plenty of market drivers in the coming week.
“Optimism over corporate earnings and the fact that there’s no end in sight to the lax monetary policy of the Fed have combined to leave equity traders on the front foot as the new week gets under way,” the analysts said in a note.
“With a hectic week of economic and corporate data from the U.S. on the cards, there’s going to be no shortage of drivers to provide some meaningful direction,” they added.
Apple’s shares fell nearly 3% in after-hours action. After the bell, the company said earnings fell 8.5% in the fiscal fourth quarter but came in higher than Wall Street expected. The company said it shipped 33.8 million iPhone units during the period.
Investors also will zero in on what’s ahead for Apple, whose stocks has gained about 25% since its last quarterly report.
“We believe the core focus will be on December guidance, since Apple already reiterated the high end of its guidance for September ($34-$37 billion in revenue) following the iPhone 5S launch,” said Gene Munster at Piper Jaffray.
Other notable companies reporting earnings on Monday include Merck, Seagate Technology PLC STX -5.50% and Burger King Worldwide Inc. BKW +0.93%
Before the open, Merck posted a drop in third-quarter profit and revenue. The stock traded 2.6% lower in Monday’s session.
Shares of Seagate Technology Inc. STX -5.32% managed a 0.1% gain in Monday’s regular session, but dropped more than 5% in after-hours activity. The company, after the closing bell, said fiscal first-quarter profit and revenue slipped, coming in below consensus forecasts.
Burger King jumped nearly 6% after the fast-food chain posted significantly fewer operating expenses and as same-store sales increased in its international regions.
Among other movers, Bristol-Myers Squibb Co. BMY +6.66% rose 6.7% after the drug maker over the weekend reported “encouraging” Phase 1 results in its trial for lung-cancer drug nivolumab.
Morgan Stanley upped its view on the stock to overweight and said the company “is the leading contender to transform cancer treatment with new drugs that boost the immune system.” J.P. Morgan reiterated its overweight rating.
Loews Corp. L -0.21% slipped 0.2% after the company said third-quarter earnings rose 59%, as its CNA Financial Corp. CNA +2.09% insurance unit increased its revenue from insurance premiums.
In buyout news, Mosaic Co. MOS +0.02% agreed to buy the Florida phosphate business of fellow fertilizer company CF Industries Holdings Inc. CF +0.13% for $1.4 billion in cash. Mosaic rose 1.6%, while CF jumped 4.2%.
In economic news, the latest headline number for industrial production beat expectations, but economists were disappointed with the details of the report. A pending-home-sales gauge missed forecasts, touching its lowest level in nine months.
There were no Fed speakers on tap as the central bank prepares for its policy-setting meeting on Tuesday and Wednesday.
In other financial markets, gold and crude-oil prices rose slightly, while the dollar DXY +0.17% inched higher. Most Asia markets closed higher, but European indexes lost ground.
Victor Reklaitis is a New York-based markets writer for MarketWatch. Follow him on Twitter @VicRek. Sara Sjolin contributed to this report.