Stocks to reopen Wednesday; Disney inks a big deal
Disney will buy Lucasfilm for $4.1 billion. The major exchanges say they can resume normal stock trading on Wednesday. Ford has decent results; GM's earnings are on tap. Apple has a big management shuffle. October may be a loser for investors.
Trading in U.S. stocks will resume Wednesday with the major exchanges planning regular trading hours.
The open will feature market reaction to a blockbuster media deal. Walt Disney (DIS) said late today it will buy Lucasfilm in a $4.05 billion deal. The company will pay half of the purchase price in cash and issue close to 40 million shares at the closing for the balance. Lucasfilm is the production company of Star Wars director George Lucas.
The New York Stock Exchange, American Stock Exchange and Nasdaq system were closed Monday and again today as Hurricane Sandy slammed into New York and New Jersey, causing power outages, flooding and even fires. Some 38 deaths are attributed to the storm. The New York subway system experience widespread flooding in its tunnels.
Gold (-GC) and crude oil (-CL) traded in U.S. markets moved modestly higher. The national average retail price of gasoline fell to $3.534 today, according to AAA's Daily Fuel Gauge Report from $3.543 a gallon on Monday. The price has fallen 6.7% this month.
The market will reopen after struggling last week. The Dow Jones industrials ($INDU) fell 1.8%. The Standard & Poor's 500 Index ($INX) was off 1.5%, and the Nasdaq Composite Index ($COMPX) slipped 0.6%.
Article continues below.When testing of generators and backup systems late Monday and today were successful, the exchanges announced the reopening plans. Prices for stocks index futures trading moved higher in electronic trading today after falling on Monday. European markets were stronger.
There's been some decent data: Personal income was up in September; spending was up more, the government said Monday.
The S&P/Case-Shiller Home Price Index showed prices in 20 major markets rose 2% in August from August 2011, the biggest year-to-year gain in more than two years. The report suggested the housing recovery is advancing solidly.
But several big reports are ahead, especially the Labor Department's big jobs report due Friday.
Wednesday brings the ADP National Employment report and the Chicago Purchasing Managers Index. Thursday's reports include the weekly report on jobless claims and the Institute for Supply Management's U.S. manufacturing index.
When the markets do reopen, there will be some winners. Chief among them will be home-improvement retailers Home Depot (HD) and Lowe's (LOW). Both have been organizing inventory to sell once Sandy dissipates and rebuilding-and-repair efforts begin. Wal-Mart Stores (WMT), Target (TGT) and similar retailers should see more business from the rebuilding.
At the same time, property-casualty insurers are expected to be the losers, facing $5 billion to $10 billion in losses at the least.
|Energy prices -- New York close|
|Tues.||Mon.||Month chg.||YTD chg.|
|Crude oil (-CL)||$85.68||$85.54||-7.06%||-13.31%|
|Heating oil (-HO)||$3.0697||$3.0873||-2.83%||5.34%|
|Natural gas (-NG)||$3.6910||$3.8030||11.17%||23.49%|
|(per mil. BTU)|
|Unleaded gasoline (-RB)||$2.6155||$2.6411||-10.43%||-1.58%|
|(per gallon; AAA)|
GM highlights Wednesday's reports; Ford has a decent quarter
General Motors (GM) reports third-quarter results on Wednesday. It should report decent sales for North America and sizable losses from its European businesses.
GM said today that its northeast U.S. vehicle sales will be hurt by the hurricane, although it did not provide a specific estimate.
Rival Ford Motor (F) reported decent results overall and especially for its North American business, which had its best third quarter even Its European business is struggling. The company announced it is shutting down plants in Belgium and the United Kingdom.
Chrysler CEO Sergio Marchionne assured workers in a company-wide letter that Jeep assembly lines will remain in the U.S. after ads from the Mitt Romney campaign airing in hotly contested Ohio focused on the automaker's supposed desire to move production to China. A Chrysler blog post highlights details on its expansion plan in the U.S.
Also reporting: brewing-giant Anheuser Busch Inbev (BUD); Hyatt Hotels (H); credit-card processors Master Card (MA) and Visa (V), Metlife (MET), Ralph Lauren (RL) and gun-maker Strum, Ruger (RGR).
Apple turmoil may lead to stock gyrations
Apple (AAPL) may have a volatile day after reports that Scott Forstall, a key executive, was asked to leave the company after refusing apologizing for shortcomings in Apple's new mapping service.
