South African stocks were flat in early trade on Wednesday on the back of a fairly flat session in Asia, a local equities trader said.
At 9.16am the JSE all share index had edged up 0.14 percent, with resources easing 0.15 percent and gold miners and platinum producers collecting 0.61 percent and 0.33 percent respectively. Banks put on 0.22 percent, financials were up 0.34 percent and industrials moved 0.35 percent higher.
The rand was bid at R7.37/$ from R7.35/$ just before the JSE closed on Tuesday. Gold was quoted at $1 059.02/oz from $1 059.05/oz just before the JSE's last close, and platinum was at $1 356.50/oz, from $1 344.50/oz at its previous close.
"The market is flat this morning. The East had a fairly negative day. Some stocks in Asia were down and that drove the eastern markets into negative territory," the trader said.
"However, the metals are not looking too bad and the rand has weakened, so that might support our market and keep us positive for at least the morning," he said.
Dow Jones Newswires reports that US stocks fell on Tuesday, weighed down by disappointing third-quarter revenue from DuPont and Coca-Cola, while worse-than-expected data on home building and building permits hurt Home Depot and other housing-related companies.
The weak economic data and revenue stalled the market's excitement from Monday, when the DJIA and S&P 500 both closed at new 2009 highs on anticipation of strong earnings reports.
Earnings have been coming in largely above estimates, but investors have gotten more critical of companies that haven't posted revenue above forecasts as they look to justify the DJIA's nearly 55 percent jump over the past seven months.
On Tuesday, the Dow fell 50.71 points, or 0.5 percent, to 10041.48.
Boeing was its worst performer, falling 1.56, or 2.9 percent, to 51.89, after Morgan Stanley cut its investment rating on the aerospace giant's shares to underweight from equal weight, citing concerns about technical challenges for the 787.
Home Depot, DuPont and Coca-Cola were among the Dow's other big decliners. Home Depot slid US66c, or 2.4 percent, to 26.97, amid the housing data.
DuPont, which posted a better-than-expected 11 percent rise in profits but an 18% drop in net sales, fell US75c, or 2.2 percent, to 33.87. Coca-Cola tumbled US72c, or 1.3 percent, to 54.07, after posting a 4 percent slide in revenue, although its earnings excluding items exceeded Street estimates.
The market's reaction to the earnings reports on Tuesday "may well be a sign that the market's already priced for all the good news there is out there and then some," said David Rosenberg, chief economist and strategist at wealth management firm Gluskin Sheff.
"There is very little margin for error in the market as it's priced right now."
Still, Caterpillar kept the Dow's declines in check as it jumped 1.76, or 3 percent, to 59.61, after exceeding third-quarter profit expectations by a wide margin and saying it is preparing for a recovery that could be "rapid". The stock reached a new 52-week high during intraday trading.
Apple also set a new 52-week high on Tuesday after the maker of computers and electronic devices reported a 47 percent jump in quarterly profits, led by better-than-expected sales of iPhones, Macintosh computers and iPods.
The Nasdaq-listed stock closed up 8.90, or 4.7 percent, at 198.76, helping keep the technology-heavy Nasdaq Composite's decline in check.
The Nasdaq fell 12.85, or 0.59%, to 2163.47 on Tuesday, while the S&P 500 slipped 6.85, or 0.62 percent, to 1091.06.
Asian shares are falling modestly on Wednesday, with BHP Billiton down in Sydney despite a solid first-quarter production update.
In Japan, the Nikkei ended flat and Hong Kong's Hang Seng was last down 0.1 percent.
European bourses are likely to open mixed as markets continue to pause while investors reflect on the potential for more upside during this earnings season.
Among equity movers on the JSE, Anglo American declined R1 to R277 and BHP Billiton weakened 80c to R221.20.
Petrochemicals group Sasol gave up R2.23 to R311.57.
Gold miner AngloGold Ashanti eased 13c to R325.50, but Gold Fields was up R1.74, or 1.67 percent, to R105.74 and Harmony collected 57c to R85.50.
Platinum miner Angloplat put on R2.81 to R675.81, Impala Platinum was up 36c to R166.36 and Lonmin collected 33c to R209.53.
Among industrials on the JSE, brewer SABMiller added R2.18, or 1.09 percent, to R202.80.
Banking group Standard Bank edged up 51c to R102.20, but Absa weakened 75c to R130.
Sugar group Illovo shed R1.65, or 4.62 percent, to R34.10.
Among retailers, JD Group was up 82c, or 1.83 percent, to R45.57 and Clicks put on 83c, or 3.64 percent, to R23.65.
Pick n Pay collected 21c to R39.71. It earlier reported headline earnings per share (HEPS) for continuing operations for the six months ended August 2009 of 100.30c, up 11.1 percent from the 90.31c reported last year.
Diluted HEPS from continuing operations amounted to 98.85c from 89.76c and diluted HEPS 84.64c from 80.53c before.
The group declared an interim dividend per share of 39.75c for Pick n Pay Stores (+11.2 percent) and 19.31c for Pick n Pay Holdings (+10.6 percent).
Operating profit at R927.8-million was 35.9 percent above last year, and included a profit on the sale of certain properties of R190.9-million.
Turnover for the Pick n Pay group for the period increased 12.3 percent to R26.6-billion.
Construction group Basil Read added 28c, or 1.63 percent, to R17.48.
Telecommunications group Telkom weakened 12c to R44.08, but Vodacom added 65c, or 1.22 percent, to R53.90.
