U.S. stocks traded sideways in the morning trading with commodities advancing. Lingering worries over budget deficits at smaller nations in Europe kept the euro under pressure. U.S. Fed is expected to offer its plan to unwind several debt programs this week. CIT appoints new chief executive.
10:40 AM New York – U.S. stocks traded sideways in the morning trading with commodities advancing. Lingering worries over budget deficits at smaller nations in Europe kept the euro under pressure. U.S. Fed is expected to offer its plan to unwind several debt programs this week. CIT appoints ex-Merrill Lynch chief as its new leader.
U.S. stocks edged lower as investors focuses on the sovereign budget problems in Europe.
Over the weekend the finance ministers from the Group of Seven met near the Arctic Circle to discuss the global economic status. Ministers did not make any public announcements but left it to Europe to develop a plan to deal with the budget deficits of Spain, Greece and Portugal.
Dollar Advances
The dollar continued its advance of the last four weeks against the euro. One euro fetched $1.36 and one dollar traded at 89.335 yen.
Crude oil futures increased 7 cents to $71a barrel and natural gas futures increases 8 cents a share to $5.59 per mBtu.
Gold rebounded in the early trading by $11.30 to $1,064.50 an ounce. Metals across the board traded higher in the morning with copper edging up 0.5%.
Fed Prepares Credit Curb Plans
Yields on 10-year U.S. bonds edged higher to 3.58% and 30-year bond traded at 4.52%.
Federal Reserve is expected to lay out a plan this week to unwind several special credit program laid out during the last two years and may increase interest rate it pays to the excess reserve deposits with the bank. At present the central bank pays 0.25% interest rate on such deposits from commercial banks.
Stock Movers
Hasbro, Inc increased 12.4% to $34.58 after it reported fourth quarter earnings increased 77% and said that earnings are likely to grow this year.
CVS Caremark Corporation added 5.7% to $32.86 after it posted fourth quarter earnings increased 10% on better than expected pharmacy sales.
CIT Group Inc increased 3.5% to $31.81 after the commercial lender appointed as its new leader ex-Merrill Lynch chief John Thain.
Earnings Review
Xstrata plc, the mining company said full-year revenues fell 19% to $22.7 billion from $28 billion a year ago. Net profit for the full-year fell 82% to $661 million or $0.25 per diluted share compared to net profit of $3.6 billion or $2.12 per share a year ago.
Asian Markets Review
The Nikkei 225 Index in Tokyo closed lower 105.27 or 1.05% to 9,951.82, and Hang Seng index in Hong Kong decreased 114.19 or 0.58% to 19,550.89, and CSI 300 index in China lower 2.10 or 0.07% to 3,150.99. ASX 200 index in Australia increased 7.30 or 0.16% to 4,521.40. The FTSE Bursa KL Composite index in Malaysia was lower 12.68 or 1.02% to 1,235.22.
The Kospi Index in South Korea decreased 14.33 or 0.91% to close at 1,552.79. SET index in Thailand closed lower 3.32 or 0.48% to 688.09. JSE Index in Indonesia decreased 43.40 or 1.72% to 2,475.57. The Sensex index in India increased 19.96 or 0.13% to 15,935.61.