The Wall Street Journal said the dispute between Forstall, who had been in charge of Apple's mobile business, led to one of the most significant management shake-ups in Apple's recent history and its most sweeping changes under CEO Tim Cook.
Apple announced Forstall's departure late Monday along with the departure of its new retail chief, John Browett. Sources told the Journal that Browett, who had joined the company only five months ago, was also asked to leave.
Brown's tenure was rocky from the start, The Journal said. A big issue was a new staffing formula that cut some employee hours. Apple may be up 49% for the year, but it's down 14% since peaking at $702.10 on Sept. 19.
A crummy October
Stocks had been struggling before the storm. The Dow is down 2.5% for the month. The S&P 500 is off 2%, and the Nasdaq has dropped off 4.1%.
If the indexes hold at current levels, the indexes will be down for the first time in five months. In the addition, the the Dow will be down for only the second month this year. The S&P 500 and Nasdaq will be down for just the third month.
Twelve of the 30 Dow stocks are higher, led by Travelers Companies (TRV), Bank of America (BAC) and Johnson & Johnson (JNJ). Hewlett-Packard (HPQ), DuPont (DD) and Cisco Systems (CSCO) are the laggards.
Coal-producer Peabody Energy (BTU), Netflix (NFLX) and coal-producer Consol Energy (CNX) are the S&P 500 leaders. Some 336 S&P 500 stocks are up for the month. Advanced Micro Devices, Mondelez International (MDLZ) and F5 Networks (FFIV) are the laggards.
Only 34 stocks in the Nasdaq-100 Index ($NDX) are higher for the month, led by Netflix (NFLX), Sears Holdings (SHLD) and Lam Research (LRSX). For-profit college operator Apollo Group (APOL), F5 Networks and Dollar Tree (DLTR) are the laggards.
|Short hits from the markets -- New York close|
|Tues.||Mon.||Month chg.||YTD chg.|
|13-week Treasury bill||0.1100%||0.110%||22.22%||1000.00%|
|5-year Treasury note||0.761%||0.761%||20.79%||-8.31%|
|10-year Treasury note||1.750%||1.750%||6.90%||-6.47%|
|30-year Treasury bond||2.918%||2.918%||-3.76%||1.00%|
|U.S. Dollar Index||79.987||80.318||-0.05%||-0.66%|
|(in U.S. $)|
|U.S. $ in pounds||£0.622||£0.624||0.50%||-3.37%|
|Euro in dollars||$1.30||$1.29||0.92%||0.12%|
|(in U.S. $)|
|U.S. $ in euros||€ 0.771||€ 0.775||-0.91%||-0.12%|
|U.S. $ in yen||79.81||79.80||2.36%||3.51%|
|U.S. $ in Chinese||6.26||6.24||-0.31%||-1.02%|
|(in U.S. $)|
|(in Canadian $)|
|(per troy ounce)|
|(per troy ounce)|
|Crude oil (-CL)||$85.68||$85.540||-7.06%||-13.31%|
seeing how it's post-Sandy time, and pre-election time, how about we all give some whole blood?
it's my low budget health program. i dump a pint every 2 or 3 months. i know whatever cholesterol i might have is deleted from MY body and the next guy likely will not be in a position to fuss about getting it.....
seriously. give blood!
God Bless America...and People, if you have only learned
one thing from all the organized religions, its the ultimate
commandment- TAKE CARE OF EACH OTHER.
Have you given to Red Cross, earmarked "Sandy" yet?
Please do. Thank you.....
I am going in the business to sell ink to the tattoo parlor....
Yes, Obama is promoting teens with tatto to have sex with someone who has 'OBAMACARE" and will provide the "morning after pill"...........and then what will happened.......YOU WILL PAY FOR IT....
Well said 4Love.....People should help the needy get back on their feet.
I am not saying the Federal Government shouldn't get involved with a major disaster but we don't need them most of the time, so why support a permanent bloated federal agency like FEMA that sucks taxpayer dollars year round.
We have many private organizations, the Nation Guard, Churches and mostly private citizens helping their neighbors.
I went through a major flood in 1999.....and what I witnessed with FEMA was a major waste of taxpayers money.
My Grandson is in Brooklyn for the last 6 months....
Said he is doing okay, flooding and some trees down.
But he comes from tough stock..And the Midwest.
What happened to the Liberal HERO..........Obummer who promised to lower the ocean level.,..........
Oh Yeah, Oh Yeah, he prefers to take care of the Libs/Dems NewYorkers than the BENGHAZI AMBASSADOR AND THE OTHER AMERICANS WHO HIS MAJESTY LET HIS BROTHERS ....THE MUSLIMS KILLED OUR FELLOW CITIZENS...
IN OTHER WORDS...........WHAT CAN THE STUPID O'BUMMER DO AGAINST MOTHER NATURE.........??????????
Yeah I seen the Red Cross calling for blood, think it might be "modus operandi" anytime a disaster strikes.....In the U.S. or nearby....But they can always use it..
Heart patient, but got my 3 gallon pin before I quit giving....
Mom got me started when I was young....One of her passions, Red Cross.
We see so much maligning in the world, in politics, in the way we treat each other, but the real foe at times in mother nature herself...this is where we need to expend our energy and come together as a "planet"...we never know when we will need each other. Michael
Looking at the Dow, Dec Daily Chart, the 20 day moving average is down another 19 points, it's been averaging about 18 per day. Both the top and bottom Bollinger Bands are now falling, indicating price should fall. What I see from the formation, it hasn't made much of a Wave 4, should at least retrace to 13,155 (38%) before falling. Commodity Channel is rising, maybe today it will retrace upward.
Trend is still a SELL, according to formation is ready for Wave 5 downward.
Dec Daily Chart in Crude Oil, the 20 day moving average conitunues to fall and both the Daily & Monthly Bollinger Bands are diverging, meaning Oil is definitely in a SELL posture.
FEMA: Federal Emergency Management Agency.
AMEA: American Military Emergency Assistance.
We don't always need an Agency whose sole function is Emergency Management. We do need some functional assistance in emergency situations. I dealt with a Business Proposal once that focused on Emergency Preparedness by maintaining certain generalized equipment where it might see regular or frequent use, thereby be updated by necessity rather than antiquity. The Phase II and III equipment is regionally based along with trained personnel. The "team" the entity put together all had military and/or emergency experience. It seems to me that we would be wrong to eliminate FEMA but more fiscally responsible to incorporate it as AMEA into another fiscal area and work to keep it streamlined and efficient.
good old Rush Limbaugh spending his morning talking about New Jersey as if they are all "1 percenters" along the beach.
having grown up in the area, the regions hit are FAR from the "1 percenters".
he's once again showing extreme ignorance. he'll first declare these beach area people as "1 percenters", be unchallenged in his show, and proceed to spout off as if he knows what he's talking about.
saddly, much of the nation - especially the midwest - are so far removed from his areas of topics they simply take his word and form their opinions based on his word.
and so 'ditto heads' are born and nurtured.
Why is the man such a habitual liar...And flip flops continually...Always changes to the populist side at the drop of hat...
Never seems to have a true direction or even a path to follow...
I don't really care for either person running for President or Re-election.
But what's worst how can anyone except what Romney really stands for or even know ???
NO REPUBLICANS. Don't vote them in, vote the ones in-- OUT.
I agree that October may be a bad month for investors. No good news with do nothing Congress but please explain this to me somebody. I have a question about race relations. The year is 2012. We have an intelligent black President. We have young white girls with black boyfriends. We have Pell grants, opportunity in the military, opportunity to attend community college or college, freedom to travel, freedom to start a business. We have hope. Just why is it that every time we have a natural disaster be it LA Riots, flooding of New Orleans, this Hurricane, you always see black faces looting, stealing and assaulting police officers? What does this say about 2012 and how far we still have to go before we are all on the same page and respecting one another? Religion seems to have failed. The GOP lost the drug war, failed to enforce our borders, failed to control the emergence of gangs and organized crime. What can we do to get the message across to those who would commit such crimes that we are tired of it all? Move forward.
THANK YOU B of A . Maybe its not too late to infuse corporate America with a conscience.
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[BRIEFING.COM] S&P futures vs fair value: flat. Nasdaq futures vs fair value: +4.00. U.S. equity futures are little changed ahead of a barrage of economic data that includes the initial claims and second estimate for Q3 GDP reports at 8:30 a.m. ET. Both the ECB and the Bank of England left their key lending rates unchanged at 0.25% and 0.50%, respectively, as expected. The S&P futures are trading close to fair value, suggesting a relatively flat start for the cash ... More
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